Chapter 3.12
PROPERTY DEVELOPMENT TAX
Sections:
3.12.030 Imposition of Excise Tax.
3.12.070 Tax Liability—Enforcement.
3.12.080 Payment Required for Commencing Construction.
3.12.090 Payment Required for Occupancy.
3.12.110 Disposition of Proceeds—Fund Created.
3.12.010 Policy.
The City Council finds that the rapid development of land in the City of Newport Beach has created a need for public improvements and facilities consisting of fire stations and fire-fighting equipment, public City libraries and public City parks, which cannot be met by the ordinary revenues of the City. The need for such improvements results directly from the increase in density in the City by the development of land that has heretofore been vacant and by construction of additional residential, commercial and industrial units on land heretofore developed. The most practical and equitable method of collecting the funds necessary to provide such public improvements is to impose an excise tax upon the construction and occupancy of residential, commercial and industrial units or buildings in the City. (Ord. 1091 (part), 1964: 1949 Code § 6800)
3.12.020 Definitions.
For the purpose of this chapter, the words defined in this section shall have the meanings assigned to them unless from the context it appears that a different meaning is intended.
Residential Unit. The term “residential unit” shall mean a single family dwelling, a dwelling unit in a duplex, apartment house or dwelling group, and any other place designed for human occupancy which contains a kitchen, and any space in a mobilehome park designed or intended for a house trailer, mobilehome, camper or similar vehicle.
Commercial Unit. The term “commercial unit” shall mean any space in a building or structure designed or intended to be occupied or used for business or commercial purposes, including sleeping rooms in hotels and motels without kitchens or kitchen facilities.
Industrial Unit. The term “industrial unit” shall mean any space in a building or structure designed or intended for manufacturing, processing, research, warehousing and similar uses.
Mobilehome Park. The term “mobilehome park” shall mean any area where one or more lots or spaces are rented or held out for rent to be occupied by a house trailer, mobilehome, camper or similar vehicle. (Ord. 1091, 1964: 1949 Code § 6801)
3.12.030 Imposition of Excise Tax.
A. Tax Imposed. An excise tax is hereby imposed upon the construction and occupancy of each residential unit, commercial unit, industrial unit, and mobilehome park in the City in the amount of twenty-one cents ($.21) per square foot of gross floor area for all classes of new construction, including any area in a building designed for the parking of vehicles.
B. Due Date. The amount of the tax due hereunder shall be determined at the time a building permit is sought for the construction of residential, commercial or industrial units or buildings, or for the construction or reconstruction of any mobilehome park, and the full amount of the tax shall be due and payable concurrently with the application for such permit. If such tax is not fully paid on or before the due date the permit is issued, the tax or the amount thereof not paid shall thereupon become delinquent.
C. Delinquency, Penalty, Interest. There shall be added to the tax for any unit or so much of the tax as becomes delinquent a penalty of twenty-five percent (25%), which shall thereupon become payable in the same manner as the tax. The tax and penalty shall bear interest at the rate of .75 of one percent per month until paid. (Ord. 1739 § 1, 1977: Ord. 1672 § 1, 1976: Ord. 1615 § 1, 1975: Ord. 1567 § 1, 1974: Ord. 1467 § 1, 1972: Ord. 1339 § 1, 1970: Ord. 1294 § 1, 1969: Ord. 1091, 1964: 1949 Code § 6802)
3.12.035 Excise Tax Credit.
The City Council may in its discretion grant a total or partial credit against the building excise tax where a dedication of land and/or improvements thereto is offered in conjunction with the construction of the residential, commercial or industrial units. (Ord. 1472 § 1, 1972)
3.12.040 Operative Date.
The tax imposed by this chapter shall apply to the construction and occupancy of all residential, commercial, industrial units, and mobilehome parks for which a building or construction permit is issued on or after the effective date of this ordinance. (Ord. 1467 § 2, 1972: Ord. 1091 (part), 1964: 1949 Code § 6803)
3.12.060 Exemptions.
There is excluded from the tax imposed by this chapter the following:
A. The construction and occupancy of any building or unit by any bank, including national banking associations pursuant to Article XIII, Section 27 of the Constitution of the State of California.
B. The construction and occupancy of any building by an “insurer” as that term is defined in Article XIII, Section 28 of the Constitution of the State of California.
C. The construction and occupancy of any building by a nonprofit corporation exclusively for religious, educational, hospital or charitable purposes.
D. The construction and occupancy of any building by the United States or any department or agency thereof or by the State of California or any department, agency or political subdivision thereof.
E. The reconstruction of any structure destroyed by fire, flood, earthquake or other disaster to the extent that the square footage of the reconstruction does not exceed the square footage of the area destroyed. (Ord. 1662 § 1, 1976: Ord. 1091 (part), 1964: 1949 Code § 6805)
3.12.070 Tax Liability—Enforcement.
The taxes imposed by this chapter are due from the person by or on behalf of whom a residential, commercial or industrial unit or building or a mobilehome park is constructed, whether such person is the owner or a lessee of the land upon which the construction is to occur. The Director of Finance shall collect the tax and any penalty and interest due hereunder. The full amount due under this chapter shall constitute a debt to the City of Newport Beach. An action for the collection thereof may be commenced in the name of the City in any court having jurisdiction of the cause. (Ord. 1091 (part), 1964: 1949 Code § 6806)
3.12.080 Payment Required for Commencing Construction.
No person shall begin the construction of any residential, commercial or industrial unit or building or any mobilehome park in the City without first having paid the tax and any penalty and interest due the City under this chapter. (Ord. 1091 (part), 1964: 1949 Code § 6807)
3.12.090 Payment Required for Occupancy.
No occupancy permit shall be issued for, and no person shall occupy or offer for occupancy, any residential, commercial or industrial unit or building or any space in a mobilehome park in the City unless the tax and any penalty and interest imposed upon the construction and occupancy thereof by this chapter have been paid. (Ord. 1091 (part), 1964: 1949 Code § 6808)
3.12.100 Refunds.
Any tax, penalty or interest paid to the City under this chapter for any building or unit of a building or mobile home park which is not constructed shall be refunded upon application of the taxpayer and a showing to the satisfaction of the Director of Finance that the building or unit has not been constructed or construction commenced and that the building permit issued for the building or unit has been canceled or surrendered or otherwise does not authorize the construction of the building or unit. (Ord. 1091 (part), 1964: 1949 Code § 6809)
3.12.110 Disposition of Proceeds—Fund Created.
All proceeds from the tax, penalty and interest collected under this chapter shall be paid into a special capital outlays fund of the City entitled “Capital Outlays Fund for Acquiring, Constructing and Equipping of Fire Stations, Libraries and Parks,” which fund is created. The fund shall be used only for the purpose of acquiring, building, improving, expanding and equipping City fire stations, City libraries and City parks. (Ord. 1091 (part), 1964: 1949 Code § 6801)