Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Transactions and Use Tax Annotations

805.0000 COLLECTION OF TAX BY RETAILERS—Regulation 1827

Annotation 805.0167

805.0167 San Diego County District Use Tax Credit. Although the tax rate in effect in San Diego County continues to be 7.75%, an eligible taxpayer (which includes a retailer collecting district use tax) may claim a credit of 0.75% against its tax liability for an effective rate of 7.00%. (Section 7276(a).) The credit may be taken until the Board notifies taxpayers that the credit is terminated. (Section 6276(d).) Thus, for contracts in effect at the time the tax credit became operative, taxpayers should have ceased to collect sales tax reimbursement or use tax at the full rate and only collect 7.00%. It would be appropriate for contracts currently being negotiated to provide for a full tax rate 7.75% but also that only 7.00% will be collected from the customer until the credit is ended and the full rate after that time. 6/30/95.