2005 California Revenue and Taxation Code Sections 7200-7212 CHAPTER 1. GENERAL PROVISIONS

7200.  This part is known and may be cited as the "Bradley-Burns
Uniform Local Sales and Use Tax Law."
7201.  Any county may by action of its board of supervisors adopt a
sales and use tax in accordance with the provisions of this part.
7202.  The sales tax portion of any sales and use tax 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
county at the rate of 11/4 percent of the gross receipts of the
retailer from the sale of all tangible personal property sold by that
person at retail in the county.
   (b) Provisions identical to those contained in Part 1 (commencing
with Section 6001), insofar as they relate to sales taxes, except
that the name of the county as the taxing agency shall be substituted
for that of the state and that an additional seller's permit shall
not be required if one has been or is issued to the seller under
Section 6067.
   (c) A provision that all amendments subsequent to the effective
date of the enactment of Part 1 (commencing with Section 6001)
relating to sales tax and not inconsistent with this part, shall
automatically become a part of the sales tax ordinance of the county.
   (d) A provision that the county shall contract prior to the
effective date of the county sales and use tax ordinances with the
State Board of Equalization to perform all functions incident to the
administration or operation of the sales and use tax ordinance of the
county.  Any such contract shall contain a provision that the county
agrees to comply with the provisions of Article 11 (commencing with
Section 29530) of Chapter 2 of Division 3 of Title 3 of the
Government Code.
   (e) A provision that the ordinance may be made inoperative not
less than 60 days, but not earlier than the first day of the calendar
quarter, following the county's lack of compliance with Article 11
(commencing with Section 29530) of Chapter 2 of Division 3 of Title 3
of the Government Code or following an increase by any city within
the county of the rate of its sales or use tax above the rate in
effect at the time the county ordinance was enacted.
   (f) 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 upon a retailer or consumer.
   (g) A provision that there is exempted from the sales tax 80
percent, and on and after July 1, 2004, until the rate modifications
in subdivision (a) of Section 7203.1 cease to apply, 75 percent, of
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.
   (h) A provision that any person subject to a sales and use tax
under the county ordinance shall be entitled to credit against the
payment of taxes due under that ordinance the amount of sales and use
tax due to any city in the county; provided that the city sales and
use tax is levied under an ordinance including provisions in
substance as follows:
   (1) A provision imposing a tax for the privilege of selling
tangible personal property at retail upon every retailer in the city
at the rate of 1 percent or less of the gross receipts of the
retailer from the sale of all tangible personal property sold by that
person at retail in the city and a use tax of 1 percent or less of
purchase price upon the storage, use or other consumption of tangible
personal property purchased from a retailer for storage, use or
consumption in the city.
   (2) Provisions identical to those contained in Part 1 (commencing
with Section 6001), insofar as they relate to sales and use taxes,
except that the name of the city as the taxing agency shall be
substituted for that of the state (but the name of the city shall not
be substituted for the word "state" in the phrase "retailer engaged
in business in this state" in Section 6203 nor in the definition of
that phrase in Section 6203) and that an additional seller's permit
shall not be required if one has been or is issued to the seller
under Section 6067.
   (3) A provision that all amendments subsequent to the effective
date of the enactment of Part 1 (commencing with Section 6001)
relating to sales and use tax and not inconsistent with this part,
shall automatically become a part of the sales and use tax ordinance
of the city.
   (4) A provision that the city shall contract prior to the
effective date of the city sales and use tax ordinance with the State
Board of Equalization to perform all functions incident to the
administration or operation of the sales and use tax ordinance of the
city which shall continue in effect so long as the county within
which the city is located has an operative sales and use tax
ordinance enacted pursuant to this part.
   (5) A provision that the storage, use or other consumption of
tangible personal property, the gross receipts from the sale of which
has been subject to sales tax under a sales and use tax ordinance
enacted in accordance with this part by any city and county, county,
or city in this state, shall be exempt from the tax due under this
ordinance.
   (6) 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 upon a retailer or consumer.
   (7) A provision that there are exempted from the computation of
the amount of the sales tax the gross receipts from the sale of
tangible personal property to operators of aircraft to be used or
consumed principally outside the city 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.
   (8) 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 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.
7202.5.  In addition to the provisions set forth in paragraphs (1)
to (8), inclusive, of subdivision (h) of Section 7202, a city,
county, or city and county sales and use tax ordinance may provide
that any person subject to a sales and use tax under the city's,
county's, or city and county's ordinance shall be entitled to credit
against the payment of taxes due under that ordinance the amount of
sales and use taxes due to the redevelopment agency pursuant to
Section 7202.6.
7202.8.  Any pledge of taxes pursuant to Section 33641 of the Health
and Safety Code made with respect to taxes imposed under Section
7202.6 to the payment of principal and interest on bonds of a
redevelopment agency shall constitute the obligation of a contract
between the redevelopment agency and the holder of the bonds and
shall be protected from impairment by the United States and
California Constitutions.  The provisions of Section 7202.6 which
authorize the imposition of the taxes may not be repealed during the
time that any of the bonds remain outstanding.
7203.  The use tax portion of any sales and use tax ordinance
adopted under this part shall impose a complementary tax upon the
storage, use or other consumption in the county of tangible personal
property purchased from any retailer for storage, use or other
consumption in the county.  That tax shall be at the rate of 11/4
percent of the sales price of the property whose storage, use or
other consumption is subject to the tax and shall include:
   (a) Provisions identical to the provisions contained in Part 1
(commencing with Section 6001), other than Section 6201 insofar as
those provisions relate to the use tax, except that the name of the
county as the taxing agency enacting the ordinance shall be
substituted for that of the state (but the name of the county shall
not be substituted for the word "state" in the phrase "retailer
engaged in business in this state" in Section 6203 nor in the
definition of that phrase in Section 6203).
