California Increases State Sales and Use Tax Rate

In an effort to resolve the state budget deficit, California will be imposing a 1% temporary increase (from 6.25% to 7.25%) in the state sales and use tax rate, effective April 1, 2009. The 1% increase (specifically dedicated to the General Fund portion of the state rate) will remain in effect until July 1, 2011, unless an amendment to the California Constitution is approved. If an amendment is approved the increase would then expire July 1, 2012. (Ch. 18 (A.B. 3), Laws 2009, Third Extraordinary Session, effective February 20, 2009, and operative as noted)

Posted on February 24, 2009