(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.

Terms Used In California Revenue and Taxation Code 7271.1

  • board: means the California Department of Tax and Fee Administration. See California Revenue and Taxation Code 20
  • District: as used in this part , means any city, county, city and county, or other governmental entity authorized, to impose transaction and use taxes pursuant to this part. See California Revenue and Taxation Code 7252
  • transactions: as used in this part have the same meaning respectively as the words "sale" or "sales" and the word "transactor" as used in this part has the same meaning as "seller" as "sale" or "sales" and "seller" are used in Part 1 (commencing with Section 6001) of this division. See California Revenue and Taxation Code 7253

(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.

(Added by Stats. 1989, Ch. 274, Sec. 3.)

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