![]() However, this is a statutory restriction and the California Legislature routinely allows some local governments, through the adoption of separate legislation, to exceed the 2.00 percent local tax rate cap. The combined tax rate of all local sales taxes in any county is generally not allowed to exceed 2.00 percent. For example, the city of Sacramento, the state capital, has a combined 8.75% sales tax rate, and Los Angeles, the largest city in California, has a combined 9.50% sales tax rate. The effect from local sales taxes is that sales tax rates vary in California from 7.25% (in areas where no additional local sales taxes are levied) to 10.75% (six cities located in Alameda County). Additional local sales taxes levied by counties and municipalities are formally called "District Taxes." Local county sales taxes for transportation purposes are especially popular in California. Supplementary local sales taxes may be added by cities, counties, service authorities, and various special districts. In an editorial dated September 5, 1933, the Los Angeles Times criticized the 2.50% sales tax rate in stating that the "sales-tax rate should not have exceeded 1 per cent" and that the tax rate was "so high as to discourage business, which will make the tax less productive." Supplementary local sales taxes The statewide sales tax in California was first imposed on August 1, 1933, at the rate of 2.50% under the "Retail Sales Act of 1933." No local sales taxes were levied at that time.
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