Utah Aims to Entice eBay

State offers auction site $1.7 million in tax incentives.

by Auctiva.com staff writer
- May 18, 2009

Utah officials are using tax incentives to convince eBay to expand its Draper facility and create up to 200 jobs in the area.

The Governor's Office of Economic Development offered the tax incentives to both eBay and Verisys Corp., another technology company, on Thursday. eBay would get $1.7 million in incentives over the next 10 years, while Verisys would receive $835,000. Neither company has accepted the offer, but eBay officials welcomed the news.

eBay was also offered incentives worth $27.3 million to build a facility in South Jordan, a city 18 miles south of Salt Lake City.

"We've always found Utah to be a very business-friendly environment," John Donahoe tells The Salt Lake Tribune. "We're pleased by the action… and we'll be making the decision shortly."

To qualify for the tax break, eBay would have to pay its employees more than 25 percent above the average in Salt Lake County, or about $52,000. Altogether, the company would pay $70 million in wages and generate $6.8 million in tax revenue.

eBay officials had mentioned increasing the number of employees in Utah when the company announced the closure of its Vancouver, Canada, office earlier this month. The closure, which is expected to happen by the end of September, will make Utah the headquarters of eBay's customer service operations in North America.

Currently, the Draper facility employs 1,100 people. Donahoe notes the facility has had a low turnover rate.

About the Author

Auctiva staff writers constantly monitor trends and best practices of those selling on eBay and elsewhere online. They attend relevant training seminars and trade shows and regularly discuss the market with PowerSellers and other market experts.

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