Surprise: You're Saving Money at the Register Again

We’re almost a week into July now. Did you notice that the sales tax rate in Novato has gone down?

Sales tax rates fell a full percentage point throughout California on July 1, which means Novato’s rate is 8.5 percent.

It was only three months ago that the from 9.0 to 9.5 with the passage of a five-year, half-cent increase to help solve the city’s budget deficit. The passage of Measure F is expected to generate just more than $3 million per year, and the money will help avoid further cuts in personnel, facilities, maintenance and parks and recreation.

The statewide one-percent decrease results from the expiration of a statewide one-percent increase that began in April 2009 as part of the 2008-09 state budget agreement. It was due to end June 30, 2011, according to a news release from State Board of Equalization Chairman Jerome Horton.

The reduction affects the state share of the sales tax, which fell from 8.25 to 7.25 percent.

As with the previous rate, Novato’s new rate of 8.5 percent remains average for municipalities statewide. Local rates vary between 7.25 percent and 9.75 percent. In Marin, all municipalities are at 8.0 except Novato and San Rafael (8.5).

Check out all the rates by clicking here.