But sales and use tax rates differ from city to city. So, the Chamber broke it down for you.
What if I collected tax at the incorrect rate? How do I handle returned merchandise? What if I have a fixed-price contract? What is the date of sale? How is the rate of the partial state tax exemptions affected? How do I obtain new tax rate charts? How do I receive future notices via e-mail? How can I get more information? This information was provided by the State Board of Equalization.
State sales and use tax rate reduced
On July 1, the statewide sales and use tax rate decreased from 8.25 percent to 7.25 percent. In areas where there are voter-approved district taxes, the total tax rate related to sales and purchases is the statewide base tax rate of 7.25 percent plus any applicable district tax.
Here are the new sales and use tax rates for our local cities:
City
Sales and Use Tax Rate
Arroyo Grande
7.75%
Atascadero
7.25%
Avila Beach
7.25%
Cambria
7.25%
Cayucos
7.25%
Grover Beach
7.75%
Los Osos
7.25%
Morro Bay
7.75%
Nipomo
7.25%
Oceano
7.25%
Paso Robles
7.25%
Pismo Beach
7.75%
San Luis Obispo
7.75%
San Miguel
7.25%
Santa Margarita
7.25%
San Simeon
7.25%
Shell Beach
7.75%
Templeton
7.25%
Don't see your city?
For a current listing of California sales and use tax rates by city and county, visit the California State Board of Equalization website.
Frequently Asked Questions:
Some retailers may not have reprogrammed their cash registers in time for the tax rate change. If you charged sales tax reimbursement or collected use tax at the higher rate on or after July 1, you must return any excess tax collected to your customers or pay it to the State.
If a customer purchases merchandise before July 1, but returns it after that date, you should refund tax based on the rate in effect at the time of the sale (that is, the amount you collected from the customer).
In general, fixed-price contracts and fixed-price lease agreements entered into prior to the effective date of a tax increase are not subject to the tax increase. The fixed-price contract exemption, however, is designed to protect the business expectations of the parties when they enter into the contract and protect them from an unplanned increase in tax rate. When the tax rate decreases after the terms of your contract have been established, any sales made after the date of the tax decrease would be taxed at the new, lower rate.
A sale occurs when a customer takes title to or possession of an item. (Not when payment is received.) Consequently, sales are generally subject to the applicable tax rate in effect when the merchandise is delivered to the customer, unless a contract specifically identifies and passes title to the customer at a different time.
On July 1, the partial state tax exemption rate decreased from 6.25 percent to 5.25 percent for qualifying sales of the following:
The BOE-180, Sales Tax Reimbursement Schedules, for transactions up to $100, are available at www.boe.ca.gov/sutax/streimsched.htm.
By maintaining your account e-mail address, the State Board of Equalization can send you periodic notices and updates which are specific to you or your business in a timely and cost-efficient manner. You may add or update your account e-mail address when you login as a registered eClient and select the Maintain Your Sales and Use Tax Account link. To register or to login as an eClient, begin by selecting the eServices tab at www.boe.ca.gov. You may also complete and send to the State Board of Equalization form BOE-345-WEB, Notice of Business Change.
Please visit www.boe.ca.gov or call our Taxpayer Information Section at 800-400-7115 (TTY: 711). Customer service representatives are available weekdays from 8 a.m. to 5 p.m. (Pacific time), except state holidays.
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