Walmart’s California Sales Tax Deal Is Successful But Vulnerable

Walmart.com’s agreement to share sales tax revenue from customers in California with the city of San Bruno is generating more than twice as much money as expected, netting the country’s top retailer $15.5 million in less than three years.

But a state tax department review of the agreement could cut the flow of money to both the city and the company.

Walmart.com’s windfall is a subset ...