Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Transactions and Use Tax Annotations


Annotation 802.0010

802.0010 Incorporation of Statutory Provisions by Reference. A city ordinance levying a district tax incorporates the provisions of Part 1.6 of the Revenue and Taxation Code, including, but not limited to, section 7261 and 7262, by reference "as they are written now and as they may later be amended." The city seems to have used section 7262.2 as a pattern for this phrase. Does adopting the provisions of sections 7261 and 7262 by reference meet the statutory requirement of including the provisions "in substance" in the ordinance?

Under the principles of "adoption by reference," the adopting statute is deemed to set forth the statute being adopted in full as it reads on the date the adopting act was enacted. Amendments to the statute being adopted (or even complete repeal) are not automatically adopted into the referring statute without saving language such as "as it now reads or may hereinafter be amended." Section 7262.2 shows the Legislature favors adoption by reference, making it automatic in the case of districts. Thus, we conclude that incorporation by reference does meet the requirement that a district tax ordinance contain the provisions of sections 7261 and 7262 "in substance." 4/28/04. (2005–2).