Imposition of tax - Amount.
San José Municipal Code § 4.59.100
in effect4.59.100 - Imposition of tax - Amount.
A. In addition to the Real Property Conveyance Tax imposed under Chapter 4.58 of this Code and the requirements set forth therein, a general tax is also hereby imposed on each transfer, by deed, instrument or writing, by which any lands, tenements, or other real property sold, located in the City, are or is granted, assigned, transferred or otherwise conveyed to, or vested in, a purchaser or purchasers thereof, or any other person or persons at or by the direction of said purchaser or purchasers, when the total value of the consideration exceeds $1,999,999.99 (the "Exemption Threshold").
B. When the total value of the consideration is $2,000,000 or greater, the tax shall be applied to the total value of the consideration at one of the following rates:
1. Where the total value of the consideration is $2,000,000 to $5,000,000, the tax rate imposed on the total value of the consideration, including but not limited to the value of the consideration equal to or less than $1,999,999.99, shall be 0.75%;
2. Where the total value of the consideration is $5,000,000.01 to $10,000,000, the tax rate imposed on the total value of the consideration, including but not limited to the value of the consideration equal to or less than $5,000,000, shall be 1.0%; or
3. Where the total value of the consideration is greater than $10,000,000, the tax rate imposed on the total value of the consideration, including but not limited to the value of the consideration that is equal to or less than $10,000,000, shall be 1.5%.
C. The Exemption Threshold above shall automatically be adjusted, commencing July 1, 2025, and every five (5) years thereafter, if the cost of living in the City has increased over the preceding five (5) year base period as shown by the CPI Index. For purposes of this Section, the base period for the first adjustment period commencing on July 1, 2025 shall be the CPI Index reported for December 31, 2019 to December 31, 2024. The base period for each subsequent adjustment period thereafter shall be December to December, unless otherwise determined by the Director. The Director shall publish the Exemption Threshold as adjusted no later than April 30 prior to the July 1 date on which the adjustment to the Exemption Threshold becomes effective.
D. In the event the CPI Index is no longer published, the Director shall use as a reference another index published by either the State of California or a federal department or agency that is charged with the responsibility of measuring the cost of living in the geographical area that includes the City, County of Santa Clara or the San Francisco Bay Area, as applicable. In the event that the State of California or a federal department or agency that is charged with the responsibility of measuring the cost of living commences publication of an index specific to the geographical area that includes the City or the County of Santa Clara, the Director shall be authorized to use this index to calculate the adjustment to the Exemption Threshold. For ease of administration, adjustments to the Exemption Threshold shall be rounded to the nearest $100,000.
E. Where the CPI Index shows a reduced cost of living in the City, the Exemption Threshold (as adjusted) shall be automatically reduced commensurate therewith, but in no event shall the Exemption Threshold (as adjusted) be reduced to an amount lower than $1,999,999.99.
F. Nothing contained in this Section shall prevent the City Council, at any time, from increasing the Exemption Threshold to an amount greater than $1,999,999.99 or to an amount greater than the Exemption Threshold as adjusted by the CPI Index.
G. As used herein, "value of the consideration" means the total consideration, valued in money of the United States, paid or delivered or contracted to be paid or delivered in return for the transfer of real property, including the amount of any indebtedness, existing immediately prior to the transfer which is secured by a lien, deed of trust or other encumbrance on the property transferred and which continues to be secured by such lien, deed of trust or encumbrance after said transfer, and also including the amount of any indebtedness which is secured by a lien, deed of trust or encumbrance given or placed upon the property in connection with the transfer to secure the payment of the purchase price or any part thereof which remains unpaid at the time of the transfer. "Value of the consideration" also includes the amount of any special assessment levied or imposed upon the property by a public body, district or agency, where said special assessment is a lien or encumbrance on the property and the purchaser or transferee agrees to pay such special assessment or takes the property subject to the lien of such special assessment. The value of any lien or encumbrance of a type other than those which are hereinabove specifically included, existing immediately prior to the transfer and remaining after said transfer, shall not be included in determining the value of the consideration. If the value of the consideration cannot be definitely determined, or is left open to be fixed by future contingencies, "value of the consideration" shall be deemed to mean the fair market value of the property at the time of transfer after deducting the amount of any lien or encumbrance, if any, of a type which would be excluded in determining the value of the consideration pursuant to above provisions of this Section.
(Res. 79325.)
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_CH4.59REPRTRTA_4.59.100IMTAMOFetched: 11/1/2026