Chapter 4.47

COMMERCIAL-RESIDENTIAL-MOBILEHOME PARK BUILDING TAX

Sections:

• 4.47.010 Title and purpose. 4.47.020 Definitions.

• 4.47.030 Imposition of tax.

• 4.47.040 Rate of tax.

• 4.47.050 Time of payment - Refunds.

• 4.47.060 Refunds and procedures.

• 4.47.065 Refund - Historic structures.

• 4.47.070 Place of payment.

• 4.47.080 Exemptions.

• 4.47.081 Additional exemption.

• 4.47.082 Additional exemption - Construction by hospitals on hospital property.

• 4.47.083 Additional exemption - Housing constructed with government assistance.

• 4.47.084 Exemption - Buildings constructed for lease to county for multiservice center purposes.

• 4.47.085 Exemption - Construction in certain redevelopment project areas.

• 4.47.086 Exemption - Construction in the Julian-Stockton redevelopment project area.

• 4.47.087 Exemption - Construction designed or intended to be used solely for religious worship or religiously owned schools.

• 4.47.088 Additional exemption - Construction in the downtown central incentive zone.

• 4.47.089 Suspension - Qualified residential high rise project.

• 4.47.089.5 Additional suspension - Downtown commercial or industrial construction.

• 4.47.089.6 Additional suspension - Downtown commercial high rise.

• 4.47.090 Additional exemption - Construction in the enterprise zone.

• 4.47.092 Suspension - Very low income households.

• 4.47.093 Suspension - Small businesses.

• 4.47.094 Suspension - Solar building service equipment.

• 4.47.095 Suspension - Tenant improvement and equipment installations.

• 4.47.096 Partial suspension of tax - Offices.

• 4.47.097 Suspension of tax - Data centers.

• 4.47.098 Suspension - Qualified multifamily housing incentive program project.

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This chapter may be cited as the "San José Commercial-Residential-Mobilehome Park Building Tax Ordinance."

The tax imposed under this chapter is solely for the purpose of raising revenue for the usual current expenses of the city. This chapter is not enacted for regulatory purposes. (Ord. 19316.)

"Mobilehome," "mobilehome lot," and "mobilehome park" shall be construed as those terms are defined in Chapter 4.54 of this Code. Except where the context otherwise requires, the definitions given in the Uniform Building Code, 1973 Edition (or subsequent edition thereof), as and to the extent said Uniform Building Code, 1973 Edition (or subsequent edition thereof) is approved and adopted by, incorporated in by reference, and a part of Chapter 17.04 of this Code, govern the construction of this chapter. Whenever reference is made in this chapter to Chapter 17.04 of this Code, it shall mean said Chapter 17.04 as the same may be amended from time to time. (Ord. 19316.)

An excise tax, at the rate hereinafter set forth in this chapter, is hereby imposed upon every person who constructs, erects, enlarges, alters, repairs, moves, improves, or converts (hereinafter collectively referred to as "constructs"), or causes to be constructed, any building, structure, or portion thereof or any mobilehome lot, in the City of San José, in which said person has an equity of title or other interest either as owner or lessee or otherwise, where such construction requires the issuance of a building permit under Chapter 17.04 of this Code, or the issuance of a permit for the construction and installation of electrical or plumbing equipment to service a mobilehome lot (whichever permit is issued first), and is for residential or commercial purposes as defined in Section 4.47.040 hereinafter.

The tax imposed under this chapter is in addition to the taxes imposed under Chapters 4.46, 4.54, and 4.64 of this Code. (Ord. 19316.)

• A. The rate of tax imposed under this chapter is as follows:

  1. Two and seventy-five hundredths percent of eighty-eight percent of the valuation determined and used by the building official for calculation of the tax imposed under Section 4.46.050A.1., if the building or structure, or portion thereof, is designed or intended to be used for residential purposes.

  2. Three percent of one hundred percent of the valuation determined and used by the building official for calculation of the tax imposed under Section 4.46.050A.2., if the building or structure, or portion thereof, is designed or intended to be used for commercial purposes.

• B. For each mobilehome lot in a mobilehome park, the sum of nine hundred fifty dollars, except as provided in Subsection C. hereof.

