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Sales and Use Tax Decreased

November 4, 2011

On July 1, 2011, the combined statewide sales and use tax decreased from 8.25 percent to 7.25 percent. In areas where there are voter-approved district taxes, the tax rate is the statewide base rate of 7.25 percent plus any applicable district tax.

In September 2011, the sales tax table in the Medi-Cal adjudication system was updated to reflect this new tax rate. Reimbursement for claims billed with taxable HCPCS and medical supply codes now includes the correct sales and use tax. Affiliated Computer Services (ACS) will reprocess any claims paid incorrectly.