City of Barstow
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State Tax Profile
The State of California tax system is composed of a range of taxes that are administered and collected by various state and local agencies. Each tax has a different base, rate and administering agency. The following outlines the most significant taxes.
| Type | Base of Measure | Rate | Base of Measure |
|---|---|---|---|
| Corporation Income and Franchise Tax | Net income apportioned to California | 8.84% | Franchise Tax Board |
| Sales and Use Tax | Receipts from sales or lease of taxable items | 7.25% - 8.25% | Board of Equalization |
| Unemployment Insurance Tax | First $7,000 of wages per employee per year | 3.4% | Employment Development Department |
| Workers' Compensation Insurance | Payroll and Occupation | Variable | Department of Industrial Relations |
| Personal Income Tax | Taxable personal income | 1;0% - 9.3% | Franchise Tax Board |
| Property Tax | Assessed valuation | 1.0% of taxable value | County Government |
|
Disability Insurance(Employee-paid) |
First $31,767 of wages | 0.8% | Employment Development Department |
|
Finished goods, raw material and inventory tax |
None | None | None |
| Mineral severance | None | None | None |
| Inheritance | None | None | None |
The state has numerous incentives in place to encourage investment and reduce the cost of starting and operating a business in California. These programs include tax assistance in various forms:
- Credits for the purchase, lease or construction of manufacturing equipment
- Tax credits for research and development costs
- Employment training assistance
- Industrial development bonds and pollution control financing