San Jose, California, Business Tax Increase, Measure G (November 2016)
| Measure G: San Jose Business Tax Increase |
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| The basics |
| Election date: |
| November 8, 2016 |
| Status: |
 Approved
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| Topic: |
| Local business tax Expires in: Never |
| Related articles |
| Local business tax on the ballot November 8, 2016 ballot measures in California Santa Clara County, California ballot measures City tax on the ballot |
| See also |
| San Jose, California |
A measure to raise the city's business tax was on the ballot for San Jose voters in Santa Clara County, California, on November 8, 2016. The measure was approved.
| A yes vote was a vote in favor of raising the base business tax from $150 to $195, increasing the per-employee tax and per-rental unit tax such that business with more employees or more rental units pay higher rates, allowing online business registration and payment, and raising the maximum cap on business taxes from $25,000 per year to $150,000 per year. |
| A no vote was a vote against this proposal to raise the base business tax from $150 to $195, increasing the per-employee tax and per-rental unit tax such that business with more employees or more rental units pay higher rates, allowing online business registration and payment, and raising the maximum cap on business taxes from $25,000 per year to $150,000 per year. |
Election results
| Measure G | ||||
|---|---|---|---|---|
| Result | Votes | Percentage | ||
| Yes | 204,153 | 65.59% | ||
| No | 107,125 | 34.41% | ||
- Election results from Santa Clara County Registrar of Voters
Text of measure
Ballot question
The following question appeared on the ballot:[1]
| “ |
Shall an ordinance be adopted modernizing San Jose’s 1986 business tax to fund essential services – such as police, emergency response, and pothole repair – with approximately $12 million in additional annual revenue by raising the base tax from $150 to $195; increasing rates incrementally for larger businesses, as provided in the ordinance at http://sanjoseca.gov/businesstax2016; adjusting for inflation; expanding exemptions for small businesses and financial hardship; and allowing online registration and payment?[2] |
” |
Impartial analysis
The following impartial analysis of the measure was prepared by the office of the San Jose City Attorney:
| “ |
The San Jose City Council has placed Measure G on the November 8, 2016 ballot, asking voters to adopt an ordinance revising San Jose's 1986 business tax. Currently, unless exempt, businesses pay an annual business tax based on the number of (1) employees; (2) units, lots, or square feet leased; or (3) water company meter connections. For most businesses, the annual tax is $150 for up to 8 employees with an additional $18 tax for every employee over 8, located in San Jose, capped at $25,000 annually. For residential real estate and mobile home parks, the tax is based on the number of units or lots leased in San Jose and is capped at $5,000 annually, and for commercial real estate the tax is based on the number of square feet leased in San Jose, capped at $5,000 annually. Water companies pay a tax based on the number of meter connections in San Jose, capped at $20,000 annually. The tax is not currently adjusted for inflation. If approved by a majority of the voters, Measure G would enact an ordinance, effective on July 1, 2017, to (1) increase the minimum base tax from $150 to $195; (2) require payment of the minimum base tax by all businesses; (3) set graduated rates for businesses with more employees paying higher rates and residential and commercial landlords paying more per unit, lot, and square feet of leased space; (4) require water companies pay $1 per San Jose meter connection; and (5) raise the annual caps on the maximum amount of tax payable to $150,000. Where a business owes the tax based on both its number of employees and leased number of units, lots, or square feet, the business is required to pay the higher of the two calculations. The proposed ordinance also provides for annual adjustment for inflation based on a consumer price index beginning on July 1, 2018, subject to specified limits. The ordinance should be consulted for a description of each of the proposed rate increases. The proposed ordinance maintains various exemptions including the exemptions for nonprofits and financial hardship for small business owners while adding an exemption for certain small business owners with limited household incomes. It also provides the option for online registration and payment of the tax. If approved, the tax will continue until repealed by the voters or suspended in whole or in part by the City Council. The tax revenue will be placed in the City's general fund and may be used to fund essential services such as police, emergency response, and pothole repair. A "yes" vote is a vote to increase rates and revise the business tax as set forth in the proposed ordinance. A "no" vote is a vote to maintain the current tax rates.[2] |
” |
| —San Jose City Attorney[3] | ||
Full text
The full text of the measure is available here.
Path to the ballot
This measure was put on the ballot through a vote of the city council of San Jose, California.
Recent news
The link below is to the most recent stories in a Google news search for the terms San Jose Local business tax. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.
See also
External links
Footnotes
- ↑ Santa Clara County, "List of Local Measures Presidential General Election November 8, 2016," accessed October 3, 2016
- ↑ 2.0 2.1 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
- ↑ San Jose City Attorney, "City Attorney's Impartial Analysis of Measure G," August 22, 2016
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