Check Your Receipts: Berkeley Sales Tax Decreases

An enormous wealth transfer began in California this past week that will mean more change in the pockets of individual shoppers and less income for state government.

The sales tax rate fell a full percentage point throughout California on July 1, which means Berkeley's rate is now 8.75 percent, down from 9.75 percent.

But check your receipts: some stores may not be aware of the tax rate reduction yet.

The statewide one-percent decrease resulted from the expiration of a statewide one-percent increase that began in April 2009 as part of the 2008-09 state budget agreement. The increase affected the state share of the sales tax, an inflation from 7.25 percent to 8.25 percent that ended June 30, 2011, according to a news release from State Board of Equalization Chairman Jerome Horton.

The cities with the highest sales tax rates in Alameda County are San Leandro at 9 percent and Union City at 9.25 percent. Both cities impose additional use taxes, with San Leandro adding 0.25 percent and Union City adding 0.50 percent.

The highest rate in Contra Costa County is seen in El Cerrito, where sales tax is now 9.25 percent. El Cerrito's rate includes an additional 1 percent owing to the voter-approved Measure R, which took effect April 1 was intended to spare city services from budget cuts.

The reduction in the sales tax is estimated in the new state budget to result in a $4.5-billion reduction in revenue for the state, according to Board of Equalization spokeswoman Anita Gore.