California’s statewide sales and use tax rate applicable to sales of tangible personal property is scheduled to decrease on July 1, 2011. The current rate – 8.25% – will be reduced to 7.25%. This rate is a combination of 6.25% state tax and a 1% state wide county tax resulting in the 7.25% rate. Effective July 1, 2011, the sales and use tax rate imposed on diesel fuel sales will increase 1.87%, making the new combined rate for diesel fuel 9.12% plus applicable district taxes. (Special Notice L-276, California State Board of Equalization, June 2011)