SECTIONS 7200-7212 - California Statutes

REVENUE AND TAXATION CODE

SECTION 7200-7212

7200. This part is known and may be cited as the "Bradley-Burns
Uniform Local Sales and Use Tax Law."

7201. Any county may by action of its board of supervisors adopt a
sales and use tax in accordance with the provisions of this part.

7202. The sales tax portion of any sales and use tax ordinance
adopted under this part shall be imposed for the privilege of selling
tangible personal property at retail, and shall include provisions
in substance as follows:
(a) A provision imposing a tax for the privilege of selling
tangible personal property at retail upon every retailer in the
county at the rate of 1 1/4 percent of the gross receipts of the
retailer from the sale of all tangible personal property sold by that
person at retail in the county.
(b) Provisions identical to those contained in Part 1 (commencing
with Section 6001), insofar as they relate to sales taxes, except
that the name of the county as the taxing agency shall be substituted
for that of the state and that an additional seller's permit shall
not be required if one has been or is issued to the seller under
Section 6067.
(c) A provision that all amendments subsequent to the effective
date of the enactment of Part 1 (commencing with Section 6001)
relating to sales tax and not inconsistent with this part, shall
automatically become a part of the sales tax ordinance of the county.
(d) A provision that the county shall contract prior to the
effective date of the county sales and use tax ordinances with the
State Board of Equalization to perform all functions incident to the
administration or operation of the sales and use tax ordinance of the
county. Any such contract shall contain a provision that the county
agrees to comply with the provisions of Article 11 (commencing with
Section 29530) of Chapter 2 of Division 3 of Title 3 of the
Government Code.
(e) A provision that the ordinance may be made inoperative not
less than 60 days, but not earlier than the first day of the calendar
quarter, following the county's lack of compliance with Article 11
(commencing with Section 29530) of Chapter 2 of Division 3 of Title 3
of the Government Code or following an increase by any city within
the county of the rate of its sales or use tax above the rate in
effect at the time the county ordinance was enacted.
(f) A provision that the amount subject to tax shall not include
the amount of any sales tax or use tax imposed by the State of
California upon a retailer or consumer.
(g) A provision that there is exempted from the sales tax 80
percent, and on and after July 1, 2004, until the rate modifications
in subdivision (a) of Section 7203.1 cease to apply, 75 percent, of
the gross receipts from the sale of tangible personal property, other
than fuel or petroleum products, to operators of aircraft to be used
or consumed principally outside the county in which the sale is made
and directly and exclusively in the use of the aircraft as common
carriers of persons or property under the authority of the laws of
this state, the United States, or any foreign government.
(h) A provision that any person subject to a sales and use tax
under the county ordinance shall be entitled to credit against the
payment of taxes due under that ordinance the amount of sales and use
tax due to any city in the county; provided that the city sales and
use tax is levied under an ordinance including provisions in
substance as follows:
(1) A provision imposing a tax for the privilege of selling
tangible personal property at retail upon every retailer in the city
at the rate of 1 percent or less of the gross receipts of the
retailer from the sale of all tangible personal property sold by that
person at retail in the city and a use tax of 1 percent or less of
purchase price upon the storage, use or other consumption of tangible
personal property purchased from a retailer for storage, use or
consumption in the city.
(2) Provisions identical to those contained in Part 1 (commencing
with Section 6001), insofar as they relate to sales and use taxes,
except that the name of the city as the taxing agency shall be
substituted for that of the state (but the name of the city shall not
be substituted for the word "state" in the phrase "retailer engaged
in business in this state" in Section 6203 nor in the definition of
that phrase in Section 6203) and that an additional seller's permit
shall not be required if one has been or is issued to the seller
under Section 6067.
(3) A provision that all amendments subsequent to the effective
date of the enactment of Part 1 (commencing with Section 6001)
relating to sales and use tax and not inconsistent with this part,
shall automatically become a part of the sales and use tax ordinance
of the city.
(4) A provision that the city shall contract prior to the
effective date of the city sales and use tax ordinance with the State
Board of Equalization to perform all functions incident to the
administration or operation of the sales and use tax ordinance of the
city which shall continue in effect so long as the county within
which the city is located has an operative sales and use tax
ordinance enacted pursuant to this part.
(5) A provision that the storage, use or other consumption of
tangible personal property, the gross receipts from the sale of which
has been subject to sales tax under a sales and use tax ordinance
enacted in accordance with this part by any city and county, county,
or city in this state, shall be exempt from the tax due under this
ordinance.
(6) A provision that the amount subject to tax shall not include
the amount of any sales tax or use tax imposed by the State of
California upon a retailer or consumer.
(7) A provision that there are exempted from the computation of
the amount of the sales tax the gross receipts from the sale of
tangible personal property to operators of aircraft to be used or
consumed principally outside the city in which the sale is made and
directly and exclusively in the use of the aircraft as common
carriers of persons or property under the authority of the laws of
this state, the United States, or any foreign government.
(8) A provision that, in addition to the exemptions provided in
Sections 6366 and 6366.1, the storage, use, or other consumption of
tangible personal property purchased by operators of aircraft and
used or consumed by the operators directly and exclusively in the use
of the aircraft as common carriers of persons or property for hire
or compensation under a certificate of public convenience and
necessity issued pursuant to the laws of this state, the United
States, or any foreign government is exempt from the use tax.

