TAX NEWS - February 2009

California tax rates: Statewide Sales and Use Tax Rate will Increase 1% on April 1

In Addition, Several New Local District Tax Rates Take Effect

Effective April 1, 2009, the state sales and use tax rate increases by 1%. In addition, if you are in a city or county that has a voter approved local district tax rate increase effective on April 1, 2009, your overall tax rate increase will be higher. Please see the Special Notice included in this mailing. The district tax rates that apply as of April 1, 2009, are listed below.

The 1% tax rate increase will expire on either July 1, 2011, or July 1, 2012, depending upon whether the voters approve the proposed Budget Stabilization constitutional amendment in a statewide election to be held on May 19, 2009.


What if I collect tax at the lower tax rate for sales made after April 1, 2009?

If you incorrectly collect sales tax reimbursement or use tax at the lower tax rate after

April 1, 2009, you will still owe the 1% difference.


If a customer purchases merchandise before April 1, 2009, but returns it after that date, what tax rate should I use to refund the tax payment?

You should refund tax based on the rate in effect at the time of the sale (i.e., the amount you collected from the customer).


Tax Area                                        Increase           New Rate

County of Amador                            0.50%                8.75%
City of El Monte                                0.50%               9.75%
City of Pico Rivera                            1.0%                 10.25%
City of Arcata                                  0.75%                9.00%
City of Trinidad                               0.75%                 9.00%
City of Eureka                                 0.25%                 8.50%
City of Arvin                                   1.00%                 9.25%
City of La Habra                              0.50%                 9.25%
City of Galt                                     0.50%                 9.25%
City of El Cajon                               0.50%                 9.75%
City of La Mesa                               0.75%                 9.50%
City of Campbell                              0.25%                9.50%
Sonoma/Marin Area Rail Transit       0.25%                 9.00%
City of Oxnard                                 0.50%                 8.75%
City of Port Hueneme                       0.50%                 8.75%
City of Scotts Valley*                       0.25%                 9.25%

*The City of Scotts Valley has a partial reduction from 0.50% to 0.25%.


Taxpayer Information Section

For a current listing of California sales and use tax rates by county and city, please visit our website at www.boe.ca.gov/cgi-bin/rates.cgi. If you have any questions regarding this notice, please call our toll-free number to speak with a Customer Service Representative. Representatives are available weekdays from 8:00 a.m. to 5:00 p.m. Pacific time, except state holidays. Please call:

800-400-7115 TDD/TTY: 800-735-2929

In addition to English, assistance is also available in other languages.