As the start of development on Apple’s future Spaceship campus draws closer, the company will soon have to begin paying the city of Cupertino more tax dollars.
For a long time, Apple and Cupertino have had a deal where the city would pay back 50% of all profit it earned from Apple-related purchases to the company in the form of tax rebates. Now, as development on Campus 2 gets under way, that number will be dropping to 35%.
As you can see it’s not that the city of Cupertino is asking Apple to pay extra taxes, rather it’s just taking away some of the tax breaks that it has given company up until this point. The reasoning behind the new agreement is to help make up for the traffic and construction problems that will be created with development of the new headquarters.
Apple reportedly received a tax break of roughly $6.2 million last year after having generated $12.7 million for the city off of sales.
Seeing as how Apple’s new campus is expected to cost roughly $5 billion to create, I don’t think the company should have too much of a problem paying a few million more in taxes each year.
