California Triple Flip Sunset
- Sales Tax News
- Nov 25, 2015 | Gail Cole
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.
Simplify sales tax compliance in California with automated sales tax software (SaaS). See how it works.