Cupertino this week has a Green payment of $ 12.1 million in Apple to reimburse the revenue from the sales tax that the city had collected from the technology giant in the past two years.
The municipal council approved the point without discussion at their meeting on Tuesday. City documents show that the transaction occurred on March 6. The amount is an accumulation of the amount of the city received in Apple sales tax between January 2023 and June 2024.
The city did not respond for a request for comments from this press organization.
The money was taken from the general fund of the city, an account that supports most of the city activities and is funded by taxes.
Since 1998, Apple has treated all online purchases of products in California as if they were made in the city. The agreement enabled Cupertino to collect 1% of the sales tax of 7.25% Apple, and a third of the income was returned to the company.
But in 2023, California Department of Tax and Fee Administration (CDTFA) checked the city and determined that Cupertino had badly concluded the agreement. The CDTFA determined that the State had to receive these income instead and the city should reimburse any number of sales taxes previously collected.
Cupertino had prepared to reserve $ 56.6 million in his budget to reimburse the amount, resulting in monetary staff discounts, community services and city projects.
A settlement reached last year with the CDTFA allowed Cupertino to keep around $ 74.5 million in Apple sales tax revenues it had collected.
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