San Jose has four construction-related taxes, but for the purposes of this discussion only two are pertinent: The Building and Structures Construction Tax, and the Commercial- Residential-Mobilehome Park Building Tax (also known as the CRMP Tax). These two taxes represent a sizeable proportion of the cost of many building permits issued by the City of San Jose and fund the majority of the Traffic Capital Improvement Program, that includes projects and programs such as pedestrian and traffic safety, pavement maintenance, traffic signals, and grant project required local matches. The remaining elements of project permitting costs can be attributed to administration, plan check and inspection fees, which are 100% cost-recovery, and Impact Fees (parks, traffic, affordable housing etc.).
City Identified Problems:
Root cause of the problem lies with outdated ordinance enacted in the 1970‚Äôs that narrowly defines ‚ÄúIndustrial‚Äù and ‚ÄúCommercial‚Äù uses.
The way that buildings are being used now, and the way city zoning code defines them, is different than it was 10, 20 or 30 years ago.
Standard operating procedure has always been to consider anything that is not explicitly ‚ÄúIndustrial‚Äù (1%), as ‚ÄúCommercial‚Äù (4.5%).
Construction taxes are applicable to all building permits including both new construction and ongoing tenant improvements.
Construction taxes are collected against the valuation of the project derived from the higher of either the International Code Council‚Äôs building valuation data table or the submitted valuation estimate by the project proponent (not market value).
Building Department Permit Specialists administer the process/advise applicants on their use.
Current suspension for ‚Äúoffice, research and development‚Äù ends March 31, 2017
City Staff Goal:
Create Implementation Clarity and Consistency ‚Äì Clear definitions and consistent treatment to aid staff and development community, minimize required refunds
Maintain funds for transportation infrastructure ‚Äì Ensure any changes do not to impact transportation infrastructure funding
Limit the Impact to Development ‚Äì Avoid impacting to San Jose‚Äôs attractiveness to driving industry companies
Create a new suspension from the commercial rate (4.5%) for all ‚Äúoffice uses‚Äù reducing to 2.5%
Blach Construction, a full-service and award-winning commercial builder serving the Greater Bay Area and Monterey since 1970, congratulates Vice President, Business Development and Marketing Kim Scott on her recognition as a 2019 Silicon Valley Business Journal “40 Under 40” honoree. Scott accepted the award at a reception at San Jose’s Club Auto Sport on July 25 alongside 39 other outstanding young professional and community leaders.
Deb Dake-Morrell is a Supervising Program Administrator for Valley Water, where she leads the best team ever! Deb and her team work with the community to resolve violations of the Ordinance that protects the creeks and waterways of Santa Clara County. A highly sensitive issue, she brings her background in conflict resolution and human relations to the job on a daily basis. Deb’s favorite part of the work she does is the people and the reward of doing her part to return creek-side land to its natural habitat.
Artificial intelligence (AI) is often associated with futuristic visions of a world where robots and humans live together in peace—or not, depending on the scenario. Meanwhile, as the future unfolds, AI has become a ubiquitous and somewhat annoying buzzword that risks losing its meaning. So, what is AI anyway and why does your business need to know about it?