California Sales Tax to Increase by 1%

California News One-percent may not sound like much. But for big ticket items like cars, it makes a huge difference. If a new car is what you're looking for, now may be the time to buy.

Starting Wednesday, the California sales tax will increase by one-percent. Mark Rapin of Freedom Ford said, "How would you feel if you come in on April second and you want to buy a new truck and we say, gee if you were here yesterday, you could have saved 600 dollars?"

Freedom Ford Vice President Mark Rapin says the tax hike could catch some customers off guard. But Ruth Cox, who sells furniture at Gary O's in Clovis says many of their customers will be prepared. "In the grand scheme of things, that's not that much money."

This dining room set costs 4500 dollars today, the sales tax is 358 dollars. On Wednesday, it goes up to 403 dollars. That's a difference of 45 dollars. Ruth Cox of Gary O's said, "I think because stores probably like us are having really good sales anyway, I think they feel like they're getting a good bargain on the item anyway, that the little bit extra sales tax isn't going to stop them."

The extra sales tax didn't stop Dawn Wallace from making some big purchases. But, it did entice her to shop for them two months in advance. "We bought the Samsung refrigerator and washer and dryer and we also bought an LG TV flat screen because of the sales tax going up."

The sales tax increase will be temporary. It's set to expire in June of 2011 or June of 2012, depending on what voters decide when Proposition 1A comes on the ballot in May.

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