7261. The transactions tax portion of any transactions and use
taxes ordinance adopted under this part shall be imposed for the
privilege of selling tangible personal property at retail, and shall
include provisions in substance as follows:
(a) A provision imposing a tax for the privilege of selling
tangible personal property at retail upon every retailer in the
district at a rate of one-quarter of 1 percent, or a multiple
thereof, of the gross receipts of the retailer from the sale of all
tangible personal property sold by that person at retail in the
district.
(b) Provisions identical to those contained in Part 1 (commencing
with Section 6001), insofar as they relate to sales taxes and are not
inconsistent with this part, except that the name of the district as
the taxing agency shall be substituted for that of the state and
that an additional transactor's permit shall not be required if a
seller's permit has been or is issued to the transactor under Section
6067.
(c) A provision that all amendments subsequent to the effective
date of this part to Part 1 (commencing with Section 6001) relating
to sales tax and not inconsistent with this part shall automatically
become a part of the transactions and use taxes ordinance. However,
no amendment shall operate so as to affect the rate of tax imposed by
the district's board.
(d) A provision that the amount subject to tax shall not include
the amount of sales tax or use tax imposed by the State of California
or by any city, city and county, or county pursuant to the
Bradley-Burns Uniform Local Sales and Use Tax Law, or the amount of
any state-administered transactions or use tax.
(e) A provision that there are exempted from the tax the gross
receipts from the sale of tangible personal property, other than fuel
or petroleum products, to operators of aircraft to be used or
consumed principally outside the county in which the sale is made and
directly and exclusively in the use of the aircraft as common
carriers of persons or property under the authority of the laws of
this state, the United States, or any foreign government.
(f) A provision that sales of property to be used outside the
district which are shipped to a point outside the district, pursuant
to the contract of sale, by delivery to that point by the retailer or
his or her agent, or by delivery by the retailer to a carrier for
shipment to a consignee at such point, are exempt from the tax.
For purposes of this section, "delivery" of vehicles subject to
registration pursuant to Chapter 1 (commencing with Section 4000) of
Division 3 of the Vehicle Code, aircraft licensed in compliance with
Section 21411 of the Public Utilities Code, and undocumented vessels
registered under Division 3.5 (commencing with Section 9840) of the
Vehicle Code shall be satisfied by registration to an out-of-district
address and by a declaration under penalty of perjury, signed by the
buyer, stating that the address is, in fact, his or her principal
place of residence.
"Delivery" of commercial vehicles shall be satisfied by
registration to a place of business out of district and a declaration
under penalty of perjury, signed by the buyer, that the vehicle will
be operated from that address.
(g) A provision that the sale of tangible personal property is
exempt from tax if the seller is obligated to furnish the property
for a fixed price pursuant to a contract entered into prior to the
operative date of the ordinance. A lease of tangible personal
property which is a continuing sale of that property is exempt from
tax for any period of time for which the lessor is obligated to lease
the property for an amount fixed by the lease prior to the operative
date of the ordinance. For the purposes of this subdivision, the
sale or lease of tangible personal property shall be deemed not to be
obligated pursuant to a contract or lease for any period of time for
which any party to the contract or lease has the unconditional right
to terminate the contract or lease upon notice, whether or not that
right is exercised.
7262. The use tax portion of any transactions and use tax ordinance
adopted under this part shall impose a complementary tax upon the
storage, use, or other consumption in the district of tangible
personal property purchased from any retailer for storage, use, or
other consumption in the district. The tax shall be at a rate of
one-quarter of 1 percent, or a multiple thereof, of the sales price
of the property whose storage, use, or other consumption is subject
to the tax, and the ordinance shall include provisions in substance
as follows:
(a) Provisions identical to those contained in Part 1 (commencing
with Section 6001), insofar as they relate to use taxes and are not
inconsistent with this part, except that the name of the district as
the taxing agency shall be substituted for that of the state. The
name of the district shall be substituted for the word "state" in the
phrase "retailer engaged in business in this state" in Section 6203
and in the definition of that phrase.
The following additional provisions shall be included:
(1) Except as provided in paragraph (2), a retailer engaged in
business in the district shall not be required to collect use tax
from the purchaser of tangible personal property, unless the retailer
ships or delivers the property into the district or participates
within the district in making the sale of the property, including,
but not limited to, soliciting or receiving the order, either
directly or indirectly, at a place of business of the retailer in the
district or through any representative, agent, canvasser, solicitor,
subsidiary, or person in the district under the authority of the
retailer.