7202.5. In addition to the provisions set forth in paragraphs (1)
to (8), inclusive, of subdivision (h) of Section 7202, a city,
county, or city and county sales and use tax ordinance may provide
that any person subject to a sales and use tax under the city's,
county's, or city and county's ordinance shall be entitled to credit
against the payment of taxes due under that ordinance the amount of
sales and use taxes due to the redevelopment agency pursuant to
Section 7202.6.

7202.8. Any pledge of taxes pursuant to Section 33641 of the Health
and Safety Code made with respect to taxes imposed under Section
7202.6 to the payment of principal and interest on bonds of a
redevelopment agency shall constitute the obligation of a contract
between the redevelopment agency and the holder of the bonds and
shall be protected from impairment by the United States and
California Constitutions. The provisions of Section 7202.6 which
authorize the imposition of the taxes may not be repealed during the
time that any of the bonds remain outstanding.

7203. The use tax portion of any sales and use tax ordinance
adopted under this part shall impose a complementary tax upon the
storage, use or other consumption in the county of tangible personal
property purchased from any retailer for storage, use or other
consumption in the county. That tax shall be at the rate of 1 1/4
percent of the sales price of the property whose storage, use or
other consumption is subject to the tax and shall include:
(a) Provisions identical to the provisions contained in Part 1
(commencing with Section 6001), other than Section 6201 insofar as
those provisions relate to the use tax, except that the name of the
county as the taxing agency enacting the ordinance shall be
substituted for that of the state (but the name of the county shall
not be substituted for the word "state" in the phrase "retailer
engaged in business in this state" in Section 6203 nor in the
definition of that phrase in Section 6203).
(b) A provision that all amendments subsequent to the date of such
ordinance to the provisions of the Revenue and Taxation Code
relating to the use tax and not inconsistent with this part shall
automatically become a part of the ordinance.
(c) A provision that the storage, use or other consumption of
tangible personal property, the gross receipts from the sale of which
has been subject to sales tax under a sales and use tax ordinance
enacted in accordance with this part by any city and county, county,
or city in this state, shall be exempt from the tax due under this
ordinance.
(d) A provision that the amount subject to tax shall not include
the amount of any sales tax or use tax imposed by the State of
California upon a retailer or consumer.
(e) A provision that, in addition to the exemptions provided in
Sections 6366 and 6366.1, the storage, use, or other consumption of
tangible personal property, other than fuel or petroleum products,
purchased by operators of aircraft and used or consumed by the
operators directly and exclusively in the use of the aircraft as
common carriers of persons or property for hire or compensation under
a certificate of public convenience and necessity issued pursuant to
the laws of this state, the United States or any foreign government
is exempt from 80 percent of the use tax, and on and after July 1,
2004, until the rate modifications in subdivision (a) of Section
7203.1 cease to apply, exempt from 75 percent of the use tax.

