California Taxpayers Elect To Raise Personal and Sales Taxes
November 7, 2012
Yesterday was a day that the taxpayers’ of
decided to raise state tax for taxpayer’s who make $250,000.00 and above per year retroactive to
January 1, 2012
The sales tax will also be raised to 7.5% from 7.25% starting
January 1, 2013
Retroactive tax increase passes (
Proposition 30 retroactively increases income taxes effective January 1, 2012. The following rate increases are effective for seven years:
10.3% (1% increase) on income of:
(Note: Income in excess of $1 million is also subject to the 1% mental health surcharge.)
Proposition 30 also increases the state sales tax rate by 0.25% for four years, beginning January 1, 2013, bringing the standard statewide rate to 7.50% (currently 7.25%).
Proposition 38, Tax to Fund Education and Early Childhood Programs, failed; and
Proposition 39, the single sales factor mandate, passed, so most multistate corporations will be required to use the single sales factor in 2013.