NR# 63-A
Date: December 29, 2000
Customer and Taxpayer Services Division
Andal Announces Statewide Sales and Use Tax Rate to Decrease
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 http://www.boe.ca.gov/sutax/streimsched.htm.
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