MEDIA RESOURCE: Proposition 30 Sales and Use Tax Rate Increase

Sales Tax Increase

Due to voter approval of Proposition 30, the statewide base sales and use tax rate will increase one quarter of one percent (0.25%) on January 1, 2013. The higher tax rate will apply for four years – January 1, 2013 through December 31, 2016.

Special Notice (Dec 2012)

When does Proposition 30 take effect?

The sales and use tax rate increase will begin January 1, 2013 and last until December 31, 2016.

What types of transactions will be affected?

California sales tax applies to all retail sales of goods and merchandise except those sales specifically exempted by law. The use tax generally applies to the storage, use, or other consumption in California of goods purchased from retailers in transactions not subject to the sales tax. Use tax may also apply to purchases shipped to a California consumer from another state, including purchases made by mail order, telephone, or Internet.

What are the sales and use tax rates in California?

Transactions made prior to January 1, 2013 will use the same sales and use tax rate(s) being charged now.

For transactions on or after January 1, 2013, the tax rate(s) will increase by one quarter of one percent (0.25%). In addition to the statewide sales and use tax rate, some cities and counties have voter-approved district taxes. If a consumer is located in a special tax district, their purchases will be subject to the new statewide rate of 7.50%, plus the applicable district tax rate.

Across California, the sales and use tax rate will range from 7.50 percent to 10.00 percent because in some cities and counties, voter-approved district taxes are added to the statewide base rate.

Detailed Description of the Sales & Use Tax Rate (effective January 1, 2013)

Rate Jurisdiction Purpose
3.6875% State State's General Fund
0.25% State State's General Fund
0.25% State State's Fiscal Recovery Fund  (2004 Economic Recovery Bonds)
0.50% State Goes to Local Public Safety Fund (1993)
0.50% State Local Revenue Fund (Health and Social Services)
1.0625 State Local Revenue Fund 2011 (Public Safety)
0.25% State Education Protection Account (2012 Proposition 30)
1.00% Local 0.25% County transportation funds
0.75% City or county operations
7.50% State/Local Total Statewide Base Sales and Use Tax Rate

In some cities and counties, voter-approved district taxes are added to the statewide base rate. Across California, the sales and use tax rate beginning January 1, 2013 will range from 7.50 percent to 10.00 percent.

For a listing of tax rates, please visit our California City and County Sales and Use Tax Rates webpage.

How will gasoline and diesel taxes be affected?

The sales and use tax rate increase does not apply to purchases of gasoline. However, the sales and use tax rate increase does apply to purchases of diesel fuel.

Where can I find more information about Proposition 30?

The complete text of Proposition 30 and election results can be found at the Secretary of State's website.