In order to provide funding for essential City services such as police, fire, emergency response, street pavement and pothole repairs, parks, libraries, youth and senior services, affordable housing and homeless services, and the creation of living wage jobs, shall an ordinance be adopted to impose a tax on businesses in San Jose at a maximum rate of up to $1.20 per $1,000 on gross receipts only in excess of $1 million in revenue.
Possible Ballot Measure Language
The Way it is Now
What We Propose
Currently, San Jose’s business tax requires companies to pay $150 per year. Companies with more than 8 people pay an additional $18 per person they employ in San Jose. This tax is capped at $25,000.
The new ballot measure would change the tax so that it would be based on a small percentage of a business’s gross income instead of the number of people it employs. Large companies that have higher total revenue would pay more than smaller companies. Small businesses with revenues under $1 million would be exempt from this tax and pay no tax on revenues. There would be no cap on the total amount of the tax.
More specifically, the tax rates on most businesses (i.e., retail, wholesale, manufacturing, transportation, wharehousing, information, biotechnology, clean technology and foods services) would 60 cents per $1,000 of gross receipts. In addition, rates are 90 cents per $1,000 for real estate, rental leasing services, accomodations, entertainment, and construction and $1.20 cents for health services and financial services.