Development: Financial Assistance: Relocation. AB 178 (1999)

Topics: Economic/Small Business | legislation

This law prohibits a city or county from giving financial breaks to big box stores unless the municipality agrees to share its tax revenue with a neighboring town in the same market area. The intention is stop large retailers from pitting one town against another in a contest to see which will give the largest financial incentives to the developer and the retailer. Should two communities find themselves in a bidding contest to lure a big box, they will engage in a process to determine an equitable sharing of the taxes generated by the development.