(2) "A retailer engaged in business in the district" shall also
include any retailer of any of the following: vehicles subject to
registration pursuant to Chapter 1 (commencing with Section 4000) of
Division 3 of the Vehicle Code, aircraft licensed in compliance with
Section 21411 of the Public Utilities Code, or undocumented vessels
registered under Division 3.5 (commencing with Section 9840) of the
Vehicle Code. That retailer shall be required to collect use tax from
any purchaser who registers or licenses the vehicle, vessel, or
aircraft at an address in the district.
(b) A provision that all amendments to the provisions of Part 1
(commencing with Section 6001) relating to the use tax and not
inconsistent with this part shall automatically become a part of the
ordinance. However, no amendment shall operate so as to affect the
rate of tax imposed by the district's board.
(c) A provision that the amount subject to tax shall not include
the amount of any sales tax or use tax imposed by the State of
California or by any city, city and county, or county pursuant to the
Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5
(commencing with Section 7200)) or the amount of any
state-administered transactions or use tax.
(d) A provision that any person subject to a use tax under an
ordinance adopted pursuant to this part shall be entitled to credit
against that tax or any transactions tax, or to reimbursement for a
transactions tax, paid to a district or retailer in a district
imposing a transactions and use tax pursuant to this part.
(e) A provision that, in addition to the exemptions provided in
Sections 6366 and 6366.1, the storage, use, or other consumption of
tangible personal property, other than fuel or petroleum products,
purchased by operators of aircraft, and used or consumed by the
operators directly and exclusively in the use of the aircraft as
common carriers of persons or property for hire or compensation under
a certificate of public convenience and necessity issued pursuant to
the laws of this state, the United States, or any foreign
government, is exempt from the use tax.
(f) A provision that the storage, use, or other consumption in the
district of tangible personal property is exempt from the tax if the
purchaser is obligated to purchase the property for a fixed price
pursuant to a contract entered into prior to the operative date of
the ordinance. The possession of, or the exercise of any right or
power over, tangible personal property under a lease which is a
continuing purchase of the property is exempt from tax for any period
of time for which the lessee is obligated to lease the property for
an amount fixed by a lease entered into prior to the operative date
of the ordinance. For purposes of this subdivision, the storage, use,
or other consumption of, or possession of, or exercise of any right
or power over, tangible personal property shall be deemed not to be
obligated pursuant to a contract or lease for any period of time for
which any party to the contract or lease has the unconditional right
to terminate the contract or lease upon notice, whether or not the
right is exercised.
7262.2. The transactions and use tax ordinance of a district
adopted pursuant to this part, shall be deemed to adopt by reference
the provisions of Sections 7261 and 7262, as now in effect or as
later amended, which are required to be included in the ordinance,
regardless of whether or not the ordinance was adopted or amended
prior to or after the effective date of this section.
7262.3. Notwithstanding any other provision of law, the Santa Clara
Valley Transportation Authority may adopt an ordinance imposing a
transactions and use tax at a rate of 0.125 percent, provided that
all other provisions of this part and Article 9 (commencing with
Section 100250) of Chapter 5 of Part 12 of the Public Utilities Code
are complied with by the Santa Clara Valley Transportation Authority.
7263. For the purposes of a transactions tax imposed by an
ordinance adopted pursuant to this part, all retail transactions are
consummated at the place of business of the retailer unless the
tangible personal property sold is delivered by the retailer or his
agent to an out-of-state destination or to a common carrier for
delivery to an out-of-state destination. The gross receipts from such
sales shall include delivery charges, when such charges are subject
to the state sales and use tax, regardless of the place to which
delivery is made. In the event a retailer has no permanent place of
business in the state or has more than one place of business, the
place or places at which the retail sales are consummated for the
purpose of a transactions tax imposed by an ordinance adopted
pursuant to this part shall be determined under rules and regulations
to be prescribed and adopted by the board.
7265. No ordinance adopted pursuant to this part shall be operative
on other than the first day of a calendar quarter, or prior to the
first day of the first calendar quarter, commencing more than 110
days after the adoption of the ordinance.
7267. (a) Except as provided in Chapter 4 (commencing with Section
7275), there shall be no recovery from the state for the imposition
of any unconstitutional or otherwise invalid tax that is levied in
conformity with this part.
