8735 STATE-ADMINISTERED DISTRICT TRANSACTIONS (SALES) AND USE TAXES
(Revised 12/01)
Numerous counties have enacted ordinances establishing special taxing districts that impose transactions (sales) and use taxes on the sales and/or purchases of tangible personal property in or for use within the district. Various laws authorize counties to establish districts for transportation, jails, and for other governmental services. See SAM Section 3574.3
8735.1 APPLICATION OF STATE-ADMINISTERED DISTRICT TRANSACTIONS (SALES) TAX TO STATE AGENCY SALES
(Revised 12/01)
As of the effective date of the district taxing ordinance, State agencies selling tangible personal property within the district for use within the district will collect the appropriate transactions and use taxes from the consumers. State agencies selling tangible personal property from locations in one county that are delivered into counties that have these district taxes are required to report and pay to the BOE the transactions and use taxes applicable in the county where the delivery is made.
Delivery charges subject to the State sales tax are also subject to the district transactions tax. This district tax does not apply to fixed price sales contracts executed before the effective date of the ordinance if neither party has the unconditional right to terminate the contract.
The tax on tangible personal property sold within the district will consist of the appropriate district transactions tax, the 1 percent uniform local tax, the 1/4 percent county transportation tax, and the state sales tax.
8735.2 APPLICATION OF STATE-ADMINISTERED DISTRICT USE TAX
(Revised 12/01)
After the effective date of the district taxing ordinance, State agencies will report to the BOE and pay the district use tax applicable to purchases in the same manner as prescribed for reporting the State use tax. The district use tax is applicable to purchases of tangible property to be used within the district, but purchased from vendors located outside the district who do not hold certificates of authority to collect use tax. The district use tax does not apply to fixed price sales contracts executed before the effective date of the ordinance if neither party has the unconditional right to terminate the contract.
8735.3 APPLICATION OF STATE-ADMINISTERED DISTRICT USE TAX TO PURCHASE FOR TEMPORARY STORAGE
(Revised 12/01)
State-administered transit district use tax does not apply to storing, keeping, retaining, processing, fabricating or manufacturing of tangible personal property for subsequent use solely outside the State or for subsequent use solely outside the district imposing a use tax. The tax does apply when purchases are withdrawn from storage for use within the transit district.
8735.4 ACCOUNTING AND REPORTING STATE-ADMINISTERED DISTRICT TRANSACTIONS (SALES) AND USE TAXES
(Revised 12/01)
The procedures prescribed for accounting, claim preparation, reporting and paying the State sales and use taxes are also applicable to the State-administered district transactions (sales) and use taxes. See SAM Sections 8720 through 8733.
State agencies reporting district use tax on sales or on property used at multiple locations will allocate the district use tax to the place of sales or places of use on the Computation Schedule for District Tax, Schedule A, of the State, Local, and District Consumer Use Tax Return form, BOE-401-A. The Computation Schedule for District Tax, Schedule A, is used to determine the amount of tax, if any, that should be distributed to entities imposing district tax. For information on how to apply district taxes, request a copy of Tax Tips for District Tax, Pamphlet 44, from the BOE.
