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California Sales and Use Tax Rate Increases April 1, 2009

By
Real Estate Agent with eXp Realty of California, Inc. CA DRE #01490977

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. 

Tax rate in going up again in California          Tax rate in going up again in California          Tax rate in going up again in California          Tax rate in going up again in California          Tax rate in going up again in California

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

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Jeff Dowler, CRS
Certified Residential Specialist / Realtor®


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Kristal Kraft
Novella Real Estate - Denver, CO
Selling Metro Denver Real Estate - 303-589-2022

There you go!  Buy today and not tomorrow is a very good short-term plan to stimulte the economy.

kk

Mar 31, 2009 01:55 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

KK - yep. But time is running out. Lots of negativity about this change in our already struggling state economy.

Jeff

Mar 31, 2009 03:15 AM