One-quarter percent state sales tax ends with December 31 sunset
January 06, 2017
By Peggy Kelly
Santa Paula News
Californians were in for a shopping surprise Sunday when the across the board sales tax was deceased by a quarter of a cent.
According to Santa Paula Treasurer-Finance Director Sandy Easley, the “City has been getting calls asking to verify the sales tax rate. The sales tax rate between January 1 and March 31 reverts back to 7.25 percent as Proposition 30 expired December 31.”
Known as the Schools and Local Public Safety Protection Act of 2012, Proposition 30 was approved by voters in 2012 to temporarily increase the sales and use tax by 0.25 percent.
The initiative was a measure to increase taxes to prevent $6 billion cuts to the education budget for California state schools. The measure was approved by California voters by a margin of 55 to 45 percent in 2012.
Proposition 30 also provided for a personal income tax increase over seven years for California residents with an annual income over $250,000 through the end of 2018.
The sales tax increase expired as planned at the end of 2016. The higher income tax rates were extended for 12 years through the end of 2030 with the passage of Proposition 55 in 2016.
The State Board of Equalization sent postcards to remind merchants and others offering affected sales and services that the sales tax rate was taking a quarter-percent dip effective December 31.
How the new rate affects partial exemptions, fixed price contracts, returned merchandise, fuel rates and return filing can be found on the Board of Equalization webpage: www.boe.ca.gov
With Santa Paula counting down to the implementation of Measure T, a one-cent sales tax that will start April 1 it’s easy to see how questions are arising over tax rates.
Easley noted that Measure T sales tax — passed by voters to benefit police, fire, youth and roads — would take effect April 1.
The law states the new tax must kick in “The quarter beginning 120 days after the election, and the beginning of the quarter after 120 days is April 1.”
She admits the sales tax decrease due to Proposition 30 sun-setting caught her unaware but now, “People might be a little bit happier with the one-percent Measure T tax,” now offset by the end of the one-quarter of a percent statewide tax.
Come April 1 with the implementation of Measure T, Santa Paula’s sales tax will be 8.25 percent.
