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California state sales tax returns to 7.25%. Despite the estimated 4.5 billion dollars that could be lost from the tax cut, experts believe it will invigorate spending. Reuters

Starting Friday, California will lower the state's sales tax by one percent. This comes as the fiscal year begins and the one percent increase in sales tax, which voters approved in 2009, expires.

State sales tax returns to 7.25%. Despite the estimated 4.5 billion dollars that could be lost from the tax cut, experts believe it will invigorate spending.

Additionally, Los Angeles county will drop its sales tax from 9.75% to 8.75%.

Other good news for Californians is the drop in the annual vehicle license charge, which fell by 43 percent.

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