Sales Tax Increase In California

A Sacramento sales tax increase may be on the November 2020 ballot for local residents. The draft proposal, referred to as Measure A, intends to raise $8 billion over the next 40 years to bring improvements to issues like transportation, climate change, and even homelessness. For voters, these developments come at a cost. In order to raise the necessary funds to cover everything within the proposal, city and county leaders propose increasing the local sales tax a half a cent. If approved, the new tax would increase the total Sacramento sales tax to a total of 9 cents per dollar.

However, the likelihood of this proposal even being placed on the November 2020 ballot is beginning to look very slim. Measure A is simply a revamp of Measure B, which was placed on the November 2016 ballot and received 65% of the vote, just 2% under the required 67% to pass by state law. Additionally, the new tax would be 3rd active transportation related tax within the last two decades. Back in 2004, voters approved a 30-year Sacramento sales tax that increased sales tax by a half-cent. In 2018, California officials increased the state’s gas tax from 41.7 cents to 47.3 cents.
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Monika Miles - Pending Sales Tax Legislation

These two states have online sales tax legislation pending.

Florida’s Senate Bill 1112 for Online Sales Tax
Quick Florida Highlights:
  • Passed? Not yet, it’s still in legislation
  • Effective date? If it passes, July 1, 2019
  • Thresholds? 200 separate transactions or sales exceeding $100,000
  • Anything else? Marketplace facilitators need to collect and remit online sales tax on behalf of sellers

Florida’s legislature is considering Senate Bill 1112, which would potentially go into effect July 1, 2019. Under this bill, a company would establish economic nexus in Florida if at least one of these thresholds are met:

  • 200 or more separate retail sales of tangible personal property or taxable services
  • Any number of retail sales of tangible personal property or taxable services in an amount more than $100,000

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