Sales and Use Tax Rate: Increases January 1, 2013
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.
Full details of Proposition 30, including election results, can be found at:
What rate will I need to charge my customer?
For transactions prior to January 1, 2013, continue to charge the same sales and use tax rate(s) you are charging now. For transactions on or after January 1, 2013, the tax rate(s) you are charging now 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 you are located in a special tax district, your sales or purchases will be subject to the increased statewide rate of 7.50%, plus the applicable district tax rate.
For a listing of tax rates, please visit our California City and County Sales and Use Tax Rates webpage.
How are sales of motor vehicle fuel (gasoline) and diesel fuel affected?
The sales tax rate increase does not apply to sales of motor vehicle fuel (gasoline). Currently, the sales tax rate for sales of motor vehicle fuel is 2.25% plus applicable district taxes.
The sales tax rate increase does apply to sales of diesel fuel. Effective January, 1, 2013, the sales tax rate for sales of diesel fuel will increase to 9.67% plus applicable district taxes. This rate will be in effect through June 30, 2013.
The sales tax prepayment rate for motor vehicle and diesel fuel will not be affected at this time.
How are fixed price contracts affected?
The statewide 0.25% rate increase will apply to all taxable sales and purchases made as part of fixed priced contracts and fixed price lease agreements that were entered into prior to January 1, 2013. The increased rate will replace the rate in effect at the time you entered into the fixed-price contract or fixed-price lease agreement.
Are there also new city and county district taxes?
In addition to the statewide sales and use tax rate increase, voters in some cities and counties approved a number of new or increased district taxes that will go into effect April 1, 2013. Taxpayers in the affected areas have been notified by BOE. In addition, you may find information on these new taxes on our city and county tax rate website.