AB 2854 Reports

Compliance Report for AB 2854

AB 2854 (Irwin) requires cities 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. 

Sales Tax Sharing Agreement Rebates


MOHI Hotel Management, LLC Sales Tax Sharing Agreement

  • Agreement date: September 9, 2024
  • Effective date: Upon issuance of occupancy permit for the hotel or on June 30, 2026, whichever comes first
  • Agreement termination date: 15-year term after effective date

Agreement terms: The agreement is based on a $282,000 baseline during the first year of operation with a 3% increase in the baseline every year after. An amount equal to 100% of the sales tax revenue generated above the baseline will be provided to MOHI Hotel Management, LLC, each year until the project receives $6M. If $6M is provided to the party before 15 years, the sales tax sharing percentage for the remaining years will be an amount equal to 50% of the sales tax generated above the baseline, until the agreement termination date.

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

  • FY 2024/2025: $0.00

TSC Motors, Inc. Sales Tax Sharing Agreement

  • Agreement date: February 8, 2021
  • Effective Date: February 8, 2021
  • Agreement termination date: February 8, 2041

Agreement Terms: The agreement is based on a $75,000 baseline for the first and second years, a $105,000 baseline for the third and fourth years, and a $200,000 baseline for the fifth year and thereafter. An amount equal to 50% of the sales tax revenue generated above the baseline will be provided to TSC Motors, Inc. each year until the project receives $1.3M or until the agreement termination date, whichever comes first.

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

  • Since Inception through FY 2023/2024: $423,475
  • FY 2023/2024: $159,378

The Ford Store Morgan Hill Sales Tax Sharing Agreement

  • Agreement date: September 6, 2013
  • Effective date: March 23, 2015
  • Agreement termination date: March 23, 2025

Agreement terms: The agreement is based on a $780,000 baseline, with a maximum annual sales tax rebate to The Ford Store Morgan Hill not to exceed $75,000. An amount equal to 50% of the sales tax revenue generated above the baseline will be provided to the party each year until they receive $750,000 or until the agreement termination date, whichever comes first.

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

  • Since Inception through FY 2023/2024: $675,000
  • FY 2023/2024: $75,000

Victory Honda Sales Tax Sharing Agreement

  • Agreement date: July 22, 2014
  • Effective date: February 4, 2016
  • Agreement termination date: February 4, 2026

Agreement terms: The agreement is based on a $440,000 baseline. An amount equal to 50% of the sales tax revenue generated above the baseline will be provided to the party each year until they receive $450,000 or until the agreement termination date, whichever comes first.

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

  • Since Inception through FY 2023/2024: $48,362
  • FY 2023/2024: $0.00