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EBay, San Jose Move Toward Sales-Tax Split Ahead of Proposed Ban



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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.

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