Feedback for San Jose Business Tax Modernization Options |
Business Input
San Jose city staff is charged with implementing recent City Council direction to recommend how to double the amount of revenue generated by San Jose’s business tax and make it more progressive for a November 2016 City-initiated ballot measure. This direction from Council came about as an alternative to a potential voter-initiated ballot measure to adopt a new Gross Receipts Tax, a tax the SJSV Chamber vehemently opposed.
The City’s business license tax has not been updated since 1986. It was first adopted in 1964 and voters rejected a proposed inflationary adjustment in 1998.
City of San Jose staff presented their recommendations at our April 27 morning meeting, which was attended by more than 30 business owners and interested parties. [Please click here to view the presentation]. Feedback was collected and there was a robust Q & A segment [a recap of this segment and key takeaways will be posted to the sjchamber.com website later this week].
City of San Jose staff presented their recommendations at our April 27 morning meeting, which was attended by more than 30 business owners and interested parties. [Please click here to view the presentation]. Feedback was collected and there was a robust Q & A segment [a recap of this segment and key takeaways will be posted to the sjchamber.com website later this week].
Council Direction - March 8, 2016
- Double the annual revenues from the tax without unduly influencing business location decisions (+$12.7M)
- Protect small businesses while making the existing tax structure more progressive
- Expand the current maximum per-firm caps
- Include Cost of Living Adjustment (COLA)
- Ensure businesses can obtain tax certificates online
- Engage the business community and stakeholders in reviewing the proposed revisions
- Plan for November 206 Ballot Measure
Potential Principals Underlying Business Tax Change - Feb. 13, 2012
- Generate revenue to support services without unduly influencing business location decisions
- Align tax with service demand
- Minimize administration costs for City and compliance costs for taxpayers
- "Fair" sharing of solutions (employees, residents, businesses)
- Ensure revenue can grow over time as economy expands and City operating costs rise
What we ask now is that you offer two things: suggestions on things that City Staff should not change and suggestions on things that City Staff should change about the current business tax.
Your insight will remain anonymous, will be collected by the SJSV Chamber and then shared both with the general membership as well as City Staff. More than anything, we are looking for constructive feedback to share with the City.
Your insight will remain anonymous, will be collected by the SJSV Chamber and then shared both with the general membership as well as City Staff. More than anything, we are looking for constructive feedback to share with the City.
Thank you for taking the time to weigh in on this important issue.