CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 3173Introduced by Assembly Member FriedmanFebruary 16, 2024 An act to amend Section 7270 of the Revenue and Taxation Code, relating to taxation.LEGISLATIVE COUNSEL'S DIGESTAB 3173, as introduced, Friedman. Transactions and Use Tax Law.The Transactions and Use Tax Law requires, before the operative date of an ordinance imposing a transactions and use tax pursuant to the law, a governmental entity authorized to impose a tax pursuant to the law to contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of the ordinance, as prescribed.This bill would make nonsubstantive changes to that provision.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 7270 of the Revenue and Taxation Code is amended to read:7270. (a) Prior to Before the operative date of any an ordinance imposing a transactions and use tax pursuant to this part, the district shall contract with the board department to perform all functions incident to the administration and operation of the ordinance. If the district has not contracted with the board prior to department before the operative date of its ordinance, it shall nevertheless so contract and, in that case, the operative date shall be the first day of the first calendar quarter following the execution of the contract.(b) The contract shall contain a provision that the district shall reimburse the board department for and hold the board harmless from any and all costs, losses, or refunds of any kind whatsoever.(c) The contract shall also contain a provision that, in the event that a legal action is commenced challenging the validity of the tax in its entirety, as opposed to its application to an individual taxpayer, the district shall place the tax proceeds into an interest-bearing escrow account until the legality of the tax is finally resolved by a final and nonappealable decision rendered by a court of competent jurisdiction. That provision shall be enforceable by any interested person in a proceeding for a writ of mandate.(d) The district shall be entitled to indemnity for any and all costs, losses, or refunds from any entity, except the state, that participated in the imposition of the tax. For the purposes of this part, participated means any involvement in procuring the legislation that authorized the tax, or in enacting or administering the ordinance imposing the tax. Any organization that is a member of the legislative body of the district imposing the tax has participated in the imposition of the tax within the meaning of this section.
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 3173Introduced by Assembly Member FriedmanFebruary 16, 2024 An act to amend Section 7270 of the Revenue and Taxation Code, relating to taxation.LEGISLATIVE COUNSEL'S DIGESTAB 3173, as introduced, Friedman. Transactions and Use Tax Law.The Transactions and Use Tax Law requires, before the operative date of an ordinance imposing a transactions and use tax pursuant to the law, a governmental entity authorized to impose a tax pursuant to the law to contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of the ordinance, as prescribed.This bill would make nonsubstantive changes to that provision.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION
Assembly Bill
No. 3173
Introduced by Assembly Member FriedmanFebruary 16, 2024
Introduced by Assembly Member Friedman
February 16, 2024
An act to amend Section 7270 of the Revenue and Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 3173, as introduced, Friedman. Transactions and Use Tax Law.
The Transactions and Use Tax Law requires, before the operative date of an ordinance imposing a transactions and use tax pursuant to the law, a governmental entity authorized to impose a tax pursuant to the law to contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of the ordinance, as prescribed.This bill would make nonsubstantive changes to that provision.
The Transactions and Use Tax Law requires, before the operative date of an ordinance imposing a transactions and use tax pursuant to the law, a governmental entity authorized to impose a tax pursuant to the law to contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of the ordinance, as prescribed.
This bill would make nonsubstantive changes to that provision.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 7270 of the Revenue and Taxation Code is amended to read:7270. (a) Prior to Before the operative date of any an ordinance imposing a transactions and use tax pursuant to this part, the district shall contract with the board department to perform all functions incident to the administration and operation of the ordinance. If the district has not contracted with the board prior to department before the operative date of its ordinance, it shall nevertheless so contract and, in that case, the operative date shall be the first day of the first calendar quarter following the execution of the contract.(b) The contract shall contain a provision that the district shall reimburse the board department for and hold the board harmless from any and all costs, losses, or refunds of any kind whatsoever.(c) The contract shall also contain a provision that, in the event that a legal action is commenced challenging the validity of the tax in its entirety, as opposed to its application to an individual taxpayer, the district shall place the tax proceeds into an interest-bearing escrow account until the legality of the tax is finally resolved by a final and nonappealable decision rendered by a court of competent jurisdiction. That provision shall be enforceable by any interested person in a proceeding for a writ of mandate.(d) The district shall be entitled to indemnity for any and all costs, losses, or refunds from any entity, except the state, that participated in the imposition of the tax. For the purposes of this part, participated means any involvement in procuring the legislation that authorized the tax, or in enacting or administering the ordinance imposing the tax. Any organization that is a member of the legislative body of the district imposing the tax has participated in the imposition of the tax within the meaning of this section.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 7270 of the Revenue and Taxation Code is amended to read:7270. (a) Prior to Before the operative date of any an ordinance imposing a transactions and use tax pursuant to this part, the district shall contract with the board department to perform all functions incident to the administration and operation of the ordinance. If the district has not contracted with the board prior to department before the operative date of its ordinance, it shall nevertheless so contract and, in that case, the operative date shall be the first day of the first calendar quarter following the execution of the contract.(b) The contract shall contain a provision that the district shall reimburse the board department for and hold the board harmless from any and all costs, losses, or refunds of any kind whatsoever.(c) The contract shall also contain a provision that, in the event that a legal action is commenced challenging the validity of the tax in its entirety, as opposed to its application to an individual taxpayer, the district shall place the tax proceeds into an interest-bearing escrow account until the legality of the tax is finally resolved by a final and nonappealable decision rendered by a court of competent jurisdiction. That provision shall be enforceable by any interested person in a proceeding for a writ of mandate.(d) The district shall be entitled to indemnity for any and all costs, losses, or refunds from any entity, except the state, that participated in the imposition of the tax. For the purposes of this part, participated means any involvement in procuring the legislation that authorized the tax, or in enacting or administering the ordinance imposing the tax. Any organization that is a member of the legislative body of the district imposing the tax has participated in the imposition of the tax within the meaning of this section.