   (b) A provision that all amendments subsequent to the date of such
ordinance to the provisions of the Revenue and Taxation Code
relating to the use tax and not inconsistent with this part shall
automatically become a part of the ordinance.
   (c) A provision that the storage, use or other consumption of
tangible personal property, the gross receipts from the sale of which
has been subject to sales tax under a sales and use tax ordinance
enacted in accordance with this part by any city and county, county,
or city in this state, shall be exempt from the tax due under this
ordinance.
   (d) 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 upon a retailer or consumer.
   (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 80 percent of the use tax, and on and after July 1,
2004, until the rate modifications in subdivision (a) of Section
7203.1 cease to apply, exempt from 75 percent of the use tax.
7203.1.  (a) Notwithstanding any other provision of law, during the
revenue exchange period only, the authority of a county or a city
under this part to impose a tax rate as specified in an ordinance
adopted pursuant to Sections 7202 and 7203 is suspended, and the tax
rate to be applied instead during that period under any ordinance as
so adopted is the applicable of the following:
   (1) In the case of a county, 1 percent.
   (2) In the case of a city, three-quarters of 1 percent or less.
   (b) For purposes of this section, "revenue exchange period" means
the period on and after July 1, 2004, and before the first day of the
first calendar quarter commencing more than 90 days following a
notification to the board by the Director of Finance pursuant to
subdivision (b) of Section 99006 of the Government Code.
   (c) Subdivision (a) is a self-executing provision that operates
without regard to any decision or act on the part of any local
government.  A change in a local general tax rate resulting from
either the rate limitations applied by subdivision (a) or the end of
the revenue exchange period is not subject to voter approval under
either statute or Article XIIIC of the California Constitution.
   (d) Existing tax exchange or revenue sharing agreements, entered
into prior to the operative date of this section, between local
agencies or between local agencies and nonlocal agencies shall be
deemed to be temporarily modified to account for the reduction in
sales and use tax revenues resulting from this section, with those
reduced revenues to be replaced as may otherwise be provided by law.
7203.2.  The sales and use tax ordinance of a county, city, city and
county, or redevelopment agency adopted pursuant to this part, shall
be deemed to adopt by reference the provisions of Sections 7202 to
7203, inclusive, 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.
7203.5.  The State Board of Equalization shall not administer and
shall terminate its contract to administer any sales or use tax
ordinance of a city, county, redevelopment agency, or city and
county, if such city, county, redevelopment agency, or city and
county imposes a sales or use tax in addition to the sales and use
taxes imposed under an ordinance conforming to the provisions of
Sections 7202 and 7203.
   The board shall give such city, county, redevelopment agency, or
city and county written notice of termination, stating the reasons
therefor and the effective date of the termination, which shall be
not earlier than the first day of the first calendar quarter
commencing at least 30 days after the mailing of the notice to the
city, county, redevelopment agency, or city and county.  If the cause
for termination is not cured within the time specified in the
notice, the board shall not administer the ordinance until the cause
for termination is removed and a new contract for the administration
of the ordinance executed.  Such contract shall be operative not
earlier than the first day of the first calendar quarter commencing
after its execution.  During the period of time that the board is not
administering the sales and use tax ordinance of a city, county,
redevelopment agency, or city and county, no ordinance of such city,
county, redevelopment agency, or city and county shall be considered
to be an ordinance enacted in accordance with this part.
   Nothing in this section shall be construed as prohibiting the levy
or collection by a city, county, redevelopment agency, or city and
county of any other substantially different tax authorized by the
Constitution of California or by statute or by the charter of any
chartered city.
7203.5.  (a) The State Board of Equalization shall not administer
and shall terminate its contract to administer any sales or use tax
ordinance of a city, county, or city and county, if that city,
county, or city and county imposes a sales or use tax in addition to
the sales and use taxes imposed under an ordinance conforming to the
provisions of Sections 7202 and 7203.
   (b) For purposes of this section, and notwithstanding subdivision
(f), a city, county, or city and county shall be deemed to have
imposed a sales or use tax in addition to the sales and use taxes
imposed under an ordinance conforming to the provisions of Sections
7202 and 7203 to the extent that the city, county, or city and county
levies a tax on the privilege of occupying a room or rooms in a
hotel, motel, bed and breakfast inn, or similar transient lodging
establishment when all of the following conditions are met:
   (1) The hotel, motel, bed and breakfast inn, or similar transient
lodging establishment provides food products for human consumption
and all or some of the food products are provided solely for
consumption by its transient guests and the invitees of those guests.
   (2) The uniform cost of the food products provided solely for
consumption by the establishment's transient guests and the invitees
of those guests is included in the price of the transient occupancy
accommodation, however denominated, and whether or not separately
stated.
   (3) The portion of the price of the transient occupancy
accommodation allocable to these food products is subject to tax
under Part 1 (commencing with Section 6001), and is also subject to
tax imposed by the city, county, or city and county on the privilege
of occupying a room or rooms in the establishment.
   (4) The operator of the establishment provides the city, county,
or city and county with a reasonable allocation of the value of the
food products subject to tax under Part 1 (commencing with Section
6001) that is separately identified either on the guest's receipt or
on the operator's accounting records.
