Sales tax could exceed 10% after this election

Palo Alto’s current sales tax rate of 9.75% will jump to 10.25% if voters on Nov. 3 approve Measure J, a new tax to fund the $65.5 million purchase part of the Cubberley Community Center. If voters approve the multi-county mass transit tax RMT, the sales tax rate will go to 10.75%.

(We got the numbers wrong in Monday morning’s Daily Post and we’ll run a correction in our next print edition.)

In Menlo Park, the current sales tax rate is 9.375%. If RMT passes, it will raise Menlo Park’s rate to 9.875%.

In Redwood City, the sales tax rate is already 9.875%. If RMT passes, it will go to 10.375%.

In San Carlos, voters this November will decide the fate of Measure G, a half-cent sales tax for the city government. If Measure G passes, it would add 0.5% to the current sales tax rate, moving it from 9.375% to 9.875%. If voters also pass RMT, the rate would go to 10.375% in San Carlos.

In Belmont, the current sales rate is 9.875%. There is no city sales tax on the ballot. But approval of the RMT would raise the rate in Belmont to 10.375%.

Retail sales of tangible items in California are generally subject to sales tax.

Examples include cars, furniture, giftware, toys, antiques and clothing. Some labor services and associated costs are subject to sales tax if they are involved in the creation or manufacturing of new tangible personal property.

Some items are exempt from sales and use tax, including:

  • Sales of certain food products for human consumption
  • Sales of prescription medicine and certain medical devices
  • Sales of items paid for with EBT (food stamp) cards

What is RMT? It’s a 14-year sales tax to fund BART, Muni, Caltrain, AC Transit, Santa Clara Valley Transportation Authority (VTA), San Francisco Bay Ferry and Golden Gate Transit. It’s a 1% sales tax in San Francisco and a 0.5% sales tax in Alameda, Contra Costa, San Mateo, and Santa Clara counties.

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