Cupertino this week greenlit a $12.1 million payment to Apple to pay back sales tax revenue the city had collected from the tech giant in the last two years.
The City Council approved the item without discussion during their Tuesday meeting. City documents show the transaction occurred on March 6. The amount is an accumulation of how much the city received in sales tax from Apple between January 2023 and June 2024.
The city did not respond for a request to comment from this news organization.
The money was pulled from the city’s general fund, an account that supports most of the city’s activities and is funded through taxes.
Since 1998, Apple has treated all online purchases of products within California as if they were made in the city. The deal allowed Cupertino to collect 1% of Apple’s 7.25% sales tax, and a third of the revenue was returned to the company.
But in 2023, the California Department of Tax and Fee Administration (CDTFA) audited the city and determined the state should receive that revenue instead and the city needed to pay back any previously collected sales tax dollars.
Cupertino had prepared to set aside $56.6 million from its budget to pay back the amount, leading to monetary reductions in staff, community services and city projects.
A settlement reached last year with the CDTFA allowed Cupertino to keep the roughly $74.5 million in Apple sales tax revenue it had collected.
Related Posts:
- Pets at Home confirm sales ban on much loved animal for touching reason News The ban has been temporarily introduced by Pets at Home to prevent (Picture: REX/Shutterstock) Pets at Home has announced that it will temporarily halt the sale of a popular animal. The pet store has banned the sale and adoption of rabbits over the Easter weekend to prevent people from buying…
- Retail sales rise 1.4% in March as shoppers stock up on big ticket items ahead of tariffs News By ANNE D’INNOCENZIO, Associated Press Retail Writer NEW YORK (AP) — U.S. shoppers increased their shopping last month, fueled by a spending spree on big ticket items from gadgets to cars before President Donald Trump’s expansive new tariffs started kicking in. Retail sales rose 1.4% in March, after rising 0.2%…
- Southern California home sales flat amid economic uncertainty News Tariffs, a fluctuating stock market and the Los Angeles County firestorms are rippling through the Southern California housing market, where local agents are seeing sales flatten and bidding wars becoming scarce. The inventory of homes for sale is up as home shoppers become more hesitant, agents say. “Some people worry…
- Apple Vision Pro: The Best Immersive Headset Videos To Watch Right Now News The Apple Vision Pro is still looking to captivate users. When the buzzed-about mixed reality headset first arrived in February 2024, there was very little content available that specifically leveraged the AVP’s excellent, high-res display. Now, a bit over a year later, Apple’s content creation team has enlisted some big…
- Twisty Apple TV+ thriller branded the ‘new Breaking Bad’ as it tops charts Entertainment A gripping new thriller has done the impossible and dethroned Severance in the Apple TV+ charts, days after premiering. Your Friends and Neighbors launched on the streaming service last week, following Jon Hamm as hedge fund manager Andrew ‘Coop’ Cooper as he resorts to stealing from his wealthy friends in…
(Visited 2 times, 1 visits today)