Tax Sharing Agreement Compliance — Assembly Bill (AB) 2854

On September 28, 2024, the California legislature passed AB 2854 and it was signed into law by the governor on the same day. This law requires that each local agency annually report information concerning tax revenue sharing agreements to the California Department of Tax and Fee Administration (CDTFA). Tax revenue sharing agreements include those resulting in the direct or indirect payment, transfer, diversion, or rebate of Bradley-Burns local tax revenues.

Agencies must report on or before April 30th for the preceding fiscal year with the first information reporting due on April 30, 2025. Additionally, agencies are required to publish information about each tax revenue sharing agreement on their website.