California – California Sales Tax Kickback Schemes Should be Banned (editorial)

San Jose’s deal with eBay is an attempt to protect the city’s revenue spoils, money the city had not anticipated receiving when it put together its current fiscal-year budget. Under a new state law, companies like eBay must start collecting sales tax.

(TNS) – Starting today, the city of San Jose will begin collecting a windfall of unanticipated sales tax revenues from eBay.

But, as part of a deal struck last month to cut other California cities out of the sales tax action, San Jose will kick back part of the revenues to the online marketplace company.

The deal is legally questionable under California’s arcane sales tax laws because it’s not clear that eBay’s offices in San Jose are the legitimate point of sale. A bill by state Sen. Steve Glazer, D-Orinda, that’s currently sitting on Gov. Gavin Newsom’s desk would explicitly block such kickbacks in the future.

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by the mercury news
october 2, 2019