Apple’s home city of Cupertino has been granted a win in a dispute with California over its tax dealings with the iPhone maker, but it’s only for the short term.
Apple Park in Cupertino (Source: Apple)
Apple Park in Cupertino (Source: Apple)
In 2023, California state argued that Cupertino was profiting unfairly from how Apple paid tax there. Specifically, any sale of any kind in California was attributed to Cupertino, entirely leaving out other counties and jurisdictions.
As well as the clear benefit to Cupertino of getting the value of state-wide taxation, there was an advantage to Apple. Apple would pay 7.25% state sales tax, of which 1% would go to Cupertino — and then Cupertino would pass over a third of that income right back to Apple.