The DMA Way

California Adding New Taxes

by DMA Staff | Sep 21, 2018
In an effort to regulate tax on groceries, California legislature passed the Keep Groceries Affordable Act of 2018. The Act will cap the amount of tax a local jurisdiction can place on grocery items. Taxes that were imposed prior to January 1, 2018 are still allowed to be collected; however, no new or increased tax amounts are allowed. The Act also states that should a local jurisdiction enact a tax after said date, the state will terminate its contract to administer the local tax. 

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