Attn People doing business in California, Sales tax goes up tomorrow

If your company does business in the state of California then don’t forget to change the sales tax rate in your shopping carts tomorrow.

That’s right, tomorrow the state of California will be playing the worlds worst April Fools Day prank.  We will be increasing our state sales tax by 1% tomorrow April 1, 2009.  Depending on the county you live in sales tax could now be as high as 10% as some counties are also increasing the county sales tax as well.

At this point I’m betting my boss is pretty happy that we finished the purchase of our new SAN and servers in March (a blog post about the project will be later).  The increased rate of a $700k (US) purchase would be another $7000 (US) to the state goverment.

If you don’t collect enough sales tax, you still have to pay the correct amount to the state, so that extra money that you don’t collect could eat into the bottom line pretty quickly.



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