Governments at all levels use taxes to obtain revenue from products and services. It raises the question about the sales tax in San Bernardino county because 45 states charge this tax, and users must pay it when they make their purchases.
The agency in charge of taxes in California is the California Department of Tax and Fee Administration or CDTFA. It establishes the different tax brackets for each of the counties, and in California, this is quite an art, especially because taxes are quite complex.
How do California taxes work?
The minimum tax rate in California is 7.25%, and these taxes will not go entirely to the state. The amount that goes to the state due to sales is 6%, but an additional 1.25% is required to pay for county and city funds.
California taxes are among the highest in the United States, which is no surprise to residents. For this reason, we may pay a high amount of money whenever we want to make any purchase in California. In addition, only a quarter of California cities use the state’s minimum tax rate, so the rate will be higher.
There are 25 different California tax brackets to consider, which you can find out with an online tool that will tell you the taxes by address. However, we should note that depending on the city, they may collect additional sales tax.
What is the sales tax rate in San Bernardino county?
We should note that the sales tax rate in San Bernardino County is 0.25%. That means all our purchases will have a sales tax of 8.75%. It will be the total, including state and county taxes, and a 1.50% special tax.
However, the tax collection requirements have changed due to different laws. It is always important to look at the current law and the taxes according to the jurisdiction and exact addresses.
Where does the tax money go?
The minimum sales tax paid in California is 7.25%, as mentioned above. All cities must collect at least this amount in taxes, but only 6% will go to the state of California.
The other 1.25% will go to the county funds. Of the state, 6% will be distributed to different places, with 3.9375% going to the general fund of the California government for its operation. Another 1.0625% will go to the Local Revenue Fund, which uses it to pay for public health programs and services.
One half og the remaining 1% will go to a Local Public Safety Fund, which supports criminal justice activities. The last 0.5% will go to a Local Revenue Fund, which supports health and social service programs.
The remaining 1.25% will go to governments. It is divided into two different funds, of which 1% will go to the city or county’s operating funds. Finally, the remaining 0.25% will go to the city’s transportation fund.
The additional taxes will raise money for several things. Some cities pay for citywide initiatives, which is the reason for the tax variation.
What is taxed and what is not?
Taxes will apply to the vast majority of products and services that we will buy in California. However, as in other states, there are some exceptions to these taxes. Groceries or non-prepared foods are tax-free.
We also do not have to pay if we buy plants or seeds used for food, livestock, or prescription drugs. Depending on their purchase, some things have a specific exemption, such as beverages or bakeries.
Other items like farm machinery will be subject to a partial sales tax. Some items have specific rules so they can be purchased in specific locations and avoid tax.
For vehicles purchased in California, the tax base will be where the car is registered but not where it is purchased. For this reason, it is necessary to check the local and state laws to know the amount we will have to pay.
For years I have studied American finance regulations. All the information in this blog is sourced from official or contrasted sources from reliable sites.
Salesforce Certified SALES & SERVICE Cloud Consultant in February 2020, Salesforce Certified Administrator (ADM-201), and Master degree in “Business Analytics & Big Data Strategy” with more than 13 years of experience in IT consulting.