Question: Is there an exemption from the tax rate increase?
Answer: In general, fixed-price contracts and fixed-price lease agreements entered into prior to April 1, 2009, are not subject to the tax increase. To qualify as fixed-price, neither party can have the unconditional right to adjust the price for an increase in costs or terminate the contract or lease [Revenue and Taxation Code, sections 7261(g) or 7262(f)]. In addition, the tax amount or rate must be specifically stated in the contract or lease agreement.

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Santa Clara County Sales and Use Tax Rates

(are different for different addresses)

Is your address in the city limits or in an unincorporated county?

Click on the California State Board of Equalization website to gain knowledge about your area: www.boe.ca.gov.

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The 1% tax rate increase will expire on either July 1, 2011, or July 1, 2012, depending upon whether the votes approve the proposed Budget Stabilization constitutional amendment in a statewide election to be held on May 19, 2009.

Question: What if I collect at the lower tax rate for sales made after April 1, 2009?
Answer: If you incorrectly collect sales tax reimbursement or use tax at the lower tax rate after April 1, 2009, you will still owe the 1% difference.