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Staff warns Beaumont of possible $9.4 million annual sales‑tax hit under proposed ecommerce allocation changes
Summary
City staff briefed council on Cal Cities’ recommendations to split ecommerce sales tax between fulfillment center cities and destination cities, a change that could cut Beaumont’s FY24 sales tax receipts by an estimated $9.4 million; staff recommended a phased consultant engagement to study impacts and revenue options.
City staff on Monday briefed Beaumont City Council on recommended changes to how ecommerce sales tax is allocated in California and potential consequences for the city’s largest revenue source.
The Sales Tax Working Group convened by Cal Cities has proposed that for in‑state ecommerce transactions the Bradley‑Burns 1% local sales tax be split 50/50 between the fulfillment‑center (point of sale) city and the destination (delivery) city, and that a five‑year transition would follow necessary system changes at the California Department of Tax and Fee Administration (CDTFA). Staff described additional proposals to route a…
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