   (c) The provisions of subdivision (a) shall apply to any tax
described in subdivision (b), whether characterized as a "transient
occupancy tax," "bed tax," or otherwise, regardless of whether it is
levied pursuant to Section 7280, pursuant to charter or other similar
authority of the city, county, or city and county, or otherwise
pursuant to law.
   (d) (1) For purposes of this section, "hotel," "motel," "bed and
breakfast inn," or "similar transient lodging establishment" means an
establishment containing guest room accommodations with respect to
which the predominant relationship existing between the occupants
thereof and the owner or operator of the establishment is that of
innkeeper and guest.  The existence of other relationships as between
some occupants and the owner or operator thereof shall be
immaterial.
   (2) For purposes of this section, "food products" means food and
beverage products of every kind, regardless of how or where served,
and shall specifically include, but not be limited to, alcoholic
beverages and carbonated beverages of every kind.
   (e) In the case of a termination, the board shall give the city,
county, or city and county written notice of termination, stating the
reasons therefor and the effective date of the termination, which
shall be not earlier than the first day of the first calendar quarter
commencing at least 30 days after the mailing of the notice to the
city, county, or city and county.  If the cause for termination is
not cured within the time specified in the notice, the board shall
not administer the ordinance until the cause for termination is
removed and a new contract for the administration of the ordinance
executed.  The contract shall be operative not earlier than the first
day of the first calendar quarter commencing after its execution.
During the period of time that the board is not administering the
sales and use tax ordinance of a city, county, or city and county, no
ordinance of that city, county, or city and county shall be
considered to be an ordinance enacted in accordance with this part.
   (f) Except as provided in subdivision (b), nothing in this section
shall be construed as prohibiting the levy or collection by a city,
county, or city and county of any other substantially different tax
authorized by the California Constitution or by statute or by the
charter of any chartered city.
7204.  All sales and use taxes collected by the State Board of
Equalization pursuant to contract with any city, city and county,
redevelopment agency, or county shall be transmitted by the board to
such city, city and county, redevelopment agency, or county
periodically as promptly as feasible. The transmittals required under
this section shall be made at least twice in each calendar quarter.
7204.02.  (a) On or before March 1, 1992, the Controller shall
calculate the total amount that has been transmitted to each city,
county, and city and county pursuant to Section 7204.01, and shall
provide those calculations to the State Board of Equalization.
   (b) Beginning on July 1, 1992, and for each year thereafter to
July 1, 1997, inclusive, the State Board of Equalization shall reduce
the amounts that would otherwise be transmitted to each affected
city, county, and city and county pursuant to Section 7204 by an
amount sufficient to recover one-fifth of the amount transmitted to
the city, county, or city and county pursuant to subdivision (c) of
Section 7204.01, plus interest after January 1, 1992, or the other
applicable date, at the annual rate of 31/2 percent.  The board shall
distribute the reductions in transmittals over the fiscal year in
the manner it determines to be least disruptive to each affected
city, county, and city and county.
   (c) The board shall transmit the amounts withheld from each
affected city, county, and city and county, and the interest amounts
pursuant to subdivision (b) to the Special Fund for Economic
Uncertainties.
7204.03.  (a) Notwithstanding any other provision of this part, in
the case of retail sales of jet fuel that are, in accordance with
paragraph (2) of subdivision (b) of Section 7205, consummated at the
point of delivery of that jet fuel to an aircraft at a
multijurisdictional airport, the sales tax revenues collected by the
board pursuant to this part with respect to those sales shall be
transmitted by the board in accordance with subdivision (b).  For
purposes of this section, a "multijurisdictional airport" is an
airport that is owned or operated by a city, county, or city and
county that meets both of the following conditions:
   (1) The owning or operating city, county, or city and county
imposes a local sales tax pursuant to an ordinance adopted pursuant
to this part.
   (2) The owning or operating city, county, or city or county is
different from the city, county, or city and county in which the
airport is located.
   (b) (1) Except as provided in paragraph (2), the sales taxes
collected by the board pursuant to this part with respect to retail
sales of jet fuel described in subdivision (a) shall be transmitted
by the board in accordance with the following:
   (A) One-half to the county or city and county in which the point
of delivery to the aircraft is located, less the amount transmitted
to a city pursuant to subparagraph (B), if any; and one-half to the
county or city and county that owns or operates the airport or to the
county in which the city that owns or operates the airport is
located, less the amount transmitted to a city pursuant to
subparagraph (C), if any.
   (B) If the multijurisdictional airport is located in a city
imposing a local sales tax pursuant to an ordinance adopted pursuant
to this part, the board shall transmit to that city that amount of
sales taxes collected by the board with respect to retail sales of
fuel described in subdivision (a) that is based on 50 percent of the
rate set by that city's ordinance.
   (C) If the multijurisdictional airport is owned or operated by a
city imposing a local sales tax pursuant to an ordinance adopted
pursuant to this part, the board shall transmit to that city that
amount of sales taxes collected by the board with respect to retail
sales of fuel described in subdivision (a) that is based on 50
percent of the rate set by that city's ordinance.
   (2) Notwithstanding paragraph (1), both of the following shall
apply:
   (A) In the case of retail sales of jet fuel as described in
subdivision (a) that are consummated at San Francisco International
Airport, one-half of the sales taxes collected by the board pursuant
to this part with respect to those sales shall be transmitted by the
board to the City and County of San Francisco, and one-half of the
sales taxes collected by the board pursuant to this part with respect
to those sales shall be transmitted by the board to the County of
San Mateo.
