Laws, Regulations and Annotations

Search

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 7273


7273. Charges for administering the taxes. In addition to the amounts otherwise provided for preparatory costs, the board shall charge each district an amount for the board's services in administering the transactions and use tax determined by the board, with the concurrence of the Department of Finance, as follows:

(a) Beginning with the 2006 07 fiscal year, the amount charged all districts shall be based on the methodology described in Alternative 4C of the November 2004 report by the State Board of Equalization entitled "Response to the Supplemental Report of the 2004 Budget Act." The amount charged each district shall be based upon the district's proportional share of the revenue after weighting the revenue to equalize the differences in district tax rates.

(1) The amount charged each district 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.

(2) The amount charged each district 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.

(b) The board shall, by June 1 of each year, notify districts of the amount that it anticipates will be assessed for the next fiscal year. The districts shall be notified of the actual amounts that will be assessed within 30 days after enactment of the Budget Act for that fiscal year.

(c) The amount charged a district that becomes operative during the fiscal year shall be estimated for that fiscal year based on weighted revenue.

(d) The amounts determined by subdivision (a) shall be deducted in equal amounts from the quarterly allocation of taxes collected by the board for a given district.

(e) Notwithstanding any other provision of this section, for the 2008–09 fiscal year to the 2014–15 fiscal year, inclusive, the amounts determined by subdivision (a) shall not include any revenues collected pursuant to Sections 6051.7 and 6201.7.

History—Stats. 1969, p. 461, in effect June 12, 1969, revised the original language of the first two lines of this section, as enacted by Ch. 24, in effect November 10, 1969, by adding "otherwise" and deleting "in the preceding section" following "provided". Stats. 1971, p. 2790, operative July 1, 1972, provided that the board shall charge 0.82 percent of all district taxes for administering the transactions and use tax ordinance. Stats. 1985, Ch. 1091, effective January 1, 1986, added "except as provided in Section 7273.1" after "for preparatory costs, the board shall charge,". Stats. 1990, Ch. 1077, in effect January 1, 1991, added "Effective July 1, 1991", moved "except as provided in Section 7273.1" from after "charge" to after "costs," deleted "district" after "7273.1, the", added "following" after "charge the", added "its" before "services", added colon after "tax", deleted "ordinance of the district 0.82" after colon, added subdivision (a) and "For any district …, 0.79" and substituted "July 1, 1991" for "July 1, 1972" in subdivision (a); added subdivisions (b) and (c); added "(d) The", added "specified in subdivisions (a), (b), and (c)"; and substituted "a given" for "the" in subdivision (d). Stats. 1993, Ch. 75, in effect June 30, 1993, deleted "Effective July 1, 1991," before "In addition", substituted "In" for "in" before "addition", deleted "except as provided in Section 7273.1," after "costs", substituted "an amount" for "the following" after "charge", deleted former subdivisions (a), (b), (c), and (d) which specified percentages of the tax revenue that the Board was required to charge local entities as the cost of the Board's services, and added entire text of subdivisions (a) through (d). Stats. 1998, Ch. 890, in effect January 1, 1999, added comma after "board" in the first paragraph; added ", by June 1 of each year," after "board shall" and deleted "by June 1" after "notify districts" in subdivision (b); substituted "that" for "which" after "tax district" in subdivision (c); and added subdivisions (e) and (f). Stats. 1999, Ch. 865, (SB 1302), in effect January 1, 2000, added "amount as a" after "lesser of the", added "of revenue" after "percentage", added ", or the first … operations" after "fiscal year", and deleted "of the total transactions and use tax revenue collected by the board for that district for each fiscal year" after "following percentages" in subdivision (e); substituted "ranging from … one-half" for "of one quarter" after "and use tax" in paragraph (2), and substituted "below one-quarter … 5 percent" for "of one-eighth of 1 percent shall not exceed 5 percent" after "and use tax" in subparagraph (3) of subdivision (e); and substituted "1999" for "1998" after "March 1" and "2000" for "1999" after "January 1" in subdivision (f). Stats. 2001, Ch. 745 (SB 1191), in effect October 12, 2001, deleted former subdivision (f) which provided, "The board shall report to the Chairperson of the Senate Committee on Budget and Fiscal Review and the Chairperson of the Assembly Committee on Budget by March 1, 1999, and January 1, 2001, on the actions the board will take to adjust its costs commensurate with the changes in reimbursements effected by this bill. The report shall analyze the impact of the reduced reimbursements on the board's budget and how the board's actions may impact its revenue-producing activities. The board may not reduce positions that are responsible for the generation or receipt of revenues, including, but not limited to, positions in the audits and compliance programs." Stats. 2006, Ch. 49 (AB 1809), in effect January 1, 2007, added "each district" after "board shall charge", substituted "the board's" for "its" after "an amount for" in the first paragraph, substituted "2006–07" for "1993–94" after "Beginning with the", added "all districts" after "the amount charged" and substituted "methodology described … tax rates" for "total special taxing jurisdiction costs 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:" after "based on the" in subdivision (a); deleted former paragraph (1) of subdivision (a) which provided, "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."'; renumbered former paragraphs (2) and (3) as (1) and (2), respectively; and substituted "The" for "For the 1995–96 fiscal year and each fiscal year thereafter, the" in former paragraph (3) of subdivision (a); deleted "transactions and use tax" after "amount charged a" and substituted "weighted revenue" for "that district's proportionate share of direct, indirect, and shared costs" in subdivision (c); and deleted former subdivision (e) which provided, "For the 1998–99 fiscal year and each fiscal year thereafter, the amount charged to a district by the board shall not exceed the lesser of the amount as a percentage of revenue the board would have charged for the 1998-99 fiscal year, or the first full year of a new district's operations under this section as it read prior to the amendments made by the act adding this subdivision, or the following percentages: (1) For districts imposing a transactions and use tax of one-half of 1 percent or greater, the amount charged by the board shall not exceed 1.5 percent, for the 1998-99 fiscal year and each fiscal year thereafter. (2) Beginning with the 1998–99 fiscal year and in each fiscal year thereafter, the amount charged to a district imposing a transactions and use tax ranging from one-quarter of 1 percent up to but less than one-half of 1 percent shall not exceed 3 percent. (3) Beginning with the 1998–99 fiscal year and in each fiscal year thereafter, the amount charged to a district imposing a transactions and use tax below one-quarter of 1 percent shall not exceed 5 percent." Stats. 2007, Ch. 342 (AB 1748), in effect January 1, 2008, added "each district" after "amount charged" in paragraph (2) of subdivision (a). Stats. 2009, Ch. 12XXXX (AB 12XXXX), in effect July 28, 2009, added subdivision (e).