SB 1172: Bradley-Burns Uniform Local Sales and Use Tax Law: tax sharing agreements.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

Existing law prohibits a local agency from entering into any form of agreement that would result, directly or indirectly, in the payment, transfer, diversion, or rebate of any tax revenue resulting from the imposition of a sales and use tax under the Bradley-Burns Uniform Local Sales and Use Tax Law to any person for any purpose when the agreement results in a reduction in the amount of revenue under the Bradley-Burns Uniform Local Sales and Use Tax Law that, in the absence of the agreement, would be received by another local agency and the retailer continues to maintain a physical presence within the territorial jurisdiction of that other local agency. Existing law also requires a local agency entering into an agreement that results in a reduction of the amount of revenue under the Bradley-Burns Uniform Local Sales and Use Tax Law that, in the absence of the agreement, would be received by another local agency to take certain actions with respect to that agreement, including posting the proposed agreement on its internet website for at least 30 days prior to ratification or approval of that agreement by its governing body.

This bill would prohibit a person from paying compensation to a consultant with respect to a specific tax sharing agreement, as defined, that exceeds the lower of 5% of the total tax revenues shared pursuant to the tax sharing agreement and $250,000. The bill would define a tax sharing agreement for this purpose to mean any agreement that would result, directly or indirectly, in the payment, transfer, diversion, or rebate of any tax revenue resulting from the imposition of a sales and use tax under the Bradley-Burns Uniform Local Sales and Use Tax Law to any person for any purpose. The bill would exclude from these provisions agreements between a local agency and a member of the agency’s staff directly employed by the jurisdiction or technical consultants providing noncompensated advisory services. The bill would apply these provisions only to agreements entered into on and after January 1, 2027.

The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.

Sponsors

Sponsors by party (alphabetical): Democratic 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. September 30, 2026Chaptered by Secretary of State. Chapter 1013, Statutes of 2026.
2. September 30, 2026Approved by the Governor.
3. August 28, 2026Enrolled and presented to the Governor at 4 p.m.
4. August 24, 2026Assembly amendments concurred in. (Ayes 40. Noes 0.) Ordered to engrossing and enrolling.
5. August 13, 2026In Senate. Concurrence in Assembly amendments pending.
6. August 13, 2026Read third time. Passed. (Ayes 71. Noes 0. Page 6147.) Ordered to the Senate.
7. July 2, 2026Read second time. Ordered to third reading.
8. July 1, 2026Read second time and amended. Ordered to second reading.
9. June 30, 2026From committee: Do pass as amended. (Ayes 7. Noes 0.) (June 29).
10. June 18, 2026From committee: Do pass and re-refer to Com. on REV. & TAX. (Ayes 10. Noes 0.) (June 17). Re-referred to Com. on REV. & TAX.
11. June 1, 2026Referred to Coms. on L. GOV. and REV. & TAX.
12. May 20, 2026In Assembly. Read first time. Held at Desk.