Sales Tax hike will take effect April 1

The 1 percent sales and use tax rate increase takes effect April 1 as a provision of the newly signed state budget agreement. Sales and use tax rates in the state will range from 8.25 percent to 10.25 percent.

The provisions of the statewide sales and use tax increase sunset on either July 1, 2011, or July 1, 2012, the latter if voters approve the proposed Proposition 1A, the Budget Stabilization Act, in an election to be held May 19.

The state Board of Equalization estimated in a news release that the increase will generate $1.187 billion in new general fund revenue for the remainder of the 2008 - 09 fiscal year and $4.632 billon in 2009 - 10.