California lawmakers rejected a bill to ban incentive deals like the one that has paid Apple Inc. $70 million in local sales taxes collected by its hometown of Cupertino, Calif. over the past two decades.
S.B. 531 by Sen. Steve Glazer (D) failed with a 35-21 vote on the Assembly floor Aug. 30. It needed a majority of 41 votes to pass and head to the desk of Gov. Gavin Newsom (D).
The bill targets a practice among some cities to redirect a portion of local sales taxes they collect from consumers on e-commerce purchases to major companies that have distribution centers or headquarters in their boundaries. Cities would be allowed to keep existing deals in place, but would be barred from entering into new ones.
Assembly members granted reconsideration to the bill, meaning it could come up for a vote again before lawmakers adjourn for the year on Sept. 13.