CN Ency Sued Over Vacation Tax
Encinitas charges an illegal annual $150 "short term rental fee" to discourage landlords from renting beach homes to tourists, a class action claims in Superior Court...

DB Spreading the tax burden

Today Californians begin to pay
for their leaders' failures

Starting today, every time you pay a little bit more for socks, toothpaste, a computer or a new car, you can thank the state Legislature and governor of California.

They were the ones who approved the temporary 1 percent sales tax increase to help fill a gaping hole in the state budget and end a financial crisis that was threatening to shut down the state government. Of course, they were also the ones who allowed the gaping hole to form in the first place, but we'll get to that in a minute.

Now, every time you stock up on household supplies, or celebrate a birthday at a local restaurant, or replace an aging appliance, your bill will be higher. One extra cent for every dollar you spend.

This higher tax will be in effect until July 1, 2011 - or July 1, 2012 if Californians pass Proposition 1A, the Budget Stabilization Act.

In exchange for accepting a higher tax for extra year, Californians are supposed to get a spending cap and a rainy day fund - you know, logical, responsible actions to make sure leaders don't spend the state into a hole again.

Isn't that just like California? We have to pay more simply to get our leaders to be fiscally responsible.

So, for the next couple of years, when you have to dig into your pocket for another dime or quarter or dollar to cover the 1 percent tax increase, think of your state leaders.

SacBee Tax Increase Calculator
The Legislature and Gov. Arnold Schwarzenegger are considering a budget package that includes tax increases. Use this calculator to see how the tax increases under consideration could affect your household. Click here for the calculator.

From the HJTA:
In clear violation of Proposition 13's requirement that new state
taxes be approved by a two-thirds vote of both houses of the
Legislature, a simple majority of scofflaw lawmakers has voted to
approve new taxes and send them on to the governor for his
signature.

If the governor does not veto these new taxes, HJTA will go to
court. But before we can get a court ruling the state may begin to
collect a three-quarter-cent sales tax increase, a 2.5% income tax
surcharge, and another 13 cents on a gallon of gasoline.

Governor Arnold Schwarzenegger
San Diego: 619-525-4641

LA TIMES A state sales tax jump could backfire
At 7.25%, the Golden State's statewide sales tax rate is the highest in the nation, according to a 2007 ranking. If Gov. Arnold Schwarzenegger's proposed three-year, 1.5-percentage-point increase goes into effect, it would solidify our lead over our closest competition -- Mississippi, New Jersey, Rhode Island and Tennessee, which all had 7% statewide rates according to the most recent ranking by the Tax Foundation.

UT Tourist Tax
[Excerpt] Philosophically, it is hard to defend a situation where motel guests are taxed at 10 percent and vacation home renters at 8 percent. We don't choose to try.

See Also:
No Break for Businesses
Sand Tax Editorials