In San José, new development and construction are taxed for local and state purposes. The taxes are collected by the City’s Permit Center when the building permit is issued.

City Taxes
The City Council has imposed four construction-related excise taxes to fund specific City operations. These taxes are outlined in Chapter 4 of the Municipal Code and include exemptions for certain types of projects or projects in incentive zones. Links are provided below.

State Taxes
The State of California has imposed two construction-related excise taxes. Links are provided below for more information.

Tax	Tax Rate
Building & Structure Construction Tax (B&S) Chapter 4.46 of the Municipal Code This tax is based on the valuation of the project as assessed by Building Division Policy.	Tax Rate of Building Valuation Residential: 1 3/4% of 88% of Building Valuation (1.54%) Commercial: 1 1/2% of Building Valuation Industrial: 1.00%
Commercial, Residential, Mobile Home Park Construction Tax (CRMP) Chapter 4.47 of the Municipal Code This tax is based on the valuation of the project as assessed by Building Division Policy.	Tax Rate of Building Valuation Residential: 2 3/4% of 88% of Building Valuation (2.42%) Mobile Home Parks: 2.42% Commercial: 3.00%
Construction Tax Chapter 4.54 of the Municipal Code This tax is based on the number of new dwelling units or new floor area. See Chapter 4.54.050 for the specific tax schedule.	Tax Per Unit Residential: $75 - $150 Tax Rate of New Floor Area Commercial: $0.08 /sf Industrial: $0.08 /sf
Residential Construction Tax Chapter 4.64 of the Municipal Code This tax is based on the number of new dwellings or units. Chapter 4.64.050 outlines the range of fees that depend on the type of dwelling or unit.	Tax Per Dwelling or Unit Residential: $90 - $180
Strong Motion Instrumentation Program Assessment (SMIPA) California Strong Motion Instrumentation Program. This state tax funds the study of earthquakes. The tax is based on the valuation of the project. This is a State of California fee that the City collects and submits to the State.	Tax Rate of Building Valuation Residential: $.10/$1,000.00 (Revised 4/1/91) (.0001) Commercial: $.28/$1,000.00 (Revised 7/1/14) (.00028)
Building Standards Administration Special Revolving Fund (BSARSF) California Building Standards Commission. This state tax is for the purpose of carrying out the provisions of the State Building Standards Law and provisions of State Housing Law that relate to building standards. The tax is based on the valuation of the project. This is a State of California fee that the City collects and submits to the State at the rate of .004% of the Building Valuation.	Tax Rate of Building Valuation Residential and Commercial: $1 for every $25,000 of valuation, in $1 increments.