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

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 ...