East Palo Alto Municipal Code Ch. 3.40 Construction Tax

There is established and imposed a construction tax in the amount set forth in the ordinance codified in this chapter for the purpose of raising revenues for the general governmental purposes of the city. All of the proceeds of the tax levied under this chapter shall be placed in the city's general fund.

(Ord. 124 § 1, 1990)

For the purposes of this chapter, the following words and phrases shall have the meanings respectively ascribed to them in this section, unless the context or the provision clearly requires otherwise:

"Building" means any structure used or intended for supporting or sheltering any use or occupancy.

"Construct" means to put together, assemble, erect or alter any materials, components or modules into a structure or portion of a structure, and shall include the moving and locating of any building or portion thereof onto a parcel of land.

"Floor area" means the total floor space under roof of all floors of a building measured to the outside surfaces of exterior walls, including halls, stairways, shafts, ducts, service and mechanical equipment rooms, and areas capable of being used, as determined by the city.

"Structure" means that which is built or constructed, an edifice or building of any kind, or any piece of work artificially built up or composed of parts joined together in some definite manner.

(Ord. 124 § 2, 1990)

A. Imposition of Tax. A tax is imposed upon every person who constructs or causes to be constructed any building or structure in the city in which such person has an equity or title or other interest, as owner, lessee or otherwise.

B. Tax Rate. The rate of the tax imposed by this chapter shall be one dollar and fifty cents ($1.50) per square foot of floor area of the building or improvements to be constructed. For the purpose of implementing this chapter, the city council may adopt regulations to establish methods and procedures for determining the floor area subject to taxation hereunder.

(Ord. 124 § 3, 1990)

No tax shall be imposed under this chapter in any of the following cases:

A. The alteration, improvement or remodeling of any existing residential structure; or

B. The reconstruction of a residential structure damaged or destroyed by fire or other casualty; or

C. Any construction performed by any governmental agency; or

D. Any construction performed by any person when the imposition of a tax on that person would be in violation of the Constitution of the United States or the Constitution of the state of California.

(Ord. 124 § 4, 1990)

The tax imposed by this chapter shall be collected at the time a building permit is issued for construction of the improvements which are the subject of the tax.

(Ord. 124 § 5, 1990)

In the event a building permit is issued and such permit thereafter expires or is canceled without any construction work having been performed thereunder, an amount equal to seventy-five (75) percent of the tax paid for issuance of such permit shall be refunded, without interest, to the person who paid the tax, or his successor in interest, upon application for such refund being filed within sixty (60) days after the date of expiration or cancellation of the building permit. Failure to apply for a refund within the time prescribed in this section shall constitute a waiver of the right to a partial refund of the tax.

(Ord. 124 § 6, 1990)