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Considering a Sales Tax Increase, Do it Right

March 23, 2016
A local add-on sales tax is legally a “transactions and use tax” (TrUT) and must be adopted in conformance with state law.
The state Board of Equalization (BOE) is responsible for administering these taxes, which the BOE also calls “district taxes.”  The BOE offers an invaluable publication, “Tax Information for City and County Officials: Local Sales and Use Tax, Transactions (Sales) and Use Tax.” (Publication 28).
The booklet is an invaluable resource for local agencies considering putting a TrUT increase on the ballot, as well as for cities wanting to understand and ensure proper allocation of all sales tax revenues. The publication covers the unique differences between sales and use taxes and TrUT and provides essential resources and contacts to ensure your taxes are adopted legally.

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