Beverly Hills Municipal Code Art. 7 Parks and Recreation Facilities Tax

This tax shall be known as the PARKS AND RECREATION FACILITIES CONSTRUCTION TAX OF THE CITY OF BEVERLY HILLS. (1962 Code § 8-9.02)

There is hereby imposed for revenue purposes on the owner and any person constructing any new building, or rebuilding, remodeling, or renovating any existing building as provided in section 3-1-703 of this article, a tax in the amount of three dollars seventy five cents ($3.75) for each square foot of floor area. (1962 Code § 8-9.04)

Where a building is partially or completely demolished or removed, all floor area which is constructed to replace that which is demolished or removed from the building or structure shall be subject to the taxes imposed by this article. For the purposes of this article, floor area shall be considered as being demolished or removed when the structural floor materials are removed or when fifty percent (50%) or more of the exterior walls surrounding a floor in any story is demolished or removed. (1962 Code § 8-9.06)

The provisions of this article shall not apply to the construction of the following:

A. Accessory buildings permitted in residential zones;

B. Houses of worship;

C. Any building or structure, or any portion thereof, used for parking;

D. Governmental buildings and structures;

E. The portion of a building developed in accordance with the provisions of title 10, chapter 3 of this code for the housing of the elderly and/or the handicapped designated and reserved for very low, low or moderate income households as defined under state law; provided, however, if such designated and reserved portion should be used for any other purpose or if any designated and reserved units are occupied by households which do not qualify under the definitions of very low, low or moderate income households, this exemption shall not apply and taxes for the exempted portion shall be payable immediately upon such change of use.

F. Private schools which comply with the requirements contained in California Education Code section 48222, or its successor.

G. The portion of a building developed and reserved exclusively to provide housing for very low, low or moderate income households provided all of the following criteria are satisfied:

1. The building or a portion thereof is used exclusively to house very low, low or moderate income persons as defined by section 50093 of the California Health And Safety Code or any successor statute. The occupant(s) of the dwelling unit shall annually submit an affidavit and documentation satisfactory to the director of planning and community development that their household income meets the applicable income limits established by the state of California.

2. The maximum rent charged for any dwelling unit designated and reserved for very low, low or moderate income households does not exceed thirty percent (30%) of the area median income adjusted for household size.

3. Prior to the issuance of the certificate of occupancy for the building, the owner of the property executes and files a covenant running with the land with the city building official for recording with the county recorder. Said covenant shall be approved by the city attorney and shall state that the building or a portion thereof shall be used only for residences for very low, low or moderate income persons as defined by state law for a period of not less than fifteen (15) years from the date the final certificate of occupancy is issued. In addition, the covenant shall provide that, subject to any limitations imposed by paramount federal or state law, during said fifteen (15) year term very low, low or moderate income Beverly Hills residents shall be given priority on occupying the building (or a portion thereof) reserved for very low, low or moderate income households. The covenant shall further state that if the building or any portion thereof is used for any other purpose or is occupied by households which do not qualify under the applicable definitions of very low, low or moderate income households prior to the expiration of the fifteen (15) year term, the exemption provided by this section shall not apply and all taxes imposed by this article for the exempted unit shall be due and payable immediately upon such change of use or occupancy.

For the purposes of this section, in any building where only a portion of the dwelling units are designated and reserved for residences for very low, low or moderate income households, the exemption provided by this section will include the floor area for the exempted dwelling units as well as a pro rata share (based on the percentage of exempt units to total units) of the floor area for any and all common areas in the building to which the tax imposed by this article applies. (1962 Code § 8-9.08; amd. Ord. 89-O-2065, eff. 7-6-1989; Ord. 89-O-2077, eff. 11-16-1989; Ord. 02-O-2419, eff. 1-17-2003)

The tax imposed by the provisions of this article shall be due and payable upon issuance of any building permit. (1962 Code § 8-9.07)

The tax shall be calculated based on the floor area of plans submitted for a building permit. "Floor area" for purposes of this section shall be as defined in section 10-3-100 of this code. Where a field survey indicates that the floor area subject to the tax exceeds the floor area upon which the tax was calculated and paid, any additional taxes shall be due and payable prior to final city approval, or occupancy, whichever occurs first. (1962 Code § 8-9.05)

Any tax paid to the city pursuant to the provisions of this article for any building which is not constructed shall be refunded upon application of the payor. Application for such refunds shall be made within one year of expiration or cancellation of the building permit for entitlement to a refund. (1988 Code)

All taxes collected under the provisions of this article shall be held in a separate fund of the city and shall be used solely for the acquisition, improvement or expansion of public parks or recreational facilities. (1962 Code § 8-9.03)