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omb -- Good news for California’s business and home owners. Posted: 05 Jul 2011 13:02:04
Statewide Sales and Use Tax Rate Decreases by 1% July 1!. The statewide sales and use tax rate will decrease from 8.25 percent to 7.25 percent on July 1, 2011 according to Board of Equalization Chairman Jerome E. Horton. The 1 percent decrease applies, generally, to all taxable transactions in California. In areas where voters have approved additional sales taxes, the total tax rate applied to purchases will be the statewide base tax rate of 7.25 percent, plus any applicable local sales tax. Retailers should check the Board of Equalization website, www.boe.ca.gov, for updates. Part of a 2008-09 budget agreement, Assembly Bill x3 3 temporarily increased the General Fund portion of the sales and use tax rate by 1 percent in April of 2009, and will sunset on June 30, 2011. . Gov. Brown Signs Bill Providing Property Tax Incentives for New Active Solar Energy Systems Source: http://www.boe.ca.gov/news/newsroom.htm Governor Jerry Brown signed into law ABX1 15 by Assembly Member Jerry Hill (D-San Mateo), ensuring that existing and future solar installation projects throughout the state can continue to benefit from the property tax exclusion authorized by Revenue and Taxation Code 73, regardless of the financing mechanism used. This bill clarifies that newly constructed active solar energy systems financed using sale-leaseback and similar arrangements that require the solar energy system itself, but not the real estate, to be sold or transferred to a third party, will continue to receive the property tax exclusion. “This bill was needed to make it clear that there is no increased property tax liability when an active solar energy system is newly installed without regard to the particular financing arrangements used to fund its construction or installation. Existing property tax law, since the early 1980’s, has promoted solar energy in California by providing that constructing or installing an active solar energy system will not trigger any increase in property tax. Generally, any value added by the solar energy system will not be subject to property taxation for so long as the property is owned by the same person. IRS Increases Mileage Rate to 55.5 Cents per Mile Effective July 1, 2011 Source:http://www.irs.gov/newsroom/article/0,,id=240903,00.html The Internal Revenue Service announced an increase in the optional standard mileage rates for the final six months of 2011. Effective July 1, 2011 through Dec. 31, 2011, the rate will increase to 55.5 cents a mile for all business miles driven during this period. This is an increase of 4.5 cents from the 51 cent rate in effect for the first six months of 2011, as set forth in Revenue Procedure 2010-51. The IRS made this special adjustment in recognition of recent gasoline price increases. The new six-month rate for computing deductible medical or moving expenses will also increase by 4.5 cents to 23.5 cents a mile, up from 19 cents for the first six months of 2011. The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile. While gasoline is a significant factor in the mileage figure, other items enter into the calculation of mileage rates, such as depreciation and insurance and other fixed and variable costs. The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage. XXX Are you looking for ways to reduce your energy costs and improve your bottom line? Visit http://www.coolcalifornia.org and see what others are doing.