   (B) In the case of retail sales of jet fuel as described in
subdivision (a) that are consummated at Ontario International
Airport, the board shall transmit sales taxes collected by the board
pursuant to this part with respect to those sales in accordance with
both of the following:
   (i) All of the sales taxes that are derived from a local sales tax
rate imposed by the City of Ontario shall be transmitted to that
city.
   (ii) All of the sales taxes that are derived from a local sales
tax rate imposed by the County of San Bernardino shall be allocated
to that county.
7204.03.  (a) Notwithstanding any other provision of this part, in
the case of retail sales of jet fuel that are consummated at the
point of delivery of that jet fuel to an aircraft at a
multijurisdictional airport, the sales tax revenues collected by the
board pursuant to this part with respect to those sales shall be
transmitted by the board in accordance with subdivision (b). For
purposes of this section, a "multijurisdictional airport" is an
airport that is owned or operated by a city, county, or city and
county that meets both of the following conditions:
   (1) The owning or operating city, county, or city and county
imposes a local sales tax pursuant to an ordinance adopted pursuant
to this part.
   (2) The owning or operating city, county, or city or county is
different from the city, county, or city and county in which the
airport is located.
   (b) (1) Except as provided in paragraph (2), the sales taxes
collected by the board pursuant to this part with respect to retail
sales of jet fuel described in subdivision (a) shall be transmitted
by the board in accordance with the following:
   (A) One-half to the county or city and county in which the point
of delivery to the aircraft is located, less the amount transmitted
to a city pursuant to subparagraph (B), if any; and one-half to the
county or city and county that owns or operates the airport or to the
county in which the city that owns or operates the airport is
located, less the amount transmitted to a city pursuant to
subparagraph (C), if any.
   (B) If the multijurisdictional airport is located in a city
imposing a local sales tax pursuant to an ordinance adopted pursuant
to this part, the board shall transmit to that city that amount of
sales taxes collected by the board with respect to retail sales of
fuel described in subdivision (a) that is based on 50 percent of the
rate set by that city's ordinance.
   (C) If the multijurisdictional airport is owned or operated by a
city imposing a local sales tax pursuant to an ordinance adopted
pursuant to this part, the board shall transmit to that city that
amount of sales taxes collected by the board with respect to retail
sales of fuel described in subdivision (a) that is based on 50
percent of the rate set by that city's ordinance.
   (2) Notwithstanding paragraph (1), both of the following shall
apply:
   (A) In the case of retail sales of jet fuel as described in
subdivision (a) that are consummated at San Francisco International
Airport, one-half of the sales taxes collected by the board pursuant
to this part with respect to those sales shall be transmitted by the
board to the City and County of San Francisco, and one-half of the
sales taxes collected by the board pursuant to this part with respect
to those sales shall be transmitted by the board to the County of
San Mateo.
   (B) In the case of retail sales of jet fuel as described in
subdivision (a) that are consummated at Ontario International
Airport, the board shall transmit sales taxes collected by the board
pursuant to this part with respect to those sales in accordance with
both of the following:
   (i) All of the sales taxes that are derived from a local sales tax
rate imposed by the City of Ontario shall be transmitted to that
city.
   (ii) All of the sales taxes that are derived from a local sales
tax rate imposed by the County of San Bernardino shall be allocated
to that county.
7204.1.  (a) For purposes of this section:
   (1) "Local agency" means a city, county, city and county, or
redevelopment agency.
   (2) "Quarterly taxes" means the total amount of sales and use
taxes transmitted by the board to a local agency for a calendar
quarter.
   (3) "Refund" means the amount of sales and use taxes deducted by
the board from a local agency's quarterly taxes in order to pay the
local agency's share of a sales and use tax refund due to one
taxpayer.
   (4) "Offset portion" means, except as provided in subdivision (d),
that portion of the refund which exceeds the greater of fifty
thousand dollars ($50,000) or 20 percent of the local agency's
quarterly taxes.
   (b) Except as provided in subdivision (c), if the board has
deducted a refund from a local agency's quarterly taxes which
includes an offset portion, then the following provisions apply:
   (1) Within three months after the board has deducted an offset
portion, the local agency may request the board to transmit the
offset portion to the local agency.
   (2) As promptly as feasible after the board receives the local
agency's request, the board shall transmit to the local agency the
offset portion as part of the board's periodic transmittal of sales
and use taxes.
   (3) The board shall thereafter deduct a pro rata share of the
offset portion from future transmittals of sales and use taxes to the
local agency over a period to be determined by the board, but not
less than two calendar quarters and not more than eight calendar
quarters, until the entire amount of the offset portion has been
deducted.
   (c) The board shall not transmit the offset portion of the refund
to the local agency if that transmittal would reduce or delay either
the board's payment of the refund to the taxpayer or the board's
periodic transmittals of sales and use taxes to other local agencies.
   (d) Notwithstanding any other provision, past, present, or future
refunds required to be made by a local agency as a result of the
California Court of Appeal decision in Aerospace Corporation v. State
Board of Equalization, 218 Cal. App. 3d 1300, may, at the discretion
of the local agency, be made pursuant to the following provisions:
   (1) "Local agency" means a city, county, city and county,
redevelopment agency, or a local agency that has imposed a
transactions and use tax pursuant to or in accordance with Part 1.6
(commencing with Section 7251) and that has contracted with the board
to administer the taxes imposed under this part.
