Sales Tax Facts & FAQs 
Why shop local?
Sales tax is a major source of revenue for Fairfield. When taxable purchases are made locally, Fairfield receives 1% of the sale. In fiscal year 2007/2008, Fairfield received $17.5 million in sales tax revenue. This year, we expect that revenue to fall by $1.5 million. Purchases made outside of Fairfield generate no revenue for the City.
How is sales tax divided and where does it go?
- 6.0 % State of California
- 1.0 % City where the purchase is made
- 0.25 % Solano County
- 0.125% County library
What percentage of the City’s budget is based on sales tax each year?
Currently 30% of the City’s general fund is derived from sales tax.
How is the sales tax revenue spent within the City?
Sales tax revenue pays for needed city services like police, fire, and street and landscaping maintenance. It also pays for those things that make our community a great place to live: senior services, youth activities, parks, and arts and community events.
What are the projected sales tax revenues?
The City’s Finance Department projects sales tax revenue for fiscal year 2008-09 is $16 million. That is 30% of the City of Fairfield’s general fund budget. This is derived from approximately $1.6 billion in gross taxable sales.
What are some examples of programs that benefit from sales tax?
A partial list of programs includes the new Matt Garcia Youth Center, The Place To Be After 3, the Senior Center programs, adult and youth sports programs, the Creative Arts Awards Program, and Allan Witt Park and Aquatics Center.
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In addition, the City contributes funds and services for great community events like the Independence Day Parade, Farmers Markets, Tomato Festival, Candy Festival, Veterans Day Parade and Holiday Night of Lights.
Who decides how sales tax revenue is spent?
The Fairfield City Council sets its priorities every year and approves the budget to meet its goals. This year’s priorities are fiscal stability, economic development, youth and crime.
What are the largest sales tax generators in Fairfield?
Your purchases in Fairfield businesses, for your family or your own business, generates the activity that is so critical to a healthy Fairfield economy. Below are the business categories that make-up the major share of sales tax to our general fund, in order of magnitude:
- General retail, including department stores
- Transportation related, including auto and gas sales
- Business to business sales
- Construction – wholesale purchases of building supplies
- Food purchased at restaurants
If you have questions/comments or need further assistance please contact us or call (707) 428-7461.
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