What are some differences between local sales and use tax and district taxes?
Please see publication 28, Tax Information for City and County Officials for more information. There is no direct correlation between local sales and use tax and district taxes. In general, local sales tax is allocated to the retailer’s place of business in California where the sale occurs even though the property may never be at the place of business. If a retailer has multiple locations in California, local sales tax is allocated to the place where the principal negotiations are conducted, whether or not the property sold is ever in the jurisdiction where the retailer’s place of business is located. Local use tax is allocated to the place where merchandise is first functionally used, generally through countywide pools. As stated previously in question #12, the district tax is distributed to the district where goods are delivered or presumably used. In some cases, a retailer may allocate local tax but report no district tax to a jurisdiction if the merchandise was delivered to a locat