   (2) "Offset portion" means, for purposes of this subdivision, that
portion of the refund which is required as a result of the court's
decision in Aerospace Corporation v. State Board of Equalization.
   (3) All refunds associated with the Aerospace Corporation case
shall be aggregated so that any local agency required to make those
refunds will do so on the basis of aggregate claims rather than
individual claims.
   (4) The State Board of Equalization shall make the refund payments
required pursuant to this court case from the Local Sales Tax Offset
Fund, which is hereby created, as follows:
   (A) Present and future refunds shall be made from the Local Sales
Tax Offset Fund.
   (B) Amounts equivalent to past refund payments that have been
deducted from a local jurisdiction's sales and use tax and
transactions and use tax transmittals prior to the effective date of
this act shall be paid to the affected local jurisdiction from the
Local Sales Tax Offset Fund.
   (5) Notwithstanding Section 13340 of the Government Code, the
Local Sales Tax Offset Fund is continuously appropriated without
regard to fiscal years for the payment of refunds required by this
paragraph.  The fund may borrow moneys utilizing any financing
vehicle deemed appropriate by the Treasurer, at the pooled money
investment rate, in order to pay the refunds required by this
paragraph.  These refund payments shall be repaid to the Local Sales
Tax Offset Fund by local agencies, with interest at the pooled money
investment rate, not to exceed the rate paid by the state on funds
borrowed by the Local Sales Tax Offset Fund for purposes of making
the required refunds.  Repayment of each local agency's share of the
refund amount shall be made by local agencies through equal quarterly
deductions from each local agency's sales and use taxes and
transactions and use taxes prior to the transmittal of those taxes to
those local agencies over the succeeding 10 years.
   (6) A local agency may fulfill its refund obligation resulting
from the Aerospace Corporation case in any of the following manners:
   (A) Pursuant to the offset provisions provided by this section.
(B) Pursuant to the funding or refunding of outstanding indebtedness
as set forth in Section 53550 of the Government Code.    (C) In any
manner deemed appropriate by the local agency in accordance with
existing law.    A local agency shall notify the State Board of
Equalization of the manner in which the local agency intends to
fulfill its refund obligation.
7204.2.  (a)  The State Board of Equalization shall continue to
negotiate a settlement with the government of the United States
relating to the amount and repayment of the sales tax refund
liability of the state and local agencies pursuant to the court
decision in Aerospace Corporation v. State Board of Equalization, 218
Cal. App. 3d 1300.  To the maximum extent possible, the board shall
include in the settlement agreement a provision that, upon adoption
of the settlement agreement between the board and the government of
the United States, the board, the government of the United States,
and the aerospace contractors affected by the court's decision in
Aerospace Corporation v. State Board of Equalization shall cease to
incur any further costs associated with the audit of claims for sales
tax refunds, and the repayment of the sales tax refund by local
agencies shall be made on or after July 1, 1993, through deductions
in sales and use tax transmittals to cities and counties pursuant to
a method to be determined as specified in subdivisions (b) and (c),
respectively, or pursuant to the formula determined by the board as
specified in subdivision (e).
   (b) (1) The State Board of Equalization shall establish a Cities
Task Force on Aerospace Refunds.  The task force shall be appointed
by the League of California Cities.  The task force shall meet
regularly for the purpose specified in paragraph (2).
   (2) The task force shall be responsible for establishing a method
for the distribution of the sales tax refund liability among cities
in the state arising from the court decision in Aerospace Corporation
v. State Board of Equalization, 218 Cal. App. 3d 1300.
   (3) On or before April 1, 1993, the task force shall submit to the
board its recommendation of the method for the distribution of the
sales tax refund liability among cities associated with the Aerospace
Corporation case.
   (4) The board shall adopt the recommendation of the task force and
implement the method contained in the recommendation for making the
deduction from city sales and use tax transmittals effective July 1,
1993.
   (5) If the task force fails to submit its recommendation to the
board as specified in paragraph (3), the board shall implement the
formula specified in subdivision (e) to govern the distribution of
deductions of sales and use tax transmittals among cities effective
July 1, 1993.
   (c) (1) The State Board of Equalization shall establish a Counties
Task Force on Aerospace Refunds.  The task force members shall be
appointed by the California State Association of Counties.  The task
force shall meet regularly for the purpose specified in paragraph
(2).
   (2) The task force shall be responsible for establishing a method
for the distribution of the sales tax refund liability among counties
in the state arising from the court decision in Aerospace
Corporation v. State Board of Equalization, 218 Cal. App. 3d 1300.
   (3) On or before April 1, 1993, the task force shall submit to the
board its recommendation of the method for the allocation of the
sales tax refund liability among counties associated with the
Aerospace Corporation case.
   (4) The board shall adopt the recommendation of the task force and
implement the method contained in the recommendation for making the
deduction from county sales and use tax transmittals effective July
1, 1993.
   (5) If the task force fails to submit its recommendation to the
board as specified in paragraph (3), the board shall implement the
formula as specified in subdivision (e) to govern the distribution of
deductions of sales and use tax transmittals among counties
effective July 1, 1993.
   (d) The deductions from the sales and use tax transmittals
pursuant to the methods established pursuant to subdivisions (b) and
(c) shall, in the aggregate, equal the amount of the refund required
of cities and counties by the Aerospace Corporation court decision.
   (e) (1) If, on or before April 1, 1993, the Cities Task Force on
Aerospace Refunds or the Counties Task Force on Aerospace Refunds
does not submit its recommendation to the board for distributing the
deductions from the sales and use tax transmittals among cities and
counties, respectively, the board shall use the formula specified in
this subdivision to govern the distribution among cities and
counties.
