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<br />33 <br />This is not an exhaustive list of exempt transactions. A comprehensive list can <br />be found in the State Board of Equalization’s July 2014 Publication No. 61 entitled <br />“Sales and Use Taxes: Exemptions and Exclusions,” which can be found on the State <br />Board of Equalization’s website at http://www.boe.ca.gov/. <br /> <br />Sales Tax Collection Procedures. Collection of the sales and use tax is <br />administered by the California State Board of Equalization. According to the State Board <br />of Equalization, it distributes quarterly tax revenues to cities, counties and special <br />districts using the following method: <br /> <br />Using the prior year’s like quarterly tax allocation as a starting point, the Board of <br />Equalization first eliminates nonrecurring transactions such as fund transfers, audit <br />payments and refunds, and then adjusts for growth, in order to establish the estimated <br />base amount. The State Board of Equalization disburses 90% to each local jurisdiction <br />in three monthly installments (advances) prior to the final computation of the quarter’s <br />actual receipts. Ten percent is withheld as a reserve against unexpected occurrences <br />that can affect tax collections (such as earthquakes, fire or other natural disaster) or <br />distributions of revenue such as unusually large refunds or negative fund transfers. The <br />first and second advances each represent 30% of the 90% distribution, while the third <br />advance represents 40%. One advance payment is made each month, and the <br />quarterly reconciliation payment (clean–up) is distributed in conjunction with the first <br />advance for the subsequent quarter. Statements showing total collections, <br />administrative costs, prior advances and the current advance are provided with each <br />quarterly clean–up payment. <br /> <br />Under the Sales and Use Tax Law, all sales and use taxes collected by the State <br />Board of Equalization under a contract with any city, city and county, or county are <br />required to be transmitted by the Board of Equalization to such city, city and county, <br />redevelopment agency, or county periodically as promptly as feasible. These <br />transmittals are required to be made at least twice in each calendar quarter. <br /> <br />Under its procedures, the State Board of Equalization projects receipts of the <br />sales and use tax on a quarterly basis and remits an advance of the receipts of the sales <br />and use tax to the City on a monthly basis. The amount of each monthly advance is <br />based upon the State Board of Equalization’s quarterly projection. During the last month <br />of each quarter, the State Board of Equalization adjusts the amount remitted to reflect <br />the actual receipts of the sales and use tax for the previous quarter. <br /> <br />The Board of Equalization receives an administrative fee based on the cost of <br />services provided by the Board to the City in administering the City’s sales tax, which is <br />deducted from revenue generated by the sales and use tax before it is distributed to the <br />City. <br /> <br />See “– City Economic and Demographic Information, Taxable Sales” herein for <br />further detail regarding the City’s sales tax receipts. <br /> Property Taxes. Property taxes represent the second largest source of tax revenue to <br />the City (approximately 19.8% of general governmental tax revenues in 2015–16). Property tax <br />revenues expected to be received by the City for Fiscal Year 2015-16 are $20.2 million. <br />