bigstock-business-finance-tax-and-peo-96928313-2-1024x683As you may be aware, the temporary ¼ percent state sales tax rate imposed under Proposition 30 will end on December 31, 2016. As a result of this decrease the statewide sales and use tax rate will decrease from 7.50% to 7.25% and the local sale tax rate from 8.25% to 8.00%. The expiration of Proposition 30 temporary ¼ percent sales tax affects state revenues only.
Why is the sales and use tax rate decreasing?
Proposition 30, The Schools and Local Public Safety Protection Act of 2012, was approved by California voters in November 2012 to temporarily increase the sales and use tax by ¼ percent. The sales and use tax imposed by Proposition 30 expires December 31, 2016.
Where can I find more information?
Guidance on how tax rate decrease affects partial exemptions, fixed-price contracts, returned merchandise, fuel rates, and return filing can be found on the Board of Equalization (BOE) webpage at: http://www.boe.ca.gov/sutax/prop30.htm. You may also call the BOE’s Customer Service Center at (800) 400-7115 where customer service representatives are available to assist you weekdays from 8:00 am to 5:00 pm (Pacific Time), except holidays.