Effective April 1, 2009, the state sales and use tax rate increases by 1% making the new Chino & Chino Hills tax rates a total of 8.75%. In some cities, like Montclair and San Bernardino, it is even higher because of voter approved local district tax rate increases. The Cities of Montclair and San Bernardino have new tax rates of 9%. Some cities in Los Angeles County, like Pico Rivera and South Gate have rates that are 10.25%! I wonder if voters in those two cities knew about the general 1% tax increase when they voted for their city tax increases.
The State Board of Equalization notified businesses this week of the increase and sent out the new tax schedules. The tax increase is expected to expire in July, 2011 unless voters vote yes on the "Rainy Day Budget Stabilization Fund on May 19th. The plan would change the budget process by increasing the size of the state "rainy day" fund and require above-average revenues to be redeposited into it, for use during economic downturns and "other purposes". It would also trigger an extension on the 1% Sales Tax Increase for an extra year from 2011 to 2012.
Taxes don't bother me when they go to a good cause and responsible management, but the wording above is troublesome. Right from the beginning state officials are allowing themselves a way out of true accountability by adding language into the bill like "and other purposes". Voters beware.
Other Stories... | Source: Press Enterprise | Posted: 3/17/09
