East Palo Alto Municipal Code Art. III Parcel Tax

For purposes of this article only, the following terms shall be defined as set forth below:

"Building" shall mean any structure having a roof supported by columns or by walls and designed for the shelter or housing of any person, chattel or property of any kind. The word "building" includes the word "structure."

"Disabled person" shall mean any person who is determined to be totally disabled as a result of a determination by the Social Security Administration.

"Family" shall mean one or more persons related by blood, marriage, domestic partnership, or adoption, who are living together in a single residential unit and maintaining a common household. Family shall also mean all unrelated persons who live together in a single residential unit and maintain a common household.

"Hotel" shall mean as defined by East Palo Alto Municipal Code Section 3.68.020.

"Multiple residential unit parcel" shall mean a parcel zoned for a building, or those portions thereof, that accommodates or is intended to contain two or more residential units.

"Nonresidential" shall mean all parcels that are not classified by this chapter as residential parcels, and shall include, but not be limited to, industrial, commercial and institutional improvements, whether or not currently developed.

"Occupancy" shall be as defined by East Palo Alto Municipal Code Section 3.68.020.

"Operator" shall be as defined by East Palo Alto Municipal Code Section 3.68.020.

"Owner" shall mean the person having title to real estate as shown on the most current official assessment role of the San Mateo County Assessor.

"Parcel" shall mean a unit of real estate in the City of East Palo Alto as shown on the most current official assessment role of the San Mateo County Assessor.

"Person" shall mean an individual, firm, partnership, joint venture, association, social club, fraternal organization, joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate, or any other group or combination acting as a unit.

"Possessory interest" as it applies to property owned by any agency of the Government of the United States, the State of California, or any political subdivision thereof, shall mean possession of, claim to, or right to the possession of, land or improvements and shall include any exclusive right to the use of such land or improvements.

"Residential unit" shall mean a building or portion of a building designed for or occupied exclusively by one family.

"Senior citizen" shall mean a person sixty-five (65) years of age or older.

"Single-family residential parcel" shall mean a parcel zoned for single-family residences, whether or not developed.

"Transient" shall mean any individual who exercises occupancy of a hotel or is entitled to occupancy by reason of concession, permit, right of access, license or other agreement for a period of thirty (30) consecutive calendar days or less, counting portions of calendar days as full days. Any individual so occupying space in a hotel shall be deemed to be a transient until the period of thirty (30) consecutive days as elapsed.

(Ord. No. 298, pt. 3.1, 2-20-2007)

There is hereby imposed a special tax on all owners of parcels in the City of East Palo Alto for the privilege of using municipal services and the availability of such services. The tax imposed by this section shall be assessed on the owner unless the owner is by law exempt from taxation, in which case, the tax imposed shall be assessed to the holder of any possessory interest in such parcel, unless such holder is also by law exempt from taxation. The tax is imposed as of July 1 of each year on the person who owned the parcel on that date.

The tax hereby imposed shall be at the following rates, subject to annual adjustment as provided in subsection C of this secton:

A. For owners of all single-family residential parcels, the tax shall be at the annual rate of one hundred dollars ($100.00) per parcel.

B. For owners of all multiple residential unit parcels, the tax shall be at the annual rate of seventy-five dollars ($75.00) per occupied residential unit. Owners of units that are vacant for six months or more per year, may apply to the director of finance to have the rate reduced by fifty (50) percent to thirty-seven dollars and fifty cents ($37.50) per vacant residential unit located on the parcel.

C. The tax for a nonresidential parcels is calculated using both frontage and square footage measurements to determine total single family residential unit equivalents. A frontage of eighty (80) feet for a commercial/industrial parcel, for example, is equal to one single-family resident unit equivalent (see matrix). An area of six thousand four hundred (6,400) square feet for the commercial industrial parcel is equal to one single-family resident unit equivalent. The tax is the annual rate fifty dollars ($50.00) multiplied by the total number of single-family equivalents (determined by the frontage and square footage).

Example: assessment calculation for an owner of a commercial parcel with a frontage of 160 feet and an area of 12,800 square feet:

D. The tax for an undeveloped parcel is fifty (50) percent of the single-family residential unit equivalent rate.

(Ord. No. 298, pt. 3.2, 2-20-2007)

The tax imposed by this chapter shall be imposed on each hotel within the city in accordance with the following:

A. Residential hotels. If rooms in a hotel were occupied by individuals who were not transients for eighty (80) percent or more of the previous fiscal year, such hotel shall be deemed a residential hotel, and such rooms shall be deemed residential units and shall be subject to the parcel tax imposed on multiple residential units. The remainder of the building shall be subject to the applicable square footage tax computed in accordance with the single-family residential unit equivalent calculations.

B. Transient hotels. Notwithstanding the previous subsection, if eighty (80) percent or more of the operator's gross receipts for the previous fiscal year were reported as rent received from transients on a return filed by the operator in compliance with Chapter 3.68 of the East Palo Alto Municipal Code (commonly known as the Transient Occupancy Tax of the City of East Palo Alto), such hotel shall be deemed a transient hotel. The entire building shall be deemed a nonresidential parcel, categorized as commercial, institutional, and shall be subject to the square footage and single-family residential unit equivalent calculations set forth in subsection 3.69.130.C, and the parcel tax imposed on residential units shall not apply.

(Ord. No. 298, pt. 3.3, 2-20-2007)

It shall be the duty of the director of finance to collect and receive all taxes imposed by this chapter, and to keep an accurate record thereof.

The director of finance is charged with the enforcement of this chapter, except as otherwise provided herein, and may prescribe, adopt, and enforce rules and regulations relating to the administration and enforcement of this chapter, including provisions for the re-examination and correction of returns and payments. The director of finance may prescribe the extent to which any ruling or regulation shall be applied without retroactive effect.

