California's Sales Tax Increases One Percent - CBS News 8 - San Diego, CA News Station - KFMB Channel 8

California's Sales Tax Increases One Percent

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On Wednesday, California's sales tax will increase one percent, but depending on where you shop in the county, you could pay a variety of prices. Another penny may not sound like a lot, but depending on what you buy, it could take a big bite out of your wallet.

You'll really feel it on big ticket items, which explains why car dealerships say they had a great weekend. As salesman J.P. Bo put it, after months of slow sales, this was their stimulus package courtesy of the governor.

"Friday started picking up momentum, Saturday, Sunday, Monday, everyone came in prepared to buy. Not 'I'm here looking.. I'm here to get a car,' so people had a purpose being here," Bo said.

Starting Wednesday, sales tax across most of the county will jump from 7.75 percent to 8.75 percent. In some cities, it will be even more. In Vista it will be 9.25 percent; in La Mesa, sales tax jumps to 9.5 percent; in El Cajon and National City it will be 9.75 percent.

The higher rates in El Cajon and La Mesa are because of a recently approved hike by voters. National City and Vista have been paying more for a while.

If you buy a $30,000 car, the one percent hike will cost you an extra $300, and in May the vehicle registration fee is going to double, so car buyers are taking that into account as well. At Pacific Honda, they're ready to sell you a car right now.

"We've got a full crew here ready to go. It's like old times for a couple days. We love it," Bo said.

The higher tax is expected to bring in $1.2 billion through the end of this fiscal year, which is June 30, and another $4.6 billion in the next fiscal year. It is set to expire July 2011.

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