Interest and penalties.
San José Municipal Code § 4.52.340
in effect4.52.340 - Interest and penalties.
A. Service suppliers.
1. Taxes collected from a telephone subscriber which are not remitted to the director by the service supplier by the due dates provided in this chapter, or taxes that a service supplier willfully refuses to bill or remit pursuant to Section 4.52.370, are delinquent.
2. Penalties for delinquency in remittance of any taxes collected pursuant to this Chapter 4.52 shall attach, and be paid by the service supplier required to remit, in accordance with the provisions of Section 1.17.130 of Chapter 1.17 of Title 1 of this Code.
3. The director shall have power to impose additional penalties upon service suppliers required to collect and remit tax amounts under the provisions of Section 1.17.140 for fraud or intentional material misrepresentation or omission in reporting or remitting up to one hundred percent (100%) of the amount of the taxes collected or as recomputed by the director.
4. Every penalty imposed under the provisions of this subsection shall become a part of the taxes required to be remitted to the city.
5. In addition to the penalties imposed in this subsection, interest shall be payable on any delinquency tax payment, in accordance with Section 1.17.150 of Chapter 1.17 of Title 1 of this Code.
B. Extension of time. Upon receipt of a written request of a service supplier or telephone subscriber, and for good cause, the director may extend the time for filing any statement required pursuant to this chapter for a period of not to exceed forty-five (45) days, provided that the time for filing the required statement has not already passed when the request is received. No penalty for delinquent payment shall accrue by reason of such extension. Interest shall accrue during said extension at the rate set forth in Chapter 1.17 of Title 1, until paid.
C. Waiver of penalties and interest. The director shall waive the first penalty of ten (10) percent imposed upon a service supplier if:
1. The service supplier applies to the director for such a waiver no later than thirty (30) days from the date the remittance was due to the city; and
2. The service supplier has made timely payments for (a) the five (5) years immediately prior to the date the remittance was due to the city; or (b) the two (2) years immediately prior to the date the remittance was due to the city if it has supplied, transported, or delivered the service fewer than five (5) years; and
3. The service supplier provides evidence satisfactory to the director that:
a. Payment of the delinquent remittance was postmarked or received by the city no more than three (3) days after its due date; or
b. The service supplier mistakenly made payment to a party other than the city on or prior to the date that payment was due to the city, and paid the delinquent remittance and accrued interest owed the city prior to applying to the director for a waiver; or
c. Failure to pay timely was due to circumstances beyond the control of the service supplier and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, and the service supplier paid the delinquent remittance and accrued interest owed the city prior to applying to the director for a waiver.
4. The waiver provisions specified in this subsection C shall not apply to interest accrued on the delinquent payments.
D. Telephone subscribers.
1. Whenever the director determines that a telephone subscriber has willfully withheld the amount of the tax owed by the subscriber from the amounts remitted to a service supplier or that a telephone subscriber has failed to pay the amount of the tax for a period of two (2) or more billing periods, or whenever the director deems it is in the best interest of the city, the director shall relieve the service supplier of the obligation to collect taxes due under this part from certain named telephone subscribers for specified billing periods and collect the taxes directly from the telephone subscriber.
2. Penalties shall attach for willful withholding of the amount of the tax owed from the amounts remitted to a service supplier, or failure to pay any taxes imposed by this chapter to the service supplier in accordance with the provisions of Section 1.17.130 of Chapter 1.17 of Title 1 of this Code.
3. In addition to the penalties imposed in this subsection, any telephone subscriber who fails to remit taxes and penalties within thirty (30) days of the date the City of San José mails notification that the city has assumed responsibility for the collection of taxes due for specified billing periods, shall pay interest on the amount of the tax, in accordance with Section 1.17.150 of Chapter 1.17 of Title 1 of this Code, from the date on which the tax first became delinquent to the service supplier until payment in full is received by the director, plus such additional collection charge for each delinquent account as may be set by resolution of the city council.
4. The penalties, interest and collection charges imposed in this subsection shall not be collected by the service supplier, but shall be determined and collected by the city.
5. Every penalty imposed and such interest as accrues under the provisions of this subsection shall become a part of the tax herein required to be paid.
(Measure J (Ord. 2008.1), adopted by electorate, 12-9-08)
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_CH4.52TELITA_PT3COTA_4.52.340INPEFetched: 11/1/2026