(b) If a final and nonappealable decision of a court of competent
jurisdiction determines that a district transactions and use tax is
unconstitutional or otherwise invalid, the district, the county, or
the city, as the case may be, shall transfer to the board the
revenues derived from the unconstitutional or invalid transactions
and use taxes necessary to reimburse claimants for the
unconstitutional or invalid transactions and use taxes paid,
including interest allowed under Section 6907. The board shall
deposit these revenues in a segregated impound account in the Retail
Sales Tax Fund, as described in Section 7275, and shall administer
any refunds necessitated by the court's decision in accordance with
the guidelines set forth in Chapter 4 (commencing with Section 7275)
to the extent feasible and practical.
(c) After the refund process described in subdivision (b) is
completed, any revenue from an unconstitutional or otherwise invalid
tax described in subdivision (a) that is paid to the board shall be
transmitted by the board to the district or its successor in
accordance with Section 7271. However, unless the ordinance specifies
otherwise, if at the time the board is making those transmittals the
district that imposed the tax has no successor, or has disbanded,
dissolved, or is otherwise no longer functioning, the board shall
transmit those revenues in the following manner:
(1) If the tax levied by the district was imposed on a countywide
basis, the revenues shall be transmitted to the county's general
fund.
(2) If the tax levied by the district was imposed on a citywide
basis, the revenues shall be transmitted to the city's general fund.
(3) If the tax levied by the district was imposed on a basis other
than in paragraph (1) or (2), the revenues shall be transmitted to
the general fund of each taxing jurisdiction located wholly within
the district, based on each taxing jurisdiction's proportionate share
of revenue from taxes imposed pursuant to the Bradley-Burns Uniform
Local Sales and Use Tax Law allocated during the prior calendar year.
(d) The district, or any entity that participated in the formation
of the district, shall reimburse the board for and hold the board
harmless from any and all costs, losses, or refunds of any kind
whatsoever, including preparatory costs incurred prior to
implementation of the tax.
(e) In the case of any claim for refund of the transactions and
use tax imposed by the San Francisco Educational Financing Authority,
which was determined to be unconstitutional by the court in
Hoogasian Flowers, Inc. v. State Bd. of Equalization, 23 Cal. App.
4th 1264, payment of any of those claims for refund shall be made
from the revenues derived from the unconstitutional transactions and
use tax collected by and in the possession of the board. When those
funds and any other revenues derived from the unconstitutional tax
still in the possession of the San Francisco Educational Financing
Authority, the City and County of San Francisco, the San Francisco
Unified School District, or the San Francisco Community College
District are exhausted, any remaining payments of those claims for
refund shall be paid from funds of the San Francisco Unified School
District and the San Francisco Community College District which
benefited from the illegal tax. The remaining payments shall be based
on the method by which the San Francisco Educational Financing
Authority distributed the proceeds of the tax to the San Francisco
Unified School District and the San Francisco Community College
District.
7269. The board may redistribute tax, penalty, or interest
distributed to a district other than the district entitled thereto,
but such redistribution shall not be made as to amounts originally
distributed earlier than two quarterly periods prior to the quarterly
period in which the board obtains knowledge of the improper
distribution.
7261. The transactions tax portion of any transactions and use
taxes ordinance adopted under this part shall be imposed for the
privilege of selling tangible personal property at retail, and shall
include provisions in substance as follows:
(a) A provision imposing a tax for the privilege of selling
tangible personal property at retail upon every retailer in the
district at a rate of one-quarter of 1 percent, or a multiple
thereof, of the gross receipts of the retailer from the sale of all
tangible personal property sold by that person at retail in the
district.
(b) Provisions identical to those contained in Part 1 (commencing
with Section 6001), insofar as they relate to sales taxes and are not
inconsistent with this part, except that the name of the district as
the taxing agency shall be substituted for that of the state and
that an additional transactor's permit shall not be required if a
seller's permit has been or is issued to the transactor under Section
6067.
(c) A provision that all amendments subsequent to the effective
date of this part to Part 1 (commencing with Section 6001) relating
to sales tax and not inconsistent with this part shall automatically
become a part of the transactions and use taxes ordinance. However,
no amendment shall operate so as to affect the rate of tax imposed by
the district's board.
(d) A provision that the amount subject to tax shall not include
the amount of sales tax or use tax imposed by the State of California
or by any city, city and county, or county pursuant to the
Bradley-Burns Uniform Local Sales and Use Tax Law, or the amount of
any state-administered transactions or use tax.
