Carpinteria Municipal Code Ch. 3.08 New Construction Tax

Footnotes:

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For statutory provisions authorizing cities to impose license tax on contractors, see Gov. Code § 37101.7.

The taxes imposed by this chapter are assessed pursuant to the taxing power of the city and are solely for producing revenue to the city for its ordinary and necessary expenses.

(Prior code § 8600)

Persons required to pay a tax for transacting and carrying on the business of construction under this chapter shall not be relieved of the regulatory provisions of this code and the other regulatory ordinances of the city, but no other business license tax or fee imposed solely for the purpose of raising revenues shall be required to be paid for the privilege of doing business covered by this chapter.

(Prior code § 8601)

The following terms, as used in this chapter, shall be defined as follows:

A. "Building floor area" means the aggregate area for all floors and levels of the building or structure encompassed by the exterior walls of the building or structure. "Building floor area" shall not include any portion of the building or structure under the roof overhang, eave extension or buttress not encompassed by the exterior walls of the building or structure.

B. "Community apartment" means an undivided interest in the land is coupled with the right of exclusive occupancy of any dwelling unit located thereon. For the purposes of this chapter, community apartments will be subject to the same tax as condominiums.

C. "Condominium" means an estate in 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 real property, such as a residence, apartment, apartment house, office or offices and store or stores. A condominium may include, in addition, a separate interest in other portions of such real property.

D. "Condominium project" means and includes the creation, production, conversion into, or subdivision to create any condominium, community apartment, condominium cluster development, condominium trailer park or other similar form of structure or ownership.

E. "Dwelling unit" means and includes each single-family dwelling and each habitation unit of an apartment, duplex or multiple-dwelling structure designated as a separate place for habitation of a family, as that term is defined in the Carpinteria building codes and ordinance. "Dwelling unit" also includes each "guestroom" or condominium designed as a separate habitation for one or more persons.

F. "Permanent" living or sleeping quarters means those quarters differentiated from others by nonpayment of transient occupancy tax.

G. "Person" means and includes every person, firm or corporation engaging in construction activities or condominium projects itself or through the services of any employee, agent or independent contractor.

H. "Trailer space" means each space, area or building in a trailer park or mobile home park or other place, designed or intended as a place to accommodate any modular unit, mobile home, trailer or van, bus or vehicle or moving unit, when the same is being used as permanent living or sleeping quarters for human beings.

(Prior code § 8602)

The business license taxes collected pursuant to this chapter are for the ordinary and necessary expenses of the city including without limitation, the acquisition, development and maintenance of parks, recreational areas and open spaces. Subject to the foregoing, the business license taxes collected pursuant to this chapter shall be held by the city in a capital improvement fund for park and recreational purposes. Unless otherwise directed by the city council, the use of such fund shall be restricted to:

A. Purchase of land and interest in land;

B. Development of parks and buildings for use thereon;

C. Acquisition and development of other varieties of open space;

D. Acquisition and development of parkways and median islands.

(Prior code § 8615)

In addition to any other fee or fees prescribed in this municipal code, every person constructing any new dwelling unit or new trailer space in the city shall pay, as a business license tax, to the city, the sum of five hundred dollars for each new dwelling unit or trailer space. No such tax provided by this section shall be paid for any dwelling unit or trailer park for which the tax has been paid pursuant to Section 3.08.060.

(Prior code § 8603)

A condominium business license tax is imposed solely for revenue purposes and in addition to any other fee or fees prescribed in this municipal code on every person developing or constructing condominium projects, whether of new construction or of conversion from an existing building, in the sum of five hundred dollars per dwelling unit, or in the case of condominium trailer park, for each trailer space.

(Prior code § 8604)

The taxes provided by this chapter shall not be applicable to:

A. Any residential subdivision required to dedicate land and/or pay a park and recreation facilities fee pursuant to Chapter 16.24 of this code; or

B. Any dwelling unit or condominium project, or new construction, which constitutes the replacement of any such unit or project by reason of fire, earthquake, flood or other destruction by natural causes; provided, however, that no exemption shall be applicable to the taxes imposed by Section 3.08.060 where, in the process of reconstruction or replacement, a change in the type of ownership takes place so as to create a condominium project where none previously existed.

(Ord. 524 § 1, 1996: prior code § 8607)

Except for buildings and structures taxed under Sections 3.08.050 and 3.08.060 and building and structures accessory to such taxed buildings and structures, a new construction business license tax is imposed on each and every new building or structure or every person developing or constructing a new building or structure, in the sum of $0.045 per square foot of the building floor area of such building or structure. The tax imposed by this section is solely for revenue purposes and is in addition to any other fee or fees prescribed in the municipal code.

(Prior code § 8605)

A. Except as provided in subsection C of this section, taxes imposed by Section 3.08.050 shall be due and payable prior to issuance of a building permit for construction of any such dwelling unit or addition to a building creating another dwelling unit.

