The statewide sales and use tax rate will decrease from 8.25 percent to 7.25 percent on July 1, 2011, Board of Equalization Chairman Jerome E. Horton announced June 29, 2011.

The 1 percent decrease applies, generally, to all taxable transactions in California. In areas where voters have approved additional sales taxes, the total tax rate applied to purchases will be the statewide base tax rate of 7.25 percent, plus any applicable local sales tax. Retailers should check the BOE website, www.boe.ca.gov, for updates.

Part of a 2008-09 budget agreement, Assembly Bill x3 3 temporarily increased the General Fund portion of the sales and use tax rate by 1 percent in April of 2009, and will sunset on June 30, 2011.

The sales and use tax rate in California currently ranges from 8.25 percent to 10.75 percent, depending on whether additional regional voter-approved sales taxes apply. Beginning July 1, 2011, the range will be 7.25 percent to 9.75 percent. Click Here to read the press release in its entirety.  

For more information visit California's Board of Equalization website at http://boe.ca.gov/.