Ban on California City Tax-Sharing Deals with Retailers Advances

April 17, 2024, 8:06 PM UTC

A bill to ban California cities from cutting deals with retailers that send local tax from online sales to them in exchange for giving some of the world’s largest retailers a share passed its first committee vote on Wednesday.

The bill (S.B. 1494) from Sen. Steve Glazer (D) passed the state Senate Local Government Committee 6-1, despite opposition from business and local government groups, including the California Taxpayers Association, California Chamber of Commerce, California Retailers Association, and League of California Cities. It will be heard next in the Senate Revenue and Taxation Committee, which Glazer chairs.

The bill targets ...

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