Board Announces Sales Tax Rate Change for Solano County

Business Wire, August 31, 1998

SACRAMENTO, Calif.--(BUSINESS WIRE)--Aug. 31, 1998--The State Board of Equalization (BOE), announced today that the sales and use tax rate for Solano County will increase from 7.25 percent to 7.375 percent effective October 1, 1998. This increase is the result of voter approval of the new 0.125 Solano County Public Library Transactions and Use Tax (SLPL).

Who must apply the new tax rate?

You must report tax under the new 7.375 percent rate if you: -- Are a retailer in the county and your merchandise is sold and delivered within the county. -- Are a retailer located outside the county who is engaged in business in the county and you sell merchandise for use in the county. You are considered to be engaged in business in the county if you (1) have any type of business location there, (2) deliver into the county using your own vehicles, or (3) have an agent or representative in the county who makes sales, takes orders, or makes deliveries. -- Are a dealer of vehicles, vessels, or aircraft, and you sell

those items to persons who register them in the county. -- Collect tax on lease payments you receive for leased property used by the lessee in the county. The new rate applies to your sales and purchases of merchandises normally subject to sales and use tax except for certain fixed-priced contracts and leases, as explained below.

Is there an exemption from the tax rate increase? -- If you entered into a fixed-price contract or fixed-price taxable lease agreement prior to October 1, 1998, you should report tax at the rate specified in the contract or lease (generally, this will be 7.25 percent, the rate in effect in Solano County prior to October 1, 1998). To qualify as a "fixed-price" contract or lease, neither party can have the unconditional right to terminate the contract or lease (Revenue and Taxation Code, sections 7261 (g) or 7262 (a)(2)(F)). In addition, the tax amount or rate must be specifically stated in the contract or lease agreement.

If you have any questions regarding the tax rate change, or would like to obtain a tax rate chart for the new rate, please call the Board's toll-free Customer Service Information Center at 1-800-400-7115. Staff is available from 8:00 a.m. to 5:00 p.m., Pacific time, Monday through Friday, excluding State holidays.

    CONTACT: State Board of Equalization, Sacramento
              Delena Bratton, Horacio Paras, 916/445-3192
              http://www.boe.ca.gov