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Article: Sales tax law blocks development incentives: Corporate Express is not a 'big box,' La Mirada argues.(Legal digest)
- Article from:
- California Planning & Development Report
- Article date:
- February 1, 2005
- Author:
CopyrightCOPYRIGHT 2005 California Planning & Development Report. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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A state appellate court has ruled that financial incentives the City of La Mirada provided to Corporate Express violated a state law intended to prevent cities from poaching sales tax-generating businesses from neighboring jurisdictions.
The court ruled that La Mirada's incentives ran afoul of a 1999 law (AB 178) that prohibited one local government from offering financial incentives to attract a big box store or automobile dealership that was located nearby unless the local government offering the incentives reached a revenue-sharing agreement with the jurisdiction that would lose the business. The Legislature strengthened the law in 2003 (SB 114) to prevent any ...