Did You Know: Capitola Sales Tax Falls; Check Your Receipts.

Did you know: Sales tax in Capitola and Soquel dropped 1 percent on July 1?

Sales tax is now 8.25 percent in Capitola and 8.00 percent in Soquel, down from 9.25 percent and 9.00 percent respectively. The rate was last increased from 8.25 to 9.25 in Capitola in April 2009. Before that, it had been increased from 7.25 to 8.25 in April 2005. With the 2005 increase, the city of Capitola estimated a $1.2 million annual increase in revenue.

This year's decrease comes from a statewide reduction of the base tax rate from 8.25 percent to 7.25 percent. Cities above the base are often there because of voter approval. 

Since the decrease on July 1, shoppers statewide have noticed outdated sales tax rates on receipts. If you spot sales taxes at any business in Capitola or Soquel higher than 8.25 and 8.00 percent respectively, be sure to notify the business of the change, as some are still unaware.

Now you know.