Based on previous amnesties administered by San Jose, officials estimate next year\u2019s program, which runs until Dec. 31, will bring in $3.2 million in additional revenue to the general fund. It\u2019s also seen as a way to engage with local businesses that might not be aware of their municipal tax obligations.<\/p>\n
\u201cThe Business Tax Amnesty Program benefits both businesses and the city of San Jose by improving compliance with the business tax regulations, reducing outstanding liabilities and supporting long-term revenue stability for the city,\u201d Finance Director Maria \u00d6berg told San Jos\u00e9 Spotlight.<\/p>\n
The city plans to launch a website supporting the program in January, officials said.<\/p>\n
The program will cover late payments owed to San Jose\u00a0under its business tax<\/a>, which is assessed based on a company\u2019s employee headcount in most cases. In addition, it will also cover overdue fees owed to\u00a0the city\u2019s Business Improvement Districts<\/a>. Such districts \u2014 which include portions of Japantown, downtown and the\u00a0Monterey Road corridor<\/a>\u00a0\u2014 levy annual fees on member businesses and then reinvest the funds in services, such as street cleaning or private security, geared toward\u00a0improving neighborhoods and driving local commerce<\/a>.<\/p>\n The amnesty program is intended to benefit\u00a0businesses that have fallen behind on payments, as well as newer companies that may be unaware of the city\u2019s tax policies.<\/p>\n \u201cNew businesses are started all the time,\u201d \u00d6berg told the City Council during its Dec. 9 review of the amnesty program. \u201cPeople move in. They don\u2019t know always that they are required to register and pay a business tax in the city of San Jose. So it\u2019s part outreach and education, and part getting people back in compliance.\u201d<\/p>\n The city has administered similar amnesty programs periodically over the decades, with three conducted since 2006. Most recently,\u00a0the city launched another 12-month program in October 2019<\/a>. It drew in payments from 5,800 taxpayers, generating $3.2 million in revenue, officials said.<\/p>\n While overdue tax payments must be paid in full by the end of the year, the city will allow businesses to do so under a payment plan, officials said. In some cases,\u00a0the city will offer payment exemptions<\/a>\u00a0to certain qualifying businesses that generate incomes for their owners falling well below federal poverty standards.<\/p>\n During the past amnesty period, the city granted 175 such exemptions, according to past reporting by San Jos\u00e9 Spotlight. Most were granted as a result of financial hardship, but some were also granted to older adults or to charitable organizations.<\/p>\n \u00d6berg told councilmembers that for some of the city\u2019s newer Business Improvement Districts,\u00a0the city has collected just 60% of the fees owed by member businesses.<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2025\/12\/1766701629_393_LNM-20250616-SJSPOTLIGHTLOGO-01.jpg\")
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