ALAMEDA, Calif. (KTVU) - April Fool’s starts with a subject that’s no laughing matter – taxes. And on Monday, the sales tax rate goes up in 51 cities across California.
Residents of five Bay Area cities in particular are being hit with higher sales taxes, and they can no longer avoid the hit by shopping online.
“It’s just going to make me go in the store, it’s same difference now,” said Matt Jennings of Alameda. “I’m going to pay a shipping fee and I’m going to pay a tax too? May as well go pick it up at the store.”
Here in Alameda, the sales tax is jumping a half-cent, from 9.25 to 9.75 percent. Antioch, Martinez, Los Gatos and Redwood City round out the local list of other spots where the sales tax is increasing.
Additionally, California and 29 other states now require out-of-sate retailers previously exempt from sales taxes, must now pay sales taxes.
This applies to retailers who do not have a physical store here in California. So when shopping online, you’ll see the sales tax for California added in to the final price.
Previously, you paid that tax if the business you made the purchase from had a presence in this state.
Governor Gavin Newsom projects this will generate $219 million in revenue for the state from now until the end of the fiscal year, June 30, and the next fiscal year, $554 million into California’s coffers.
Brick-and-mortar retailers say this levels the playing field, since customers will no longer be able to avoid state sales tax by shopping on-line.
Some residents say parameters should be established for spending the increased revenue that’ll come from higher local sales taxes.