Chapter 3.08
DWELLING UNIT CONSTRUCTION TAX

Sections:

3.08.010    Title.

3.08.020    Purpose.

3.08.030    Definitions.

3.08.040    Exemptions.

3.08.050    Imposition—Amount.

3.08.060    Payment—When.

3.08.070    Payment—Where.

3.08.080    Refunds.

3.08.090    Credits.

3.08.100    Park and recreation facilities fund—Established.

3.08.010 Title.

This tax shall be known as the “dwelling unit construction tax” of the city. (Prior code § 2575)

3.08.020 Purpose.

The council of the city finds that the continued increase in the development and construction of dwelling units in the city has created an urgent need for the planning, acquisition, improvement and expansion of public parks, playgrounds and other recreation facilities to serve the city’s increasing population, and that there exists a need to find sources of revenues with which to finance in part these required additional public facilities. The council declares that the taxes required to be paid under this chapter are assessed pursuant to the taxing power of the city, are assessed solely for the purpose of producing revenue, and are not enacted for regulatory purposes. (Prior code § 2576)

3.08.030 Definitions.

The following words and phrases whenever used in this chapter shall be construed as defined in this section:

A. “City” means the city of San Luis Obispo, California.

B. “Condominium” means an estate in real property consisting of an undivided interest in common in a portion of a parcel of real property together with a separate interest in space in an apartment building on such real property. A condominium may include in addition a separate interest in other portions of such real property.

C. “Construct” means the putting together, assembling, erecting or altering of construction materials, components or modules into a structure, or portion of a structure, and includes reconstructing, enlarging or altering any structure. Construct also includes the moving and locating of a building, or portions thereof, onto a lot or parcel of land, and also includes the improvement of land as a mobile home park.

D. “Dwelling unit” means a separate single family habitation structure or unit. Dwelling unit includes:

l. A single-family dwelling;

2. Each separate apartment or habitation unit comprising a multiple-dwelling structure or condominium; and

3. Each space or pad designed and allocated to accommodate a mobile home within a mobile home park.

E. “Mobile home” means a vehicle designed and equipped for human habitation, including, but not limited to, travel trailers, camp cars, recreational vehicles, tent trailers, motor homes, etc.

F. “Mobile home park” means any area or tract of land where one or more mobile home lots are rented or leased or held out for rent or lease to accommodate mobile homes used for human habitation.

G. “Mobile home space” means any area or portion of a mobile home park designated, designed, or used for the occupancy of one mobilehome on a temporary, semipermanent or permanent basis.

H. “Park and recreational facilities’ means and includes, but is not limited to, land and interests in land, swimming pools, tennis and volleyball and basketball courts, baseball grounds, children’s play areas, turf, sprinkler systems, community center buildings, recreation buildings, and other works, properties, structures and facilities necessary or convenient for public park, playground and recreation purposes; and also including any of the facilities described in this subsection constructed in or installed within or upon any public school grounds where city is given a right to use the same for public playground or recreation purposes.

I. “Person” means any domestic or foreign corporation, firm, association, syndicate, joint stock company, partnership of any kind, joint venture, Massachusetts business or common law trust, society, club or individual. (Prior code § 2577)

3.08.040 Exemptions.

The tax imposed under this chapter shall not apply to the following:

A. The city, the United States or any agency or instrumentality thereof, the state or any county, city and county, district or any political subdivision of the state, or any other governmental agency;

B. Construction of any building, intended and used exclusively to house the elderly or handicapped, which is constructed for and operated by a foundation, agency or entity which, pursuant to Article 13, Section 1c of the State Constitution, has been granted a property tax exemption by the State Legislature;

C. Enlargement, remodeling and/or alteration of a building, but only if the number of dwelling units therein is not increased. If the number of dwelling units in the building is increased, then the tax imposed under this chapter shall apply to such increased number of dwelling units;

D. Reconstruction of a building which was damaged or destroyed by earthquake, fire’ flood or other cause over which the owner has no control (provided that compliance with any building code or other ordinance requirement of the city shall not be deemed a cause over which the owner has no control), but only if the number of dwelling units therein is not increased. If the number of dwelling units in the building is increased, then the tax imposed under this chapter shall apply to such increased number of dwelling units;

