California – Bradley-Burns Local Sales and Use Tax Law Violations

SALT Report 2425 – The California State Board of Equalization issued a reminder to local government officials who may be considering the imposition of new taxes on sales of specific items within their local area. The BOE warns that local governments should consider the ramifications that may result when they impose local sales or use taxes in addition to the tax imposed by the Bradley-Burns Uniform Local Sales and Use Tax.

Revenue and Taxation Code §7203.5 mandates that the BOE terminate and not administer its contract to manage the sales or use tax laws of a local government if that local government imposes sales or use taxes in addition to the Bradley-Burns Uniform Local Sales and Use Tax.

If it comes to the BOE’s attention that a local government is imposing its own local sales and use tax the BOE is required to serve a written notice of termination of the contract for the administration of the Bradley-Burns Uniform Local Sales and Use Tax immediately.

Further, the BOE advises that if such a contract is terminated, it will likely have a significant financial impact on that local government.

For Further Information

California State Board of Equalization – Special Notice L-351