Apple’s Local Tax Arrangement With Hometown Comes Under Fire
- After audit, Cupertino expects its local tax revenue to plunge
- As part of old deal, city got a cut of tax from online sales
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A tax agreement between Apple Inc. and its hometown of Cupertino, California, has come under scrutiny from state regulators, potentially slashing the amount of money that the company sends to the city.
The California Department of Tax and Fee Administration launched an audit of the arrangement in 2021, and Cupertino’s finance director is scheduled to explain the findings to the city council on Thursday. The upshot for Cupertino is that local tax revenues are expected to fall 73% this year.