Sales Tax News - March 13, 2018

Los Gatos Voters May Face Sales Tax Hike

The Town Council Financial Committee members of Los Gatos, California are debating over whether to ask voters to approve a one-eighth percent sales tax increase, which would likely appear on the November ballot.  Currently, the city faces a 9 percent sales tax, almost at the legal limit in the state of California, where the maximum allowed is 9.25 percent.  Although the city has several debts and projects that need funding, committee members have not yet decided how they would allocate the extra funds. 

Sales Tax Error Results In Loss Of Revenue

The Department of Taxation and Finance made an erroneous payment to Spa City, resulting in a loss of over half a million dollars in the city's sales tax revenue.  The city will have to make up the loss in other ways, although the Commissioner of Finance is not worried.  2017 was the best sales tax year the city has seen yet.  While the correction does make the budget tight, the city is hopeful for the 2018 sales tax revenues to increase again. 

Data Centers Seek Sales Tax Breaks

Data centers have flocked to the state of Virginia in recent years, earning the state a reputation as a data center haven.  The state has welcomed these businesses, creating breaks in sales taxes in order to lure them to the state.  While these centers tend to employ few people, they take up large areas, generating income from the property taxes.  Although these tax cuts have some critics, Virginia is thriving in the global data center market, largely due to the sales tax cuts they offer, which entice businesses to move operations to the state.