Cupertino Plans Budget Town Hall to Remedy Apple Tax Revenue Shortfall 

Photo courtesy of City of Cupertino website.

The City of Cupertino is inviting the community to a Budget Town Hall meeting on May 18 at 6:30 p.m. to discuss the City’s financial outlook and potential budget-balancing strategies. A registration link can be found here.  

The City is also asking residents to take an online survey about which revenue strategies they would like to see the City pursue. The survey is open until May 31 and can be found here. The City will share any initial responses submitted through May 16 during the City Council Special Meeting on the Fiscal Year 2023-24 Proposed Budget Study Session on May 17. 

The news comes after the City’s finance director provided an informational budget forecast last month, including a potential 73 percent reduction in local tax revenue. The City is anticipating the loss of $30.7 million in tax dollars due to the California Department of Tax and Fee Administration’s (CDTFA) audit into an unnamed taxpayer. Several reports suggest the taxpayer in question is Apple, which is headquartered in Cupertino, and the municipality’s largest taxpayer. The report indicated that tax dollars had been “misallocated” to the City, although it is unclear at this time which part of the tax sharing agreement is under investigation.  

Despite the $30.7 million revenue loss, the City insists that its financial position remains strong and has many advantages that will help it “weather the storm.” The City has an unassigned General Fund balance of over $50 million, a fully funded retiree healthcare program, and a Section 115 Pension Trust of over $17 million that can be used to offset the impact of revenue losses.