Assembly Bill 2854 (AB 2854): Sales and Use Tax Law Compliance

Businessman calculates taxes using laptop

AB 2854 (Irwin) requires local agencies, including counties, cities and special districts, with sales tax sharing agreements with any type of retailer — online or brick and mortar — that result in a rebated amount of Bradley-Burns Local Sales and Use Tax to report information the following information to the CDTFA and post to their websites by April 30 of each year:

  • The name of any parties to the agreement.
  • The total dollar amount of rebated sales and use tax revenues received by each party on or after the execution of the agreement through and including June 30 of the fiscal year immediately preceding the date of the report.
  • The total dollar amount of rebated sales and use tax revenues received by each party to the agreement during the fiscal year immediately preceding the date of the report.
  • When the agreement was first executed and when it terminated or will terminate, absent any renewal.
  • The percentage of a retailer’s sales and use taxes, if any, used to calculate or determine the rebated sales and use tax revenues received by each party to the agreement.
  • The percentage of a retailer’s sales and use taxes, if any, used to calculate or determine the rebated sales and use tax revenues received by any other person who is not a party to the agreement. 

SBC County Tax Revenue Sharing Agreements

California Steel Industries, Inc.  

  • Agreement date: August 20, 2013 amended on December 1, 2015
  • Agreement termination date: September 30, 2030

Agreement terms: For all fiscal quarters commencing with the First Fiscal Quarter and throughout the Term of this Agreement, an amount equal to fifty percent (50%) of each dollar of County Sales Tax Revenue paid by Company and applicable Affiliated Company actually received by the County

Amount of rebated sales and use tax revenues received since the agreement date

  • Since inception through FY 2023/2024 – $1,694,163.50
  • FY 2023/2024: $219,577.00

HauteLook, Inc./ Nordstrom Inc.  

  • Agreement date: April 9, 2013
  • Agreement termination date: March 31, 2033.

Agreement terms: For all fiscal quarters commencing with the First Fiscal Quarter and throughout the Term of this Agreement, an amount equal to fifty percent (50%) of each dollar of County Sales Tax Revenue paid by Company and applicable Affiliated Company actually received by the County.

Hautelook Inc. was acquired by Norstrom Inc. in March 2011.

Amount of rebated sales and use tax revenues received since the agreement date

  • Since inception through FY 2023/2024 – $11,362,986.50
  • FY 2023/2024: $1,107,096.00

 

Mohawk Industries, Inc. 

  • Agreement date: September 1, 2015
  • Agreement termination date: August 31, 2025

Agreement terms: For all fiscal quarters commencing with the First Fiscal Quarter and throughout the Term of this Agreement, an amount equal to fifty percent (40%) of each dollar of County Sales Tax Revenue paid by Company and applicable Affiliated Company actually received by the County

Amount of rebated sales and use tax revenues received since the agreement date

  • Since inception through FY 2023/2024 – $1,709,200.86
  • FY 2023/2024: $205,130.00

Ecolab Inc. and Affiliated Companies

  • Agreement date: December 10, 2019
  • Effective date: April 1, 2019
  • Agreement termination date:  April 1, 2029 

Agreement terms: For all fiscal quarters commencing with the First Fiscal Quarter and throughout the Term of this Agreement, an amount equal to fifty percent (50%) of each dollar of County Sales Tax Revenue paid by Company and applicable Affiliated Company actually received by the County

Amount of rebated sales and use tax revenues received since the agreement date

  • Since inception through FY 2023/2024 – $2,041,577.00
  • FY 2023/2024: $247,492.00

Ecolab agreement was terminated on May 1, 2023.