• C. Commencing on May 1, 1979, and continuing annually thereafter on May 1st of each year until May 1, 1992, the rate imposed by Subsection B. of this section on said mobilehome lots shall increase or decrease in accordance with the changes in the annual San FranciscoOakland metropolitan area consumer price index-all items (1967 = 100), as promulgated by the Bureau of Labor Statistics of the United States Department of Labor. The changed rate on each May 1st shall bear the same ratio to nine hundred fifty dollars as the said annual consumer price index for the calendar year ending the December 31st immediately preceding the May 1st on which the change is to be made bears to such annual consumer price index for the year ending December 31, 1978. In no event shall the rate decrease below nine hundred fifty dollars. In the event that such

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consumer price index (or its successor or substitute index) is not available, or is substantially changed, a reliable governmental or other nonpartisan publication, evaluating the information thereto for use in determining the consumer price index, shall be used in lieu of such consumer price index, as determined by the director of finance.

• D. On May 1, 1992, the rate for mobilehome lots shall drop to an amount equal to twenty-two percent of the rate as it exists on April 30, 1992.

Thereafter the May 1, 1992, rate shall continue to increase or decrease on each successive May 1st in the same manner as provided in Subsection C. for the May 1, 1979, rate.

• E. For the purposes of Subsection A.:

  1. If the building or structure, or portion thereof, is designed or intended to be used for more than one purpose, including "industrial purposes" as that term is used in Chapter 4.46 of this Code, the rate of tax shall be applied in accordance with the provisions of Section 4.46.050B.1. of Chapter 4.46 of Title 4 of this Code;

  2. All buildings or structures, or portions thereof, shall be deemed to be designed or intended to be used for residential, commercial or industrial purposes or for two or more of such purposes;

3. "Used for commercial purposes" means used for a use which, under the provisions of Title 20 of this Code, is first permitted (with or without a conditional use permit) in the general commercial district (GC or C-3) or more restrictive districts (as such order of restrictiveness is set forth in Section 20.10.060 of this Code) except those uses set forth in the following Subsection 4. as being residential uses;

   4. "Used for residential purposes" means used for any of the following uses: Onefamily dwellings, two-family dwellings,

multiple dwellings, boardinghouses, lodging houses, guesthouses, residential care facilities for six or fewer persons, and automobile trailer parks, as said terms are used in Chapter 20.200.

(Ords. 22630, 26895, 27132, 28601.)

• A. The amount of tax imposed under this chapter for the construction of any building or structure or portions thereof, or mobilehome lot, shall be due and payable at the time the appropriate permit described in Section 4.47.030 hereof is issued to construct the same.

• B. There shall be a refund of any tax paid in the event the applicable permit expires or is revoked before the building or structure, or portions thereof, or mobilehome lot for which it is issued is constructed, and provided that there shall be a refund of any tax paid by a person who is exempt from payment of the tax pursuant to this chapter.

• C. Taxes due and unpaid at the time they are payable become delinquent at that time and there shall be added to all delinquent taxes a penalty in the sum of twenty percent of the amount of tax due. Such penalty shall be added to and become a part of the amount of tax due, and unpaid taxes (including penalty) shall bear interest at the rate of one and five-tenths percent per month from the date of delinquency. Interest shall likewise be added to and become part of the tax due.

(Prior code § 16304; Ord. 20560.)

Whenever the amount of any tax, penalty or interest has been overpaid, paid more than once, or has been erroneously, or illegally collected or received by the city under this chapter, it may be refunded to the person who paid the tax provided that a written claim for refund is filed with the building official, and the provisions of Chapter 4.82 are satisfied.

(Ords. 19316, 27787.)

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• A. Within one year after the adoption of the resolution of the city council designating a building or structure as a historic landmark pursuant to Chapter 13.48 of Title 13 of this municipal code, the property owner shall be entitled to a refund of taxes paid with respect to the building or structure pursuant to this chapter if:

  1. The taxes would not have been due pursuant to Section 4.47.080(E) had the building or structure been designated as a landmark at the time the building permits were issued; and

  2. The building permits were issued no more than one year prior to the date that the building or structure was designated a landmark;

  3. The property owner applies for the refund within one year after the date of the adoption of the resolution designating the building or structure as a historic landmark.