B. Taxes imposed by Section 3.08.060 shall be due and payable on:

1. The approval of the final subdivision map by the city;

2. At or prior to the issuance of the building permit (if any); or

3. Upon the change of legal ownership of the property for the purpose of a condominium project, whichever first occurs.

C. In addition, such fees shall be due and payable for each mobile home, modular unit or trailer used for permanent habitation, upon approval of a conditional use permit by the city. Such permit shall be so conditioned as to include the exact amount that is due and payable.

D. Any conditional use permit, variance, planned unit development zoning, development plan or subdivision map approval shall be conditional on the payment of the taxes imposed by this chapter.

E. The taxes imposed by Section 3.08.080 shall be due and payable prior to issuance of a building permit for construction of any such new building or structure.

(Prior code § 8606)

No permit for building, construction, demolition, grading, subdividing, condominium construction, condominium conversion, variance, conditional use or occupancy shall be granted unless the business license taxes provided for in this chapter are paid. Notwithstanding other provisions of law, no occupancy permit may be obtained under any circumstances until the tax has been paid.

(Prior code § 8612 (part))

A certificate of occupancy is required for the occupancy of any condominium, new or conversion, or any new dwelling unit or trailer space. Separate occupancy permits may be granted upon separate payment of the required tax.

(Prior code § 8612 (part))

In the event that the construction of new dwelling units, new construction, new trailer spaces or condominium projects, as the case may be, is abandoned before substantial work has begun, the tax paid will be refunded to whomsoever paid the tax, upon payee's filed statement that he has so abandoned the project and upon his relinquishment of the licenses, fees and permits for the same; provided, further, that in the event of such refund, it is unlawful for any person to proceed in any way with further development or to attempt to sell any unit of the same without first applying for and receiving all applicable licenses and permits on the payment of all applicable taxes. No refund shall be made unless applied for within six months of the payment of the same; provided, however, the city council may extend the time of application prior to the end of the six-month period.

(Prior code § 8608)

It is unlawful to engage in, permit, suffer or assist in the development or construction of, or to occupy, any new construction, condominium project, trailer space or dwelling unit for which a tax, as provided in this chapter, has not been paid.

(Ord. 378 § 2, 1985: prior code § 8609)

In the event the taxes are failed to be paid as provided in this chapter, the city clerk shall notify the developer and the assessed owner of the land (as shown on the last equalized assessment roll) that they are in violation and that if there is not a hearing requested within five days, a lien will be filed against the property being developed for the full amount of the tax. In the event that a hearing is demanded, a properly noticed public hearing will be set within ten days of such request before the city clerk, at which time evidence may be presented to contest the lien. The contestant will have a right to call witnesses and to cross examine witnesses of the city. The obligation to pay the tax and the amount of the tax owed will be determined prior to filing said lien.

(Prior code § 8610)

The city clerk shall, upon the determination that the tax is due, deliver to the county auditor and record with the county recorder a notice of lien substantially in the following form:

NOTICE OF LIEN

Pursuant to the authority vested in me by Sections 8.08.140 and 8.08.150 of the municipal code, I did cause a hearing to be held on the _______ day of _______ , 19___, which date was within ten (10) days after receiving request for said hearing and more than five (5) days after mailing notice of said hearing to all interested parties, to ascertain why a tax lien should not be imposed upon the hereinafter described property for nonpayment of a required tax, _______ of which _______ is still unpaid and owing; and having determined at said hearing that said amount is owed to the City of Carpinteria, said City hereby does claim a lien on said real property until the said sum has been paid in full and discharged of record, and said sum shall be collected in the same manner and at the same time as are the taxes for said City on said real property and subject to the same penalties and procedures to foreclose.

The real property herein mentioned and upon which a lien is claimed, is that certain piece or parcel of land in the City of Carpinteria, County of Santa Barbara, State of California, and particularly described as follows to wit:

(Description of Property)

DATED this _______ day of _______, 20___.

(Prior code § 8611)

Upon the payment of the taxes provided by this chapter or upon abandonment of the project and its substantial reversion to its prior status, the city clerk shall, within ten days of his receipt of the tax or his receipt of notice and verification of abandonment and revision to its prior status, file with the county recorder and the county auditor a "release of lien" for any lien recorded as provided in Section 3.08.150.

(Prior code § 8614)

The remedies for failure to pay the taxes provided by this chapter are supplementary to any other remedy provided by law for the failure to pay a business license tax and are also cumulative both with regard to each remedy provided by this chapter and each remedy provided by law.

(Prior code § 8613)

The new construction tax imposed by this chapter may be waived by the city council in total or in part if, in the judgment of the city council, it is found that the public interest will be served by such waiver. Waivers shall only be considered upon written application by the person or persons subject to the tax requesting such waiver and after consideration by the city council at a regularly scheduled meeting. Although not exclusive, it is intended that such waiver shall be considered for public or nonprofit tax exempt organizations.

(Ord. 298 § 1, 1981)

Payment of all taxes, assessments, and interest shall be required as a condition precedent to seeking judicial review of the validity or application of any such taxes, assessments, or interest imposed by the city pursuant to this Chapter 3.08.

(Ord. No. 709, § 1, 2-22-2016)