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Business Taxes Law Guide—Revision 2024
Transactions And Use Tax Law
Revenue and Taxation Code
Division 2. Other Taxes
Part 1.6. Transactions and Use Taxes
Chapter 3. Administration
Section 7271.1
7271.1. Local agencies: refunds. (a) For purposes of this section:
(1) "Quarterly taxes" means the total amount of transactions and use taxes transmitted by the board to a district for a calendar quarter.
(2) "Refund" means the amount of transactions and use taxes deducted by the board from a district's quarterly taxes in order to pay the district's share of a transactions and use tax refund due to one taxpayer.
(3) "Offset portion" means that portion of the refund which exceeds the greater of fifty thousand dollars ($50,000) or 20 percent of the district's quarterly taxes.
(b) Except as provided in subdivision (c), if the board has deducted a refund from a district'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 district may request the board to transmit the offset portion to the district.
(2) As promptly as feasible after the board receives the district's request, the board shall transmit to the district the offset portion as part of the board's periodic transmittal of transactions and use taxes.
(3) The board shall thereafter deduct a pro rata share of the offset portion from future transmittals of transactions and use taxes to the district 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 district 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 transactions and use taxes to other districts.
History—Added by Stats. 1989, Ch. 274, in effect January 1, 1990.