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Statewide Sales and Use Tax Rate Increases

 

Statewide Sales and Use Tax Rate Increases January 1 2013

 

New Sales and Use Tax Rate to Be In Effect for Four Years

 

The statewide sales and use tax rate will increase one quarter of one percent (0.25%) from 7.25 percent to 7.50 percent on January 1, 2013. This rate increase was approved by California voters when they approved Proposition 30 on November 6, 2012.

 Among other things, Proposition 30 increases the statewide sales and use tax rate for four years—January 1, 2013, through December 31, 2016.

 

 Across California, the sales and use tax rate will range from 7.50 percent to 10.00 percent because in some cities and counties, voter-approved district taxes are added to the statewide base rate.

 

 California sales tax generally applies to retail sales of goods and merchandise except those sales specifically exempted by law.

 

 “Use Tax” is the same rate as the sales tax and generally applies to the storage, use, or other consumption of goods in California purchased from retailers in transactions not subject to the sales tax. Use tax may also apply to purchases shipped to California consumers from other states, including purchases by mail order, telephone, or Internet.

 

 The sales and use tax rate increase does not apply to purchases of gasoline. However, the sales and use tax rate increase does apply to purchases of diesel fuel.

 

 For updates on the latest changes, retailers should check the BOE website, www.boe.ca.gov, or call the BOE Taxpayer Information Section at 1-800-400-7115 (TTY: 711), Monday through Friday from 8:00 a.m. to 5:00 p.m.

Across California, the sales and use tax rate will range from 7.50 percent to 10.00 percent because in some cities and counties, voter-approved district taxes are added to the statewide base rate.

Detailed Description of Sales & Use Tax Rate (Effective January 1, 2013)

Rate

Jurisdiction

Purpose

3.6875%

State

State’s General Find

0.25%

State

State’s General Fund

0.25%

State

State’s Fiscal Recovery Fund (2004 Economic Recovery Bonds)

 

0.50%

State

Goes to Local Public Safety Fund (19930

0.50%

State

Local Revenue Fund (Health and Social Services)

1.0625

State

Local Revenue Fund 2011 (Public Safety)

0.25%

State

Education Protection Account (2012 Proposition 30)

1.00%

Local

0.25% County Transportation Funds

0.75% City or county operations

7.50%

State/Local

Total Statewide Base Sales and Use Tax Rate

 

Media Resource: Proposition 30 Sales and Use Tax Rate Increase; State Board of Equalization News Release December 6, 2012

 





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