Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Uniform Local Sales and Use Tax Annotations

700.0000 APPLICATION OF TAX—Regulation 1803

Annotation 700.0150

700.0150 Increases in City Sales Tax Rates. The increase of a city's Bradley-Burns Uniform Local Sales and Use Tax rate pursuant to a "revenue sharing" agreement with the county is not a tax "increase" requiring voter approval under Proposition 218. The county ordinance sets the local tax rate at 1.25 percent. Under a revenue sharing agreement between a city and the county, the city local tax ordinance operates as a revenue adjustment rather than as a tax-levying ordinance. As the city rate offsets the county rate, the overall Bradley-Burns Uniform Local Sales and Use Tax rate remains the same. Consequently, in the event a city's tax-rate agreement with its county provides for an increase in its local tax rate in a particular year, that increase does not need to be approved by the voters. 2/16/05. (2006–1).

(Note: During the pendency of the Triple Flip (Revenue and Taxation Code section 7204, operative 7/1/04), the local tax rate is reduced from 1.25 percent to 1 percent.)