Cupertino Reserving $56.5 Million to Repay Tax From Apple Sales

Apple Inc.'s hometown of Cupertino is preparing to set aside $56.5 million to repay California sales tax revenue it may have received improperly from in-state sales of iPhones, Macbooks, and other products.

The Cupertino City Council’s plan to tap into reserves to create the repayment fund is the latest step for the city following its announcement in April that state tax officials have determined it is receiving the tax money improperly under a revenue sharing agreement it has with Apple. Council members will consider the plan at a meeting Oct. 10, according to an agenda on the council’s website.