Apple Agrees to Pay More Taxes in New Campus 2 Deal with Cupertino

The new campus deal with Cupertino brings additional Apple tax dollars to the city’s budget, as the company agreed to increase the amount of taxes it pays to the city, the Los Angeles Times reports.

Under the current tax rebate agreement between Apple and the city of Cupertino, the city refunds roughly 50% of the sales tax Apple pays each year. Looking back to 2012, Apple’s sales have generated $12.7 million in sales tax for Cupertino. Of that, $6.2 million was refunded by the city.

Under the new agreement, though — which is strongly connected to Apple’s new spaceship-like campus — Cupertino will refund only 35% of the sales tax the company pays. If the new deal had been valid in 2012, Cupertino could have kept an additional $1.8 million.

“This item was one of many negotiated between Apple and the city of Cupertino as part of the development agreement,” said Cupertino Mayor Orrin Mahoney in an email. “The Apple 2 campus is expected to have long-term impacts on the city with respect to traffic and other issues and Apple agreed to a financial offset for some of those impacts.”

Cupertino had agreed to a tax rebate for Apple in 1997. In exchange, Apple agreed to assign more of its sales to Cupertino. Since then, the city renewed the deal twice, and the last deal was set to expire next year.

Apple is one step away from starting work on the Apple 2 campus project: the 2.8-million-square-foot, spaceship-like headquarters which will have 4 floors and an exterior made nearly entirely of curved glass. The Campus 2 will be the home of more than 14,000 employees.