(e) A provision that there are exempted from the tax the gross
receipts from the sale of tangible personal property, other than fuel
or petroleum products, to operators of aircraft to be used or
consumed principally outside the county in which the sale is made and
directly and exclusively in the use of the aircraft as common
carriers of persons or property under the authority of the laws of
this state, the United States, or any foreign government.
(f) A provision that sales of property to be used outside the
district which are shipped to a point outside the district, pursuant
to the contract of sale, by delivery to that point by the retailer or
his or her agent, or by delivery by the retailer to a carrier for
shipment to a consignee at such point, are exempt from the tax.
For purposes of this section, "delivery" of vehicles subject to
registration pursuant to Chapter 1 (commencing with Section 4000) of
Division 3 of the Vehicle Code, aircraft licensed in compliance with
Section 21411 of the Public Utilities Code, and undocumented vessels
registered under Division 3.5 (commencing with Section 9840) of the
Vehicle Code shall be satisfied by registration to an out-of-district
address and by a declaration under penalty of perjury, signed by the
buyer, stating that the address is, in fact, his or her principal
place of residence.
"Delivery" of commercial vehicles shall be satisfied by
registration to a place of business out of district and a declaration
under penalty of perjury, signed by the buyer, that the vehicle will
be operated from that address.
(g) A provision that the sale of tangible personal property is
exempt from tax if the seller is obligated to furnish the property
for a fixed price pursuant to a contract entered into prior to the
operative date of the ordinance. A lease of tangible personal
property which is a continuing sale of that property is exempt from
tax for any period of time for which the lessor is obligated to lease
the property for an amount fixed by the lease prior to the operative
date of the ordinance. For the purposes of this subdivision, the
sale or lease of tangible personal property shall be deemed not to be
obligated pursuant to a contract or lease for any period of time for
which any party to the contract or lease has the unconditional right
to terminate the contract or lease upon notice, whether or not that
right is exercised.
7262. The use tax portion of any transactions and use tax ordinance
adopted under this part shall impose a complementary tax upon the
storage, use, or other consumption in the district of tangible
personal property purchased from any retailer for storage, use, or
other consumption in the district. The tax shall be at a rate of
one-quarter of 1 percent, or a multiple thereof, of the sales price
of the property whose storage, use, or other consumption is subject
to the tax, and the ordinance shall include provisions in substance
as follows:
(a) Provisions identical to those contained in Part 1 (commencing
with Section 6001), insofar as they relate to use taxes and are not
inconsistent with this part, except that the name of the district as
the taxing agency shall be substituted for that of the state. The
name of the district shall be substituted for the word "state" in the
phrase "retailer engaged in business in this state" in Section 6203
and in the definition of that phrase.
The following additional provisions shall be included:
(1) Except as provided in paragraph (2), a retailer engaged in
business in the district shall not be required to collect use tax
from the purchaser of tangible personal property, unless the retailer
ships or delivers the property into the district or participates
within the district in making the sale of the property, including,
but not limited to, soliciting or receiving the order, either
directly or indirectly, at a place of business of the retailer in the
district or through any representative, agent, canvasser, solicitor,
subsidiary, or person in the district under the authority of the
retailer.
(2) "A retailer engaged in business in the district" shall also
include any retailer of any of the following: vehicles subject to
registration pursuant to Chapter 1 (commencing with Section 4000) of
Division 3 of the Vehicle Code, aircraft licensed in compliance with
Section 21411 of the Public Utilities Code, or undocumented vessels
registered under Division 3.5 (commencing with Section 9840) of the
Vehicle Code. That retailer shall be required to collect use tax from
any purchaser who registers or licenses the vehicle, vessel, or
aircraft at an address in the district.
(b) A provision that all amendments to the provisions of Part 1
(commencing with Section 6001) relating to the use tax and not
inconsistent with this part shall automatically become a part of the
ordinance. However, no amendment shall operate so as to affect the
rate of tax imposed by the district's board.
(c) A provision that the amount subject to tax shall not include
the amount of any sales tax or use tax imposed by the State of
California or by any city, city and county, or county pursuant to the
Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5
(commencing with Section 7200)) or the amount of any
state-administered transactions or use tax.
(d) A provision that any person subject to a use tax under an
ordinance adopted pursuant to this part shall be entitled to credit
against that tax or any transactions tax, or to reimbursement for a
transactions tax, paid to a district or retailer in a district
imposing a transactions and use tax pursuant to this part.
