(a) For purposes of this section: (1) âLocal agencyâ means a city, county, city and county, or redevelopment agency. (2) âQuarterly taxesâ means the total amount of sales and use taxes transmitted by the board to a local agency for a calendar quarter. (3) âRefundâ means the amount of sales and use taxes deducted by the board from a local agencyâs quarterly taxes in order to pay the local agencyâs share of a sales and use tax refund due to one taxpayer. (4) âOffset portionâ 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 agencyâs quarterly taxes. (b) Except as provided in subdivision (c), if the board has deducted a refund from a local agencyâs 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 agencyâs request, the board shall transmit to the local agency the offset portion as part of the boardâs 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 boardâs payment of the refund to the taxpayer or the boardâs 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) âLocal agencyâ 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) âOffset portionâ means, for purposes of this subdivision, that portion of the refund which is required as a result of the courtâs 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 jurisdictionâs 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 mo
‹ Prev All California sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.