State Tax Increases Expire, Rates Return To Pre-2009 Levels

LOS ANGELES (CBS) — Californians are getting some tax relief, thanks to the expiration Friday of tax increases enacted more than two years ago.

In February 2009, following the Legislature’s approval, then-Gov. Arnold Schwarzenegger signed into law an emergency budget that hiked the vehicle license fee from 0.65 percent to 1.15 percent and bumped up sales tax rates by 1 percent and personal income tax rates by a quarter percent.

KNX 1070’s Mike Landa Reports

State income tax rates reverted to pre-2009 levels in January, and the VLF and sales tax rates fell back Friday.

“This is going to be real money, tangible money in the hands of everday people,” said Assemblyman Allan Mansoor Friday at a press conference.

Lawmakers anticipate that the cuts will save California families $1,000 a year.

Car dealers are hoping it will spur a weekend of big sales over the Independence Day holiday.

“When you’re talking about the sales tax on a $30,000 to $40,00o car, you can expect it to go down $300 or $400 plus the licensing fee going down,” said Orange Coast Chrysler Jeep Owner John Gray.

(©2011 CBS Local Media, a division of CBS Radio Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. Wire services contributed to this report.)

Comments

One Comment

  1. Sean says:

    Those tax increases sure solved our state’s budget crisis. Why did we elect this adulterer again?

  2. KOBE says:

    They will just shut down parks instead of trimming off 1% of their four hundred dollar a year self appointed salary.

    WE NEED AN UPRISING LIKE THE MIDDLE EAST TO CHANGE THE CORRUPTION IN CALIFORNIA.

    1. KOBE says:

      FOUR HUNDRED THOUSAND DOLLAR A YEAR SALARY.

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