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CA – No Sales Tax April

Posted by salestax on April 1, 2009

Beauty Collection, a CA retailer is fed up with their legislature increasing the sales/use tax by 1% today. And, no, this is not a joke! For the month of April, Beauty Collection is giving their customers it’s own sales tax holiday. They will be offering a discount of merchandise equal to the amount of sales/use tax on all of it’s sales for the month of April.

In an effort to start a movement, Beauty Collection has started a website: nosalestaxapril.com where you can find a list of other retailers taking this stand. If you’re a CA retailer and would like to join them, you can also sign up to be published on this site.

Basically what this equates to as of 4/1/09  is:  $100 purchase = 109.25 with sales tax (avg. rate 9.25%)

No Sales Tax April:  $100 purchase = 90.75 (w/Sales Tax Equivalent Discount) + sales tax 8.39 = 99.14.

So, the retailer is going to loose out here.  This $100 purchase in March would have given the retailer $100 sale.  Now they are getting $90.75.  While the state was getting $8.25 on the same sale last month, they are still increasing revenue by .14 for each $100 spent by a consumer. 

But, if it brings out the consumers, perhaps Beauty Collection is on to something here.  If it brings in 10 customers vs. 8, they’ve made the difference.  I’ll be interested in seeing the results (if they publish them).

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