Click to Home
Go To Search
Planning Building and Code Enforcement
CommunityBusinessVisitorsGovernmentEnvironment
San Jose Home
Contact Us
Permit Center
200 E. Santa Clara Street
Tower, 1st Floor
San José, CA 95113

Phone: 408-535-3555

Hours of Service
Development Construction Taxes
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, or for a copy of the Municipal Code sections relating to construction taxes, contact the City Clerk's office at (408) 535-1260.

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: 1.54%
Commercial: 1.50%
Industrial: 1.00%

Commercial-Residential-Mobilehome Park Building 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: 2.42%
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.
Tax Rate of Building Valuation
Residential: 0.00010%
Commercial: 0.00021%
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.
Tax Rate of Building Valuation
Residential and Commercial:
$1 for every $25,000 of valuation,
in $1 increments.