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THE SCCAOR MINUTE 01.17.2018

Highlights from this SCCAOR Minute
Click here to register for the February 9th General Membership Meeting
Click here to request a free headshot appointment
Click here to purchase tickets for the January 26th SCCAOR Installation

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Jodee Sousa joins SCCAOR as Marketing and Events Coordinator

The Santa Clara County Association of REALTORS® is pleased to announce the hiring of Jodee Sousa as Marketing and Events Coordinator. In this role, she will be responsible for managing all of the Association’s events.

“I am really excited to be on the SCCAOR Team,” said Sousa. “I’m looking forward to bringing my experience to the Association to produce amazing, member-focused events.”

To learn more about the events that SCCAOR will be hosting in 2018, you can view this schedule. We also encourage you to check out this YouTube playlist of videos from previous SCCAOR events.

“We are pleased to bring Jodee on board,” said SCCAOR CEO Neil Collins. “She has already proved to be a great addition and I am confident that she will strengthen our Association and bring great value to our members.”

In her spare time, Jodee enjoys spending time with her family and friends, cooking and attending street fairs.  “The year isn’t complete without a visit, or two, to my Happy Place, Disneyland, for a churro and corn dog,” she said.

SCCAOR REALTORS® Donate Toys and Pajamas to Local Foster Children

On December 19th, members of the Santa Clara County Association of REALTORS® collected toys and pajamas for KAFPA of Santa Clara County, who will distribute them to adoptive & foster families in Santa Clara County. Thank you to all of our members who came out and helped support a great cause!

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San Jose Business License Tax Changes

Important changes have been made to the San José business tax , which was approved by San José voters on November 8, 2016 (Measure G). The approved changes took effect on July 1, 2017 and impact REALTORS, brokers, and rental property owners of single family homes and duplexes.

The City’s business tax was first adopted in 1963, and the methodology for calculating the current business tax was first adopted in 1984. The current rates had not been increased since 1986. Last year, more than 65% of San José voters approved the business tax increase, Measure G and new rates at the November 2016 election.

The adjustments to the business tax that took effect on July 1, 2017, include:

  • Increasing the base tax from $150 to $195.
  • Increasing the incremental tax and making it more progressive
  • Increasing the cap (the maximum amount of the tax affecting large businesses)
  • Updating the application of the tax to more classes of businesses
  • Adding inflation-based adjustments for future tax rates

ONLINE REGISTRATION AND PAYMENT

Businesses are able to register and pay their business tax online. More information can be found on the “Make a Payment” website.

VOTER APPROVED CHANGES TO THE BUSINESS TAX

  • The charts on the Business Tax Rates page represent the structure of the current and voter-approved business tax rates effective July 1, 2017.
  • Addition of a Financial Hardship Exemption for Small Business Owners with Limited Household Income
  • San José currently allows for several exemptions for the payment of the current business tax based on the poverty level guidelines established by the U.S. Department of Health and Human Services. The HHS poverty level is currently set at $12,060. Since the cost of living in the Bay Area is greater than the national average, the City Council approved an income threshold at two times (2X) the annual level established by the HHS which is $24,120. This hardship exemption is applied based on business income regardless of total household income.
  • As part of the modernization, San José voters approved adding an additional exemption category for small business owners with limited household incomes. A small business can be exempt where the adjusted gross income of the small business owner does not exceed four times (4X) the annual poverty level established by the HHS. This threshold would be based on a household income of $48,240.

 

Extended Deadline to Register a New Residential Landlord Business — Now December 15, 2017

New residential landlords of one or two rental units will now pay the San José business tax for the first time as of July 1, 2017. The City Council established a grace period until December 15, 2017, so that these residential landlords can apply for and secure a valid business tax certificate from the City and pay the business tax without incurring penalties and interest. If the payment of the business tax is made after December 15, 2017, then interest and penalties will accrue retroactively to July 1, 2017.

 

Frequently Asked Questions:

How do I register my Business in San Jose?
Register your business online by clicking here.

How do I access paper forms?

For pdf forms, including Residential Rental Property Registration and Broker Declaration of Employed Sales Agents Please click here.

Do I qualify for a hardship exemption from the Business Tax?

You may also declare a hardship exemption by using the forms here. Businesses Exempt from the tax are sole proprietorships and small businesses with no employees with gross receipts less than $24,120 or household income below $48,240.

Who does the business tax apply to?

Rental Property Owners of all types, including room rentals, short term rentals, single family rentals and duplex rentals. Brokers, and their Agents are also responsible for the tax along with other small businesses.

What about Room Rentals?

If you rent a room in your home for long term rentals you will have to register as 1 unit. If it is a short term rental like Airbnb you will also have to register.

What are the costs?

$195 base cost. $30 per employee or agent under a broker beginning at the 3rd employee. No charge for the first two employees or agents. The rates for rental units are similar with the first two rental units having no additional costs with an added $10 per unit cost for owners of 3 – 35 rental units. Learn more about the business tax rates here.

What are the fines?

Each annual business tax payment is due and payable on the 15th day of the calendar month in which the business began.Should the tax remain unpaid by the due date, a penalty of 25% is assessed. Should the tax remain unpaid for a period exceeding one calendar month beyond the due date, an additional 25% penalty is assessed. The interest rate of 1.5% a month will also be assessed on unpaid tax and penalties.

How far back can they go back and fine you for past years?

If you are a business owner that owes a business tax before the implementation of Measure G, the city of San Jose will require retroactive payments and fines for unpaid taxes going back to January 2014.

If you are a business newly impacted by the business tax ordinance under Measure G, you have until December 15, 2017, to register your business with no fine or late fees.

Is the city is not notifying rental property owners and businesses of their new obligations under measure G?

The City of San Jose has not undergone proactive measures other than their usual communications channels.

For further questions and more information go to  www.sanjoseca.gov/businesstax or call the San Jose Department of Finance at (408) 535-7055.

SCCAOR General Membership Meeting Recap

The SCCAOR General Membership Meeting was held on Thursday, November 30th, 2017. It featured updates on the California Association of REALTORS® Tax Portability Campaign, as well as other C.A.R., NAR, MLS, and local Government Updates.

C.A.R. is embarking on a historic effort to increase homeownership opportunities. They want to qualify an initiative for the November 2018 ballot which will allow senior homeowners (55 years of age and older) to keep all or most of their Proposition 13 property tax savings when they move.

Jim Harrison, President/Chief Executive Officer, MLSListings, Inc., gave an industry update and a preview of some upcoming offerings from MLSListings. You can view his slideshow here.

Dave Walsh, 2018 C.A.R. Treasurer, discussed the proposed Tax Portability Initiative that C.A.R. hopes to qualify for the November 2018 election. You can view a copy of Dave’s notes here.

Watch the archived live stream from the event here:

Live at the SCCAOR General Membership MeetingFeaturing a discussion about the C.A.R. Tax Portability Initiative, as well as C.A.R., NAR, MLS, and local Government Affairs updates.

Posted by Santa Clara County Association of REALTORS® on Thursday, November 30, 2017

THE SCCAOR MINUTE 12.01.2017

Highlights from this SCCAOR Minute
Click here to learn about C.A.R.’s Tax Portability Initiative
Click here to register for the Membership Appreciation Holiday Party
Click here to buy tickets for the 2018 SCCAOR Installation Event
Click here to pay your 2018 dues