Los Gatos Municipal Code Art. III Construction Tax

Footnotes:

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Cross reference— Buildings and building regulations, Ch. 6; grading, erosion and sediment control, Ch. 12; planning, Ch. 20; sewers and sewage disposal, Ch. 22; subdivision regulations, Ch. 24; taxation generally, Ch. 25; utilities, Ch. 27; zoning regulations, Ch. 29.

The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

Building means any structure constructed for the support, shelter, or enclosure of persons or any kind of property.

Construct means to form, make or create by combining parts, to build, fabricate, relocate, or enlarge.

Floor area means the area included within the surrounding exterior walls of a building, or portion of a building, exclusive of vent shafts and courts. When a building or portion of a building does not have surrounding exterior walls, floor area means the usable area under the horizontal projection of the roof or floor above.

Permit means any permit required by the Uniform Building Code, the National Electrical Code or the Uniform Plumbing Code.

(Code 1968, §§ 15-73—15-73.6)

Cross reference— Definitions and rules of construction generally, § 1.10.015.

A tax is imposed on the construction in the Town of any building or portion of a building, except as otherwise provided in this article.

(Code 1968, § 15-74)

The person who constructs a building, the person who owns the land where construction of a building occurs, and the person who is in possession of and has the right of control over the use of such land, are jointly and severally liable for payment of the tax.

(Code 1968, § 15-75)

The taxes imposed by this article are:

(1) Capital improvement tax: Eighteen cents ($0.18) for each square foot of building addition or alterations which increases floor area of a new or existing building;

(2) Underground utility tax: Eighteen cents ($0.18) for each square foot of building addition or alterations which increases floor area of a new or existing building;

(3) Park fund tax: Four cents ($0.04) for each square foot of building addition or alterations which increases floor area of a new or existing building.

(Code 1968, § 15-76)

This article imposes no tax on:

(1) Remodeling, rehabilitation, repair and alteration of an existing building when there is no increase in floor area.

(2) Construction of structures or portions of structures used for private vehicle parking. (This exception does not apply when a structure or portion of a structure is for parking incidental to the use of a building or premises for automobile sales or service.)

(3) Construction of detached or attached accessory structures such as patio covers open on one (1) or more sides, exterior shade structures, awnings, open porches, exterior balconies or stairways, open roof decks, lattice roof structures, arbors, greenhouses used incidentally to use of premises for residential purpose; or detached residential storage structures.

(4) Replacement of a single-family residential building or portion thereof destroyed by fire, provided the floor area of the new single-family residential building is essentially the same as the building destroyed. This exception does not apply unless an application for a building permit is made within one (1) year of the date the building was damaged or destroyed.

(5) The equivalent building area as defined herein of a new single-family residence when an existing single-family residence is demolished or removed to allow for the construction of the new residence on the same site and the plans for the new residence clearly define the floor area of the existing residence. The equivalent building area is the floor area of an existing single-family residence. Except as herein provided, the construction tax shall be imposed on the increased floor area of the new residence.

(Code 1968, § 15-77)

The amount of the tax imposed by this article shall be calculated by the Building Official, and shall be paid to the Tax Collector at the time of issuance of the first permit for construction of a building or, if such construction is performed without a permit, at the time when construction is commenced. No permit shall be issued until the tax is paid.

(Code 1968, § 15-78)

If the person to whom one (1) or more permits for construction work have been issued allows all permits to expire without performing any work, and during the one hundred twenty (120) days following the expiration date of the permit or the last of such permits, files written application for a refund in the office of the Tax Collector, who shall refund the entire tax paid. There shall be no refund if any construction work has been performed, nor shall there by any partial refund.

(Code 1968, § 15-79)

Governmental agencies, and persons whom the Town may not tax under the provisions of the United States or California Constitution or Statutes, are exempt from the tax.

(Code 1968, § 15-81)

Revenues derived from levy of the tax under the provisions of this article shall be used in the following manner:

(1) The tax collected pursuant to section 14.30.025 as a capital improvement tax shall be used only for the acquisition of land for public purposes and for the construction, renovation, remodeling, furnishing or refurnishing of capital improvements.

(2) The tax collected pursuant to section 14.30.025 as an underground utility tax shall be used only for the conversion of existing overhead utility lines to underground.

(3) The tax collected pursuant to section 14.30.025 as a parks fund tax shall be deposited in the public parks fund of the Town for uses as provided for in that fund.

(Code 1968, § 15-82)