The Willow Glen Resident

Council Watch

S.J. Council OKs grace period for BID taxes

Nonpayers could get taken to court

By Rebecca Wallace

Members of the Willow Glen Business and Professional Association who haven't been paying their business improvement district taxes are going to have one last chance to pay up without further consequence.

On June 9, the San Jose City Council unanimously approved a proposal by District 6 Councilmember Frank Fiscalini to institute a two-week grace period during which time business owners can pay their back assessments.

Those who don't pay will either be turned over to a collections agency or taken to small claims court, said Fiscalini aide Michelle McGurk. The logistics of the amnesty period, including when it will start, will be worked out by the city's finance department, then must be approved by the WGBPA and the council.

"Willow Glen is a very friendly community, and we really wanted to promote that community atmosphere by giving everybody one last chance," McGurk said. "But it isn't fair to the other businesses in the BID to not pay. ...There's a huge promotional benefit to all the businesses."

Twenty-two current and former member businesses owe a total of about $7,300 in unpaid taxes, WGBPA manager Demetri Rizos said. Under state law, business owners can choose to form a business improvement district, charging themselves mandatory assessments. These go toward bettering the area.

Rizos said that he was pleased with the council's decision and emphasized the importance of sending out notices informing the delinquent businesses about the grace period.

However, he added, "The finance department does send them delinquent notices, so they know what's up. It's no surprise."

About one-third of the WGBPA's revenues come from the business assessment tax. Businesses pay between $120 and $500, depending on the type of business, and are included in special events such as Founders Day.

At the June 9 public hearing, the council also authorized the continuance of the Willow Glen BID, as well as San Jose's two other BIDs downtown and in Japantown.

Conne Shaw, executive director of the Japantown Business Association, said she has, along with the finance department, taken nonpaying business owners to small claims court. Japantown businesses are now up to full compliance, McGurk said.

Other cities have given amnesty for parking tickets and late library books.

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