   (2) With regard to transmittals to each city, county, and city and
county pursuant to Section 7204, the board, on or after July 1,
1993, shall deduct from the transmittals those refunds required to be
paid as a result of the decision in Aerospace Corporation v. State
Board of Equalization.  Refunds of local taxes attributable to the
Aerospace decision shall be allocated based on the following
calculations:
   (A) In the case of a contractor with a single business location in
this state:
A=A1(X*L) B=B1((X*L))*Y1 C=C1((X*L))*Y2 D=D1((X*L))*Y3
   (B) In the case of a contractor with multiple business locations
in this state:
A=A1(X*M)*L B=B1((X*M)*L)*Y1 C=C1((X*M)*L)*Y2 D=D1((X*M)*L)*Y3
   (3) The formula or formulas specified in this section shall be
used if the contractor's business practice was such that it purchased
substantially all of the property, for which it is entitled to be
reimbursed as an item of indirect cost on a tax-paid basis.  It shall
not apply if the contractor's business practice was such that it
purchases that property without payment of tax and reported use tax
on a self-accrual basis, in which case the entity where the
self-accrued use tax was reported would be allocated the deduction
from its sales and use tax transmittals equal to the refund required
by this decision.
   (4) The following definitions govern the symbols used in this
subdivision:
   A = Amount of local tax allocated to the jurisdiction of the
contractor's actual business location.
   B = Amount of local tax allocated to the city, county, or city and
county within the same county of the contractor's business location.
   C = Amount of local tax allocated to the city, county, or city and
county adjoining the county of the contractor's actual business
location (adjoining counties share a common border with the county of
the contractor's actual business location).
   D = Amount of local tax allocated to the city, county, or city and
county in all other counties, excluding amounts allocated to A, B,
and C above.
   A1 = Percentage of tax overpaid by contractor at business location
established pursuant to an analysis of completed Aerospace claims
for refund.
   B1 = Percentage of tax overpaid by contractor in the county of the
business location, excluding A above, established pursuant to an
analysis of completed Aerospace claims for refund.
   C1 = Percentage of tax overpaid by contractor in adjoining
counties of the business location established pursuant to an analysis
of completed Aerospace claims for refund.
   D1 = Percentage of tax overpaid by contractor in all other
counties, excluding B1 and C1 above, established pursuant to an
analysis of completed Aerospace claims for refund.
   X = Pro rata share of tax plus interest overpaid by contractors
based on the agreed-to total refund to the government of the United
States.  Contractor's pro rata share shall be computed as follows:
   X = The quotient of the contractor's computed refund divided by
the total computed refund (actual and estimated), multiplied by the
settlement amount.
   L = Local tax rate factor established pursuant to an analysis of
tax rates in effect during the period of the contractor's claim for
refund.
   Y1 = Percentage of local tax allocated to the city, county, or
city and county within the county of the contractor's business
location, excluding A above, during the period of the claim for
refund established pursuant to an analysis of the board's annual
reports.
   Y2 = Percentage of local tax allocated to the city, county, or
city and county in adjoining counties of the contractor's business
location during the period of the claim for refund as established
pursuant to an analysis of the board's annual reports.
   Y3 = Percentage of local tax allocated to city, county, or city
and county in all other counties, excluding Y1 and Y2 above, of the
contractor's business location during the period of the claim for
refund as established pursuant to an analysis of the board's annual
reports.
   M = Percentage of tax to be allocated to each location of a
contractor with multiple locations within the state as determined by
an analysis of reported taxable sales during the period of the claim
for refund. This shall be computed as follows:
   M = The quotient of taxable sales by location divided by total
taxable sales.
   (5) Percentages to be applied to elements A1, B1, C1, and D1 as
determined by board data analysis shall be as follows:
             Alameda           Los Angeles           Orange
             County              County              County
  A          36.91%              33.87%              22.14%
   1
  B          33.49%              54.95%              23.15%
   1
  C          25.63%               8.02%              38.62%
   1
  D           3.97%               3.16%              16.09%
   1
          San Diego    Santa Barbara    Santa Clara     (All Other
           County          County          County        Counties)
A         48.26%          20.43%          28.31%         30.04%
  1
B         16.15%          25.97%          35.33%         45.22%
  1
C          5.91%          15.44%          33.43%         13.50%
  1
D         29.68%          38.16%           2.93%         11.24%
  1
   (6) With regard to transmittals to districts pursuant to Section
7271, the board shall deduct from the transmittals those refunds
attributable to the court decision in Aerospace Corporation v. State
Board of Equalization based on the formula in paragraph (7).
   (7) Refunds of transaction taxes attributable to the Aerospace
decision shall be allocated based on the following calculation:
T=T*X.
   The following definitions govern the symbols used in this
paragraph:
   T = Transit tax rate factor established pursuant to an analysis of
the transit tax rates in effect at contractor's location or
locations during the claim for refund period.
   X = Pro rata share of tax plus interest overpaid by contractor
based on the agreed-to total refund to the government of the United
States. Contractor's pro rata share shall be computed as follows:
   X = The quotient of contractor's computed overpayment divided by
the total overpayment (actual and estimated), multiplied by the
settlement amount.