(e) A provision that, in addition to the exemptions provided in
Sections 6366 and 6366.1, the storage, use, or other consumption of
tangible personal property, other than fuel or petroleum products,
purchased by operators of aircraft, and used or consumed by the
operators directly and exclusively in the use of the aircraft as
common carriers of persons or property for hire or compensation under
a certificate of public convenience and necessity issued pursuant to
the laws of this state, the United States, or any foreign
government, is exempt from the use tax.
(f) A provision that the storage, use, or other consumption in the
district of tangible personal property is exempt from the tax if the
purchaser is obligated to purchase the property for a fixed price
pursuant to a contract entered into prior to the operative date of
the ordinance. The possession of, or the exercise of any right or
power over, tangible personal property under a lease which is a
continuing purchase of the property is exempt from tax for any period
of time for which the lessee is obligated to lease the property for
an amount fixed by a lease entered into prior to the operative date
of the ordinance. For purposes of this subdivision, the storage, use,
or other consumption of, or possession of, or exercise of any right
or power over, tangible personal property shall be deemed not to be
obligated pursuant to a contract or lease for any period of time for
which any party to the contract or lease has the unconditional right
to terminate the contract or lease upon notice, whether or not the
right is exercised.
7262.2. The transactions and use tax ordinance of a district
adopted pursuant to this part, shall be deemed to adopt by reference
the provisions of Sections 7261 and 7262, as now in effect or as
later amended, which are required to be included in the ordinance,
regardless of whether or not the ordinance was adopted or amended
prior to or after the effective date of this section.
7262.3. Notwithstanding any other provision of law, the Santa Clara
Valley Transportation Authority may adopt an ordinance imposing a
transactions and use tax at a rate of 0.125 percent, provided that
all other provisions of this part and Article 9 (commencing with
Section 100250) of Chapter 5 of Part 12 of the Public Utilities Code
are complied with by the Santa Clara Valley Transportation Authority.
7263. For the purposes of a transactions tax imposed by an
ordinance adopted pursuant to this part, all retail transactions are
consummated at the place of business of the retailer unless the
tangible personal property sold is delivered by the retailer or his
agent to an out-of-state destination or to a common carrier for
delivery to an out-of-state destination. The gross receipts from such
sales shall include delivery charges, when such charges are subject
to the state sales and use tax, regardless of the place to which
delivery is made. In the event a retailer has no permanent place of
business in the state or has more than one place of business, the
place or places at which the retail sales are consummated for the
purpose of a transactions tax imposed by an ordinance adopted
pursuant to this part shall be determined under rules and regulations
to be prescribed and adopted by the board.
7265. No ordinance adopted pursuant to this part shall be operative
on other than the first day of a calendar quarter, or prior to the
first day of the first calendar quarter, commencing more than 110
days after the adoption of the ordinance.
7267. (a) Except as provided in Chapter 4 (commencing with Section
7275), there shall be no recovery from the state for the imposition
of any unconstitutional or otherwise invalid tax that is levied in
conformity with this part.
(b) If a final and nonappealable decision of a court of competent
jurisdiction determines that a district transactions and use tax is
unconstitutional or otherwise invalid, the district, the county, or
the city, as the case may be, shall transfer to the board the
revenues derived from the unconstitutional or invalid transactions
and use taxes necessary to reimburse claimants for the
unconstitutional or invalid transactions and use taxes paid,
including interest allowed under Section 6907. The board shall
deposit these revenues in a segregated impound account in the Retail
Sales Tax Fund, as described in Section 7275, and shall administer
any refunds necessitated by the court's decision in accordance with
the guidelines set forth in Chapter 4 (commencing with Section 7275)
to the extent feasible and practical.
(c) After the refund process described in subdivision (b) is
completed, any revenue from an unconstitutional or otherwise invalid
tax described in subdivision (a) that is paid to the board shall be
transmitted by the board to the district or its successor in
accordance with Section 7271. However, unless the ordinance specifies
otherwise, if at the time the board is making those transmittals the
district that imposed the tax has no successor, or has disbanded,
dissolved, or is otherwise no longer functioning, the board shall
transmit those revenues in the following manner:
(1) If the tax levied by the district was imposed on a countywide
basis, the revenues shall be transmitted to the county's general
fund.
(2) If the tax levied by the district was imposed on a citywide
basis, the revenues shall be transmitted to the city's general fund.
(3) If the tax levied by the district was imposed on a basis other
than in paragraph (1) or (2), the revenues shall be transmitted to
the general fund of each taxing jurisdiction located wholly within
the district, based on each taxing jurisdiction's proportionate share
of revenue from taxes imposed pursuant to the Bradley-Burns Uniform
Local Sales and Use Tax Law allocated during the prior calendar year.
