Sales Tax Hike?
California sales tax may increase by 1 percent this year if Governor Gray Davis’ proposed budget is approved. And the California Department of Finance is recommending an additional sales tax hike of 1.125 cents next year. Sales taxes in the state currently range from 7.25 percent in some counties to 8.5 percent in Los Angeles and 8.75 percent in San Francisco. Money from the sales tax increase is expected to generate an extra $2.5 million this year.
