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Business Taxes Law Guide—Revision 2024

Uniform Local Sales And Use Tax Law

Revenue and Taxation Code

Division 2. Other Taxes
Part 1.5. Uniform Local Sales and Use Taxes
Chapter 1. General Provisions

Section 7203


7203. Required provisions of county use tax. The use tax portion of any sales and use tax ordinance adopted under this part shall impose a complementary tax upon the storage, use or other consumption in the county of tangible personal property purchased from any retailer for storage, use or other consumption in the county. That tax shall be at the rate of 1¼; percent of the sales price of the property whose storage, use or other consumption is subject to the tax and shall include:

(a) Provisions identical to the provisions contained in Part 1 (commencing with Section 6001), other than Section 6201 insofar as those provisions relate to the use tax, except that the name of the county as the taxing agency enacting the ordinance shall be substituted for that of the state (but the name of the county shall not be substituted for the word "state" in the phrase "retailer engaged in business in this state" in Section 6203 nor in the definition of that phrase in Section 6203).

(b) A provision that all amendments subsequent to the date of such ordinance to the provisions of the Revenue and Taxation Code relating to the use tax and not inconsistent with this part shall automatically become a part of the ordinance.

(c) A provision that the storage, use or other consumption of tangible personal property, the gross receipts from the sale of which has been subject to sales tax under a sales and use tax ordinance enacted in accordance with this part by any city and county, county, or city in this state, shall be exempt from the tax due under this ordinance.

(d) A provision that the amount subject to tax shall not include the amount of any sales tax or use tax imposed by the State of California upon a retailer or consumer.

(e) A provision that, in addition to the exemptions provided in Sections 6366 and 6366.1, the storage, use, or other consumption of tangible personal property, other than fuel or petroleum products, purchased by operators of aircraft and used or consumed by the operators directly and exclusively in the use of the aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this state, the United States or any foreign government is exempt from 80 percent of the use tax, and on and after July 1, 2004, until the rate modifications in subdivision (a) of Section 7203.1 cease to apply, exempt from 75 percent of the use tax.

History—Added by Stats. 1984, Ch. 17, effective March 1, 1984, repeal operative January 1, 1986. Stats. 1985, Ch. 838, operative January 1, 1986 until January 1, 1988, and as of that date is repealed, unless a later enacted statute, chaptered before December 31, 1987, deletes or extends such date, substituted "1988" for "1986" in both places in subdivision (b). Stats. 1991, Ch. 236, in effect July 29, 1991, deleted former paragraph (5) of subdivision (a) which provided, "(5) A provision that the storage, use, or other consumption of tangible personal property purchased by operators of waterborne vessels and used or consumed by such operators directly and exclusively in the carriage of persons or property in such vessels for commercial purposes is exempted from 80 percent of the use tax."; renumbered former paragraph (6) as paragraph (5) and added ", other than fuel or petroleum products," after "tangible personal property" in paragraph (5) of subdivision (a). Stats. 1992, Ch. 905, in effect September 25, 1992, operative January 1, 1993, deleted subdivision letter "(a)" in the first paragraph; substituted "That" for "Such" before "tax shall be" in the second sentence of the first paragraph; lettered former paragraphs (1), (2), (3), (4), and (5) as subdivisions (a), (b), (c), (d), and (e), respectively; substituted "those" for "such" after "Section 6201 insofar as" in subdivision (a); substituted "the" for "such" after "used or consumed by" and after "exclusively in the use of", and deleted a comma after "United States" in subdivision (e); and deleted former subdivision (b) which stated that "This section shall remain in effect only until January 1, 1988, and as of that date is repealed, unless a later enacted statute, which is chaptered before January 1, 1988, deletes or extends that date.". Stats. 2003, Ch. 13X (AB 7X), in effect August 2, 2003, but operative July 1, 2004, added a comma after "use tax" in subdivision (a), and added "percent of the...from 67" in subdivision (e). Stats. 2003, Ch. 2 (AB X5 9), in effect December 12, 2003, but operative July 1, 2004, substituted "75" for "67" after "Section 7203.1 cease to apply, exempt from" in subdivision (e).