(d) The district, or any entity that participated in the formation
of the district, shall reimburse the board for and hold the board
harmless from any and all costs, losses, or refunds of any kind
whatsoever, including preparatory costs incurred prior to
implementation of the tax.
(e) In the case of any claim for refund of the transactions and
use tax imposed by the San Francisco Educational Financing Authority,
which was determined to be unconstitutional by the court in
Hoogasian Flowers, Inc. v. State Bd. of Equalization, 23 Cal. App.
4th 1264, payment of any of those claims for refund shall be made
from the revenues derived from the unconstitutional transactions and
use tax collected by and in the possession of the board. When those
funds and any other revenues derived from the unconstitutional tax
still in the possession of the San Francisco Educational Financing
Authority, the City and County of San Francisco, the San Francisco
Unified School District, or the San Francisco Community College
District are exhausted, any remaining payments of those claims for
refund shall be paid from funds of the San Francisco Unified School
District and the San Francisco Community College District which
benefited from the illegal tax. The remaining payments shall be based
on the method by which the San Francisco Educational Financing
Authority distributed the proceeds of the tax to the San Francisco
Unified School District and the San Francisco Community College
District.
7269. The board may redistribute tax, penalty, or interest
distributed to a district other than the district entitled thereto,
but such redistribution shall not be made as to amounts originally
distributed earlier than two quarterly periods prior to the quarterly
period in which the board obtains knowledge of the improper
distribution.
7261. The transactions tax portion of any transactions and use
taxes ordinance adopted under this part shall be imposed for the
privilege of selling tangible personal property at retail, and shall
include provisions in substance as follows:
(a) A provision imposing a tax for the privilege of selling
tangible personal property at retail upon every retailer in the
district at a rate of one-quarter of 1 percent, or a multiple
thereof, of the gross receipts of the retailer from the sale of all
tangible personal property sold by that person at retail in the
district.
(b) Provisions identical to those contained in Part 1 (commencing
with Section 6001), insofar as they relate to sales taxes and are not
inconsistent with this part, except that the name of the district as
the taxing agency shall be substituted for that of the state and
that an additional transactor's permit shall not be required if a
seller's permit has been or is issued to the transactor under Section
6067.
(c) A provision that all amendments subsequent to the effective
date of this part to Part 1 (commencing with Section 6001) relating
to sales tax and not inconsistent with this part shall automatically
become a part of the transactions and use taxes ordinance. However,
no amendment shall operate so as to affect the rate of tax imposed by
the district's board.
(d) A provision that the amount subject to tax shall not include
the amount of sales tax or use tax imposed by the State of California
or by any city, city and county, or county pursuant to the
Bradley-Burns Uniform Local Sales and Use Tax Law, or the amount of
any state-administered transactions or use tax.
(e) A provision that there are exempted from the tax the gross
receipts from the sale of tangible personal property, other than fuel
or petroleum products, to operators of aircraft to be used or
consumed principally outside the county in which the sale is made and
directly and exclusively in the use of the aircraft as common
carriers of persons or property under the authority of the laws of
this state, the United States, or any foreign government.
(f) A provision that sales of property to be used outside the
district which are shipped to a point outside the district, pursuant
to the contract of sale, by delivery to that point by the retailer or
his or her agent, or by delivery by the retailer to a carrier for
shipment to a consignee at such point, are exempt from the tax.
For purposes of this section, "delivery" of vehicles subject to
registration pursuant to Chapter 1 (commencing with Section 4000) of
Division 3 of the Vehicle Code, aircraft licensed in compliance with
Section 21411 of the Public Utilities Code, and undocumented vessels
registered under Division 3.5 (commencing with Section 9840) of the
Vehicle Code shall be satisfied by registration to an out-of-district
address and by a declaration under penalty of perjury, signed by the
buyer, stating that the address is, in fact, his or her principal
place of residence.
"Delivery" of commercial vehicles shall be satisfied by
registration to a place of business out of district and a declaration
under penalty of perjury, signed by the buyer, that the vehicle will
be operated from that address.
(g) A provision that the sale of tangible personal property is
exempt from tax if the seller is obligated to furnish the property
for a fixed price pursuant to a contract entered into prior to the
operative date of the ordinance. A lease of tangible personal
property which is a continuing sale of that property is exempt from
tax for any period of time for which the lessor is obligated to lease
the property for an amount fixed by the lease prior to the operative
date of the ordinance. For the purposes of this subdivision, the
sale or lease of tangible personal property shall be deemed not to be
obligated pursuant to a contract or lease for any period of time for
which any party to the contract or lease has the unconditional right
to terminate the contract or lease upon notice, whether or not that
right is exercised.