7204.3.  The board shall charge a city, city and county,
redevelopment agency, or county an amount for the board's services in
administering the sales and use tax ordinance of the local entity,
as determined by the board with the concurrence of the Department of
Finance, as follows:
   (a) Beginning with the 1993-94 fiscal year, the amount charged
shall be based on the total local entity cost reflected in the annual
Budget Act.  This amount comprises the categories of direct, shared,
and central agency costs incurred by the board and shall include the
following:
   (1) The amount charged to each entity shall be based on the
recommendations incorporated in the March 1992 report by the Auditor
General entitled "The Board of Equalization Needs To Adjust Its Model
For Setting Reimbursement Rates For Special Tax Jurisdictions."
   (2) The amount charged may be adjusted in the current fiscal year
to reflect the difference between the board's budgeted costs and any
significant revised estimate of costs.  Any adjustment shall be
subject to budgetary controls included in the Budget Act.  Prior to
any adjustment, the Department of Finance shall notify the
Chairperson of the Joint Legislative Budget Committee not later than
30 days prior to the effective date of the adjustment.
   (3) For the 1995-96 fiscal year and each fiscal year thereafter,
the amount charged shall be adjusted to reflect the difference
between the board's recovered costs and the actual costs incurred by
the board during the fiscal year two years prior.
   The amounts determined by subdivision (a) shall be deducted in
equal amounts from the quarterly allocation of taxes collected by the
board for the city, city and county, redevelopment agency, or
county.
7204.4.  The Director of Transportation and the Controller shall
charge for the cost of their services in administering the
responsibilities assigned to them in Chapter 4 (commencing with
Section 99200) of Part 11 of Division 10 of the Public Utilities
Code.  Amounts to be charged shall be specified in the Budget Act.
Those amounts shall be deducted from the taxes collected by the board
for the counties and the cities and counties.
7204.5.  (a) For purposes of this section:
   (1) "City" means any city located within the County of Napa.
   (2) "County" means the County of Napa.
   (3) "Quarterly taxes" means the total amount of sales and use
taxes transmitted by the board to a city or the county for a calendar
quarter.
   (4) "Refund" means the amount of sales and use taxes deducted by
the board from a city's or the county's quarterly taxes in order to
pay the city's or county's share of a sales and use tax refund due as
a result of overpayments of sales or use tax on the sale or purchase
of oak barrels purchased for the purpose of physically incorporating
oak into wine to be sold.
   (5) "Offset portion" means that portion of the refund which
exceeds fifty thousand dollars ($50,000) in a calendar quarter.
   (6) For purposes of calculating the "offset portion" the total
refunds issued or to be issued shall be aggregated each quarterly
period and shall be offset by an amount which exceeds fifty thousand
dollars ($50,000) for that quarterly period.
   (b) (1) Upon notification by the board that a city or the county
is subject to an offset portion, the city or county may, within 30
days after the date of that notification, request the board to deduct
a pro rata share of the offset portion from that city's or county's
future transmittals of sales and use taxes.
   (2) Except as provided in subdivision (c), if the board has
deducted a refund from the city's or county's quarterly taxes which
includes an offset portion, then the following provisions apply:
   (A) For the 1997 calendar year, within nine months after the board
deducted an offset portion, the city or county may request the board
to transmit the offset portion to that city or county.  After
calendar year 1997, the city or county may make that request within
three months after the board deducted the offset portion.
   (B) As promptly as feasible after the board receives the city's or
county's request, the board shall transmit to that city or county
the offset portion as part of the board's periodic transmittal of
sales and use taxes.
   (3) The board shall thereafter deduct a pro rata share of the
offset portion from future transmittals of sales and use taxes to the
city or county over a period not to exceed 12 quarters until the
entire amount of the offset portion has been deducted.
   (c) The board shall not transmit the offset portion of the refund
to the city or county if that transmittal would reduce or delay
either the board's payment of the refund to the taxpayer or the board'
s periodic transmittals of sales and use taxes to any other city,
county, city and county, or redevelopment agency in this state.
7205.  (a) For the purpose of a sales tax imposed by an ordinance
adopted pursuant to this part, all retail sales are consummated at
the place of business of the retailer unless the tangible personal
property sold is delivered by the retailer or his or her agent to an
out-of-state destination or to a common carrier for delivery to an
out-of-state destination.  The gross receipts from those sales shall
include delivery charges, when those charges are subject to the state
sales and use tax, regardless of the place to which delivery is
made.
   (b) (1) 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
sales tax imposed by an ordinance adopted pursuant to this part
shall, subject to paragraph (2), be determined under rules and
regulations to be prescribed and adopted by the board.
   (2) In the case of a sale of jet fuel, the place at which the
retail sale of that jet fuel is consummated for the purpose of a
sales tax imposed by an ordinance adopted pursuant to this part is
the point of the delivery of that jet fuel to the aircraft, if both
of the following conditions are met:
   (A) The principal negotiations for the sale are conducted in this
state.
   (B) The retailer has more than one place of business in the state.
7205.  (a) For the purpose of a sales tax imposed by an ordinance
adopted pursuant to this part, all retail sales are consummated at
the place of business of the retailer unless the tangible personal
property sold is delivered by the retailer or his or her agent to an
out-of-state destination or to a common carrier for delivery to an
out-of-state destination. The gross receipts from those sales shall
include delivery charges, when those charges are subject to the state
sales and use tax, regardless of the place to which delivery is
made.
   (b) (1) 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
sales tax imposed by an ordinance adopted pursuant to this part
shall, subject to paragraph (2), be determined under rules and
regulations to be prescribed and adopted by the board.
