The below memo was sent to the CAO/CFO Listserv to provide information regarding the following upcoming sales and use tax rate changes:
Changes effective January 1, 2017
- Regular sales and use tax rate
The statewide sales and use tax rate will decrease .25% from 7.5% to 7.25%. The decrease in the statewide rate is effective for all cities and counties in California. However, the actual sales and use tax rate at a particular location may be higher due to the addition of district taxes. In Los Angeles County (including the Westwood campus), the applicable rate will decrease from 9% to 8.75%. In the City of Santa Monica, the applicable rate will decrease from 9.5% to 9.25%. The new rate will apply to purchases delivered on or after January 1, 2017.
- Partial Exemption rate for R&D equipment
With respect to equipment purchases qualifying for the partial exemption on R&D equipment, the exempt portion of the rate will decrease .25% from 4.1875% to 3.9375%. Therefore the applicable partial exemption rate for the Westwood campus will be 4.8125% (8.75% minus 3.9375%). The current applicable exempt rate of 4.8125% will remain the same since both the total tax rate and the exempt portion of the rate will decrease by the same amount, .25%.
Change effective later in 2017
- Voters passed Measure M, the Los Angeles County Traffic Improvement Plan on the November 8 ballot. This will increase the Los Angeles County sales and use tax rate .5%, and is expected to become effective on July 1, 2017. We will provide information on the effective date as soon as it is confirmed by the State Board of Equalization.
If you have further questions, please contact UCLA Tax Services at (310) 794-9868.
