Amazon may look for incentives from San Bernardino regarding a new, 950,000 square foot facility it plans to open in Southern California. The company opened the door to a system of shared tax revenues.
The concept is not yet in formal negotiations, however the topic was broached at a recent meeting between officials.
According to recent reports, San Bernardino is working on a plan that would allow the retailer to keep as much as 80 percent of the tax revenue it generates. Amazon would designate the city as its point of sale for all transactions, potentially delivering vast sums of money to the city coffers.
The tax-sharing deal was not a requirement of opening the new distribution center.
From the San Bernardino Sun:
City officials are not yet formally negotiating a sales-tax agreement with Amazon as the Internet retailer prepares to open a distribution center here, but the company has broached the subject of tax concessions.
“We had one meeting, several months ago. This was mentioned, and it’s never been mentioned again,” said mayoral chief of staff Jim Morris, son of Mayor Pat Morris.
An Amazon spokesman, however, left the door open for the firm to seek a tax-sharing deal.
Read the full article here.