California Sales Tax Goes Up 1 Percent

Most will now pay 9 percent

Starting today, state sales tax in California is 6 percent. With added local sales tax from various regions in California, most Californians will now be paying about 9 percent sales tax.

Retailers are worried this could drag purchases of expensive items such as cars and furniture even further down.

Fuel to the fire?

The new higher sales tax means people in California will be paying one of the highest rates in the country. While the added funds should help California’s ailing budget, businesses and manufacturers worry that it will lengthen the recession.

At 9 percent, the sales tax on many big ticket items could be as big as the average payday loan.

All new taxes

Sales tax isn’t the only tax that is increasing in California this year. Personal income tax will also climb higher. Also, on top of the additional sales tax Californians will have to pay if they purchase vehicles, they’ll also face higher licensing fees.

Auto worries

With the auto industry already facing huge obstacles, California auto dealers are particularly panicked.

“There’s no doubt in my mind that our sales will go down because of this,” said Beau Boeckmann, vice president of Los Angeles-based Galpin Motors. “It’s an unfortunate truth. I hope the governor will reconsider doubling our car taxes. I think the sales tax is going to hurt us and the car tax can cripple us.” ... click here to read the rest of the article titled "California Sales Tax Goes Up 1 Percent"