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HomePublic Utilities CodeDiv. 10Pt. 4Ch. 8Art. 2§ 40331 Local Tax Ordinance Timing

§ 40331 Local Tax Ordinance Timing

Public Utilities Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 40331 Local Tax Ordinance Timing

Key Takeaways

  • •New local sales tax rules don't start right away—they begin at the start of the next calendar quarter (like January 1, April 1, etc.) that's at least 120 days after voters approve them.
  • •Before the new tax rules kick in, the local government must make a deal with the state to handle all the tax collection and management work.
  • •The state helps run the tax process so the local area doesn’t have to do it alone.

Example

Your city votes in June to add a new 1% sales tax.

The new tax won’t start in July. Instead, it begins on October 1 (the next quarter after 120 days). Before October 1, your city must team up with the state to collect and manage the tax.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 40331 Local Tax Ordinance Timing

Any transactions and use taxes ordinance adopted pursuant to this article shall be operative on the first day of the first calendar quarter commencing more than 120 days after the approval of such ordinance by the electors as provided in this article. Prior to the operative date of the ordinance, the district shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of the ordinance. (Added by Stats. 1974, Ch. 508.)

Last verified: January 23, 2026

Key Terms

ordinanceagreementcontractequalizationcollectionmanagementadministrationoperation

Related Statutes

  • § 70223.3 District Tax Administration Contract
  • § 98293 District Tax Administration Contract
  • § 99504 Tax Administration Contract Reimbursement
  • § 26421 District-City Agreement Approval
  • § 90790 District-City Agreement Approval

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Utilities Code. Section 40331.
View Official Source