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Amazon Tax Change Leads To Windfall for Some California Cities

Oct. 13, 2021, 8:46 AM

The Southern California city of Eastvale is so new its city hall is in a shopping center and its library is in a local high school. One thing it does have: an Amazon Inc. product-fulfillment center.

Thanks to that facility and a tax allocation change the giant online retailer made in 2019, city officials project sales tax revenue will quadruple this year with an injection of $24 million to $30 million. That alone would be enough to cover the city’s entire annual budget.

Eastvale’s gain—and gains among fewer than 20 cities with Amazon fulfillment centers in California—is a loss for ...

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