Sales Tax Goes Up Today
California’s sales tax jumps to 7.25% today, but consumers in Los Angeles County will pay even more--8.25 cents for every dollar spent--because a higher local sales tax is already in place.
For the same reason, the new rate will be 7.75% in Orange, San Bernardino and Riverside counties.
The tax hike, proposed by Gov. Pete Wilson and passed by the Legislature, also adds a number of items to the taxable list that were previously exempted, including candy, snack foods, newspapers, magazines, bottled water, and aircraft and ship fuel.
An additional tax, called an “alcoholic beverage floor tax,” will be tacked on to the cost of wine, beer and other spirits.
And starting Aug. 1, vehicle license registration fees also go up.
The tax increase is aimed at reducing California’s $14.3-billion budget deficit.
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