Chapter 3.24
CONSTRUCTION TAX*
Sections:
3.24.010 Short title.
3.24.020 Purpose – Authority.
3.24.030 Definitions.
3.24.040 Imposition of tax.
3.24.050 Exemptions.
3.24.060 Fee rates.
3.24.070 Tax credit for public dedication of real property.
3.24.080 Payment of tax.
3.24.090 Disposition and use of revenue.
3.24.100 Refunds.
3.24.110 Appeals.
*See also SMC Title 14, Buildings and Construction.
3.24.010 Short title.
The ordinance codified herein shall be known as the "construction tax ordinance," and the tax imposed shall be known as the "construction tax". (Ord. 463 § 1, 1973).
3.24.020 Purpose – Authority.
A. The construction of buildings in the city for new or expanded residential, commercial, and industrial land uses, with the attendant increase in the city’s population, has created the need for public facilities in addition to those which may be provided by existing sources of city revenue. The purpose of the tax levied is to provide funds for public capital improvements, including the planning, acquisition, improvement, and expansion of parks, recreational facilities, open spaces, public safety facilities, public works facilities, and other public facilities.
B. The council of the city declares that the tax required to be paid is assessed pursuant to the taxing power of the city and solely for the purpose of producing revenue. (Ord. 463 § 2, 1973).
3.24.030 Definitions.
For the purpose of this chapter, the words defined herein shall have the meanings assigned to them, unless the context requires otherwise:
A. "Bedroom" means any room designed or intended for sleeping purposes;
B. "Building" means any structure having a roof supported by columns or by walls and designed for the shelter or housing of any persons, animals, or chattel;
C. "Commercial or industrial building" means any building other than a single-family dwelling, duplex, or multiple dwelling;
D. "Construction" 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. Construction also includes the moving and locating of a building, or portion thereof, onto a lot or parcel of land, and also includes the improvement of a mobilehome lot to prepare it for occupancy, where the mobilehome lot was not previously suitably constructed for occupancy;
E. "Duplex" means a building containing not more than two kitchens, designed and/or used to house not more than two families, living independently of each other, including all necessary employees of each such family;
F. "Dwelling unit" means a building or part of a building, designed for or used to house not more than one family, including all necessary employees of such family;
G. "Family" means one or more persons occupying a premises and living as a single housekeeping unit, as distinguished from a group occupying a hotel, club, fraternity or sorority house. A family shall be deemed to include necessary servants;
H. "Mobilehome" means a vehicle designed and equipped for human habitation, including, but not limited to, travel trailers, camp cars, recreational vehicles, tent trailers, motor homes, and other such vehicles;
I. "Mobilehome lot" means any area designated, designed, improved, or used for the occupancy of one mobilehome on a temporary, semipermanent, or permanent basis;
J. "Multiple dwelling" means a building or portion thereof used and designed as a residence for three or more families living independently of each other, and doing their own cooking in the building, including apartment houses, apartment hotels and flats, but not including automobile courts;
K. "Person" includes every association, firm, corporation, syndicate, joint stock company, partnership of any kind, joint venture, Massachusetts business or common law trust, society, or individual;
L. "Single-family dwelling" means a building designed for or used to house not more than one family, including all necessary employees of such family;
M. "Structure" means anything constructed or erected, the use of which requires location on the ground or attachment to something having location on the ground. (Ord. 463 § 3, 1973).
3.24.040 Imposition of tax.
A tax is imposed, at the rates and in the manner herein set out, upon every person who constructs, or causes to be constructed, any building, or portion thereof, or improves any mobilehome lot, in the city, in which the person has an equity or title or other interest either as owner, lessee or otherwise. (Ord. 463 § 4, 1973).
3.24.050 Exemptions.
The tax imposed herein shall not apply to the following:
A. Any construction by the United States of America, the state of California, any county, city and county, city, district, or any political subdivision of the state of California, any other governmental agency, or any agency or instrumentality of any of the foregoing;
B. Any construction by any bank, including national banking associations;
C. Any construction by an insurer as that term is defined in Article XIII, Section 14 4-5 of the Constitution of the state of California;
D. Any construction by a nonprofit corporation, which construction is to be used exclusively and directly for religious, educational, hospital, or charitable purposes;
E. The construction of any building, or portion thereof, or mobilehome lot which is a replacement for a unit being removed from the same lot or parcel of land on which the construction is to take place. The exemption shall equal but not exceed the tax which would be payable hereunder if the unit being replaced were being newly constructed. Development of the property to a higher use than previously existed shall require full payment of the tax as though no structure had previously been on the property. (Ord. 463 § 5, 1973).
3.24.060 Fee rates.
The rates of the fees imposed by this chapter are as follows:
A. Single-Family Dwelling Construction:
For each dwelling constructed with
one bedroom $410.00
For each dwelling constructed with
two bedrooms $478.00
For each dwelling constructed with
three bedrooms $614.00
For each dwelling constructed with
four or more bedrooms $614.00
B. Multiple-Family Dwelling and Duplex
Construction:
For each dwelling unit constructed
with one bedroom $410.00
For each dwelling unit constructed
with two bedrooms $478.00
For each dwelling unit constructed
with three bedrooms $614.00
For each dwelling unit constructed
with four or more bedrooms $614.00
C. Additions and Alterations to Dwelling:
For each additional bedroom $68.00
D. Mobilehome Lot Construction:
For each mobilehome lot
constructed $152.00
E. Commercial and Industrial Building
Construction:
For each square foot of building area
constructed $0.19
F. Additions to Commercial and Industrial
Buildings:
For each square foot of building area
added $0.19
(Ord. 86-17 § 1, 1986; Ord. 83-6 § 1, 1983; Ord. 82-14 § 1, 1982; Ord. 78-9 § 1, 1978; Ord. 463 § 6, 1973).
3.24.070 Tax credit for public dedication of real property.
Upon application by any person liable for payment of taxes under this chapter and after review by the planning commission, the city council may grant a credit for all or part of the tax due under this chapter, in consideration of real property and/or improvements to real property, in fee simple to the city. (Ord. 463 § 7, 1973).
3.24.080 Payment of tax.
The full amount of the tax levied, based upon the construction of any building, part thereof, or mobilehome lot, shall be paid prior to the issuance of a building permit for such construction. (Ord. 463 § 8, 1973).
3.24.090 Disposition and use of revenue.
The revenue collected pursuant to this chapter shall be deposited in any city capital improvement fund and may be used for any purpose for which moneys may legally be expended from any such fund. (Ord. 463 § 9, 1973).
3.24.100 Refunds.
Any tax paid to the city under this chapter, based upon the construction of any building, part thereof, or mobilehome lot, which is not constructed, shall be refunded upon application of the taxpayer and a showing to the satisfaction of the public works director that the construction has not been completed or commenced, and that the building permit issued for the construction has been canceled or surrendered or otherwise does not authorize the construction upon which the tax was based. (Ord. 463 § 10, 1973).
3.24.110 Appeals.
Any decision of the public works director relating to the refund of the tax paid under this chapter, or of the building official relating to the amount of the tax due under this chapter, may be appealed to the city council for redetermination upon the application of any person applying for a refund, or being assessed the tax imposed by this chapter. (Ord. 463 § 11, 1973).