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Statewide sales and use tax rate increases on January 1, 2013
By Jaime Garza
New sales and use tax rate, effective for four years
SACRAMENTO, Calif.
-- The statewide sales and use tax rate will increase by a quarter of one percent (0.25 percent) from 7.25 percent to 7.50 percent on January 1, 2013. California voters approved this rate when they voted for Proposition 30 on November 6, 2012. The increase take effect from January 1, 2013 and expire on 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 at 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. (Pacific Time).
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