Financial hardship exemption for small business owners with limited household incomes.
San José Municipal Code § 4.76.345.5
in effect4.76.345.5 - Financial hardship exemption for small business owners with limited household incomes.
A. A small business owner shall be exempt from the payment of any business tax imposed under the provisions of this chapter where the adjusted gross income of the small business owner and the small business owner's spouse or domestic partner, as applicable, added together do not exceed the poverty level for the calendar year in which the business tax is due, and the small business owner satisfies each of the requirements set forth in Subsection C., below.
B. For the purposes of this section:
1. The term "poverty level" means the income amount established by the U.S. Department of Health and Human Services as the poverty guideline for a single person multiplied by four for the calendar year in which the business tax is due. In the event the U.S. Department of Health and Human Services discontinues publication of poverty guidelines, the director shall use as a reference poverty population statistics published by either the state or a federal department or agency that the director determines to be comparable in assessing the eligibility for the exemption under this section.
2. The term "adjusted gross income" means adjusted gross income as defined by the Internal Revenue Code of the United States and the regulations established therewith.
C. A small business owner is eligible for an exemption in accordance with the provisions of Subsection A., provided that:
1. The exemption request is filed with the director on or before the date the business tax is due; and
2. The exemption request is made upon a form provided therefor by the director, stating under penalty of perjury that it is anticipated that the adjusted gross income of the small business owner and his or her spouse or domestic partner, as applicable, added together will be at or below the poverty level for the calendar year in which the business tax is due.
D. The director shall have the right to examine and audit all the books and records of the small business owner, including state and federal income tax returns or other documentation of adjusted gross income deemed adequate by the director, in order to determine the eligibility of the small business owner for the exemption. If the director determines that the small business owner was not entitled to an exemption previously issued, then the business tax for such calendar year shall be due within thirty days of notification by the city. If the business tax is not paid on or before the thirtieth day, penalties and interest shall accrue pursuant to Section 4.76.290.
E. No exemption shall be allowed if the small business owner refuses to allow examination of his or her books and records, including either state or federal income tax returns or other documentation of adjusted gross income deemed adequate by the director, after requested by the director to do so.
F. Any decision of the director made under this section shall be final.
(Measure G (Ord. 2016.2), adopted by electorate, 12-13-16)
Source: City of San José, Municipal Code (Municode Library, library.municode.com)URL: https://library.municode.com/ca/san_jose/codes/code_of_ordinances?nodeId=TIT4REFIBUTA_CH4.76BUTA_PT2GETAPR_4.76.345.5FIHAEXSMBUOWLIHOINFetched: 11/1/2026