7262. The use tax portion of any transactions and use tax ordinance
adopted under this part shall impose a complementary tax upon the
storage, use, or other consumption in the district of tangible
personal property purchased from any retailer for storage, use, or
other consumption in the district. The tax shall be at a rate of
one-quarter of 1 percent, or a multiple thereof, of the sales price
of the property whose storage, use, or other consumption is subject
to the tax, and the ordinance shall include provisions in substance
as follows:
(a) Provisions identical to those contained in Part 1 (commencing
with Section 6001), insofar as they relate to use taxes and are not
inconsistent with this part, except that the name of the district as
the taxing agency shall be substituted for that of the state. The
name of the district shall be substituted for the word "state" in the
phrase "retailer engaged in business in this state" in Section 6203
and in the definition of that phrase.
The following additional provisions shall be included:
(1) Except as provided in paragraph (2), a retailer engaged in
business in the district shall not be required to collect use tax
from the purchaser of tangible personal property, unless the retailer
ships or delivers the property into the district or participates
within the district in making the sale of the property, including,
but not limited to, soliciting or receiving the order, either
directly or indirectly, at a place of business of the retailer in the
district or through any representative, agent, canvasser, solicitor,
subsidiary, or person in the district under the authority of the
retailer.
(2) "A retailer engaged in business in the district" shall also
include any retailer of any of the following: vehicles subject to
registration pursuant to Chapter 1 (commencing with Section 4000) of
Division 3 of the Vehicle Code, aircraft licensed in compliance with
Section 21411 of the Public Utilities Code, or undocumented vessels
registered under Division 3.5 (commencing with Section 9840) of the
Vehicle Code. That retailer shall be required to collect use tax from
any purchaser who registers or licenses the vehicle, vessel, or
aircraft at an address in the district.
(b) A provision that all amendments to the provisions of Part 1
(commencing with Section 6001) relating to the use tax and not
inconsistent with this part shall automatically become a part of the
ordinance. However, no amendment shall operate so as to affect the
rate of tax imposed by the district's board.
(c) A provision that the amount subject to tax shall not include
the amount of any sales tax or use tax imposed by the State of
California or by any city, city and county, or county pursuant to the
Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5
(commencing with Section 7200)) or the amount of any
state-administered transactions or use tax.
(d) A provision that any person subject to a use tax under an
ordinance adopted pursuant to this part shall be entitled to credit
against that tax or any transactions tax, or to reimbursement for a
transactions tax, paid to a district or retailer in a district
imposing a transactions and use tax pursuant to this part.
(e) A provision that, in addition to the exemptions provided in
Sections 6366 and 6366.1, the storage, use, or other consumption of
tangible personal property, other than fuel or petroleum products,
purchased by operators of aircraft, and used or consumed by the
operators directly and exclusively in the use of the aircraft as
common carriers of persons or property for hire or compensation under
a certificate of public convenience and necessity issued pursuant to
the laws of this state, the United States, or any foreign
government, is exempt from the use tax.
(f) A provision that the storage, use, or other consumption in the
district of tangible personal property is exempt from the tax if the
purchaser is obligated to purchase the property for a fixed price
pursuant to a contract entered into prior to the operative date of
the ordinance. The possession of, or the exercise of any right or
power over, tangible personal property under a lease which is a
continuing purchase of the property is exempt from tax for any period
of time for which the lessee is obligated to lease the property for
an amount fixed by a lease entered into prior to the operative date
of the ordinance. For purposes of this subdivision, the storage, use,
or other consumption of, or possession of, or exercise of any right
or power over, tangible personal property shall be deemed not to be
obligated pursuant to a contract or lease for any period of time for
which any party to the contract or lease has the unconditional right
to terminate the contract or lease upon notice, whether or not the
right is exercised.
7262.2. The transactions and use tax ordinance of a district
adopted pursuant to this part, shall be deemed to adopt by reference
the provisions of Sections 7261 and 7262, as now in effect or as
later amended, which are required to be included in the ordinance,
regardless of whether or not the ordinance was adopted or amended
prior to or after the effective date of this section.
