Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Uniform Local Sales and Use Tax Annotations

700.0000 APPLICATION OF TAX—Regulation 1803

Annotation 700.0230

700.0230 Transfer of Funds to Local Agency. Under section 7204, local tax revenue collected by the Board must be transmitted to the conforming jurisdiction from whose tax it was derived. The Board cannot enter into agreements with an agency and a city to split the revenues derived from the agency's tax between the agency and city.

Under the local tax scheme, the Board contracts with each conforming agency to administer and enforce its tax and cannot contract to administer two taxes under one agreement. Thus, the Board could not agree to collect the tax on behalf of one agency yet give the revenue to another. It can only agree to transmit the revenues to the agency imposing the tax. However, what the agency does with the money after the revenue is transmitted is its business. 12/17/93.