New Sales and Use Tax Rate
Effective October 1, 2011
There is only one tax rate change effective October 1, 2011

Voters in the city of Mt. Shasta, located in Siskiyou County, California have approved a one-quarter percent (.25%) district tax, the Mt. Shasta Library Transactions and Use Tax, that is effective October 1, 2011.  The new rate applies only to transactions that occur within the city’s incorporated limits.

The table below summarizes the new sales and use tax rate.

Don’t forget, Monday, 4/18/11 is the final day to file your taxes for the 2010 tax year.

Procrastinators have an extra three days to work on their taxes this year because the usual April 15 file date is Emancipation Day, a holiday observed in Washington, D.C.,  to mark the anniversary of the signing of the Compensated Emancipation Act, which president Abraham Lincoln signed on April 16, 1862. The act freed several thousand slaves in the District of Columbia.

There are a lot of different options available to help taxpayers file and pay taxes on time, including the option of filing for an extension.

Those filing on Monday should make sure they have everything prepared and ready, to prevent any delays that might cost them in fees and penalties.

New Sales and Use Tax Rates
Effective April 1, 2011

Voters in 13 cities in California have approved new district taxes (transactions and use taxes) that became effective April 1, 2011.  The new rates apply only within each city’s incorporated limits. The tax rates outside the incorporated city limits will remain the same.

In addition, the City of Scotts Valley Transactions and Use Tax (SVGF) will end on March 31, 2011, resulting in a tax rate decrease within the city limits of Scotts Valley.

In Sonoma County, the countywide Sonoma County Open Space Authority (SCOS) 0.25 percent district tax will end on March 31, 2011. Beginning April 1, 2011, the Sonoma County Agricultural Preservation & Open Space District (SAPD) 0.25 percent district tax will take effect. Therefore, the tax rates throughout Sonoma County (exception: City of Santa Rosa) will remain the same.

The table below summarizes the new sales and use tax rates.

District Tax Area	County	Acronym	Code	Old Rate	New Rate
City of San Leandro	Alameda	SLGF	238	9.75%	10.00%
City of Union City	Alameda	UCGF	240	9.75%	10.25%
City of Concord	Contra Costa	CNCD	242	9.25%	9.75%
City of El Cerrito	Contra Costa	ELCT	244	9.75%	10.25%
City of Placerville	El Dorado	PLST	246	8.50%	8.75%
City of Eureka	Humboldt	ERST	248	8.50%	9.00%
City of Santa Monica	Los Angeles	STMA	250	9.75%	10.25%
City of South El Monte	Los Angeles	SEMT	252	9.75%	10.25%
City of Novato	Marin	NOVT	254	9.00%	9.50%
City of Marina	Monterey	MRNA	255	8.25%	9.25%
City of Tracy	San Joaquin	TRCY	257	8.75%	9.25%
City of Scotts Valley	Santa Cruz	SVGF	216	9.25%	9.00%
County of Sonoma	Sonoma	SAPD	259	9.00%	9.00%*
City of Santa Rosa	Sonoma	SRGF	264	9.25%	9.50%
City of Wheatland	Yuba	WTLD	265	8.25%	8.75%

*The rate is higher in the following cities which have additional district taxes and their codes have changed: Sebastopol (260), Cotati (261), Rohnert Park (262), and Santa Rosa (264).

For More Information

• Visit the State's City and County Tax Rates page (www.boe.ca.gov/sutax/pam71.htm) or call our office 805.389.7300

The Small Business Jobs Act of 2010 (2010 Jobs Act) requires information reporting for rental property expense payments of $600 or more that are made after December 31, 2010. This reporting requirement is one of several revenue raising provisions that are included to offset the $12 billion cost of tax relief provided by the legislation.

Generally, if a person (payor) makes payments to another person (payee) in connection with the payor’s trade or business totaling $600 or more during a calendar year, the payor is required to send the appropriate information return to the IRS and the payee. Under the 2010 Jobs Act, any individual taxpayer who receives real estate rental income is considered to be engaged in a “trade or business” for purposes of the information reporting requirements. This is true even for individuals engaged in a “passive investment activity” under general tax rules and principles.

The reporting obligation applies if the total of all payments made by the payor in any tax year is $600 or more, even though the amount for any class of payment by itself is less than $600. Payments that must be reported include:
•    salaries, wages, commissions, fees, incentive awards and other forms of compensation; and
•    interest, rents, royalties, annuities, pensions, and other gains, profits and income.
Form W-2, Wage and Tax Statement, is the information return used to report payments to employees, whereas Form 1099-MISC, Miscellaneous Income, is generally used to report other types of payments.

An exemption from the filing requirement is extended to members of the uniformed services or employees of the intelligence community who rent out their principal residence on a temporary basis. In addition, the IRS is authorized to issue regulations that exempt individuals whose rental income falls below a minimum threshold or who meet certain hardship standards. Failure to comply with these requirements may result in the imposition of penalties, including penalties for failure to file the information return and failure to furnish payee statements.

The new information reporting rules may increase the paperwork and filing burden, as well as the related costs, for your rental property. Because the rules apply to payments made after December 31, 2010, we would like to discuss recordkeeping and other compliance issues as soon as possible. Please call our office at your earliest convenience to arrange an appointment.