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Cupertino returns $12.1 million to Apple after long-running sales tax dispute | Settling a sales tax dispute that reshapes how tech giants and cities do business in California.


Cupertino has paid Apple $12.1 million, settling a sales tax dispute that reshapes how tech giants and cities do business in California.

The settlement followed an audit by the California Department of Tax and Fee Administration (CDTFA), which found that the state — not Cupertino — was entitled to the revenue from Apple's online sales. The agency concluded that tax revenue from Apple's online transactions should be distributed across the state based on where purchases were actually made or delivered — not where the company is headquartered. While local governments often offer incentives to keep major employers within city limits, the state is increasing scrutiny over how those arrangements affect broader tax fairness and distribution.

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Cupertino: City pays Apple $12.1 million following sales tax settlement