The Willow Glen Resident

Council Watch

Councilman offers grace period for BID taxes

Unpaid taxes total around $10,000

By Cecily Barnes

When representatives of the Willow Glen Business and Professional Association appear before the San Jose City Council on June 9, District 6 Councilmember Frank Fiscalini will make a recommendation that if approved may help funnel long overdue money into the association.

The councilman will propose an amnesty period during which Willow Glen businesses that are delinquent on their business improvement district taxes can pay them without further consequence. The idea is to offer a final friendly opportunity to pay up. Once the period is up, things will get serious.

Between 25 and 32 member businesses owe a total of $10,000 in unpaid taxes, said business manager Demetri Rizos. The length of the amnesty period has not yet been determined.

"The intention is that whoever doesn't take advantage of the amnesty will get taken to the next step," said Michelle McGurk, aide to Councilmember Fiscalini. "If they don't pay at that point, they will get turned over to collections or small claims court."

The Council will vote on this proposal June 9. If approved, the logistics of the amnesty period will be handled by the city Finance Department.

The June 9 public hearing is also a chance to review what the WGBPA accomplished over the year, listen to any complaints and reauthorize the continuance of the BID.

"It's the opportunity for businesses to speak up if they have some problem with BID assessment," said Susan Arpan, BID manager with the city's Office of Economic Development. "It's usually very positive and very quick. The councilperson from the area generally says a few words and then there's a brief talk by the president of the association."

WGBPA president David Machado says he supports the idea of an amnesty period. "It wouldn't be fair for you to operate a business along the Avenue, be taking advantage of the benefits of the association and not be paying your taxes when the guy next door is paying his fees," Machado said. "It would be like me not paying taxes, but when my house catches on fire, the fire department still comes."

One-third of the business association's revenues come from the business assessment tax. Retail businesses pay $240 annually, nonretail shops pay $120 and banks pay $500. In return, members are included in special events, such as quarterly mixers, Dancing on the Avenue and Founders Day.

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