Apple’s 22-Year Tax Break Part of Billions in California Bounty (1) - Bloomberg Tax by Laura Mahoney
Two state lawmakers have proposed to restrict or ban the agreements.
California Assemblyman Jose Medina’s bill, A.B. 485, would require local governments to conduct public hearings before approving the agreements. Cities and retailers would have to provide more detailed information about expected tax revenue, jobs, and other state and federal subsidies the companies are getting.
Former Gov. Jerry Brown (D) vetoed a similar bill from Medina in 2018, saying he favored transparency with economic incentives but the measure would be too burdensome. New Gov. Gavin Newsom (D) hasn’t taken a position on this year’s bill.
The California Labor Federation backed last year’s bill and is trying again.
“If our public dollars are going to businesses it should be transparent and the public should have some assurances that their money is creating good jobs that pay enough for workers to makes ends meet,” federation policy coordinator Sara Flocks said.
The California Retailers Association and California Chamber of Commerce opposed the vetoed bill. They also oppose A.B. 485 unless it is amended to drop requirements that companies disclose confidential or proprietary information, according to April 10 testimony from a lobbyist for the retailers and a letter from the chamber.