7203.1. (a) Notwithstanding any other provision of law, during the
revenue exchange period only, the authority of a county or a city
under this part to impose a tax rate as specified in an ordinance
adopted pursuant to Sections 7202 and 7203 is suspended, and the tax
rate to be applied instead during that period under any ordinance as
so adopted is the applicable of the following:
(1) In the case of a county, 1 percent.
(2) In the case of a city, three-quarters of 1 percent or less.
(b) For purposes of this section, "revenue exchange period" means
the period on and after July 1, 2004, and before the first day of the
first calendar quarter commencing more than 90 days following a
notification to the board by the Director of Finance pursuant to
subdivision (b) of Section 99006 of the Government Code.
(c) Subdivision (a) is a self-executing provision that operates
without regard to any decision or act on the part of any local
government. A change in a local general tax rate resulting from
either the rate limitations applied by subdivision (a) or the end of
the revenue exchange period is not subject to voter approval under
either statute or Article XIII C of the California Constitution.
(d) Existing tax exchange or revenue sharing agreements, entered
into prior to the operative date of this section, between local
agencies or between local agencies and nonlocal agencies shall be
deemed to be temporarily modified to account for the reduction in
sales and use tax revenues resulting from this section, with those
reduced revenues to be replaced as may otherwise be provided by law.

7203.2. The sales and use tax ordinance of a county, city, city and
county, or redevelopment agency adopted pursuant to this part, shall
be deemed to adopt by reference the provisions of Sections 7202 to
7203, inclusive, as now in effect or as later amended, which are
required to be included in the ordinance, regardless of whether or
not the ordinance was adopted or amended, prior to or after the
effective date of this section.

7203.5. The State Board of Equalization shall not administer and
shall terminate its contract to administer any sales or use tax
ordinance of a city, county, redevelopment agency, or city and
county, if such city, county, redevelopment agency, or city and
county imposes a sales or use tax in addition to the sales and use
taxes imposed under an ordinance conforming to the provisions of
Sections 7202 and 7203.
The board shall give such city, county, redevelopment agency, or
city and county written notice of termination, stating the reasons
therefor and the effective date of the termination, which shall be
not earlier than the first day of the first calendar quarter
commencing at least 30 days after the mailing of the notice to the
city, county, redevelopment agency, or city and county. If the cause
for termination is not cured within the time specified in the notice,
the board shall not administer the ordinance until the cause for
termination is removed and a new contract for the administration of
the ordinance executed. Such contract shall be operative not earlier
than the first day of the first calendar quarter commencing after its
execution. During the period of time that the board is not
administering the sales and use tax ordinance of a city, county,
redevelopment agency, or city and county, no ordinance of such city,
county, redevelopment agency, or city and county shall be considered
to be an ordinance enacted in accordance with this part.
Nothing in this section shall be construed as prohibiting the levy
or collection by a city, county, redevelopment agency, or city and
county of any other substantially different tax authorized by the
Constitution of California or by statute or by the charter of any
chartered city.

7203.5. (a) The State Board of Equalization shall not administer
and shall terminate its contract to administer any sales or use tax
ordinance of a city, county, or city and county, if that city,
county, or city and county imposes a sales or use tax in addition to
the sales and use taxes imposed under an ordinance conforming to the
provisions of Sections 7202 and 7203.
(b) For purposes of this section, and notwithstanding subdivision
(f), a city, county, or city and county shall be deemed to have
imposed a sales or use tax in addition to the sales and use taxes
imposed under an ordinance conforming to the provisions of Sections
7202 and 7203 to the extent that the city, county, or city and county
levies a tax on the privilege of occupying a room or rooms in a
hotel, motel, bed and breakfast inn, or similar transient lodging
establishment when all of the following conditions are met:
(1) The hotel, motel, bed and breakfast inn, or similar transient
lodging establishment provides food products for human consumption
and all or some of the food products are provided solely for
consumption by its transient guests and the invitees of those guests.
(2) The uniform cost of the food products provided solely for
consumption by the establishment's transient guests and the invitees
of those guests is included in the price of the transient occupancy
accommodation, however denominated, and whether or not separately
stated.
(3) The portion of the price of the transient occupancy
accommodation allocable to these food products is subject to tax
under Part 1 (commencing with Section 6001), and is also subject to
tax imposed by the city, county, or city and county on the privilege
of occupying a room or rooms in the establishment.
(4) The operator of the establishment provides the city, county,
or city and county with a reasonable allocation of the value of the
food products subject to tax under Part 1 (commencing with Section
6001) that is separately identified either on the guest's receipt or
on the operator's accounting records.
(c) The provisions of subdivision (a) shall apply to any tax
described in subdivision (b), whether characterized as a "transient
occupancy tax," "bed tax," or otherwise, regardless of whether it is
levied pursuant to Section 7280, pursuant to charter or other similar
authority of the city, county, or city and county, or otherwise
pursuant to law.
(d) (1) For purposes of this section, "hotel," "motel," "bed and
breakfast inn," or "similar transient lodging establishment" means an
establishment containing guest room accommodations with respect to
which the predominant relationship existing between the occupants
thereof and the owner or operator of the establishment is that of
innkeeper and guest. The existence of other relationships as between
some occupants and the owner or operator thereof shall be immaterial.
(2) For purposes of this section, "food products" means food and
beverage products of every kind, regardless of how or where served,
and shall specifically include, but not be limited to, alcoholic
beverages and carbonated beverages of every kind.
(e) In the case of a termination, the board shall give the city,
county, or city and county written notice of termination, stating the
reasons therefor and the effective date of the termination, which
shall be not earlier than the first day of the first calendar quarter
commencing at least 30 days after the mailing of the notice to the
city, county, or city and county. If the cause for termination is not
cured within the time specified in the notice, the board shall not
administer the ordinance until the cause for termination is removed
and a new contract for the administration of the ordinance executed.
The contract shall be operative not earlier than the first day of the
first calendar quarter commencing after its execution. During the
period of time that the board is not administering the sales and use
tax ordinance of a city, county, or city and county, no ordinance of
that city, county, or city and county shall be considered to be an
ordinance enacted in accordance with this part.
(f) Except as provided in subdivision (b), nothing in this section
shall be construed as prohibiting the levy or collection by a city,
county, or city and county of any other substantially different tax
authorized by the California Constitution or by statute or by the
charter of any chartered city.

