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California Triple Flip Sunset

 The California triple flip?

It sounds like an gymnastics event, but the California Local and State Triple Flip is in fact a tax swap. And it expires December 31, 2015.

The Triple Flip

The Triple Flip, approved by voters in March 2004 and effective July 2004, allowed the state of California to purchase bonds to reduce the budget deficit. A 0.25% state sales and use tax was imposed at that time to repay the bonds, and the Bradley-Burns local tax rate was reduced by the same percentage to maintain the same overall sales tax rate. Additional information.

With the payoff of the bonds now complete, the “fourth quarter 2015 allocation period is the last the ‘triple flip’ quarter percent reduction from the one percent Bradley-Burns local tax.” As a result, beginning June 2016, monthly and quarterly statements will reflect the following changes:

  • The deduction of the 0.25% state tax will no longer appear
  • The quarterly statements will continue to show the total due to your jurisdiction at the 1% local sales and use tax rate, less any sharing amounts you have with the county
  • The quarterly statements will no longer reference section 1 of the Revenue and Taxation Code

See the California State Board of Equalization legal notice of the Triple Flip Sunset for additional details and a summary of tax rate structure changes.

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Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.