A new report reveals that Apple is being paid millions of dollars in tax refunds by the city of Cupertino to stay in the area. While the details of Apple’s deal with the city have never been revealed before, it is a common knowledge that cities in several states pay companies to stay in their area. What hasn’t been clear in the past is how much those rebates amount to.
According to a new report by Bloomberg, the California Department of Tax and Fee Administration (CDTFA) under a new state law, has revealed that Apple has received $64.7 million from Cupertino since 2013. It is estimated that Apple received almost $120 million under a previous 1998 deal.
Apple isn’t the only company to receive tax rebates from California cities, as the records in the full disclosure list several companies getting the kickbacks. Cupertino looks to have made deals with two companie sin its area, one with Apple and one with Insight Consulting Services Inc., a company which appears to no longer exist.
The full filing list 185 deals with companies, with dates ranging from 1997 to 2023. One firm, Edison Materials Suppy, received $73.5 million, although its deal doesn’t really compare to Apple’s as it goes back to 1999.
Since the 1950s California law has required firmsto pay 7.25% sales tax. And then the state gets 1% of that, which it can use to encourage firms to stay in the state.
