Sales and Use Tax Rate in the City of Avalon Will Increase on October 1, 2000 - Important and Special Notices 2000

Sales and Use Tax Rate in the City of Avalon Will Increase on October 1, 2000

On October 1, 2000, the sales and use tax rate within the city limits of Avalon will increase from 8.25 percent to 8.75 percent. This new tax rate reflects the statewide 7.25 percent rate, two Los Angeles County Transportation Commission District taxes at 0.50 percent each (LATC) and (LACT), plus 0.50 percent for the new voter-approved Avalon Municipal Hospital and Clinic Transactions and Use Tax (AMHC).

Who must apply the new tax rate?
You must apply the new 8.75 percent tax rate if you

  • Are a retailer in Avalon and your merchandise is sold and delivered within the city.
  • Are a retailer located outside Avalon who is engaged in business in the city and you sell merchandise for use in the city. You are considered to be engaged in business in the city if you (1) have any type of business location there, (2) deliver into the city using your own vessels, aircraft, or other facilities, or (3) have an agent or representative in the city who makes sales, takes orders, or makes deliveries for you.
  • Are a dealer of vehicles, vessels, or aircraft, and you sell those items which are registered to an address located in Avalon.
  • Collect tax on lease payments you receive for leased property used by the lessee in Avalon.
The new rate applies to all taxable charges except for certain fixed-price contracts and leases, as discussed below.

Note: Avalon is located in Los Angeles County, on Santa Catalina Island. The tax rate in areas of the island outside the city limits of Avalon will remain at 8.25 percent.

Is there an exemption from the tax rate increase?
In general, fixed-price contracts and fixed-price lease agreements entered into prior to October 1, 2000, are subject to the tax rates in effect at the time you and your customer entered into the contract. To qualify as "fixed-price," neither party can have the unconditional right to terminate the contract or lease [Revenue and Taxation Code, sections 7261(g) or 7262(f)]. In addition, the tax amount or rate must be specifically stated in the contract or lease agreement. If the contract or lease qualifies as fixed-price, you should continue to report and remit the specified tax rate - that is, the rate in effect at the time you entered into the contract.

Are tax rate charts available for this new 8.75% rate?
You can call 800-400-7115 to request copies or you can download copies from our website, www.boe.ca.gov/sutax/streimsched.htm.

  • For More Information

If you have any questions regarding this notice, please call our Information Center at 800-400-7115. Staff are available from 8:00 a.m. to 5:00 p.m., Monday through Friday, excluding State holidays.