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.

Government Code Section 53083

California Government Code Section 53083(a)(6)(b), established by Assembly Bill 562 (2013), mandates that local agencies provide public notice and hold a public hearing before approving an economic development subsidy of $100,000 or more. The law requires specific information to be disclosed in a report before the approval of such subsidies, detailing the recipient, the purpose and nature of the subsidy, the projected tax revenue, and the estimated number of jobs created (including full-time, part-time, and temporary positions). The information from the report must also be posted on the local agency’s website for the entire duration of the subsidy. 

Economic Development Subsidy – Sales Tax Sharing Agreement Public Hearings

Notice Of Public Hearing-Inland Kenworth, Inc Sales Tax Sharing Agreement

Pursuant to California Government Code Section 53083(a)(6)(b) of the California Government Code (AB562), the San Bernardino County Board of Supervisors will hold a public hearing:

Date: October 21, 2025

Location: County Government Center, Covington Chambers, 385 N. Arrowhead Avenue, San Bernardino, CA 92415.

The purpose of the public hearing is to receive comments on the proposed agreement with Inland Kenworth (US) Inc. The information is as follows:

Economic Development Subsidy Details

(1) The name and address of all corporations or any other business entities, except for sole proprietorships, that are the beneficiary of the economic development subsidy, if applicable.

The beneficiary is Inland Kenworth (US) Inc., located at 9730 Cherry Avenue, in the unincorporated area of Fontana, California.

(2) The start and end dates and schedule, if applicable, for the economic development subsidy.

The Location and Sharing Agreement will become effective when approved by the County’s  Board of Supervisors. The  sharing obligations will begin with the first full fiscal year following the County’s  verification of the facility’s expansion (Certificate of Occupancy), targeted for 2026. The Agreement will end once a the total of $1.5 million has been paid from the County to Inland Kenworth, Inc.  or after  20 years from when the Certificate of Occupancy issued to Inland Kenworth, Inc.  for its facility expansion, whichever occurs first.

(3) A description of the economic development subsidy, including the estimated total amount of the expenditure of public funds by, or of revenue lost to, the local agency as a result of the economic development subsidy.

This economic development subsidy is a Location and Sharing Agreement as to sales and use tax  between the County and Inland Kenworth, Inc. The County will share a portion of new local sales tax revenue generated by the business’s expansion. The County will share 50% of sales and use tax revenues over $400,000 annually paid by Inland Kenworth, Inc. and received by the County from expanded operations. The Location and Sharing Agreement will end once a total of $1.5 million has been paid from the County to Inland Kenworth, Inc.  or after  20 years from when the Certificate of Occupancy is issued to Inland Kenworth, Inc.  for its facility expansion, whichever occurs first.

(4) A statement of the public purposes for the economic development subsidy.

The economic development subsidy will help secure Inland Kenworth’s decision to invest in the expansion of its existing facility in San Bernardino County, foster local economic development, and support the creation of well-paying jobs within the community. Without this subsidy, business expansion and its associated benefits would likely be lost, and perhaps to another state.

(5) Projected tax revenue to the local agency as a result of the economic development subsidy.

The economic development subsidy is projected to generate over $20 million in gross  annual sales revenues for the business.  Over the course of the 20 year agreement, the County is projected to receive $2.5 million in new tax revenue.

(6) Estimated number of jobs created by the economic development subsidy, broken down by full-time, part-time, and temporary positions.

Inland Kenworth, Inc’s facility expansion  is expected to create 30 new, permanent full-time jobs with wages ranging from $30–$45 per hour plus benefits, including Service Technicians, Service Advisors, and Parts Warehouse Workers.

Official Public Hearing Notices

Type Name Public Hearing Date
pdf Inland Kenworth, Inc Sales Tax Sharing Agreement October 21, 2025