Chapter 5.40
BEDROOM TAX
Sections:
5.40.010 Findings.
5.40.020 Definitions.
5.40.030 Applicability.
5.40.040 Tax imposed.
5.40.050 When due – Delinquent tax.
5.40.060 Exceptions.
5.40.070 Payment required.
5.40.080 Fund created.
5.40.090 Tax liability and enforcement.
5.40.100 Refunds.
5.40.010 Findings.
The city council finds that the increasing development of land in the city creates a need for the acquisition of public improvements and facilities, which cannot be met by the ordinary revenues of the city. The need for public property and public improvements and facilities results directly from the increase in density by the development of land that has been vacant, and by the construction of additional residential and commercial units on land heretofore undeveloped. The most practical and equitable method of collecting the funds necessary for such acquisition and public improvements and facilities is to impose a tax upon the construction and occupancy of residential and commercial units or buildings in the city. To the extent collection of this tax together with any other would constitute double taxation, the director of finance shall approve an appropriate reduction in the tax amount. (1991 code § 4-5.1)
5.40.020 Definitions.
As used in this chapter:
Bedroom means and includes a room designated or used for sleeping.
Commercial unit means any space in a building or structure designated or intended to be occupied or used for business or commercial purposes and includes a sleeping room in a hotel or motel without a kitchen or kitchen facilities.
Residential unit means a single-family dwelling, a mobile home, a dwelling unit in a duplex, apartment house, or dwelling group, or any other place designed for human occupancy which contains a kitchen. (1991 code § 4-5.2)
5.40.030 Applicability.
The tax imposed by this chapter applies to all new residential and commercial units or structures for which a building permit is issued on or after January 1, 1972. It also applies to structures which are constructed outside the city and then relocated into the city; provided, however, that payment of the tax to the city for any new prefabricated structure situated within a mobile home park, for which a city building permit is not required, shall be made concurrently with payment of the mobile home park sewer connection fee and shall be a condition precedent to the issuance of an encroachment permit. (1991 code § 4-5.3)
5.40.040 Tax imposed.
A. An excise tax is imposed upon the construction and occupancy of each residential unit and/or commercial unit in the city.
B. The rates of the excise tax imposed are as set by city council resolution. (Ord. 523 § 1, 1983; 1991 code § 4-5.4)
5.40.050 When due – Delinquent tax.
The tax due hereunder shall be determined at the time a building permit is sought for construction and the tax is due and payable concurrently with the application for the building permit. If the tax is not paid on or before the date the permit is issued, the tax becomes delinquent. When the tax becomes delinquent, there shall be added a penalty of 25% which shall hereupon become payable in the same manner as the tax. The tax and penalty shall bear interest at the rate of 0.5% per month or portion of a month until paid. (Ord. 523 § 1, 1983; 1991 code § 4-5.5)
5.40.060 Exceptions.
The tax imposed by this chapter does not apply to the following:
A. The construction and occupancy of a residential or commercial unit which is a replacement equivalent in size for a unit being removed from the same parcel of land;
B. The construction and occupancy of any building or unit by a bank, including national banking associations;
C. The construction and occupancy of a building by an insurer, as that term is defined in Article XIII, Sections 14-4/5, of the California Constitution;
D. The construction and occupancy of a building by a nonprofit corporation exclusively for religious, educational, hospital, or charitable purposes;
E. The construction and occupancy of a building by the federal, state, or a local government. (1991 code § 4-5.6)
5.40.070 Payment required.
A. Construction permit. No person may begin the construction of a residential or commercial unit or building in the city without first paying the tax.
B. Occupancy permit. No occupancy permit may be issued for, and no person may occupy or offer for occupancy, a residential or commercial unit or building in the city unless the tax imposed upon the construction and occupancy by this chapter is paid. (1991 code § 4-5.7)
5.40.080 Fund created.
There is created a fund entitled “Capital Outlay Fund for Acquiring, Constructing and Equipping of Public Property, Improvements, and Facilities.” The proceeds from the tax, penalty and interest collected under this chapter shall be paid into the fund. The fund shall be used only for the purpose of acquiring, building, improving, expanding and equipping public property, and public improvements and facilities. (1991 code § 4-5.8)
5.40.090 Tax liability and enforcement.
The tax is due from the person by or on behalf of whom a residential or commercial unit or building is constructed, whether the 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, penalty and interest due. The full amount due under this chapter is a debt to the city. The city may bring an action for the collection of it. (1991 code § 4-5.9)
5.40.100 Refunds.
The tax paid to the city under this chapter for a building or unit of a building 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 begun, and that the building permit issued for the building or unit is canceled or surrendered. (1991 code § 4-5.10)