SECTION 1. Section 7270 of the Revenue and Taxation Code is amended to read:
### SECTION 1.
7270. (a) Prior to Before the operative date of any an ordinance imposing a transactions and use tax pursuant to this part, the district shall contract with the board department to perform all functions incident to the administration and operation of the ordinance. If the district has not contracted with the board prior to department before the operative date of its ordinance, it shall nevertheless so contract and, in that case, the operative date shall be the first day of the first calendar quarter following the execution of the contract.(b) The contract shall contain a provision that the district shall reimburse the board department for and hold the board harmless from any and all costs, losses, or refunds of any kind whatsoever.(c) The contract shall also contain a provision that, in the event that a legal action is commenced challenging the validity of the tax in its entirety, as opposed to its application to an individual taxpayer, the district shall place the tax proceeds into an interest-bearing escrow account until the legality of the tax is finally resolved by a final and nonappealable decision rendered by a court of competent jurisdiction. That provision shall be enforceable by any interested person in a proceeding for a writ of mandate.(d) The district shall be entitled to indemnity for any and all costs, losses, or refunds from any entity, except the state, that participated in the imposition of the tax. For the purposes of this part, participated means any involvement in procuring the legislation that authorized the tax, or in enacting or administering the ordinance imposing the tax. Any organization that is a member of the legislative body of the district imposing the tax has participated in the imposition of the tax within the meaning of this section.
7270. (a) Prior to Before the operative date of any an ordinance imposing a transactions and use tax pursuant to this part, the district shall contract with the board department to perform all functions incident to the administration and operation of the ordinance. If the district has not contracted with the board prior to department before the operative date of its ordinance, it shall nevertheless so contract and, in that case, the operative date shall be the first day of the first calendar quarter following the execution of the contract.(b) The contract shall contain a provision that the district shall reimburse the board department for and hold the board harmless from any and all costs, losses, or refunds of any kind whatsoever.(c) The contract shall also contain a provision that, in the event that a legal action is commenced challenging the validity of the tax in its entirety, as opposed to its application to an individual taxpayer, the district shall place the tax proceeds into an interest-bearing escrow account until the legality of the tax is finally resolved by a final and nonappealable decision rendered by a court of competent jurisdiction. That provision shall be enforceable by any interested person in a proceeding for a writ of mandate.(d) The district shall be entitled to indemnity for any and all costs, losses, or refunds from any entity, except the state, that participated in the imposition of the tax. For the purposes of this part, participated means any involvement in procuring the legislation that authorized the tax, or in enacting or administering the ordinance imposing the tax. Any organization that is a member of the legislative body of the district imposing the tax has participated in the imposition of the tax within the meaning of this section.
7270. (a) Prior to Before the operative date of any an ordinance imposing a transactions and use tax pursuant to this part, the district shall contract with the board department to perform all functions incident to the administration and operation of the ordinance. If the district has not contracted with the board prior to department before the operative date of its ordinance, it shall nevertheless so contract and, in that case, the operative date shall be the first day of the first calendar quarter following the execution of the contract.(b) The contract shall contain a provision that the district shall reimburse the board department for and hold the board harmless from any and all costs, losses, or refunds of any kind whatsoever.(c) The contract shall also contain a provision that, in the event that a legal action is commenced challenging the validity of the tax in its entirety, as opposed to its application to an individual taxpayer, the district shall place the tax proceeds into an interest-bearing escrow account until the legality of the tax is finally resolved by a final and nonappealable decision rendered by a court of competent jurisdiction. That provision shall be enforceable by any interested person in a proceeding for a writ of mandate.(d) The district shall be entitled to indemnity for any and all costs, losses, or refunds from any entity, except the state, that participated in the imposition of the tax. For the purposes of this part, participated means any involvement in procuring the legislation that authorized the tax, or in enacting or administering the ordinance imposing the tax. Any organization that is a member of the legislative body of the district imposing the tax has participated in the imposition of the tax within the meaning of this section.
7270. (a) Prior to Before the operative date of any an ordinance imposing a transactions and use tax pursuant to this part, the district shall contract with the board department to perform all functions incident to the administration and operation of the ordinance. If the district has not contracted with the board prior to department before the operative date of its ordinance, it shall nevertheless so contract and, in that case, the operative date shall be the first day of the first calendar quarter following the execution of the contract.
(b) The contract shall contain a provision that the district shall reimburse the board department for and hold the board harmless from any and all costs, losses, or refunds of any kind whatsoever.
(c) The contract shall also contain a provision that, in the event that a legal action is commenced challenging the validity of the tax in its entirety, as opposed to its application to an individual taxpayer, the district shall place the tax proceeds into an interest-bearing escrow account until the legality of the tax is finally resolved by a final and nonappealable decision rendered by a court of competent jurisdiction. That provision shall be enforceable by any interested person in a proceeding for a writ of mandate.
(d) The district shall be entitled to indemnity for any and all costs, losses, or refunds from any entity, except the state, that participated in the imposition of the tax. For the purposes of this part, participated means any involvement in procuring the legislation that authorized the tax, or in enacting or administering the ordinance imposing the tax. Any organization that is a member of the legislative body of the district imposing the tax has participated in the imposition of the tax within the meaning of this section.