Cupertino Municipal Code Ch. 3.32 Construction Tax

It is the purpose and intent of the City Council in enacting this chapter that there be an excise tax imposed on the construction of buildings and mobilehome lots in the City, which tax is imposed for the sole purpose of raising revenue for municipal purposes.

This chapter may be cited as the “Construction Tax Ordinance” of the city.

(Ord. 603, (part), 1974)

A. “Building” means any structure intended for the shelter, housing or enclosure, or all, of any person, animal or chattel.

B. “Construct,” as used in this chapter, means the putting together, assembling, erection or altering of construction materials, components or modules into a structure, or portion of a structure, and includes reconstructing, enlarging or altering any structure. “Construct” 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 land as a mobilehome lot.

C. “Dwelling unit” means a building or portion thereof used exclusively for residential occupancy by one family, with facilities for living and the cooking and/or preparation of food and includes a mobilehome or mobilehome lot. Individual facilities designed for group quarters shall be considered a “dwelling unit” irrespective of whether each living unit has facilities for cooking and/or preparation of food.

D. “Gross building area,” as used in this chapter, means the area of the several floors of a building included within the surrounding exterior walls of a building or portion thereof exclusive of noncommercial parking garages. Parking garages that obtain their primary source of income from the parking of vehicles for a fee shall be considered commercial parking garages. Other types of garages shall be considered noncommercial. The floor area of a building, or portion thereof, not provided with surrounding exterior walls shall be the usable area under the horizontal projection of the roof or floor above.

E. “Mobilehome,” as used in this chapter, means a vehicle designed and equipped for human habitation, including but not limited to travel trailers, camp cars, recreational vehicles, tent trailers, motor homes, etc.

F. “Mobilehome lot,” as used in this chapter, means any area or portion of a lot designated, designed, or used for the occupancy of one mobilehome on a temporary, semipermanent, or permanent basis.

G. “Person,” as used in this chapter, means any domestic stock company, partnership of any kind, joint venture, club, Massachusetts business or common law trust, society or individual.

H. “Structure,” as used in this chapter, means anything constructed which is supported directly or indirectly on the ground (at, above, or below the surface of the ground).

I. As used in this chapter, the terms “residential,” “commercial,” “office,” “industrial,” “hotel,” “motel” and “quasi-public,” have the same meanings as are defined in the General Plan and zoning ordinances of the City, as well as administrative interpretations thereof.

(Ord. 1224, § 1(A), 1983; Ord. 603, (part), 1974)

An excise tax, at the rates set forth in this chapter, is hereby imposed upon every person who constructs, or causes to be constructed, any building, or portion thereof, or any mobilehome lot, in the City, in which said person has an equity or title or other interest either as an owner, lessee or otherwise.

(Ord. 603, (part), 1974)

The rates of the tax imposed are as follows:

Mixed use projects shall be assessed based upon the area devoted to each use category outlined above, as determined by the Chief Building Official of the City. The tax rates described above do not include cost of living rate adjustments made since 1983 as mandated by Section 3.32.045 of this chapter.

(Ord. 1723,1996; Ord. 1224, § 1(B), 1983; Ord. 603, (part), 1974)

Each of the base tax rates described in Section 3.32.040 of this chapter shall be adjusted by the Chief Building Official of the City, on a quarterly basis, up or down, by the percentage change in the latest publication of the “All Urban Consumers All Items” index published by the United States Department of Labor, Bureau of Labor Statistics. From the effective date of this chapter, the first such adjustment shall occur on October 1, 1983 and thereafter on the first day of each quarter thereafter. A current written listing of each of the adjusted tax rates shall be kept posted in at least two public places in the City Hall of the City.

(Ord. 1224, § 1(C) (part), 1983)

A. The amount of tax imposed for the construction of any building, or portion thereof, residential units or mobilehome lots are due and payable at the time building permits are issued.

B. There shall be a refund of the tax in the event the permit expires or is revoked before construction begins on facilities for which the tax has been imposed.

(Ord. 1529, 1990; Ord. 1224, § 1(C) (part), 1983; Ord. 603, (part), 1974)

The tax imposed under this chapter shall be paid to the Treasurer of the City or his authorized agent.

(Ord. 1063, 1980; Ord. 603, (part), 1974)

A. Circumstances under which a full or partial payment of the excise tax shall be exempted are listed as follows:

1. The construction of a residential dwelling unit which is a replacement for a unit being removed from the same lot or parcel;

2. The construction of an addition to an existing residential dwelling unit; provided, that the addition does not result in the creation of an additional residential dwelling unit;

3. Any construction by the City, the United States or any agency or instrumentality thereof, the State or any county, city and county, district or any political subdivision of the State, or any other governmental agency;

4. Reconstruction of a building which was damaged or destroyed by earthquake, fire, flood, or other cause over which the owner had no control (provided that compliance with any building code or other ordinance requirement of the City or of any other applicable law shall not be deemed a cause over which the owner has no control), but only if the number of dwelling units in the building is not increased and the number of square feet in the building devoted to any use other than dwelling unit is not increased. If the number of dwelling units in the building and/or the number of square feet in the building devoted to any use other than dwelling unit use is increased, then the tax imposed under this chapter shall apply to such increased number of dwellings and/or such increased floor area;

5. The construction of any below market rate residential dwelling unit as defined by the general plan of the City;

6. The construction of any residential rental dwelling unit development for handicapped persons as defined by the general plan of the City;

7. The construction of meeting or convention rooms in association with the construction of hotel/motel facilities.

B. Nothing in this chapter shall be construed as imposing a tax upon any person when imposition of such tax upon that person would be in violation of the Constitution of the United States or that of the State.

(Ord. 1224, § 1(D), 1983; Ord. 603, (part), 1974)

All of the construction taxes collected pursuant to the provisions of this chapter, including all construction taxes collected under previous ordinances, shall be placed in the general fund of the City to be used for the usual and current expenses of the City.

(Ord. 1224, § 1(E), 1983; Ord. 715, § 1, 1975; Ord. 603, (part), 1974)