Upon disallowing any claims submitted pursuant to this chapter, the director of finance shall mail or cause to be mailed written notice thereof to the claimant at his/her address as shown on the San Mateo County Assessor's property tax rolls.

(Ord. No. 298, pt. 3.4, 2-20-2007)

The director of finance or his/her designee is hereby authorized to examine assessment rolls, property tax records, records of the San Mateo County Recorder and any other records of the County of San Mateo deemed necessary in order to determine ownership of parcels and computation of the tax imposed by this chapter.

The director of finance or his/her designee is hereby authorized to examine the books, papers and records of any person subject to the tax imposed by this chapter for the purpose of verifying the accuracy of any petition, claim or return filed and to ascertain the tax due. The director of finance or his/her designee is hereby authorized to examine any person, under oath, for the purpose of verifying the accuracy of any petition, claim or return filed or to ascertain the tax due under this chapter and for this purpose may compel the production of books, papers and records before him/her, whether as parties or witnesses, whenever s/he believes such persons have knowledge of such matters. The refusal of such examination by any person subject to the tax shall be deemed a violation of this chapter.

(Ord. No. 298, pt. 3.5, 2-20-2007)

The city hereby authorizes the taxes imposed by this chapter to be collected by the County of San Mateo in conjunction with and at the same time and in the same manner as the county's collection of property taxes for the city.

(Ord. No. 298, pt. 3.6, 2-20-2007; Ord. No. 304, § 1.2, 7-3-2007)

Editor's note— Ord. No. 304, § 1.3, adopted July 3, 2007, repealed § 3.69.180, entitled "Collection of unpaid taxes" and derived from: Ord. No. 298, pt. 3.7, adopted Feb. 20, 2007.

Whenever the amount of any tax, penalty, or interest imposed by this chapter has been paid more than once, or has been erroneously or illegally collected or received by the city, it may be refunded provided a verified claim in writing therefore, stating the specific ground upon which such claim is founded, is filed with the director of finance within one year from the date of payment. The claim shall be filed by the person who paid the tax or such person's guardian, conservator of the executor of her or his estate. No claim may be filed on behalf of other taxpayers or a class of taxpayers. The claim shall be reviewed by the director of finance and shall be made on forms provided by the director of finance. If the claim is approved by the director of finance, the excess amount collected or paid may be refunded or may be credited against any amounts then due and payable from the person from who it was collected or by whom paid, and the balance may be refunded to such person, his/her administrators or executors. Filing a claim shall be a condition precedent to legal action against the city for a refund of the tax.

(Ord. No. 298, pt. 3.8, 2-20-2007)

A. Qualification for exemption. Any senior citizen property owner may qualify for an exemption from the tax imposed by this chapter by establishing, to the satisfaction of the city's director of finance, that the owner of the household subject to the tax is sixty-five (65) years of age or older. A disabled person is also eligible for such exemption.

B. Application for exemption. Applications for an exemption pursuant to this section shall be submitted to the city's director of finance on such form as he/she shall prescribe. The application shall be accompanied by such evidence as the director of finance deems necessary to determine eligibility for the exemption. No fee shall be charged for filing or processing the application.

C. Granting of exemption. Upon a determination by the director of finance that the applicant qualifies for an exemption by reason of being senior citizen property owner or is totally disabled, the director of finance shall issue to the applicant a certificate of exemption and cause the tax to be removed from the applicant's property tax bill. In the event the tax, or any portion thereof, has already been paid, the city shall refund such payment to the applicant.

D. Expiration and renewal of exemption. An exemption pursuant to this section may be granted for a period of one year. The exemption may be renewed for additional one-year periods upon the filing of an application for renewal with the director of finance on such form as he/she shall prescribe. No fee shall be charged for such application. The application shall be granted and a renewal certificate of exemption shall be issued if the director of finance determines that the applicant still qualifies as senior citizen property owner or a totally disabled property owner.

E. Termination of exemption. An exemption granted pursuant to this section shall automatically terminate upon any sale or other transfer by the exempt person of his or her ownership interest in the property, or upon any change in fact or circumstance which would disqualify such person from receiving the exemption. It is unlawful and a misdemeanor for any person to knowingly receive the benefits of an exemption provided by this section when the basis for such exemption does not exist or ceases to exist.

F. Appeals. Any decision or determination made by the director of finance with respect to the granting or denial of an exemption, or renewal of an exemption, may be appealed to the city council as provided by Section 3.69.210 of this chapter.

(Ord. No. 298, pt. 3.9, 2-20-2007)

A. Any person dissatisfied with any decision of the director of finance adversely affecting the rights or interests of such person may appeal to the city council by filing a notice of appeal with the city clerk within ten (10) days after the date on which such order was rendered.

B. The city clerk shall set the matter for hearing at the next applicable regular meeting of the city council and shall mail notice of such hearing to the appellant and to any other interested person requesting the same.

C. The city council shall either affirm the decision of the director of finance or make such modifications, amendments or corrections thereto as the council deems appropriate.

D. Any tax, penalty or interest found to be owed is due and payable at the time of the city council's decision becomes final.

E. All decisions rendered by the city council shall be final, and no further administrative appeal of these decisions is provided or intended.

(Ord. No. 298, pt. 3.10, 2-20-2007)

Any owner who fails to perform any duty or obligation imposed by this chapter shall be guilty of a misdemeanor, and upon conviction thereof, shall be punishable by a fine of not more than one thousand dollars ($1,000.00) or by imprisonment for a period of not more than one year, or by both such fine and imprisonment. The penalties provided in this section are in addition to the various civil remedies provided in this chapter, or as may otherwise be provided by law.

(Ord. No. 298, pt. 3.11, 2-20-2007)