San Jose Fights California Tax Department Over Revenue From eBay

Sept. 7, 2023, 8:33 PM UTC

The city of San Jose is locked in a dispute with California’s tax department over about $100 million in sales tax revenue it has received from hometown company eBay Inc. since 2020, a city spokesperson confirmed.

The spokesperson said San Jose is appealing a determination from the California Department of Tax and Fee Administration that some portion of the revenue it’s received through a tax-sharing agreement with the auction and shopping website was improper—an argument similar to an ongoing fight between the tax department and nearby Cupertino over that city’s deal with Apple Inc.

At issue is eBay’s designation of ...

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