• B. Any refund shall be processed pursuant to Section 4.47.060.

• (Ord. 25803.)

Taxes imposed under this chapter shall be paid to the building official of the City of San José at the office of the building department of the City of San José in the San José city hall. (Ord. 19316.)

The tax imposed under this chapter shall not apply to the following:

• A. The City of San José, the United States or any agency or instrumentality thereof, the state of California or any county, city and county, district or any political subdivision of the state of California, or any other government agency.

• B. Nothing in this chapter shall be construed as imposing a tax upon any per-

son when imposition of such tax upon that person would be in violation of the Constitution of the United States or that of the state of California.

• C. Reconstruction or repair of a building or structure, or portion thereof which was damaged or destroyed by earthquake, fire, flood, or other cause over which the owner had no control (provided that compliance with any building code or other ordinance requirement of the City of San José or of any other applicable law shall not be deemed a cause over which the owner has no control), but only if such reconstruction or repair is done pursuant to a building permit issued within one year after such damage or destruction, and the number of square feet in the building or structure is not increased. If the number of square feet in the building or structure is increased, then the tax imposed under this chapter shall apply to the valuation determined and used by the building official under the provisions of Chapter 17.04 of this Code in computing the building permit fee attributable to such increased floor area.

• D. Rehabilitation of substandard housing in the City of San José under a special federal, state or local public agency grant or loan program for the rehabilitation of such substandard housing but only to the extent of such grant or loan.

• E. Construction of a building or structure, or portion thereof, if it or the site on which it is or will be situate is designated as a landmark pursuant to Chapter 13.48 of this Code and if such construction is done pursuant to an historic preservation permit (HP Permit) issued pursuant to said Chapter 13.48 of this Code.

• (Ords. 19316, 20734.)

The tax imposed under this chapter shall not apply to the construction of the following improve-

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ments when undertaken in or as an adjunct to an existing one-family dwelling as defined in Chapter 4.54 of this Code:

• A. Pools, patio covers, decks and accessory buildings where such facilities are designed and constructed for the exclusive use of an existing one-family dwelling;

• B. Alterations or additions to or reconstruction of a one-family dwelling which do not increase by more than fifty percent the total number of square feet in the existing building or structure.

In the event of any conflict between the terms of this exemption and the exemption provided in Section 4.47.040.C., the terms of this section shall prevail.

(Ord. 19378.)

The tax imposed under this chapter shall not apply to the construction of buildings or structures to be used exclusively for hospital purposes. The term "hospital" as used herein shall mean only a hospital which is qualified to use the title "hospital" without restriction in compliance with Section 1256 of the California Health and Safety Code. This exemption shall apply only to buildings or structures which will qualify for exemption from property taxation by virtue of their use exclusively for hospital purposes pursuant to Section 4, subdivision (b) and Section 5 of Article XIII of the California Constitution and Section 214 and related sections of the California Revenue and Taxation Code.

(Ord. 19480.)

The tax imposed under this chapter shall not apply to the construction of dwelling units financed or assisted by the federal government pursuant to any of the following:

• A. Section 202 of Public Law 86-372, as amended (12 U.S.C. 1701(q)) (Housing Act of 1959);

  • B. Public Law 75-412 (U.S. Housing Act of 1937), and Public Laws 93-383 and 95128 (Housing and Community Development Acts of 1974 and 1977);

  • C. Section 8 of Public Law 73-479 (U.S. Housing Act of 1937) as added by Public Laws 93-383 and 95-128 (Housing and Community Development Acts of 1974 and 1977);

  • D. Section 236 of Public Law 90-448 (12 U.S.C. 1715(z)), as amended.

• (Ord. 19480.)