E. Replacement of any building on the same lot, if construction of the new building is commenced within twelve months from the date the previous building was substantially removed from the lot, but only if the number of dwelling units therein is not increased. If the number of dwelling units in the building is increased, then the tax imposed under this chapter shall apply to such increased number of dwelling units;

F. Any habitation unit within a structure designed, constructed and used exclusively for transient occupancies as defined in Section 3.04.020; provided, however, the tax imposed under this chapter shall apply to the conversion of an existing building, or part thereof, from a transient occupancy use to a dwelling unit;

G. Nothing in this chapter shall be construed as imposing a tax upon any person when imposition of such tax upon that person would be in violation of the Constitution of the United States or that of the state of California. (Prior code § 2578)

3.08.050 Imposition—Amount.

There is hereby imposed an excise tax upon every person who constructs, or causes to be constructed, any new dwelling unit or mobile home space in the city in which the person has an equity or title or other interest either as owner, lessee or otherwise. The tax imposed by this section shall be at the rate of one hundred fifty dollars per dwelling unit.

A. The tax imposed by this section shall be imposed regardless of whether the new dwelling unit is created by new construction or by modification of existing structures, or by conversion from a different use.

B. The tax imposed shall apply to new mobile home park spaces regardless of whether they are part of a new mobile home park or an addition to an existing park. (Prior code § 2579)

3.08.060 Payment—When.

A. Payment of the tax imposed by Section 3.08.050 shall be made at the time of, and shall be a condition precedent to:

1. The issuance of a building permit for the construction of any such dwelling unit; or

2. The issuance of a construction permit for a mobile home park; or

3. The issuance of an occupancy permit for the conversion of an existing building from a transient occupancy use to a dwelling unit, where such conversion does not involve construction or modification of the building.

B. For all dwelling units, the tax imposed by this chapter shall be in addition to the fee required to be paid as a condition to the issuance of any permit or other entitlement, and no permit or other entitlement shall be issued until the tax is paid.

C. Where taxes imposed by this chapter have not previously been paid, any extension of time granted on a building permit shall, for the purposes of this chapter, be deemed the issuance of a new building permit and the taxes imposed by this chapter shall be paid prior to the granting of any such extension. (Prior code § 2580)

3.08.070 Payment—Where.

The tax imposed by this chapter shall be paid to the director of finance at the Office of the Department of Finance of the city in the City Hall. (Prior code § 2581)

3.08.080 Refunds.

A tax paid under this chapter for the construction of a new dwelling unit which is not built is refundable. A refund shall be made upon application of the taxpayer to the director of finance and upon taxpayer’s showing that the construction of the new dwelling unit has not been commenced and the building permit issued therefor has expired, has been cancelled, or has been revoked. Application must be made within one year from the cancellation, expiration or revocation of the building permit. Provided, however, no refund shall be made when a dwelling unit is converted to a use other than as a dwelling unit, or when a dwelling unit is damaged or destroyed. In addition, no refund shall be made for mobile home spaces upon final approval of the construction permit for a mobile home park. (Prior code § 2582)

3.08.090 Credits.

Where, as a condition of approval of a subdivision of land which includes the land whereon the new dwelling unit is to be constructed, a person required to pay the tax created by this chapter has paid a fee or has dedicated land, or both, to the city pursuant to the provisions of this code, or has voluntarily paid such a sum or dedicated such land, or both, would have been required by such code, if applicable, the person shall be allowed as a credit against the tax the amount of the fee so paid or the fair market value of the land so dedicated or a combination of both. As used in this chapter “fair market value” means the value of the particular land for which credit is claimed as established pursuant to Section 16.04.080. A credit shall be allowed where the fee has been paid or the land has been dedicated, or a combination of both has been provided to the city by a prior owner of the land upon which the new dwelling unit is to be constructed. Provided, however, that in no event shall the amount of credit exceed the amount of tax. (Prior code § 2583)

3.08.100 Park and recreation facilities fund—Established.

There is established a park and recreational facilities fund. All of the sums collected pursuant to this chapter shall be credited to the park and recreation facilities fund and together with any accumulations thereon shall be used solely for the planning, acquisition, improvement or expansion of public par};, playground or other recreation facilities, or, for refunds due under Section 3.08.080. (Prior code § 2584)