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
The new rate applies to all taxable charges except for certain fixed-price contracts
and leases, as discussed below.
- Are a retailer in Avalon and your merchandise is sold and delivered within
- 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.
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.
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.