Sales Tax, Vehicle License Fees Dropped — Time To Go Shopping?

There is at least one piece of the new state budget that consumers are likely to appreciate: A 1 percentage point drop in the sales tax.

That translates to one penny less in sales tax for every dollar spent. 

The Legislature failed to extend a tax rate increase that would have kept the statewide base tax rate at 8.25 percent. It drops to 7.25 percent today.

Shoppers in San Ramon now will pay 8.25 percent sales tax instead of the 9.25 percent they had been paying. The city has no sales tax, only the rate set by the state for Contra Costa County.

If you shop online with the likes of Amazon.com, however, you may be paying more.

As part of the state budget package, Amazon is supposed to start collecting 7.25 percent base tax on online purchases. However, the retailer has refused to do so, protesting by severing ties with California retailers who send customers to their site, the Los Angeles Times reports.

"This legislation is counterproductive and will not cause our retail business to collect sales tax for the state," Paul Misener, Amazon's vice president of global public policy, told the Times. 

Amazon is expected to sue. 

Vehicle license fees fall

Starting July 1, the annual vehicle license fee drops a half a percentage point, from 1.15 percent of a car's value to 0.65 percent. 

That translates to an extra $75 in your pocket on a vehicle worth $15,000. 

At the same time, expect to pay $12 more for your annual vehicle registration fee. But if your car is worth more than $2,400, you'll be paying fewer taxes on it overall, according to the Los Angeles Times.