CaliforniaBradley-Burns Uniform Local Sales and Use Tax Law: tax sharing agreements.
What it does
Existing law prohibits a local agency from entering into any form of agreement that would result, directly or indirectly, in the payment, transfer, diversion, or rebate of any tax revenue resulting from the imposition of a sales and use tax under the Bradley-Burns Uniform Local Sales and Use Tax Law to any person for any purpose when the agreement results in a reduction in the amount of revenue under the Bradley-Burns Uniform Local Sales and Use Tax Law that, in the absence of the agreement, would be received by another local agency and the retailer continues to maintain a physical presence within the territorial jurisdiction of that other local agency. Existing law also requires a local agency entering into an agreement that results in a reduction of the amount of revenue under the Bradley-Burns Uniform Local Sales and Use Tax Law that, in the absence of the agreement, would be received by another local agency to take certain actions with respect to that agreement, including posting the proposed agreement on its internet website for at least 30 days prior to ratification or approval of that agreement by its governing body.
More detail
This bill would prohibit a person from paying compensation to a consultant with respect to a specific tax sharing agreement, as defined, that exceeds the lower of 5% of the total tax revenues shared pursuant to the tax sharing agreement and $250,000. The bill would define a tax sharing agreement for this purpose to mean any agreement that would result, directly or indirectly, in the payment, transfer, diversion, or rebate of any tax revenue resulting from the imposition of a sales and use tax under the Bradley-Burns Uniform Local Sales and Use Tax Law to any person for any purpose. The bill would exclude from these provisions agreements between a local agency and a member of the agency's staff directly employed by the jurisdiction or technical consultants providing noncompensated advisory services. The bill would apply these provisions only to agreements entered into on and after January 1, 2027.
The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.
Where do you stand?
Choose your position
Tell your reps
Take a position to see your representatives and ways to contact them.
Where it stands
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 30Chaptered by Secretary of State. Chapter 1013, Statutes of 2026.Latest
- Sep 30Approved by the Governor Gavin Newsom.Became Law
- Aug 28Enrolled and presented to the Governor at 4 p.m.To Governor
- Aug 24Assembly amendments concurred in. (Ayes 40. Noes 0. Page 5680.) Ordered to engrossing and enrolling.Major
- Vote recorded Unfinished Business SB1172 Hurtado Concurrence. Result: pass.Upper
- Aug 13In Senate. Concurrence in Assembly amendments pending.
- Vote recorded SB 1172 Hurtado Senate Third Reading By Stefani. Result: pass.Lower
- Aug 13Read third time. Passed. (Ayes 71. Noes 0. Page 6147.) Ordered to the Senate.Passed Assembly
- Jul 2Read second time. Ordered to third reading.Minor
- Jul 1Read second time and amended. Ordered to second reading.Major
- Jun 30From committee: Do pass as amended. (Ayes 7. Noes 0.) (June 29).Major
- Jun 29
- Vote recorded Do pass as amended. Result: pass.Lower
- Jun 18From committee: Do pass and re-refer to Com. on REV. & TAX. (Ayes 10. Noes 0.) (June 17). Re-referred to Com. on REV. & TAX.Minor
- Jun 17
- Vote recorded Do pass and be re-referred to the Committee on [Revenue and Taxation]. Result: pass.Lower
- Jun 1Referred to Coms. on L. GOV. and REV. & TAX.Minor
- May 20In Assembly. Read first time. Held at Desk.Minor
- May 19Read third time. Passed. (Ayes 36. Noes 0. Page 4336.) Ordered to the Assembly.Passed Senate
- Vote recorded 3rd Reading. Result: pass.Upper
- Apr 28Read second time. Ordered to third reading.Minor
- Apr 27Ordered to second reading.Minor
- Apr 27Withdrawn from committee.Major
- Apr 23Read second time and amended. Re-referred to Com. on APPR.Major
- Apr 22From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 4. Noes 0. Page 4015.) (April 22).Major
- Vote recorded Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]. Result: pass.Upper
- Apr 16From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.Major
- Apr 16Set for hearing April 22.
- Apr 15From committee: Do pass and re-refer to Com. on REV. & TAX. (Ayes 6. Noes 0. Page 3904.) (April 15). Re-referred to Com. on REV. & TAX.Minor
- Vote recorded Do pass, but first be re-referred to the Committee on [Revenue and Taxation]. Result: pass.Upper
- Apr 9Set for hearing April 15.
- Apr 8Re-referred to Coms. on L. GOV. and REV. & TAX.Minor
- Mar 23From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.Major
- Feb 26Referred to Com. on RLS.Minor
- Feb 19From printer. May be acted upon on or after March 21.
- Feb 18Introduced. Read first time. To Com. on RLS. for assignment. To print.Introduced