EBay, San Jose Move Toward Sales-Tax Split Ahead of Proposed Ban
Share
[aggregation-styles]
Bloomberg Tax
Bloomberg Tax
EBay Inc. and its hometown, San Jose, Calif., are negotiating an agreement to split millions of dollars in local tax revenue from sales on the online marketplace, even as California’s governor weighs a bill to ban such pacts starting Jan. 1.
The City Council approved Sept. 24 allowing the city manager to negotiate and execute a 15-year agreement with eBay that would net the city between $5 million and $29.5 million a year. eBay would get 30% of what’s collected above $5 million, which could add up to $150 million over 15 years.
“The proposed length of the Agreement, 15 years, aligns eBay’s and the City’s interests long-term, locking in the agreement amid the potential for regulatory or operational changes that could reduce the ability to collect these sales taxes in the future,” according to a memorandum prepared for the council.
The City Council approved Sept. 24 allowing the city manager to negotiate and execute a 15-year agreement with eBay that would net the city between $5 million and $29.5 million a year. eBay would get 30% of what’s collected above $5 million, which could add up to $150 million over 15 years.
“The proposed length of the Agreement, 15 years, aligns eBay’s and the City’s interests long-term, locking in the agreement amid the potential for regulatory or operational changes that could reduce the ability to collect these sales taxes in the future,” according to a memorandum prepared for the council.
By Laura Mahoney and Joyce E. Cutler | 24 Sept 2019
RELATED TOPICS:
Former Bulldog QB Jake Haener: I Have a ‘Rare Form of Skin Cancer’
Sports /
7 hours ago
The Many Names of GOP Vice Presidential Nominee JD Vance
Latest /
8 hours ago
Companies Cut Prices to Boost Sales, Consumers Respond
Business /
8 hours ago
Warner Bros. Discovery Sues NBA for Not Accepting Its Matching Offer
Sports /
9 hours ago
Will Bonta Election Lawsuit Reverse the Will of Fresno County Voters?
Politics /
9 hours ago
Latest
Videos
![](https://gvwire.s3.us-west-1.amazonaws.com/wp-content/uploads/2024/07/26170645/Gage-Mason-20-was-sentenced-to-29-years-in-state-prison-for-sexually-assaulting-multiple-children-and-a-dog-and-will-also-be-required-to-register-as-a-sex-offender-1024x538.jpg)
Crime /
6 hours ago
Fresno Man Sentenced to 29 Years for Sexually Assaulting Children and Dog
![](https://gvwire.s3.us-west-1.amazonaws.com/wp-content/uploads/2024/07/26161707/Tommy-Hopfe-with-the-Colorado-Rockies_1280X720-1024x576.jpg)
Sports /
6 hours ago
Bulldogs’ Two-Position Standout Tommy Hopfe Signs With Rockies
![](https://gvwire.s3.us-west-1.amazonaws.com/wp-content/uploads/2024/07/26145457/image-2024-07-26T145350.189-1024x576.jpeg)
Sports /
7 hours ago
Former Bulldog QB Jake Haener: I Have a ‘Rare Form of Skin Cancer’
![](https://gvwire.s3.us-west-1.amazonaws.com/wp-content/uploads/2024/07/26154603/Republican-vice-presidential-candidate-Sen.-JD-Vance-R-Ohio-speaks-at-a-campaign-rally-July-22-2024-in-Radford-Va.-Vance-introduced-himself-to-the-world-in-2016-when-he-published-his-bestse-1024x538.jpg)
Latest /
8 hours ago