The City of San Jose welcomes your business to our City.
This guideline was developed by the Revenue Management
Division of the City of San Jose to provide the business
community with information regarding the Business Tax.
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WHO IS EXPECTED TO PAY
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All persons or companies conducting business in the City
of San Jose are required to pay the Business Tax.
Included are commercial landlords, residential landlords
(renting 3 or more units), retail outlets, wholesalers,
manufacturers, service companies, self employed professionals,
independent contractors and home businesses. If you
conduct business in San Jose from an office located out
of San Jose, you may be entitled to an apportioned tax rate.
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WHEN AM I EXPECTED TO PAY
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You must register and pay the Business Tax PRIOR to the
commencement of business.
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HOW OFTEN AM I EXPECTED TO PAY?
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The Business Tax must be paid ANNUALLY. Although
the City does not send renewal notices as a courtesy to
the business community, San Jose Municipal Code 4.76.281
states that the City is not required to send notification
to any person who is liable for the tax. It is the
responsibility of the individual business owner to be aware
of their business tax due date and remit payment in a timely
manner. Refer to the Tax Renewal Payment Schedule
at the bottom of this page.
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WHAT ARE THE TAX RATES
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The basic annual tax is $150.00. Most businesses
pay additional tax increments based on the number of employees.
Commercial and residential landlords pay additional
taxes based on total square footage and number of units,
respectively. Refer to the Tax Rate schedule on the
bottom of this page.
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BUSINESS TAX ADMINSTRATIVE
FEE |
In addition to the business tax, a
non-proratable, non-refundable administrative fee, as set
forth in the Schedules of Fees adopted annually by the City
Council, shall be required on all business tax accounts, including
the renewal of those accounts. |
WHAT IF I DON'T PAY?
|
Failure to comply with the Business Tax Ordinance is a
misdemeanor violation. Furthermore, any person who
fails to pay the tax prior to the start of business is liable
for 25% penalty of the total tax due plus interest.
Should the tax remain unpaid for a period exceeding one
calendar month beyond the start date, an additional 25%
penalty plus interest is assessed. The interest rate
is 1.5% a month on the unpaid tax.
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HOW FAR BACK MUST I PAY
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If you have been actively engaged in business without having
paid the Business Tax, you may be liable for prior taxes,
penalties and interest up to three (3) years in addition
to your current tax.
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TAX CERTIFICATES NOT TRANSFERABLE
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Business Tax certificates are not transferable or assignable
to any other person, nor shall any tax paid by any person
be applied to the payment of any tax due from any other
person. When purchasing a business, new owners must
register and pay the Business Tax.
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FINANCIAL HARDSHIP
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A "single person" business whose gross receipts
in the income tax reporting year immediately proceeding
the calendar year in which the Business Tax was paid were
at or below the poverty level (Section 4.76.345) may qualify
for financial hardship. If your business tax payment
was received on time, you may qualify for 100% reduction
of the tax due. If your business tax payment was not
received on time, you may only qualify for a 50% reduction
of the tax due. The "poverty level" shall
be established by the United Sates Bureau of Labor Statistics
and changes annually. Call our office for the current
poverty level.
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AUDIT
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The City may audit your records at any time for up to a
three-year period. Thus, you should maintain adequate records
to support the figures submitted for taxing purposes.
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WHERE DO I REGISTER?
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City Hall, First floor, Customer Service Center
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200 East Santa Clara Street
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San Jose, CA 95113
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For further information, call (408) 535-7055. This
information does not constitute final or complete interpretation
of all legal requirements which may apply to your particular
type of business.
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TAX RATE SCHEDULE
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TYPE OF BUSINESS
|
ANNUAL TAX |
ADDITIONAL TAX INCREMENTS |
NOT TO EXCEED |
Residential Landlords
|
$150.00
up to 30 units |
$5.00
per unit over 30* |
$5000.00 |
Commercial Landlords
|
$150.00
up to 15,000 sq ft |
$0.01
per sq ft over 15,000 |
$5,000.00 |
Mobliehome Parks
|
$150.00
up to 30 lots |
$5.00
per lot over 30 |
$5,000.00 |
All other Businesses
|
$150.00
up to 8 employees |
$18.00
per person over 8 |
$25,0000.00 |
|
(owners
plus employees) |
(owners
plus employees) |
|
|
|
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BUSINESS
TAX RENEWAL PAYMENT SCHEDULE |
QUARTER
IN WHICH BUSINESS STARTED |
EXPIRATION
DATE |
RENEWAL
DUE ON OR BEFORE |
FIRST
PENALTY 25% |
SECOND
PENALTY ADDITIONAL 25% |
January
- March |
December 31st |
January 1st |
January 2nd |
February 2nd |
April
- June |
March 31st |
April 1st |
April 2nd |
May 2nd |
| July
- September |
June 30th |
July 1st |
July 2nd |
August 2nd |
| October
- December |
September 30th |
October 1st |
October 2nd |
November 3rd |
|
| *Not including
Business Tax Administrative Fee |
