Tax Sharing Agreement

The Bradley-Burns Uniform Local Sales and Use Tax Law enables counties and cities to impose local sales and use taxes, establishing a framework for local taxation affecting retail sales. Under this law, all retail sales are considered consummated at the retailer's place of business unless specified otherwise.

As of January 1, 2016, local agencies cannot enter agreements that would reduce Bradley-Burns local tax revenues for another agency, ensuring fair distribution of tax revenues. Per Assembly Bill 2854 (Irwin), local agencies are required to post any agreements that reduce Bradley-Burns local tax revenues on their websites, enhancing transparency and accountability.

Beginning January 1, 2025, Revenue and Taxation Code section 7213 requires each California city and county (local agency) to report annually on all sales and use tax revenue sharing agreements from the previous fiscal year. Local agencies must report all agreements involving the direct or indirect payment, transfer, diversion, or rebate of Bradley-Burns Uniform Local Sales and Use Tax revenue. 

The City currently maintains one agreement as part of its Economic Development Incentive Program. This program is a valuable business retention and attraction tool which captivates new business, creates jobs, and enhances sales tax revenue for the City. 

Home Depot U.S.A., Inc.

  • Agreement date: March 22, 2023
  • Effective date: Upon date executed by appropriate parties on April 12, 2023
  • Agreement termination date: 10-year term after effective date with two 5-year options to renew

Agreement terms: The agreement is based on one hundred million ($100,000,000) annual revenue generated through Sales or Use by owner within the City of Irwindale. The sales tax sharing percentage for the 10-year term is 35%, and upon exercise of the first 5-year option, the sales tax sharing percentage shall increase to 40%, and upon exercise of the second 5-year option, the sales tax sharing percentage shall increase to 45%.

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

  • Since Inception through FY 2023-2024: $0.00
  • FY 2024-2025: $0.00