Nevada City wants to fix sales tax snafu |

Nevada City wants to fix sales tax snafu

Nevada City has submitted information to the state Board of Equalization, hoping to help residents outside the city limits who are getting stuck paying a higher sales tax rate than they should – at least on some purchases.

The road repair Measure S was voted on only by residents within the city limits of Nevada City and passed in November 2006.

But residents throughout the 95959 zip code also were paying the higher rate. This was because no system had been in place to distinguish the different tax rates within the same 95959 zip code: 7.875 percent within the city limits and only 7.375 percent elsewhere.

Last August, The Union reported that residents in unincorporated Nevada City complained they were being unfairly taxed at the higher rate, typically for purchases made online or with merchants outside the area, such as car dealerships.

For some purchases, such as a car, the extra tax payment was in the hundreds of dollars.

Now Nevada City is taking steps to help residents out.

City officials have provided street addresses to the State Board of Equilization that are subject to the higher rate, as well as the lower rate. Nearly 26 cities already had taken this step, as The Union reported last August.

“If for some reason you think you’ve been cheated, let us know,” said City Engineer Bill Falconi. “We’re not here to take anybody’s money that’s not entitled to us.”

The city will provide residents with packets and forms that can be used to request refunds and declare exemptions where warranted.

Information can be found at Nevada City’s Web site. Point your browser to

On the Net

A Nevada City sales tax update accompanies this story at:

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