Former California Official Can Pursue Case Over Tax Flow Shift

A former California official can proceed with a lawsuit over guidance at the heart of lucrative sales tax-sharing agreements certain cities have with major retailers including Apple and Best Buy, a state court ruled Thursday.

Dean Andal, who was a member of the State Board of Equalization, sued to invalidate the California Department of Tax and Fee Administration’s test for the scheme, which requires a retailer to have a “genuine physical human interaction” in each transaction in a jurisdiction for that locality to receive the local portion of sales tax revenue. The test is one of the factors the state ...