State Sales Tax Drops to 7.25 Percent

There's one kind of change that most of us agree is good.

It's the kind left in your pocket after shopping, and beginning July 1, there will be more of it. The sales tax rate falls a full percentage point throughout California, which means Petaluma's rate is now 8 percent.

The statewide decrease from 8.25 percent to 7.25 percent results from the expiration of a statewide one-percent increase that began in April 2009 as part of the 2008-09 state budget agreement and sunset June 30.

The 1 percent decrease applies, generally, to all taxable transactions in California. Petaluma's sales tax rate of 8 percent is about average among California cities. Some of the highest tax rates are found in Los Angeles and Alameda counties, with some cities charging a 9.25 percent sales tax, even after the percent decrease.