§ 98294 District Tax Contract Requirement

• •If a district didn't sign a contract with the State Board of Equalization before their tax rules started, they must sign one later.
• •Once they sign the contract, the tax rules start on the first day of the next calendar quarter (like January 1, April 1, etc.).
• •This rule was added in 1977 to make sure districts follow the right steps for tax collection.

A small town wants to start charging a local sales tax but forgot to sign a contract with the state first.

The town must sign the contract as soon as possible. Once signed, the tax rules will start on the first day of the next quarter (like July 1 if they sign in June).