The City encourages voluntary participation in the Business Cooperation Program (BCP), which is an opportunity for businesses to provide the biggest positive impact in the Santa Clara community with their qualifying purchases.

Background

For background, Use Tax is a tax on the storage, use, or consumption of a taxable item or service on which no sales tax has been paid. For purchases where use tax is applicable, the local portion – which is the amount the City of Santa Clara receives – is 1% of the total purchase price. Unless appropriate paperwork is filed, the local portion is not directed in total to the City of Santa Clara and the City receives only a small fraction of the local tax paid.

By participating in BCP, businesses or construction contractors file paperwork with the State of California with large value purchases, indicating that their project site is in the City of Santa Clara. Items such as technology equipment, steel, elevators, electrical and HVAC systems, and glass would be likely applicable purchases.

Benefits

By participating, businesses pay no additional amount in tax; however, participation in the BCP program ensures that the appropriate amount of local use tax paid (the full 1% of the purchase dollar value) actually gets to the City of Santa Clara.

The revenue received from BCP supports city services such as public safety, libraries, community centers, and parks.

The City of Santa Clara appreciates your business and your commitment to help our community. This is not a mandatory program and does not impact your ability/rights to obtain services in Santa Clara.

Get Started

If you have purchases associated with a construction project, equipment, or other items you think could qualify, please contact Reena Brilliot, Assistant Director of Community Development.
RBrilliot@santaclaraca.gov

We will be happy to provide technical assistance to facilitate your participation in BCP.