Tax-Break Hub Gives $28 Million in Program Lawmakers Want Ended

The city of Ontario, Calif., has paid more than $28 million out of its sales-tax collections to selected companies and their consultants since 2013 while telling local property owners it needs to raise their taxes to finance city services.

The payments to companies including Staples Inc., Cardinal Health Inc. and QVC Inc. were made under an incentive program that would be banned for future use under state legislation awaiting Gov. Gavin Newsom’s signature.

Ontario has been among the most active cities in California embracing the incentive program, funneling more than $1 million a year to a handful of companies that ...