New Year New Tax Rate

Are you up-to-date with the new California tax rate? Sales tax rates have been decreased by 0.25%. Use the link below to find the new sales tax rate by city.

http://www.boe.ca.gov/app/rates.aspx

Keep in mind that if you are returning an item that you purchased before January 1st, the store must provide you the refund of the old tax rate. However, if you purchased something before January 1st but you receive it after the New Year, you are still charged the rate used at the time of purchase.

An article published by the Golden State News states the following:

“A retailer who continues to charge and collect the higher statewide sales and use tax after January 1, 2017, must either refund the excess tax collected to their customer or pay the excess tax to the Board of Equalization (BOE). If the excess tax collected has been paid to the BOE, the retailer may request a refund on behalf of their customer by completing form BOE-101, Claim for Refund or Credit.”

Remember that sales tax rates differ by cities and counties, so make sure you look up your area using the California State Board of Equalization website!

Resources:

http://www.boe.ca.gov/app/rates.aspx

https://goldenstatenews.com/2017/01/03/a-tax-in-california-has-actually-been-lowered/