The California Board of Equalization points out that effective April 1, 2011, the sales tax rate increases in 13 cities where voters approved them. That makes the rate 10.25% in a few cities including Union City, El Cerrito and Santa Monica. That's a high rate!
Certainly, the cities need the money and voters wanted to continue services that otherwise might have been cut. The problem is that local governments do not control the base of the sales tax. That is controlled by the state legislature. A rate increase most likely could have been avoided by broadening and modernizing the sales tax base. This could be done by including more types of consumption - entertainment, personal services and digital downloads purchased by consumers (not businesses). I think this would also make the sales tax more equitable because a lot of the currently exempt consumption is consumed in larger quantities and dollar amounts by higher income individuals who can afford such items.
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What do you think?
Saturday, April 9, 2011
Sales Tax Rate Increases in Some California Cities
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