What is AB 2854?
AB 2854 requires cities with sales tax sharing agreements that result in direct or indirect payment, transfer, diversion, or rebate of a Bradley-Burns Local Sales and Use Tax revenues to provide specified information to the California Department of Tax and Fee Administration (CDTFA) annually by April 30. Additionally, it also requires local agencies to publish this information on their website.
Why Does AB 2854 Matter?
AB 2854 aims to ensure public accountability and accessibility of information about these agreements. Sales tax sharing agreements are often used by local agencies to incentivize businesses to establish or maintain operations in their jurisdictions. While these agreements can promote economic development, they also raise concerns about fairness, transparency, and the equitable distribution of tax revenues.
Tax Revenue Sharing Agreement Reporting Form.pdf