7262.3. Notwithstanding any other provision of law, the Santa Clara
Valley Transportation Authority may adopt an ordinance imposing a
transactions and use tax at a rate of 0.125 percent, provided that
all other provisions of this part and Article 9 (commencing with
Section 100250) of Chapter 5 of Part 12 of the Public Utilities Code
are complied with by the Santa Clara Valley Transportation Authority.
7263. For the purposes of a transactions tax imposed by an
ordinance adopted pursuant to this part, all retail transactions are
consummated at the place of business of the retailer unless the
tangible personal property sold is delivered by the retailer or his
agent to an out-of-state destination or to a common carrier for
delivery to an out-of-state destination. The gross receipts from such
sales shall include delivery charges, when such charges are subject
to the state sales and use tax, regardless of the place to which
delivery is made. In the event a retailer has no permanent place of
business in the state or has more than one place of business, the
place or places at which the retail sales are consummated for the
purpose of a transactions tax imposed by an ordinance adopted
pursuant to this part shall be determined under rules and regulations
to be prescribed and adopted by the board.
7265. No ordinance adopted pursuant to this part shall be operative
on other than the first day of a calendar quarter, or prior to the
first day of the first calendar quarter, commencing more than 110
days after the adoption of the ordinance.
7267. (a) Except as provided in Chapter 4 (commencing with Section
7275), there shall be no recovery from the state for the imposition
of any unconstitutional or otherwise invalid tax that is levied in
conformity with this part.
(b) If a final and nonappealable decision of a court of competent
jurisdiction determines that a district transactions and use tax is
unconstitutional or otherwise invalid, the district, the county, or
the city, as the case may be, shall transfer to the board the
revenues derived from the unconstitutional or invalid transactions
and use taxes necessary to reimburse claimants for the
unconstitutional or invalid transactions and use taxes paid,
including interest allowed under Section 6907. The board shall
deposit these revenues in a segregated impound account in the Retail
Sales Tax Fund, as described in Section 7275, and shall administer
any refunds necessitated by the court's decision in accordance with
the guidelines set forth in Chapter 4 (commencing with Section 7275)
to the extent feasible and practical.
(c) After the refund process described in subdivision (b) is
completed, any revenue from an unconstitutional or otherwise invalid
tax described in subdivision (a) that is paid to the board shall be
transmitted by the board to the district or its successor in
accordance with Section 7271. However, unless the ordinance specifies
otherwise, if at the time the board is making those transmittals the
district that imposed the tax has no successor, or has disbanded,
dissolved, or is otherwise no longer functioning, the board shall
transmit those revenues in the following manner:
(1) If the tax levied by the district was imposed on a countywide
basis, the revenues shall be transmitted to the county's general
fund.
(2) If the tax levied by the district was imposed on a citywide
basis, the revenues shall be transmitted to the city's general fund.
(3) If the tax levied by the district was imposed on a basis other
than in paragraph (1) or (2), the revenues shall be transmitted to
the general fund of each taxing jurisdiction located wholly within
the district, based on each taxing jurisdiction's proportionate share
of revenue from taxes imposed pursuant to the Bradley-Burns Uniform
Local Sales and Use Tax Law allocated during the prior calendar year.
(d) The district, or any entity that participated in the formation
of the district, shall reimburse the board for and hold the board
harmless from any and all costs, losses, or refunds of any kind
whatsoever, including preparatory costs incurred prior to
implementation of the tax.
(e) In the case of any claim for refund of the transactions and
use tax imposed by the San Francisco Educational Financing Authority,
which was determined to be unconstitutional by the court in
Hoogasian Flowers, Inc. v. State Bd. of Equalization, 23 Cal. App.
4th 1264, payment of any of those claims for refund shall be made
from the revenues derived from the unconstitutional transactions and
use tax collected by and in the possession of the board. When those
funds and any other revenues derived from the unconstitutional tax
still in the possession of the San Francisco Educational Financing
Authority, the City and County of San Francisco, the San Francisco
Unified School District, or the San Francisco Community College
District are exhausted, any remaining payments of those claims for
refund shall be paid from funds of the San Francisco Unified School
District and the San Francisco Community College District which
benefited from the illegal tax. The remaining payments shall be based
on the method by which the San Francisco Educational Financing
Authority distributed the proceeds of the tax to the San Francisco
Unified School District and the San Francisco Community College
District.
7269. The board may redistribute tax, penalty, or interest
distributed to a district other than the district entitled thereto,
but such redistribution shall not be made as to amounts originally
distributed earlier than two quarterly periods prior to the quarterly
period in which the board obtains knowledge of the improper
distribution.
