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Monday, March 30, 2009 Sales and Use Tax Increase
Dear Colleagues:
Sales and use tax for purchases made in or delivered to Los Angeles County will increase from 8.25% to 9.25%. Most other counties in California are also increasing their sales and use tax amounts.
The new tax rate applies to purchases made on or after April 1, 2009, if the purchase is subject to sales and use tax.
Correspondingly, Purchase Orders created on or after April 1, 2009 for goods or services subject to sales and use tax will be encumbered at the 9.25% rate (or at the applicable rate, if being delivered to counties outside of Los Angeles). Similarly, Procurement Card purchases over $500 made with non-California suppliers who omitted charging CA use tax will be accrued at the new rate.
USC is not sales tax exempt. The California State Board of Equalization requires USC to pay California sales and use tax on all taxable transactions (i.e. tangible, non-edible items). For your convenience, a list common items that are subject to sales tax are listed on the following Disbursement Control website:
As reminder, those departments that operate cash registers or other collection devices should confirm that their instruments have been changed to reflect the new sales and use tax rate.
Tip
- Sales Tax is the term used when a purchase was made in the State of California
- Use Tax is the term used when the purchase was made outside of California, but delivered for use in California
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