Board of Equalization District 2 Senator George Runner Says Lower Sales Tax Rate Good for California

Board of Equalization Member Senator George Runner today reminded California consumers and retailers that California’s 1% sales tax surcharge is set to vanish July 1. “This is great news for overtaxed California consumers and retailers who bear the sixth highest overall tax burden in the nation,” said Runner. “In fact, all Californians have good reason to celebrate. A lower sales tax will help our state’s economy and help job creation.”

There's still time for a budget deal before July 1, but it's already too late to extend the higher sales tax without causing serious confusion. According to a June 6 Board of Equalization letter, the minimum amount of time necessary to notify retailers of a sales tax rate change is 15 days. In May 2011 the Board of Equalization notified approximately 680,000 California retailers and out-of-state businesses that make sales in California that the statewide sales and use tax rate will decrease from 8.25 percent to 7.25 percent on July 1, 2011.

“Temporary taxes often have a way of sticking around—keep in mind that the 1991 ‘temporary’ 1.25% sales tax increase is still with us today,” said Runner. “It’s a good thing for California that this latest 1% tax hike goes away and stays away.” According to a Board of Equalization estimate, California families will save an estimated $233 annually. Even so, Californians will still pay the highest statewide sales tax rate in the nation.

Elected in November 2010, George Runner represents more than nine million Californians as a member of the State Board of Equalization. For more information, visit www.boe.ca.gov/Runner.