Just what California needs with the unemployment rates rising as they are and many folks, and businesses, struggling financially - another tax increase.

I doubt that's going to stimulate our economy and get folks out there spending their hard earned dollars. 

The State Board of Equalization in California and the Governor announced some time ago that the sales and use tax will be increasing...by 1%! This takes place tomorrow, April 1, to the regret of many business owners. California's sales tax of 7.75%, the highest in the country I believe, will now be 8.75%. 

And in some towns where voters have approved a local district tax increase, the rate goes up more - as high as 9.75 in El Cajon, 9.75% in National City, 9.5% in Vista, and 9.5% in La Mesa. Here's the list of these additional district tax increases in California. One has to wonder if folks will travel to neighboring communities to shop to avoid these even larger increases.

Making a significant purchase, say a car, TV, jewelry or similar? Today may be the day to do it. That additional 1% is substantial. Wonder whether Internet purchases will increase in those cases where the sales tax is not charged? 

We are "fortunate" in San Diego County as our new rate will ne 8.75%. Some counties rise more - San Francisco will be 9.5%, and Los Angeles County will increase to 9.25%. 

READ MORE: Guidelines and tax rates by city and county

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All content copyright © 2008 Jeff Dowler Carlsbad Homes and Real Estate Tidbits