The tax imposed under this chapter shall not apply to the construction of any building or structure (hereinafter collectively referred to in this section as building) which, under a binding lease, is leased to the county of Santa Clara (hereinafter county) provided that:

• A. The lease is entered into before issuance of a building permit for construction of the building;

• B. The purpose of the lease is for use of the building by the county as a multiservice center for human services, including health services and social services;

• C. The entire building is leased to the county;

• D. The county is the original tenant and will take possession upon completion of construction;

• E. The initial term of the lease is a term of not less than fifteen years, and the lease cannot be sooner terminated by either the lessor or lessee except for cause; and

• F. There is filed with the building official, before issuance by him of a building permit for construction of the building, a written declaration or declarations declaring that there has been entered into and exists a binding lease complying with all of the above requirements whereby the building for which the building permit is

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sought has been leased to the county. Such written declaration or declarations shall be made under penalty of perjury and signed by the county executive and the person who would, except for the exemption provided for in this section, be required to pay the tax imposed under this chapter on the construction of the building.

(Prior code § 16306.4; Ord. 19693.)

• A. The tax imposed under this chapter shall not apply to construction of any building or structure or portion thereof or any mobilehome lot (hereinafter collectively referred to in this section as "improvement") on a site in the Park Center Redevelopment Project Area, the San Antonio Plaza Redevelopment Project area, or the Pueblo Uno Redevelopment Project Area, provided such construction is done subject to and in accordance with the redevelopment plan for the project area in which the site of such construction is situate and that such construction is a part of the initial development of the site under such redevelopment plan, and provided further that the exemption provided by this section shall not apply to any subsequent construction of the site nor to any enlargement, alteration, repair, reconstruction, remodeling, or conversion of any such improvement.

• B. This exemption shall remain in effect in each redevelopment project area set forth in subsection A. only until termination of that project's redevelopment plan and shall have no force or effect thereafter.

• (Ords. 20020, 23650.)

Until January 1, 1986 (or sooner by ordinance of the city council), the tax imposed under this 2026-Supplement 4

chapter shall be suspended and shall not be collected with respect to construction occurring during the period of suspension of any building or structure or portion thereof or any mobilehome lot (hereinafter collectively referred to in this section as "improvement") on a site in the Julian-Stockton redevelopment project area, provided such construction is done subject to and in accordance with the redevelopment plan for said project area and that such construction is a part of the initial development of the site under such redevelopment plan, and provided further that the suspension of tax provided by this section shall not apply to any subsequent construction on the site nor to any enlargement, alteration, repair, reconstruction, remodeling, or conversion of any such improvement, regardless of when the activity occurs. (Ord. 20434.)

The tax imposed under this chapter shall be suspended and shall not be collected with respect to construction occurring during the period of suspension of any building or structure situate on property which is or which will be upon completion of the construction eligible for real property tax exemption by virtue of its exclusive use for religious worship, or exclusive use for school purposes of less than collegiate grade and owned and operated by religious foundations or corporations, which property, foundations or corporations meet all of the requirements of Sections 214 and 214.5 of the California Revenue and Taxation Code, and related sections. The phrase "used exclusively for religious worship" shall have the same meaning as that phrase is used in exempting real property pursuant to Section 3(f) of Article 13 of the California Constitution and Section 5 of said article.

(Ord. 20471.)

• A. The collection of the tax imposed under this chapter, to the extent not already suspended,

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shall be suspended and shall not be collected with respect to the new construction of any multifamily housing project within that area designated as the central incentive zone.

• B. In the event the construction is construction of a building or buildings designed or intended to be used for any other use in addition to a multifamily housing use, the suspension of the collection of the tax shall apply only to that portion of the construction which constitutes a multifamily housing project. The portion of the construction which constitutes a multifamily housing project shall be determined by the building official of the city.

• C. For the purposes of this section, the following words and phrases shall have the following meanings:

  1. "Central incentive zone" means that area so designated on that certain map dated October 13, 1981, entitled "Central Incentive Zone Map," on file with the clerk of the City of San José. Said map is incorporated in this section by this reference.

  2. "Multifamily housing project" means:

     • a. A residential project containing more than four dwelling units; and

     • b. Single-room occupancy housing.

  3. "New construction" means construction for which a building permit is issued on or after September 15, 1989.

  4. "Project" means one or more buildings containing similarly constructed units, the site(s) on which the building(s) is located, and any functionally related facilities. Multiple buildings will constitute a project only if they are bound together as a result of proximate location, common ownership, and common financing.

  5. "Single-room occupancy housing" means a structure consisting of more than four units where such units are designed and constructed as the primary residence of individual persons capable of independent living and where such units do not

contain food preparation and/or sanitary facilities. Single-room occupancy housing does not include single-family residential structures, guesthouses, residential care facilities, residential service facilities, extended care facilities, emergency residential shelters, fraternity or sorority houses, or hotels intended primarily for transient use.

• D. The suspension of the collection of the tax provided in this section shall apply to construction of single-room occupancy housing only if:

  1. Such construction is for the purpose of replacing single-room occupancy housing which existed in the central incentive zone on June 20, 1989, but was lost because of:

     • a. Redevelopment; or

     • b. Change of use; or

     • c. Fire which was beyond the control of the owner; and

  2. Such construction is located in an area which the city council has, by resolution, determined is appropriate for single-room occupancy housing.

• E. The suspension of the collection of taxes provided by this section shall remain in effect until December 31, 2001, unless further action is taken by ordinance of the city council prior to that date.

(Ords. 20774, 22427, 23234.1, 24148.)

• A. The suspension of the tax imposed under this Chapter, to the extent not already suspended, shall be suspended during the period set out below, and the tax shall not be collected with respect to construction of residential units within a Qualified Residential High Rise Project as provided in this Section. For a Qualified Residential High Rise Project that includes

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both residential units and non-residential units, the tax suspension shall only apply to the residential uses therein.

• B. The collection of fifty percent (50%) of the tax imposed under this Chapter, to the extent not already suspended, shall be suspended during the periods set out below, and the tax shall not be collected with respect to construction of residential units within a Qualified Residential High Rise Project as provided in this Section. For a Qualified Residential High Rise Project that includes both residential units and non-residential units the tax suspension shall only apply to the residential units therein.

• C. "Qualified Residential High Rise Project" means any new residential structure located in the Downtown Planned Growth Area, as designated in the San José 2040 General Plan, where the highest occupied floor has a floor level elevation that is at least one hundred fifty (150) feet above street level and the development has ten (10) or more floors or stories in height not including any non-residential.

• D. The suspension will apply to residential uses located within a Qualified Residential High Rise Project of up to two thousand (2,000) units that obtain a building permit by June 30 2029, and pass first inspection within twelve (12) months of obtain a building permit; the fifty percent (50%) reduction will apply to residential uses located within a Qualified Residential High Rise Project of up to an additional two thousand (2,000) units that obtain a building permit between July 1, 2029, and June 30, 2031 and pass first inspection within twelve (12) months of obtaining the building permit; the fifty percent (50%) reduction will apply to residential uses located within a Qualified Residential High Rise Project of up to an additional six thousand (6,000) units that obtain a building permit thereafter and pass first inspection within twelve (12) months of obtaining the building permit, provided that the Qualified Residential High Rise Project meets each of the following:

  1. The developer of the Qualified Residential High Rise Project shall retain con-

tractors licensed by the State of California for the construction of the Qualified Residential High Rise Project; and

2. The developer of the Qualified Residential High Rise Project shall employ only construction workers who possess necessary licenses and certifications required by the State of California; and

3. The developer of the Qualified Residential High Rise Project enters into a Project Completion Agreement with the City in a form approved by the City Attorney that sets forth the requirements of this Section related to either the suspension or the reduction of fifty percent (50%) of the amount of the tax specified in this Chapter and payment of the unsuspended portion of the tax, if applicable.

• E. If a Qualified Residential High Rise Project that was eligible for either the suspension or reduction as provided for in this Section has not met the applicable deadlines as set out in subsection D above, then the full amount of the tax shall be paid to the Building Official prior to the issuance of a certificate of occupancy, including a temporary certificate of occupancy.

• F. The City Manager is authorized to execute on behalf of the City Project Completion Agreements with developers of Qualified Residential High Rise Projects that are consistent with the requirements of this Section.

Any person who enters into a Project Completion Agreement for the tax suspension pursuant to subsection D.3 of this Section is encouraged to make good faith efforts to:

1. Comply with the State of California's apprenticeship program requirement that at least sixteen and seven tenth's percent (16.7%) of the hours worked on the Qualified Residential High Rise Project must be worked by registered apprentices from approved apprenticeship training programs;

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2. Ensure that twenty-five percent (25%) of the registered apprentices working on the Qualified Residential High Rise Project have a barrier to employment such as being homeless, a veteran or an at-risk youth; and

3. Post or cause the posting of bids for subcontracting work on the Qualified Residential High Rise Project on websites such as the Bay Area Builders Exchange for subcontractors to be able to access work for workers in the nine Bay Area counties.

(Ord. 31106.)

Editor’s note— Ord. No. 31106, § 2, adopted Aug. 13, 2024, amended § 4.47.089 in its entirety, in effect repealing and reenacting said § 4.47.089 to read as set out herein. The former § 4.47.089 pertained to suspension - downtown high rise residential construction and derived from Ords. 20555, 29147, 29212, 29847, 30334, 30846.

commercial or industrial construction.

• A. The collection of fifty percent of the tax imposed under this chapter, to the extent not already suspended, shall be suspended and the tax shall not be collected with respect to construction of a downtown commercial or industrial structure as provided in this section.

• B. A "downtown commercial or industrial structure" means any new structure located in the downtown planned growth area as designated in the San José 2040 general plan to be used for: 1) industrial purposes; or 2) commercial purposes, as these terms are defined in this chapter.

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• C. The suspension shall apply to a downtown commercial or industrial structure for which a building permit has been issued in the downtown planned growth area from May 15, 2012 through and including December 31, 2014, provided that the downtown commercial or industrial structure project meets each of the following:

  1. A completed application for a development permit has been filed with the director of planning, building and code enforcement on or before October 31, 2013. A development permit for purposes of this section shall be as defined in Title 20 of the San José Municipal Code; and

  2. A building permit for the construction of the downtown commercial or industrial structure has been issued on or before December 31, 2014.

• D. In the event that a downtown commercial or industrial structure that was eligible for the suspension provided for in this section has not received a certificate of occupancy, including a temporary certificate of occupancy, on or before August 31, 2016, then the full amount of the tax shall be paid to the building official prior to the issuance of a certificate of occupancy, including a temporary certificate of occupancy.

• E. The suspension set forth in Subsection A. shall be effective until December 31, 2014.

• (Ord. 29280.)

• A. The collection of one hundred percent of the tax imposed under this chapter, to the extent not already suspended, shall be suspended and the tax shall not be collected with respect to construction of one downtown commercial high rise structure as provided in this section.

• B. A "downtown commercial high rise structure" means a new structure that is one hundred fifty feet or higher located in the downtown

planned growth area as designated in the San José 2040 General Plan to be used for commercial purposes, as defined in this chapter.

• C. The suspension shall apply to the first downtown commercial high rise structure for which a building permit has been issued in the downtown planned growth area from January 1, 2015 through and including May 31, 2017, provided that the downtown commercial high rise structure meets each of the following:

  1. A completed application for a development permit has been filed with the director of planning, building and code enforcement on or before December 31, 2016. A development permit for purposes of this section shall be as defined in Title 20 of the San José Municipal Code; and

  2. A building permit for the construction of the downtown commercial high rise structure has been issued on or before May 31, 2017.

  3. All building permits for the construction of the downtown commercial high rise structure have been issued on or before December 31, 2018.

• D. In the event that the downtown commercial or industrial structure that was eligible for the suspension provided for in this section has not been issued all building permits issued on or before December 31, 2018, then zero percent of one hundred percent of the valuation determined and used by the building official of the building or structure, or portion thereof of the tax shall be paid to the building official prior to the issuance of building permits issued after December 31, 2018 so long as the use of the commercial high rise qualifies as an office, research and development use, as defined in Section 20.200.818 of this Code. All building permits issued after December 31, 2018 for the commercial high rise structure that do not meet the definition of used as an office, re-

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search and development use, as defined in Section 20.200.818 of this Code shall pay the full amount of the tax.

• E. The suspension set forth in Subsection A. shall be effective until December 31, 2019.

(Ords. 29798, 29822.)

• A. The collection of the tax imposed under this chapter, to the extent not already suspended, shall be suspended and the tax shall not be collected with respect to the construction of any building or structure, or portion thereof, within that area designated as the "Expanded Enterprise Zone Target Areas" on that certain map entitled "Expanded Enterprise Zone Target Areas," on file with the clerk of the City of San José, which map is incorporated herein by reference. Except as provided in Subsection C., this section shall be effective until April 1, 2001. This exemption shall not apply to residential buildings or structures of four dwelling units or less.

• B. The suspension of the collection of taxes, as provided in Subsection A, shall not apply to any parcel of land or structure within said expanded enterprise zone target areas in which a member of the San José city council, serving in that capacity, has a financial interest on June 22, 1993.

• C. Notwithstanding Subsection A. above, the collection of the tax imposed by this chapter shall continue to be suspended with respect to the construction of any building or structure, or portion thereof, within the expanded enterprise zone target areas when the construction is done subject to and in accordance with a valid, binding and effective agreement with the redevelopment agency, entered into prior to January 30, 2001, and such agreement meets all of the following requirements:

  1. The agreement is in the form of a development and disposition agreement; an owner participation agreement; or a lease

with a term of greater than five years pursuant to which the lessee is required to make substantial improvements to the leased property;

2. The agreement was entered into prior to January 30, 2001; and

3. The owner or developer is not in default of any provision of the agreement.

• D. The extension of the suspension of the collection of taxes as provided in Subsection C. shall not apply to any construction of tenant improvements undertaken subsequent to the issuance of the initial certificate of occupancy for the building or structure subject to the agreement with the redevelopment agency.

• E. The extension of the suspension of the collection of taxes as provided in Subsection C. shall not apply to any parcel of land or structure within the expanded enterprise zone target areas in which a member of the San José city council, serving in that capacity, has a financial interest on December 12, 2000.

(Ords. 22443, 24148, 24417, 26253.)

• A. To the extent not already suspended, the collection of the tax imposed pursuant to this chapter shall be suspended and not collected with respect to the construction of any building subject to affordability restrictions which require that the building or a portion thereof be utilized for housing by households which qualify as very low income.

• B. The suspension of the collection of taxes as hereinabove provided shall not be deemed to require the refund of any such taxes paid to the City of San José prior to the effective date of this ordinance. The suspension of taxes hereunder shall terminate on June 30, 2011.

• C. Definitions.

  1. "Very low income households" means persons and families whose incomes do not exceed the qualifying limits for very low income households as established and

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amended from time to time pursuant to California Health and Safety Code Section 50105. In the event such standards are discontinued, the council shall, by resolution, establish income limits for very low income households for the city.

2. "Affordability restrictions" means covenants, conditions and restrictions running with the land and recorded with the Santa Clara County Recorder's Office in connection with a building or structure used for housing to be utilized by very low income households within the City of San José. The affordability restrictions shall require that a building or structure used for housing, in part or in whole, be utilized by very low income households for a minimum period of thirty (30) years or as may be otherwise required by federal or state law.

(Ords. 24068, 25045, 26399, 27723.)

• A. The collection of fifty percent (50%) of the tax imposed under this chapter, to the extent not already suspended, shall be suspended and the tax shall not be collected with respect to construction of small business improvements.

• B. Small business improvements means any improvement of 3,000 square feet or less, either as new construction or as tenant improvement, intended to be used by a business entity having 35 or fewer total employees.

• C. In cases where the total square footage of small business improvement exceeds 3,000, the tax suspension allowed under this section shall be applicable to the first 3,000 square feet of improvements.

• D. This section shall be effective until November 30, 2007.

• (Ords. 27265, 27753.)

• A. The collection of the tax imposed under this chapter, to the extent not already suspended,

shall be suspended and the tax shall not be collected with respect to the construction or installation of any solar building service equipment.

• B. For purposes of this section "solar building service equipment" means any plumbing, mechanical or electrical equipment, including but not limited to solar water heaters and photovoltaic equipment, which generates heat or electricity from solar radiation.

• C. For building permits that are issued for a scope of work beyond the installation of above systems, the suspension provided for in subsection A. shall only apply to the valuation of construction calculated with respect to that portion of the project which constitutes the solar building service equipment.

• D. This section shall be effective until December 31, 2006.

• (Ord. 26465.)

• A. The collection of the tax imposed under this chapter, to the extent not already suspended, shall be suspended and the tax shall not be collected with respect to construction of tenant improvement and equipment installations.

• B. Tenant improvement and equipment installations means:

  1. Tenant improvements to office, research and development uses, as defined in Section 20.200.818 of this Code;

  2. Tenant improvements to data centers uses, as defined in Section 20.200.265 of this Code;

  3. Installation of solar photovoltaic systems, as defined in Section 20.200.1165 of this Code.

• C. This section shall be effective retroactively from April 1, 2017 until March 31, 2019.

• (Ords. 29032, 29374, 29897.)

• A. Notwithstanding Section 4.47.040, the collection of the tax imposed under this Chapter, to

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the extent not already suspended, shall be partially suspended and a reduced tax rate equal to one half of one percent (.5%) of one hundred percent of the valuation determined and used by the building official for calculation of the tax imposed under Section 4.46.050A.2 shall be applied to Offices.

• B. For purposes of this Section, "Offices" means any of the following:

  1. General Business Offices, as defined in Section 20.200.813 of this Code;

  2. Research and Development Offices, as defined in Section 20.200.818 of this Code.

• C. This Section shall be effective from April 1, 2019 until June 30, 2029.

• (Ords. 29897, 31073.)

• A. The collection of the tax imposed under this chapter, to the extent not already suspended, shall be suspended and the tax shall not be collected with respect to construction of data centers.

• B. For purposes of this section, "data centers" means data centers as defined in Section 20.200.265 of this Code.

• C. This section shall be effective from April 1, 2019 until March 31, 2024.

• (Ord. 29897.)

• A. The collection of fifty percent (50%) of the tax imposed under this Chapter, to the extent not already suspended, shall be suspended during the periods set out below, and the tax shall not be collected with respect to construction of the first 1,800 residential units within a Qualified Multifamily Housing Incentive Program Project as provided in this Section. For a Qualified Multifamily Housing Incentive Program Project that includes both residential uses and non-residential uses the tax suspension shall only apply to the residential uses therein.

• B. "Qualified Multifamily Housing Incentive Program Project" means the projects eligible for the temporary Multifamily Housing Incentive Program identified in Resolution No. RES2024-420, adopted by the City Council on December 10, 2024.

• C. Qualified Multifamily Housing Incentive Program Projects shall remain eligible until the expiration of the planning permit, including any extensions.

• D. Eligible projects may be modified and remain eligible for the Qualified Multifamily Housing Incentive Program under certain conditions. A project must submit an application for modification of the project to the City by December 31, 2025. To remain eligible, the modification must result in the project maintaining a density of at least 50 DU/AC. The modified project must obtain a building permit 12 months after planning approval of the modified project and pass a first inspection six months after building permit issuance to remain eligible for the Qualified Multifamily Housing Incentive Program.

• E. If a Qualified Multifamily Housing Incentive Program Project that was eligible for the reduction as provided for in this Section has not met the applicable deadlines as set out in this Section, then the full amount of the tax shall be paid to the Building Official prior to the issuance of a certificate of occupancy, including a temporary certificate of occupancy.

• F. The City Manager is authorized to execute on behalf of the City Project Completion Agreements with developers of Qualified Multifamily Housing Incentive Program Project that are consistent with the requirements of this Section.

  • Any person who enters into a Project Completion Agreement for the tax suspension pursuant to this Section is encouraged to make good faith efforts to:
  1. Comply with the State of California's apprenticeship program requirement that at least sixteen and seven tenth's percent

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(16.7%) of the hours worked on the Qualified Multifamily Housing Incentive Program Project must be worked by registered apprentices from approved apprenticeship training programs;

2. Ensure that twenty-five percent (25%) of the registered apprentices working on the Qualified Multifamily Housing Incentive Program Project have a barrier to employment such as being homeless, a veteran or an at-risk youth; and

3. Post or cause the posting of bids for subcontracting work on the Qualified Multifamily Housing Incentive Program Project on websites such as the Bay Area Builders Exchange for subcontractors to be able to access work for workers in the nine (9) Bay Area counties.

(Ords. 31160, 31201.)