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Sales Tax Update - City of Santa Maria

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NEWS RELEASE<br />

September 20, 2012<br />

PAGE 1 <strong>of</strong> 2<br />

<strong>City</strong> <strong>of</strong> <strong>Santa</strong> <strong>Maria</strong> – <strong>Sales</strong> <strong>Tax</strong> <strong>Update</strong><br />

In the June 5, 2012 election, <strong>City</strong> <strong>of</strong> <strong>Santa</strong> <strong>Maria</strong> voters approved Measure U,<br />

establishing a temporary quarter-cent transaction (sales) and use tax. As a result, the<br />

sales tax rate in <strong>Santa</strong> <strong>Maria</strong> will increase from 7.75 percent to 8.00 percent beginning<br />

October 1.<br />

It is estimated that the quarter-cent tax will generate about $4 million in annual local<br />

revenue for <strong>Santa</strong> <strong>Maria</strong>. The additional revenue will be used to maintain, restore,<br />

and/or improve essential <strong>City</strong> services such as neighborhood police patrols, fire<br />

protection, 9‐1‐1 emergency response, gang suppression, <strong>Santa</strong> <strong>Maria</strong> River Levee<br />

repairs, and other essential services.<br />

The new transactions (sales) and use tax (also called a "District <strong>Tax</strong>") must be charged<br />

on all taxable sales delivered or placed into use within the <strong>Santa</strong> <strong>Maria</strong> <strong>City</strong> limits. The<br />

additional quarter-cent sales tax will be equivalent to one penny on a $4 taxable<br />

purchase, or 25 cents on a $100 taxable purchase.<br />

The tax is imposed on the seller, and the seller is responsible for collecting the correct<br />

amount <strong>of</strong> tax. They are responsible for programming the new rate into their cashiering<br />

equipment.<br />

Businesses within the <strong>City</strong> limits recently were mailed a special notice about the 8.00<br />

percent rate from the State Board <strong>of</strong> Equalization (BOE), the agency responsible for<br />

administering and collecting the transactions and use taxes for the <strong>City</strong>. A copy <strong>of</strong> this<br />

special notice is posted online at http://www.boe.ca.gov/news/pdf/l321.pdf.<br />

If you are a seller or a purchaser and need to confirm or determine if your business<br />

address is within the <strong>City</strong> limits <strong>of</strong> <strong>Santa</strong> <strong>Maria</strong>, please click on the following links.<br />

<strong>City</strong> Address Listing<br />

Street Index<br />

<strong>City</strong> Street Map (zoom-in: Press Ctrl+Plus)<br />

County Treasurer’s Website Property <strong>Tax</strong> Search<br />

MORE


Page 2 <strong>of</strong> 2<br />

Accurate tax area coding is critical to the allocation process because it is the basis for<br />

distributing tax revenue collected to the place <strong>of</strong> sale or use. Each <strong>City</strong>, or other<br />

jurisdiction, is identified by the BOE with a 12-digit area code assigned to the business<br />

address. As a result <strong>of</strong> the June 2012 Measure U election, the updated 12-digit <strong>Tax</strong><br />

Area Code (TAC) assigned to <strong>Santa</strong> <strong>Maria</strong> is 42-002-295-0000. Some businesses may<br />

need this code for their financial s<strong>of</strong>tware.<br />

The following information can also be found on the State Board <strong>of</strong> Equalization's<br />

website:<br />

<strong>Tax</strong> Tips for District <strong>Tax</strong>es<br />

District <strong>Tax</strong>es and Delivered <strong>Sales</strong> http://www.boe.ca.gov/pdf/pub105.pdf<br />

For more information specific to a business or industry, review the BOE’s<br />

publication list: http://www.boe.ca.gov/sutax/staxpubsn.htm.<br />

The BOE’s Local and District taxes website also has helpful information for<br />

sellers and purchasers: http://www.boe.ca.gov/sutax/localdist.htm.<br />

Training Opportunities<br />

Please click on the following link to search for training sessions <strong>of</strong>fered on how to<br />

complete the <strong>Sales</strong> and Use <strong>Tax</strong> form(s).<br />

Training Sessions for <strong>Sales</strong> and Use <strong>Tax</strong> Preparation<br />

More Information<br />

If you need additional information, please contact the California State Board <strong>of</strong><br />

Equalization toll-free <strong>Tax</strong>payer Information Center at (800) 400-7115 (TTY: 711)<br />

between 8:00 a.m. and 5:00 p.m. weekdays, except State holidays.<br />

Department:<br />

<strong>City</strong> Manager’s Office<br />

Contact Person:<br />

Mark van de Kamp, Management Analyst II<br />

Telephone Number: (805) 925-0951 ext. 372<br />

E-mail Address:<br />

mvandekamp@ci.santa-maria.ca.us

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