Bradley-Burns Uniform Local Sales and Use Tax Law: tax sharing agreements

The law limits how much consultants can be paid for arranging or advising on agreements that redirect local Bradley-Burns sales- and use-tax revenue. It applies statewide, including charter cities.

What the law does ​

• Caps a consultant's pay for a specific tax-sharing agreement at the lower of 5% of shared tax revenue or $250,000.
• Bars consultants from receiving agreement proceeds more than three years after the agreement takes effect or the directly benefiting project phase is completed, whichever comes first.
• Covers agreements that directly or indirectly pay, transfer, divert, or rebate Bradley-Burns sales- and use-tax revenue.
• Excludes revenue-recovery contracts for taxes incorrectly allocated to another local agency, directly employed local staff, and unpaid technical advisers.
• Applies to tax-sharing agreements entered on or after January 1, 2027.

Who it affects ​

• Cities, counties, cities and counties, and special districts entering tax-sharing agreements.
• Legal, lobbying, financial, and other consultants facilitating, negotiating, or advising on those agreements.

Context ​

The Legislature declares the rules a statewide concern, making them applicable to charter cities.