California Sales Tax Rates Set to Drop by 1% on July 1, 2011

Unless our State Legislature votes to extend the 1% sales and use tax rate increase that was put into place in April 2009, we will be receiving a 1% tax rate deduction effective July 1, 2011.  It is now June 28th and it appears we are in the clear. So sales tax rates in most of Ventura County will drop from 8.25% to 7.25% (8.75% to 7.75% in Oxnard and Port Hueneme).

8.25% is currently the highest base sales tax rate in the United States. Congrats, California! And when the rate it drops back down to 7.25%, it will still be the highest! Yippee!

Hmm, if you're looking to buy something big, like a car, this month, you might want to wait until July. A 1% sales tax drop on a $40,000 Toyota Highlander Hybrid is $400.

The highest sales tax rates in the state will continue to be in Pico Rivera and South Gate, where rates drop down to 9.75% on July 1st. No wonder I never go shopping in those cities!

For updates, visit the California Board of Equalization website at www.boe.ca.gov.

And for you history buffs, here is a history of sales and use tax rates in our wonderful state going back to when they were enacted on August 1, 1933. The trend is generally not our friend.

• 8/1/33:  2.5%
• 7/1/35:  3%
• 7/1/43:  2.5%
• 7/1/49:  3%
• 1/1/62:  4%
• 8/1/67:  5%
• 7/1/73:  6%
• 10/1/73:  5%
• 4/1/74:  6%
• 12/1/89:  6.25%
• 1/1/91:  6%
• 7/15/91:  7.25%
• 1/1/01:  7%
• 1/1/02:  7.25%
• 4/1/09:  8.25%
• 7/1/11:  7.25%