Special Notice Form California - State Board Of Equalization Page 2
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4Special Notice
State Board of Equalization
June 2004
When will warrants show the adjustment for the “triple flip?”
To avoid an overpayment during the “triple flip,” we will reduce each of your three monthly ad-
vances by an amount equal to the 0.25% portion of the local tax. This change will start with the first
advance issued for Third Quarter 2004 (covering July 1 through September 30). The first advance
will be issued September 24, 2004, in conjunction with the balance payable for the Second Quarter
2004 (this amount will be at the full 1%).
Advances will continue to reflect the method of computation outlined in publication 28, Tax Informa-
tion for City and County Officials. Advances will also include appropriate growth factors, as estab-
lished by the Department of Finance.
Monthly and quarterly statements will have a new look
(See pages 3 and 4 for samples of the new statements.)
Beginning in September 2004, your monthly and quarterly statements will be renamed Statement of
Bradley-Burns Local Tax Distribution.
The quarterly statements will provide details of the total payment made to your jurisdiction, pursuant to
section 7203.1 of the Revenue and Taxation Code.
The quarterly statements will
• Continue to show the total due to your jurisdiction at the 1% local sales and use tax rate
• Show a deduction of 0.25% state tax from the total due (see attached samples, under ‘STATE TAX”)
Statements can be found on the Board's website at and on the deposit advice mailed to
your jurisdiction.
Ordinances and contracts
Local jurisdictions are not required to amend an existing Contract for Administration or to adopt
new ordinances.
Pending legislation
Currently, cities and counties will be reimbursed for lost revenues based on taxable sales in the county in
the prior fiscal year. There is pending legislation that would instead require that cities and counties be
reimbursed for lost revenues based on the 0.25% state tax as shown on the quarterly statements.
For more information
Please contact the Local Revenue Allocation Section at 916-324-3000 and ask to speak to Jim Kendrick,
Sonia Calistro, Karina Aguilar, or Cleveland Turner.
Summary of Tax Rate Changes
Old Tax Rate Structure
New Tax Rate Structure (as of July 1, 2004)
6.00%
State
6.00%
State
0.25%
State
(Fiscal Recovery Fund)
1.25%
Local (City/County)
1.00%
Local (City/County)
1.00% City and County
0.75% City and County
general operation
general operations
0.25% County transportation funds
0.25% County transportation funds *
7.25%
Total statewide base sales and
7.25%
Total statewide base sales
use tax rate
and use tax rate
* There will be no change to the 0.25% designated by statute for county transportation purposes.
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