SALT Report 1852 – The California State Board of Equalization issued an update regarding Proposition 30. If passed, California’s current sales and use tax rate of 7.25% would be increased to 7.5%. The rate increase would go into effect on January 1, 2013 and run through December 31, 2016.
In addition to the statewide sales and use tax rate, several cities and counties have voter approved district taxes. If Proposition 30 is approved and you are located in a special tax district, your sales or purchases will be subject to the increased statewide rate of 7.50%, plus any applicable district taxes.
The BOE will provide additional guidance in November if Proposition 30 is approved. Updates regarding the status of the potential statewide sales and use tax rate increase will be posted on the BOE website.
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