The statewide sales and use tax rate will decrease from 8.25 percent to 7.25 percent on July 1, 2011.
This is great news for overtaxed Californians, who bear the sixth highest overall tax burden in the nation. A lower sales tax will help our state’s economy and help job creation.
There’s still time for a budget deal before July 1, but it’s already too late to extend the higher sales tax. According to a June 6 Board of Equalization letter, the minimum amount of time necessary to notify retailers of a sales tax rate change is 15 days.
In May 2011 the Board of Equalization notified approximately 680,000 California retailers and out-of-state businesses that make sales in California that the statewide sales and use tax rate will decrease from 8.25 percent to 7.25 percent on July 1, 2011.
Temporary taxes often have a way of sticking around—keep in mind that the 1991 ‘temporary’ 1.25% sales tax increase is still with us today! It will be good for California if this latest sale tax hike goes away and stays away, according to plan.
According to a Board of Equalization estimate, California families will save an estimated $233 annually from the lower sales tax rate. Even so, Californians will continue to pay the highest statewide sales tax rate in the nation.