7204. All sales and use taxes collected by the State Board of
Equalization pursuant to contract with any city, city and county,
redevelopment agency, or county shall be transmitted by the board to
such city, city and county, redevelopment agency, or county
periodically as promptly as feasible. The transmittals required under
this section shall be made at least twice in each calendar quarter.

7204.03. (a) Notwithstanding any other provision of this part, in
the case of retail sales of jet fuel that are consummated at the
point of delivery of that jet fuel to an aircraft at a
multijurisdictional airport, the sales tax revenues collected by the
board pursuant to this part with respect to those sales shall be
transmitted by the board in accordance with subdivision (b). For
purposes of this section, a "multijurisdictional airport" is an
airport that is owned or operated by a city, county, or city and
county that meets both of the following conditions:
(1) The owning or operating city, county, or city and county
imposes a local sales tax pursuant to an ordinance adopted pursuant
to this part.
(2) The owning or operating city, county, or city or county is
different from the city, county, or city and county in which the
airport is located.
(b) (1) Except as provided in paragraph (2), the sales taxes
collected by the board pursuant to this part with respect to retail
sales of jet fuel described in subdivision (a) shall be transmitted
by the board in accordance with the following:
(A) One-half to the county or city and county in which the point
of delivery to the aircraft is located, less the amount transmitted
to a city pursuant to subparagraph (B), if any; and one-half to the
county or city and county that owns or operates the airport or to the
county in which the city that owns or operates the airport is
located, less the amount transmitted to a city pursuant to
subparagraph (C), if any.
(B) If the multijurisdictional airport is located in a city
imposing a local sales tax pursuant to an ordinance adopted pursuant
to this part, the board shall transmit to that city that amount of
sales taxes collected by the board with respect to retail sales of
fuel described in subdivision (a) that is based on 50 percent of the
rate set by that city's ordinance.
(C) If the multijurisdictional airport is owned or operated by a
city imposing a local sales tax pursuant to an ordinance adopted
pursuant to this part, the board shall transmit to that city that
amount of sales taxes collected by the board with respect to retail
sales of fuel described in subdivision (a) that is based on 50
percent of the rate set by that city's ordinance.
(2) Notwithstanding paragraph (1), both of the following shall
apply:
(A) In the case of retail sales of jet fuel as described in
subdivision (a) that are consummated at San Francisco International
Airport, one-half of the sales taxes collected by the board pursuant
to this part with respect to those sales shall be transmitted by the
board to the City and County of San Francisco, and one-half of the
sales taxes collected by the board pursuant to this part with respect
to those sales shall be transmitted by the board to the County of
San Mateo.
(B) In the case of retail sales of jet fuel as described in
subdivision (a) that are consummated at Ontario International
Airport, the board shall transmit sales taxes collected by the board
pursuant to this part with respect to those sales in accordance with
both of the following:
(i) All of the sales taxes that are derived from a local sales tax
rate imposed by the City of Ontario shall be transmitted to that
city.
(ii) All of the sales taxes that are derived from a local sales
tax rate imposed by the County of San Bernardino shall be allocated
to that county.

