As part of the Triple Flip unwind process for 2015/16, advances from the Sales and Use Tax Compensation Fund were based on one quarter of takeaway (April-June 2015). The State Department of Finance estimated the total revenue loss from the 0.25 percent rate reduction in local sales and use tax at $418,612,000.
For each agency, the resulting amounts were adjusted for under or overpayments in the preceding year and the administrative cost that would have been levied on a 0.25 percent tax rate reduction. With these adjustments, the state has established the total for 2015/16 Triple Flip reimbursements to all jurisdictions in California at $447,467,828.
TRIPLE FLIP FINAL PAYMENTS
On June 24, 2016 the Department of Finance directed the State Controller to transfer from the Fiscal Recovery Fund to the Sales and Use Tax Compensation Fund of each county an amount equal to sales tax lost due to the reduced sales tax rate from July 1, 2015 to December 31, 2015, as well as a true-up for the April-June 2015 quarter.
These funds will be transferred to counties on July 7, 2016, and per Revenue & Taxation Code section 97.68(d)(5), the counties must remit the funds to each city within 60 days (approximately September 5, 2016).
This is the final reimbursement for lost sales tax revenue due to the 0.25-percent reduced rate in effect from July 1, 2004 to December 31, 2015.
Separate documents are available to each county showing the exact amounts that the county auditors have been directed to reimburse local governments in 2015/16.
Please click on the agency below to access that report.
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