Sales and Use Tax Rate in the City of Clovis, California Will Increase April 1, 2000

NR# 12-G
Date: February 25, 2000
Customer and Taxpayer Services Division

Sales and Use Tax Rate in the City of Clovis, California Will Increase April 1, 2000

The State Board of Equalization (BOE) announced today that on April 1, 2000, the sales and use tax rate within the city limits of the City of Clovis (Clovis) will increase from 7.875 percent to 8.175 percent. This rate reflects the statewide 7.25 percent rate, the 0.50 percent Fresno County Transportation Authority (FCTA), the 0.125 percent Fresno County Public Library Transactions and Use Tax (FCPL), plus 0.3 percent for the new voter-approved City of Clovis Public Safety Transaction and Use Tax (CCPS).

Who must apply the new tax rate?

You must apply the new 8.175 percent tax rate if you:

  • Are a retailer in Clovis and your merchandise is sold and delivered within the city.
  • Are a retailer located outside Clovis who is engaged in business in the city and you sell merchandise for use in the city. You are considered to be engaged in business in the city 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 city for the purpose of selling, delivering, installing, assembling, or the taking orders for any tangible personal property.
  • Are a dealer of vehicles, vessels, or aircraft, and you sell those items to persons who will register them to an address located in Clovis.
  • Collect tax on lease payments you receive for leased property used by the lessee in Clovis.

The new rate applies to all taxable charges except for certain fixed-price contracts and leases, as discussed below.

What tax rate is in effect for other parts of Fresno County?

The sales and use tax rate is 7.875 percent for all parts of Fresno County not within the city limits of Clovis.

Is there an exemption from the tax rate increase?
In general, fixed-price contracts and fixed-price lease agreements entered into prior to April 1, 2000, are subject to the rates in effect at the time you and your customer entered into the contract. To qualify as "fixed-price," neither party can have the right to adjust the price for an increase in costs or an increase in taxes, and the amount of the tax or the rate of the tax must be specifically stated in the contract or lease agreement. For example, a contract that says "plus applicable taxes" is not a fixed-price contract. In addition, a contract is not a "fixed-price" contract if either party has the unconstitutional right to terminate the contract or lease. If the contract or lease qualifies as fixed-price, you should continue to report and remit the specified tax rate-that is, the rate in effect at the time you entered into the contract.

Tax Rate Charts Available
For your convenience, tax rate charts for the new 8.175 percent tax rate for sales up to $50 (form BOE-72-8.175%) and $100 (form BOE-180-8.175) are available by calling the BOE at the number noted below or by downloading them from BOE's web site at /sutax/streimsched.htm.

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