7204.1. (a) For purposes of this section:
(1) "Local agency" means a city, county, city and county, or
redevelopment agency.
(2) "Quarterly taxes" means the total amount of sales and use
taxes transmitted by the board to a local agency for a calendar
quarter.
(3) "Refund" means the amount of sales and use taxes deducted by
the board from a local agency's quarterly taxes in order to pay the
local agency's share of a sales and use tax refund due to one
taxpayer.
(4) "Offset portion" means, except as provided in subdivision (d),
that portion of the refund which exceeds the greater of fifty
thousand dollars ($50,000) or 20 percent of the local agency's
quarterly taxes.
(b) Except as provided in subdivision (c), if the board has
deducted a refund from a local agency's quarterly taxes which
includes an offset portion, then the following provisions apply:
(1) Within three months after the board has deducted an offset
portion, the local agency may request the board to transmit the
offset portion to the local agency.
(2) As promptly as feasible after the board receives the local
agency's request, the board shall transmit to the local agency the
offset portion as part of the board's periodic transmittal of sales
and use taxes.
(3) The board shall thereafter deduct a pro rata share of the
offset portion from future transmittals of sales and use taxes to the
local agency over a period to be determined by the board, but not
less than two calendar quarters and not more than eight calendar
quarters, until the entire amount of the offset portion has been
deducted.
(c) The board shall not transmit the offset portion of the refund
to the local agency if that transmittal would reduce or delay either
the board's payment of the refund to the taxpayer or the board's
periodic transmittals of sales and use taxes to other local agencies.
(d) Notwithstanding any other provision, past, present, or future
refunds required to be made by a local agency as a result of the
California Court of Appeal decision in Aerospace Corporation v. State
Board of Equalization, 218 Cal. App. 3d 1300, may, at the discretion
of the local agency, be made pursuant to the following provisions:
(1) "Local agency" means a city, county, city and county,
redevelopment agency, or a local agency that has imposed a
transactions and use tax pursuant to or in accordance with Part 1.6
(commencing with Section 7251) and that has contracted with the board
to administer the taxes imposed under this part.
(2) "Offset portion" means, for purposes of this subdivision, that
portion of the refund which is required as a result of the court's
decision in Aerospace Corporation v. State Board of Equalization.
(3) All refunds associated with the Aerospace Corporation case
shall be aggregated so that any local agency required to make those
refunds will do so on the basis of aggregate claims rather than
individual claims.
(4) The State Board of Equalization shall make the refund payments
required pursuant to this court case from the Local Sales Tax Offset
Fund, which is hereby created, as follows:
(A) Present and future refunds shall be made from the Local Sales
Tax Offset Fund.
(B) Amounts equivalent to past refund payments that have been
deducted from a local jurisdiction's sales and use tax and
transactions and use tax transmittals prior to the effective date of
this act shall be paid to the affected local jurisdiction from the
Local Sales Tax Offset Fund.
(5) Notwithstanding Section 13340 of the Government Code, the
Local Sales Tax Offset Fund is continuously appropriated without
regard to fiscal years for the payment of refunds required by this
paragraph. The fund may borrow moneys utilizing any financing vehicle
deemed appropriate by the Treasurer, at the pooled money investment
rate, in order to pay the refunds required by this paragraph. These
refund payments shall be repaid to the Local Sales Tax Offset Fund by
local agencies, with interest at the pooled money investment rate,
not to exceed the rate paid by the state on funds borrowed by the
Local Sales Tax Offset Fund for purposes of making the required
refunds. Repayment of each local agency's share of the refund amount
shall be made by local agencies through equal quarterly deductions
from each local agency's sales and use taxes and transactions and use
taxes prior to the transmittal of those taxes to those local
agencies over the succeeding 10 years.
(6) A local agency may fulfill its refund obligation resulting
from the Aerospace Corporation case in any of the following manners:
(A) Pursuant to the offset provisions provided by this section.
(B) Pursuant to the funding or refunding of outstanding
indebtedness as set forth in Section 53550 of the Government Code.
(C) In any manner deemed appropriate by the local agency in
accordance with existing law.
A local agency shall notify the State Board of Equalization of
the manner in which the local agency intends to fulfill its refund
obligation.

