Back to Top

Sales & Tax Sharing

A sales tax sharing agreement, also known as a rebate sharing agreement, is an arrangement made by a local government (municipality or county) to share or rebate any portion of retailers' occupation taxes generated by retail sales. This includes agreements with retailers, developers, consultants, or other local governments or taxing jurisdictions. The purpose of these agreements are to benefit both the local government and the business taking part, as well as the people of the community. This is done by incentivizing businesses to reinvest the reimbursed funds back into the local economy through improvements to their own business, for example.