Apple Agrees To Pay More Taxes To Cupertino; Awaits Final Approval For New Campus
- Staff
- November 19, 2013
Apple Agrees To Pay More Taxes To Cupertino; Awaits Final Approval For New Campus
You don’t hear this very often. However, the Los Angeles Times is reporting that Apple has agreed to pay more taxes to get their new campus approved.
A new agreement will see the Cupertino-based electronic giant receive only 35% refund of sales taxes instead of the 50% rebate they have been receiving from the city over the years.
“This item was one of many negotiated between Apple and the city of Cupertino as part of the development agreement,” said Cupertino Mayor Orrin Mahoney in an email to the Los Angeles Times. “The Apple 2 campus is expected to have long-term impacts on the city with respect to traffic and other issues and Apple agreed to a financial offset for some of those impacts.”
“Cupertino had originally agreed to a tax rebate for Apple back in 1997, when the company was teetering on the brink of bankruptcy,” Chris O’Brien writes for LA Times. “In exchange for the rebate, Apple agreed to assign more of its sales to Cupertino. The city renewed the deal twice since then. The latest deal was set to expire in 2014, but Apple had made it clear that it wanted to renew the agreement as part of a deal for the new campus.”
“The city council gave its formal approval to the project last month. However, a second technical vote is scheduled for Tuesday night to make that decision official. The vote is considered a formality, and approval is widely expected,” the report said.
Good to see Apple paying its due.
