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Beaumont to study potential loss from proposed ecommerce sales-tax changes; council backs consultant and letter to Cal Cities
Summary
Council endorsed a first-phase consultant engagement for revenue strategy planning after staff reported League of California Cities recommendations could shift e-commerce sales tax away from cities with fulfillment centers and cost Beaumont millions. Council also asked staff to draft a letter to Cal Cities and copy other "Amazon" cities.
Beaumont city council on March 18 directed staff to begin a phased study and public outreach effort to assess the fiscal impact of proposed changes to how California allocates sales tax from e-commerce and to push back through a coordinated letter to Cal Cities and other affected cities.
Staff reported the League of California Cities— (Cal Cities) working group has proposed shifting portions of local sales tax collected at fulfillment centers toward the destination city where goods are delivered. Under the scenario presented, the proposal would split certain local sales-tax allocations 50/50 between fulfillment center and delivery city, and would cap future…
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