East Palo Alto Municipal Code Ch. 3.70 Commercial Office Space Parcel Tax for Affordable Housing and Job…

This Chapter 3.70 shall be known and may be cited as the "commercial office space parcel tax for affordable housing and job opportunities."

(Ord. No. 417-A, § 4, 11-6-2018)

"Commercial office real property" means any parcel of real property in the city which is primarily used or leased as commercial office space. For the purposes of this tax, using property to operate an internet retailing business is a commercial office space use.

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

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

"Person" means 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.

(Ord. No. 417-A, § 4, 11-6-2018)

A special non-ad valorem parcel tax shall be levied annually on the owner of each parcel of commercial office real property within the city, at a rate of two dollars and fifty cents ($2.50) per square foot of developed commercial office space, unless the owner is exempt by law or pursuant to Section 3.70.040, in which case the parcel tax shall be assessed to the holder of the possessory interest in such parcel, unless such holder is also exempt from taxation by law or pursuant to Section 3.70.040.

(Ord. No. 417-A, § 4, 11-6-2018)

Parcels with less than twenty-five thousand (25,000) square feet of developed commercial office space are exempt from Section 3.70.030.

(Ord. No. 417-A, § 4, 11-6-2018)

A. The proceeds of the parcel tax shall be used solely for the purposes set forth in this section. The proceeds collected by the levy of the parcel tax shall be used to:

1. Create and maintain affordable and supportive housing programs, with an emphasis on the creation of net new housing;

2. Create and maintain programs that facilitate access to job opportunities for East Palo Alto residents in the science, technology, engineering, and mathematics sectors, building trades, and strengthen the city's first source hiring program; and

3. Pay for staff and overhead costs to administer the ordinance and provide an annual report that complies with the requirements of Government Code Section 50075.3.

B. The revenue of the parcel tax shall be used in the following manner:

1. A minimum of thirty-five percent (35%) of the revenue shall be used exclusively for the construction of new, affordable housing stock.

2. A maximum of fifteen percent (15%) of the revenue shall be used for staff and overhead costs specified in Section 3.70.050.

3. The remaining proceeds may be used for any of the other purposes specified in Section 3.70.050.A at the discretion of the city council.

C. The purposes set forth in this section shall constitute the specific purposes of the parcel tax, which are legally binding and enforceable limitations on how the proceeds of the tax can be spent.

(Ord. No. 417-A, § 4, 11-6-2018)

Upon the levy and collection of the tax authorized by this chapter, an account shall be created into which the proceeds of the tax shall be deposited. The proceeds of the tax authorized by this chapter shall be applied only to the specific purposes identified in this chapter. An annual report that complies with the requirements of Government Code Section 50075.3 shall be filed with the East Palo Alto City Council annually.

(Ord. No. 417-A, § 4, 11-6-2018)