NR# 63-A
Date: December 29, 2000
Customer and Taxpayer Services Division

Dean Andal, Chairman, State Board of Equalization (BOE) would like to remind consumers and retailers that the statewide sales and use tax rate will decrease 1/4% effective January 1, 2001. The minimum combined state, county, and local sales and use tax rate will decrease from 7.25 percent to 7 percent. The decrease is the result of 1991 legislation that requires a one-quarter percent reduction if the state reserves exceed four percent of general fund revenues for the prior fiscal year and are estimated to do so for the current year. For the 1999-2000 fiscal year, California ended with a reserve of 10.1 percent of the general fund revenues. The California Department of Finance anticipates that by the end of the 2000-2001 fiscal year, the reserve will also exceed four percent of general fund revenues.

Consumers and retailers are also reminded that 7 percent is not necessarily the maximum rate that may be charged. The sales and use tax rate is higher in cities and counties that have special tax districts, such as library and transportation tax districts.

For Assistance
If you have questions regarding this tax rate change or if you would like to obtain copies of the tax rate charts for the new rates, please call the Board's toll-free Customer Service Information Center at 1-800-400-7115. Staff is available from 8:00 a.m. to 5:00 p.m. (Pacific Standard Time), Monday through Friday, excluding State Holidays. You can also download tax charts from BOE's web site at /sutax/streimsched.htm.

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