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Placerville joins cities backing League proposal to split e-commerce sales tax revenues
Summary
Council approved sending a letter supporting League of California Cities' working-group recommendations for an equitable 50/50 split of in-state e-commerce sales tax between shipping (fulfillment) and receiving jurisdictions, with a 5-year phase-in and flexibility. CDTFA modeling indicated Placerville could gain revenue under the proposal.
The Placerville City Council voted Aug. 26 to approve a letter supporting the League of California Cities— City Managers Sales Tax Working Group recommendations on ecommerce sales-tax distribution and authorized the mayor to sign the letter to the League.
City Manager Warren briefed the council on the working group—s multiyear effort to examine how growth in online retail and in-state fulfillment centers has shifted sales-tax flows since the 2010s. The working group recommended a prospective allocation that would split the…
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