The statewide sales and use tax rate will increase one quarter of 1 percent from 7.25 percent to 7.5 percent on Jan. 1. This rate increase was approved by California voters when they approved Proposition 30 on Nov. 6.
In Hollister, with the approval of Measure E, local shoppers will be paying 8.5 percent on taxable goods after the New Year. In San Juan Bautista, the sales tax rate will be 8.25 percent, while in unincorporated San Benito County the rate will be the state baseline tax because the county does not levy any additional taxes.
Proposition 30 increases the statewide sales and use tax rate for four years – Jan. 1 through Dec. 31, 2016.
Across California, the sales and use tax rate will range from 7.5 percent to 10 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 taxes 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 the purchase of diesel fuel.
For updates on the latest changes, retailers should check the BOE website, 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).
A breakdown of the state taxes:
3.6875 percent – state: general fund
.25 percent – state: general fund
.25 percent – state: fiscal recovery fund (2004 Economic Recovery Bond)
.50 percent – state: Local Public Safety Fund
.50 percent – state: Local Revenue Fund (Health and Social Services)
1.0625 percent – state: Local Revenue Fund (Public Safety)
.25 percent – state: Education Protection Act (2012 Proposition 30)
1 percent – local: .25 percent county transportation funds and .75 percent city or county operations
Total statewide base sales and use tax rate on Jan. 1: 7.5 percent