Time to Go Shopping! California Sales Tax Drops Tomorrow

Since Jerry Brown couldn't rally enough Republicans to extend the state sales tax, San Francisco's steep 9.5% tariff on retail goods will drop slightly to an almost-manageable 8.5% rate starting tomorrow. That drop ought to make those mid-summer and holiday weekend sales 1% easier on the ol' pocketbook, but unfortunately for shoppers Temporary Mayor Ed Lee doesn't seem to share his mustachioed predecessor's lust for retail therapy at Wilkes Bashford and Neiman Marcus. The interim mayor is already looking to levy a half-percent local sales tax.

Of course, most of us will hardly notice the half-cent change so Ed Lee's proposed tax bump could be a boon for the city. The mayor's office estimates it could lead to roughly $60 million in yearly revenue and, because it's a local tax, 100% of that revenue would stay with the city. According to the Examiner, the mayor hopes to put it to use to cover public health and social services as well as increasing firefighter and police officer salaries. Assuming it shows up on the ballot, the measure will need a two-thirds majority from voters and would last until 2022 unless the state renews the 1% tax in the next year.

[SFEx]