7204.2. (a) The State Board of Equalization shall continue to
negotiate a settlement with the government of the United States
relating to the amount and repayment of the sales tax refund
liability of the state and local agencies pursuant to the court
decision in Aerospace Corporation v. State Board of Equalization, 218
Cal. App. 3d 1300. To the maximum extent possible, the board shall
include in the settlement agreement a provision that, upon adoption
of the settlement agreement between the board and the government of
the United States, the board, the government of the United States,
and the aerospace contractors affected by the court's decision in
Aerospace Corporation v. State Board of Equalization shall cease to
incur any further costs associated with the audit of claims for sales
tax refunds, and the repayment of the sales tax refund by local
agencies shall be made on or after July 1, 1993, through deductions
in sales and use tax transmittals to cities and counties pursuant to
a method to be determined as specified in subdivisions (b) and (c),
respectively, or pursuant to the formula determined by the board as
specified in subdivision (e).
(b) (1) The State Board of Equalization shall establish a Cities
Task Force on Aerospace Refunds. The task force shall be appointed by
the League of California Cities. The task force shall meet regularly
for the purpose specified in paragraph (2).
(2) The task force shall be responsible for establishing a method
for the distribution of the sales tax refund liability among cities
in the state arising from the court decision in Aerospace Corporation
v. State Board of Equalization, 218 Cal. App. 3d 1300.
(3) On or before April 1, 1993, the task force shall submit to the
board its recommendation of the method for the distribution of the
sales tax refund liability among cities associated with the Aerospace
Corporation case.
(4) The board shall adopt the recommendation of the task force and
implement the method contained in the recommendation for making the
deduction from city sales and use tax transmittals effective July 1,
1993.
(5) If the task force fails to submit its recommendation to the
board as specified in paragraph (3), the board shall implement the
formula specified in subdivision (e) to govern the distribution of
deductions of sales and use tax transmittals among cities effective
July 1, 1993.
(c) (1) The State Board of Equalization shall establish a Counties
Task Force on Aerospace Refunds. The task force members shall be
appointed by the California State Association of Counties. The task
force shall meet regularly for the purpose specified in paragraph
(2).
(2) The task force shall be responsible for establishing a method
for the distribution of the sales tax refund liability among counties
in the state arising from the court decision in Aerospace
Corporation v. State Board of Equalization, 218 Cal. App. 3d 1300.
(3) On or before April 1, 1993, the task force shall submit to the
board its recommendation of the method for the allocation of the
sales tax refund liability among counties associated with the
Aerospace Corporation case.
(4) The board shall adopt the recommendation of the task force and
implement the method contained in the recommendation for making the
deduction from county sales and use tax transmittals effective July
1, 1993.
(5) If the task force fails to submit its recommendation to the
board as specified in paragraph (3), the board shall implement the
formula as specified in subdivision (e) to govern the distribution of
deductions of sales and use tax transmittals among counties
effective July 1, 1993.
(d) The deductions from the sales and use tax transmittals
pursuant to the methods established pursuant to subdivisions (b) and
(c) shall, in the aggregate, equal the amount of the refund required
of cities and counties by the Aerospace Corporation court decision.
(e) (1) If, on or before April 1, 1993, the Cities Task Force on
Aerospace Refunds or the Counties Task Force on Aerospace Refunds
does not submit its recommendation to the board for distributing the
deductions from the sales and use tax transmittals among cities and
counties, respectively, the board shall use the formula specified in
this subdivision to govern the distribution among cities and
counties.
(2) With regard to transmittals to each city, county, and city and
county pursuant to Section 7204, the board, on or after July 1,
1993, shall deduct from the transmittals those refunds required to be
paid as a result of the decision in Aerospace Corporation v. State
Board of Equalization. Refunds of local taxes attributable to the
Aerospace decision shall be allocated based on the following
calculations:
(A) In the case of a contractor with a single business location in
this state:

A = A1(X*L)
B = B1