Tax Sharing Agreements

Effective January 1, 2025, Assembly Bill 2854 (AB 2854) requires California local agencies, including cities, towns, counties, and special districts, to increase transparency around local tax revenue sharing agreements. These agreements involve any direct or indirect payment, transfer, diversion, or rebate of Bradley‑Burns local sales tax revenues. The law applies to all jurisdictions, regardless of whether they have such agreements.

Why AB 2854 Matters

This law strengthens public accountability and transparency around how local sales tax dollars are used to incentivize businesses and economic development. It helps ensure that agreements affecting tax revenues are visible, consistent, and publicly accessible, fostering greater trust in local government stewardship.

To increase transparency, this new law requires local governments to:

  • Annually report details of these agreements to the state by April 30 each year.
  • Post that same information online on the agency’s official website, where it is easy for the public to find.
  • Disclose key facts like which businesses are involved, how long the agreements last, and how much sales tax is being shared.

 If a local government does not have any such agreements, it must still notify the state and is not required to post anything online. The CDTFA will compile and post the submitted data on its website by June 1 each year and update the information as new reports are submitted.

For more information on the tax revenue sharing agreement please visit the CA Department of Tax and Fee Administration's website.

The Town of Truckee currently has one (1) Tax Sharing Agreement that is based on Bradley-Burns sales tax and is applicable to the new reporting requirement. The Town also has one (1) Tax Sharing Agreement that is based on Transient Occupancy Tax (TOT) that are not applicable to the new reporting requirement. Both agreements are for audit services of tax receipts. The service provider is contracted to keep a small portion of any recovered taxes as an incentive to discover any missing or mis-reported taxes.

Copies of All Tax Sharing Agreements are linked below, as well as the Town’s submission of the required annual report to the CDTFA

Applicable Agreements

Non-Applicable Agreements

Annual Filings