The California State Board of Equalization (BOE) reminds everyone that a voter-approved 0.125 percent increase to Santa Clara County’s Sales and Use Tax will become effective Monday, upping the rate up from 8.625 percent to 8.75 percent.
The increase was approved during last year’s November elections and will be most visible in the price of big ticket items. For example, someone spending $40,000 on a new vehicle will have to shell out an extra $50 before they drive the car off the lot – enough for a tank of gas.
“I don’t see it affecting car sales,” said Derrick Aguillon, manager of Gilroy Toyota, 6800 Chestnut St. in Gilroy.
However, on a personal level, he was dismayed by the news of yet another tax rise.
“It’s just disappointing that we have to keep paying extra for our day-to-day life,” Aguillon said.
Dealer Leonard Harrington from South County Nissan Hyundai, 400 Stutz Way in Gilroy, was less guarded in his response.
“I don’t think it’s a good thing,” Harrington said. “It’s not good for the consumer. It’s going to cost you more to buy a car.”
The five-member BOE is a publicly elected tax board. It collects more than $53.7 billion annually in taxes and fees that supports state and local government services. For more information on other taxes and fees in California, visit www.taxes.ca.gov.
