Sales tax is increasing across California, including San Francisco County.
Most of these tax changes were approved by voters in the November 2020 election, the California Tax and Fees Authority said. The changes will take effect on Thursday for the beginning of July.
There is a slight difference between sales tax and use tax. The former is collected from retailers. Every time a retailer sells tangible goods, they typically owe sales tax to the state.
A usage tax is levied on the buyer. The law requires buyers to pay use tax on some tangible goods if the retailer does not pay California sales tax, such as: Both tax rates have the same percentage.
Where does the money go? According to the Legislative Analyst’s Office, tax revenues will be distributed among “various state and local funds,” the agency’s website said. About half of the taxes collected go to the state’s General Fund and “can be spent on any state program such as education, health care and criminal justice.”
Another 1% – the Bradley Burns Rate – goes to cities and counties for “general purposes”.
Here are the other cities and counties where sales tax is increasing across California:
