San Jose Municipal Code Part 6 Administration and Enforcement

It shall be the duty of the director, and he or she is hereby directed, to enforce each and all of the provisions of this chapter, and the chief of police shall render such assistance in the enforcement of this chapter as may from time to time be required by the director.

(Measure G (Ord. 2016.2), adopted by electorate, 12-13-16)

For purposes of apportionment as may be required by law, and for purposes of administration and enforcement of this chapter generally, the director, with the concurrence of the city attorney, may from time to time promulgate administrative rules and regulations.

(Measure G (Ord. 2016.2), adopted by electorate, 12-13-16)

The director and all of his or her deputies shall have the power and authority to enter, free of charge, during business hours, any place of business taxed by the provisions of this chapter and to demand exhibition of a business tax certificate and evidence of amount of tax paid. Any person to whom a business tax certificate has been issued and who fails to exhibit the business tax certificate or to provide evidence of the amount of the business tax paid in response to a lawful demand shall be guilty of a misdemeanor.

(Measure G (Ord. 2016.2), adopted by electorate, 12-13-16)

The director, in the exercise of the duties imposed upon him or her, and acting through his or her deputies, shall have the authority to inspect and examine all places of business in the city to ascertain whether or not the provisions of this chapter have been complied with.

(Measure G (Ord. 2016.2), adopted by electorate, 12-13-16)

The director and his or her deputies shall have the power to audit and examine all books and records, and, where necessary, all equipment, of any person engaged in business in the city, for the purpose of ascertaining the amount of business tax, if any, required to be paid by the provisions hereof, and for the purpose of verifying any statements or any item thereof when filed by any person pursuant to the provisions of this chapter. If such person, after written demand by the director, or his or her deputy, refuses to make available for audit, examination or verification such books, records or equipment as the director or his or her deputy requests, the director may, after full consideration of all information within his or her knowledge concerning the business and activities of the person so refusing, make an assessment in the manner provided in Sections 4.76.850 through 4.76.870 of any taxes estimated to be due.

(Measure G (Ord. 2016.2), adopted by electorate, 12-13-16)

The amount of any business tax, penalties and interest imposed by the provisions of this chapter shall be deemed a debt to the city and any person carrying on any business without first having procured a business tax certificate under this chapter from the city to do so shall be liable to an action in the name of the city in any court of competent jurisdiction for the amount of the tax, and penalties and interest imposed on such business.

(Measure G (Ord. 2016.2), adopted by electorate, 12-13-16)

In any action brought under or arising out of any of the provisions of this chapter, the fact that a party thereto represented that the party engaged in any business for the transaction of which a business tax certificate is required hereunder, or that such party exhibited a sign indicating such business, shall be conclusive evidence of the liability of such party to pay a business tax for such business.

(Measure G (Ord. 2016.2), adopted by electorate, 12-13-16)

If the director is not satisfied that any statement filed as required under the provisions of this chapter is correct, or that the amount of tax is correctly computed, he or she may compute and determine the amount to be paid and make a deficiency determination upon the basis of the facts contained in the statement or upon the basis of any information in his or her possession or that may come into his or her possession. One or more deficiency determinations of the amount of tax due for a period or periods may be made. When a person discontinues engaging in a business, a deficiency determination may be made at any time within three years thereafter as to any liability arising from engaging in such business whether or not a deficiency determination is issued prior to the date the tax would otherwise be due. Whenever a deficiency determination is made, a notice shall be given to the person concerned in the same manner as notices of assessment are given under Sections 4.76.850 through 4.76.870.

(Measure G (Ord. 2016.2), adopted by electorate, 12-13-16)

A. Under any of the following circumstances, the director may make and give notice of an assessment of the amount of tax owed by a person under this chapter:

1. If the person has not filed any statement or return required under the provisions of this chapter;

2. If the person has not paid any tax due under the provisions of this chapter;

3. If the person has not, after demand by the director, filed a corrected statement or return, or furnished to the director adequate substantiation of the information contained in a statement or return already filed, or paid any additional amount of tax due under the provisions of this chapter;

4. If the director determines that the nonpayment of any business tax due under this chapter is due to fraud, a penalty of twenty-five percent of the amount of the tax shall be added thereto in addition to penalties and interest otherwise stated in this chapter;

5. Nonpayment of all or any portion of the business tax due shall invalidate any certificate previously issued to the taxpayer by the city.

B. The notice of assessment shall separately set forth the amount of any tax known by the director to be due or estimated by the director, after consideration of all information within his or her knowledge concerning the business and activities of the person assessed, to be due under each applicable section of this chapter, and shall include the amount of any penalties or interest accrued on each amount to the date of the notice of assessment.

(Measure G (Ord. 2016.2), adopted by electorate, 12-13-16)

The notice of assessment shall be served upon the person either by handing it to the person, or by a deposit of the notice in the United States mail, postage prepaid thereon, addressed to the person at the address of the location of the business appearing on the face of the business tax certificate issued to the person or to such other address as the person registered with the director for the purpose of receiving notices provided under this chapter; or, should the person have no business tax certificate and should the person have no address registered with the director for such purpose, then to such person's last known address. For the purposes of this section, a service by mail is complete at the time of deposit in the United States mail.

(Measure G (Ord. 2016.2), adopted by electorate, 12-13-16)

Within ten days after the date of service, the person may apply in writing to the director for a hearing on the assessment. If application for a hearing before the city is not made within the time herein prescribed, the business tax assessed by the director shall become final and conclusive. Within thirty days of the receipt of any such application for hearing, the director shall cause the matter to be set for hearing before him or her not later than thirty days after the date of application, unless a later date is agreed to by the director and the person requesting the hearing. Notice of such hearing shall be given by the director to the person requesting such hearing not later than five days prior to such hearing. At such hearing applicant may appear and offer evidence why the assessment as made by the director should not be confirmed and fixed as the tax due. After such hearing the director shall determine and reassess the proper tax to be charged and shall give written notice to the person in the manner prescribed in Section 4.76.860 for giving notice of assessment.

(Measure G (Ord. 2016.2), adopted by electorate, 12-13-16)

The conviction and punishment of any person for failure to pay the required business tax shall not excuse or exempt such person from any civil action for the business tax debt unpaid at the time of such conviction. No civil action shall prevent a criminal prosecution for any violation of the provisions of this chapter or of any state law requiring the payment of all taxes.

(Measure G (Ord. 2016.2), adopted by electorate, 12-13-16)

Any person violating any of the provisions of this chapter or any regulation or rule passed in accordance herewith, or knowingly or intentionally misrepresenting to any officer or employee of this city any material fact in procuring the business tax certificate herein provided for shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punishable by a fine or by imprisonment, or by both such fine and imprisonment as set forth in Chapter 1.08 of this Code.

(Measure G (Ord. 2016.2), adopted by electorate, 12-13-16)

The operative date of this chapter shall be July 1, 2017.

(Measure G (Ord. 2016.2), adopted by electorate, 12-13-16)

A. If approved by a majority of the voters at the November 2016 general election, the provisions of this chapter shall go into effect on July 1, 2017. Persons engaged in business in the city with a business tax payment due date on or after July 1, 2017, shall be responsible for calculating and paying the business tax pursuant to this chapter.

B. Prior to the operative date of this chapter, the city will make available an online filing system. The failure to provide an online filing system for whatever reason, including, without limitation, technical failure, shall not excuse either the obligation to file an application for a business tax certificate or pay the business tax, including any interest and penalties, in a timely manner as required under this chapter.

(Measure G (Ord. 2016.2), adopted by electorate, 12-13-16)

Should any provision of this chapter, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, that determination shall have no effect on any other provision of this chapter or the application of this chapter to any other person or circumstance and, to that end, the provisions hereof are severable.

(Measure G (Ord. 2016.2), adopted by electorate, 12-13-16)

Unless specifically provided otherwise, any reference to a state or federal statute in this chapter shall mean such statute as it may be amended from time to time, provided that such reference to a statute herein shall not include any amendment thereto, or to any change of interpretation thereto by a state or federal agency or court of law with the duty to interpret such law, to the extent that such amendment or change of interpretation would, under California law, require voter approval of such amendment or interpretation, or to the extent that such change would result in a tax decrease. To the extent voter approval would otherwise be required or a tax decrease would result, the prior version of the statute (or interpretation) shall remain applicable; for any application or situation that would not require voter approval or result in a decrease of a tax, provisions of the amended statute (or new interpretation) shall be applicable to the maximum possible extent.

To the extent that the city's authorization to collect or impose any tax imposed under this chapter is expanded as a result of changes in state or federal law, no amendment or modification of this chapter shall be required to conform the tax to those changes, and the tax shall be imposed and collected to the full extent of the authorization up to the full amount of the tax imposed under this chapter.

(Measure G (Ord. 2016.2), adopted by electorate, 12-13-16)

Pursuant to Section 1215 of the City's Charter, as may be amended, the revenues from the tax imposed by this chapter shall be subject to the annual audit performed by the city's independent auditor of the city's municipal books, records, accounts and fiscal procedures and which is reported in the city's comprehensive annual financial report.

(Measure G (Ord. 2016.2), adopted by electorate, 12-13-16)

All remedies and penalties prescribed by this chapter or which are available under any other provision of law or equity, including but not limited to the California False Claims Act (Government Code Section 12650 et seq.) and the California Unfair Practices Act (Business and Professions Code Section 17070 et seq.), are cumulative. The use of one or more remedies by the city shall not bar the use of any other remedy for the purpose of enforcing the provisions of this chapter.

(Measure G (Ord. 2016.2), adopted by electorate, 12-13-16)

This chapter may be repealed or amended by the city council without a vote of the people. However, as required by Chapter XIIIC of the California Constitution, voter approval is required for any amendment provision that would increase the rate of any tax levied pursuant to this chapter. The people of the City of San José affirm that the following actions shall not constitute an increase of the rate of a tax:

A. The restoration of the rate of the tax to a rate that is no higher than that set by this chapter, if the city council has acted to reduce the rate of the tax;

B. An action that interprets or clarifies the methodology of the tax, or any definition applicable to the tax, so long as interpretation or clarification (even if contrary to some prior interpretation or clarification) is not inconsistent with the language of this chapter;

C. The establishment of a class of person that is exempt or excepted from the tax or the discontinuation of any such exemption or exception (other than the discontinuation of an exemption or exception specifically set forth in this chapter); or

D. The collection of the tax imposed by this chapter, even if the city had, for some period of time, failed to collect the tax.

(Measure G (Ord. 2016.2), adopted by electorate, 12-13-16)