State sales tax hike starts with new year |

State sales tax hike starts with new year

With state revenues on the skids, a quarter-cent sales tax hike is set to go into effect today.

The increase will put Nevada County’s sales tax rate at 7.375 percent.

But the money won’t go to county coffers, said Laura Matteson, the county’s senior administrative analyst.

The state will use the money to help bridge a $12.4 billion deficit in the coming fiscal year, she said.

Under the terms of a 1991 law amended by the California Legislature last summer, the quarter-cent tax automatically goes into effect when state budget reserves fall below 3 percent.

A year ago, when the state had a budget surplus, the tax rate went down the same amount.

But that was before last summer’s energy crisis and the post-Sept. 11 attacks war on terrorism, both of which have had big effects on the state’s economy and budget surplus, Matteson said

The quarter-cent sales tax hike is expected to generate $1.1 billion a year in revenue and cost the average family of four about $120 annually.

Support Local Journalism

Support Local Journalism

Readers around Grass Valley and Nevada County make The Union’s work possible. Your financial contribution supports our efforts to deliver quality, locally relevant journalism.

Now more than ever, your support is critical to help us keep our community informed about the evolving coronavirus pandemic and the impact it is having locally. Every contribution, however large or small, will make a difference.

Your donation will help us continue to cover COVID-19 and our other vital local news.


Start a dialogue, stay on topic and be civil.
If you don't follow the rules, your comment may be deleted.

User Legend: iconModerator iconTrusted User