Nov 21, 2016
From KPMG TaxWatch
Effective January 1, 2017, California’s statewide sales and use tax rate will be reduced from 7.50 percent to 7.25 percent. The reason for the reduction is that a temporary 0.25 percent state sales and use tax increase adopted in 2012 will expire after December 31, 2016. This new rate does not reflect district-level taxes. The rate reduction means that the exempt portion of certain purchases qualifying for one of California’s partial sales and use tax exemptions will also decrease. Notably, the partial state sales and use tax exemption for manufacturing and R&D equipment purchases will decrease from 4.1875 percent to 3.9375 percent on January 1, 2017. Please contact Gina Rodriquez at (916) 551-3132 with questions.
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The following information is not intended to be "written advice concerning one or more federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.
The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.