Cupertino, California, has resolved a contentious sales tax dispute with Apple, agreeing to pay the company $12.1 million. The settlement, finalized in March 2025 and approved by the City Council, stems from a 1998 agreement where Apple allocated all California online sales to Cupertino, allowing the city to collect a 1% share of the state’s 7.25% sales tax. In return, Cupertino rebated about a third of this revenue to Apple, a deal that fueled city services but drew scrutiny as Apple’s digital sales soared. A 2023 audit by the California Department of Tax and Fee Administration (CDTFA) ruled that sales tax should be distributed based on purchase delivery locations, not Apple’s headquarters. Initially, Cupertino faced repaying $56.5 million, prompting budget…