   (2) In the case of a sale of jet fuel, the place at which the
retail sale of that jet fuel is consummated for the purpose of a
sales tax imposed by an ordinance adopted pursuant to this part is
the point of the delivery of that jet fuel to the aircraft.
7205.1.  (a) Notwithstanding any other provision of law, in
connection with any use tax imposed pursuant to this part with
respect to the lease (as described in Sections 371 and 372 of the
Vehicle Code) of a new or used motor vehicle as defined in
subdivision (d), by a dealer or leasing company, the place of use for
the reporting and transmittal of the use tax shall be determined as
follows:
   (1) If the lessor is a California new motor vehicle dealer (as
defined in Section 426 of the Vehicle Code), or a leasing company,
the place of use of the leased vehicle shall be deemed to be the city
in which the lessor's place of business (as defined in Section 7205
and the regulations promulgated thereunder) is located.
   (2) If a lessor, who is not a person described in paragraph (1),
purchases the vehicle from a person as so described, the place of use
of the leased vehicle shall be deemed to be the city in which the
place of business (as defined in Section 7205 and the regulations
promulgated thereunder) of the person from whom the lessor purchases
the vehicle is located.
   (3) The place of use as determined by this subdivision shall be
the place of use for the duration of the lease contract,
notwithstanding the fact that the lessor may sell the vehicle and
assign the lease contract to a third party.
   (b) Except as described in subdivision (a), this section shall not
apply if the dealer or leasing company entering into the lease
agreement is located outside of California.
   (c) (1) The provisions of this section that are applicable to a
California new motor vehicle dealer shall apply to lease transactions
entered into on or after January 1, 1996.
   (2) The provisions of this section, applicable to a leasing
company, shall apply to lease transactions entered into on or after
January 1, 1999.
   (d) As used in this section, the following definitions shall
apply:
   (1) "City" means a city, city and county, or county.
   (2) "Motor vehicle" means any self-propelled passenger vehicle
(other than a house car) or pickup truck rated less than one ton.
   (3) "Leasing company" means a motor vehicle dealer (as defined in
Section 285 of the Vehicle Code), that complies with all of the
following:
   (A) The dealer originates lease contracts, described in
subdivision (a), that are continuing sales and purchases.
   (B) The dealer does not sell or assign those lease contracts that
it originates in accordance with subparagraph (A).
   (C) (i) The dealer has annual motor vehicle lease receipts of
fifteen million dollars ($15,000,000) or more per location.
   (ii) For purposes of this subparagraph, only those periodic
payments required by the lease shall be considered in determining
whether a lessor has annual receipts of fifteen million dollars
($15,000,000) or more.  Amounts received by lessors attributable to
capitalized cost reductions or amounts paid by a lessee upon his or
her exercising an option shall not be considered in determining
whether a lessor has annual lease receipts of fifteen million dollars
($15,000,000) or more.
   (e) If the lessor is not a dealer described in paragraph (1) of
subdivision (a), or a person who is described in paragraph (2) of
subdivision (a) as purchasing from a dealer, the use tax shall be
reported to and distributed through the countywide pool of the county
in which the lessee resides.
7207.  Nothing in this part shall require or be construed to require
any city, county, or city and county, to impose any sales or use
taxes or to increase any sales or use taxes.
7208.  Every notice of determination of use tax authorized by this
part shall be served within four months from the end of the quarterly
period during which the storage, use or other consumption of the
tangible personal property became taxable; provided, the tangible
personal property was purchased from a retailer whose place of
business was located in a county which did not impose a tax pursuant
to this part but which county does impose such a tax for the first
time to be operative on or after July 1, 1959, but not later than
July 1, 1960.
7209.  The board may redistribute tax, penalty and interest
distributed to a county or city other than the county or city
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.
7210.  Notwithstanding Section 7203.5, the State Board of
Equalization shall continue to administer the sales and use tax
ordinance of any city, county, or city and county which adopts an
ordinance imposing a tax on the sale, storage, use, or consumption of
motor vehicle fuel pursuant to Chapter 5 (commencing with Section
99500), Part 11, Division 10 of the Public Utilities Code or Part 4
(commencing with Section 9501) of this division.
7211.  Notwithstanding Section 7203.5, the State Board of
Equalization shall continue to administer the sales and use tax
ordinance of any county which adopts a transactions and use tax
ordinance pursuant to Article 13 (commencing with Section 29560) of
Chapter 2 of Division 3 of Title 3 of the Government Code.
7212.  Any redevelopment agency adopting a sales and use tax
ordinance pursuant to Section 7202.6 shall pay to the board its costs
of preparation to administer and operate the sales and use tax
ordinance.  The agency shall pay such costs monthly as incurred and
billed by the board.  The costs include all preparatory costs,
including costs of developing procedures, programming for data
processing, developing and adopting appropriate regulations,
designing and printing of forms, developing instructions for the
board's staff and for taxpayers, and other necessary preparatory
costs which shall include the board's direct and indirect costs as
specified by Section 11256 of the Government Code.  Any disputes as
to the amount of preparatory costs incurred shall be resolved by the
Director of Finance, and his decision shall be final. The maximum
amount of all preparatory costs to be paid by the district shall not,
in any event, exceed five hundred seventy thousand dollars
($570,000).  If for any reason the ordinance adopted pursuant to
Section 7202.6 is declared to be invalid, the board shall not be
required to refund any or all revenues collected pursuant to that
ordinance, but rather those revenues shall be distributed to the city
within which the redevelopment agency operates.