ALL STAR TAX SOLUTIONS
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|Posted on November 7, 2012 at 3:36 PM||comments (1)|
November 7, 2012
Yesterday was a day that the taxpayers’ of California decided to raise state tax for taxpayer’s who make $250,000.00 and above per year retroactive to January 1, 2012.
The sales tax will also be raised to 7.5% from 7.25% starting January 1, 2013.
Retroactive tax increase passes (11-07-12)
Proposition 30 retroactively increases income taxes effective January 1, 2012. The following rate increases are effective for seven years:
Governor's Ballot Initiative10.3% (1% increase) on income of:$250,001–$300,000 for single/MFS;
$340,001–$408,000 for HOH; and
$500,001–$600,000 for MFJ.11.3% (2% increase) on income of:$300,001–$500,000 for single/MFS;
$408,001–$680,000 for HOH; and
$600,001–$1,000,000 for MFJ.12.3% (3% increase) on income of:More than $500,000 for single/MFS;
More than $680,000 for HOH; and
More than $1,000,000 for MFJ.
(Note: Income in excess of $1 million is also subject to the 1% mental health surcharge.)
Proposition 30 also increases the state sales tax rate by 0.25% for four years, beginning January 1, 2013, bringing the standard statewide rate to 7.50% (currently 7.25%).
Proposition 39, the single sales factor mandate, passed, so most multistate corporations will be required to use the single sales factor in 2013.