California Tax-Sharing Deals Like Apple’s To Need New Disclosure

California Gov. Gavin Newsom (D) will allow cities to continue crafting deals that give a portion of their sales-tax revenue to companies like Apple Inc., and eBay Inc., with more robust disclosures.

Newsom signed A.B. 485 by Assemblyman Jose Medina (D), targeting a practice in which some cities redirect a portion of local sales taxes they collect from consumers on e-commerce purchases to major companies that have distribution centers or headquarters in their boundaries. The governor, though, vetoed another bill that would have gone farther and banned new agreements.

Under the new law, the deals must describe the number of ...