Friday, July 1, 2011

California taxes: Some California taxes take a dip -

California taxes: Some California taxes take a dip -

Reporting from Sacramento and Los Angeles -- Millions of California shoppers and car owners are in for some rare good news from Sacramento: tax cuts.

Starting Friday, the statewide sales tax rate drops by one percentage point — a penny on the dollar — and the annual vehicle license charge that drivers pay tumbles by 43%.

The expiring increases, which were placed on the books in 2009 as California teetered toward insolvency, will provide significant savings for many people. On average, a family of four will save more than $1,000 a year when income tax hikes that expired in January are factored in, according to Republican lawmakers.

A new car buyer who scoops up a $25,000 ride this weekend, for instance, will pay $250 less in sales tax. And the smaller yearly vehicle fee — dropping from 1.15% of a car's value to 0.65% — on the new car will save the owner $125.

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