Since 1st January 2002, the California sales tax rate has been increased to the current 7.25% while the previous rate being 6.25%. There are various counties and cities in California that enjoy special taxing system and the rate of both the sales and use tax are higher there.
The state board of equalization of California is the only publicly elected tax commission in the USA and is the sole authority to collect the statewide California sales tax. The supplementary sales and use taxes are added in California by counties, cities, special districts and service authorities with the approval of the voters of that area. Depending on the locally implemented sales tax rates, the California sales tax may vary from 7.25% to 8.75%.
Some food products in California are taxed while some are exempted from the purview of sales tax. The restaurant bills and the ready-to-eat hot food that are sold by the supermarkets are taxable in California while the hot beverages and bakery items enjoy tax exemption if they are for taking out. Apart from all the foods that are consumed in the premises of the seller are exempt from sales tax in California. The sales tax process involved in the vehicle purchase makes the purchaser to pay the sales tax according to the county or city where the vehicle was registered and not on the county where the vehicle is bought. In order to pay lesser sales tax, the citizens of California register their vehicle from those counties, which have lesser sales tax rate. Some of the sales tax excluded items in California are - food plants and seeds, livestock, fertilizer used to grow food, prescribed drugs and some medical supplies, art for display by public agencies, some alternative energy devices and supplies and energy utilities. There is no sales tax charged on the one time and occasional sales in California like sale of a car to private party by the car owner.
