@amolpujari
You are going to have to specifically define whether you are referring to the 1099-DIV, or 1099-INT form area on a "consolidated" 1099-B. Those are handled differently.
Specifically, that question should only come up if you are showing $$ in box 11 of a 1099-DIV form and you are a resident of CA. The question is there because you can only break out the sub-CA $$ amount from box 11, for favorable CA-tax treatment, if the mutual fund (or municipal money market fund) that you own has over half it's assets in CA-only bonds. You have to get that information from the mutual fund company.....if you can't get it or find it, then you just say NO, and indicate that box 11 $$ are from "More than one state" (or "Multiple States"....term depends on the type of software used, but that selection is at the end of the list of states).
However, you should already know if you are invested in a CA-weighted Municipal Bond fund as all that I have ever seen will include "CA" or "California" in the name of the fund.
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The question should not come up for box 8 $ on a 1099-INT, since those $$ are now specifically for individual bonds, and you would know if you hold individual bonds from CA in your supplemental list of personal holdings in that Brokerage or Fund company..
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
