National City Municipal Code Ch. 6.20 Residential Rentals

"Residential rental units" means any room or combination of rooms within a building or a trailer coach rented out to serve as a single-family dwelling, to be occupied by an individual or group of individuals.

(Ord. 2224 § 5 (part), 2003; Ord. 2062 § 1, 1993: Ord. 1407 § 1, 1974)

Any person, firm, corporation, partnership or other entity owning residential rental units in the city shall pay a license or tax fee based on the number of units owned, in lieu of a business tax under Chapter 6.04, as follows:

A. Persons owning one to four units at one location or a total of one to four units at various locations, shall pay fifty dollars per unit for the first unit, and fifteen dollars per unit for each additional unit.

B. Persons owning a total of five or more units at various locations, but fewer than thirty-one units at any one location, shall pay a license fee of fifty dollars per unit for the first unit, and fifteen dollars per unit for each additional unit, or may, at his or her option, pay a base tax of seventy-five dollars in addition to the sum of the tax set forth in the tax table in Appendix A based on gross receipts (gross rents) derived by such person from all units owned by the person within the city. The gross tax rate is one tenth of one percent.

C. Persons owning thirty-one to sixty units at one location shall, for each such location, pay a base tax of one hundred dollars in addition to the sum of the tax set forth in the tax table in Appendix A based on gross receipts (gross rents) derived by such person from each complex owned by the person within the city. The gross tax rate is one tenth of one percent. A separate calculation and payment must be provided for each location of rental properties.

D. Persons owning sixty-one or more units at one location shall, for each such location, pay a base tax of one hundred fifty dollars in addition to the sum of the tax set forth in the tax table in Appendix A based on gross receipts (gross rents) derived by such person from each complex owned by the person within the city. The gross tax rate is one tenth of one percent. A separate calculation and payment must be provided for each location of rental properties.

(Ord. 2224 § 5 (part), 2003; Ord. 2085 § 2, 1994: Ord. 2062 § 2, 1993: Ord. 2037 § 10, 1992: Ord. 1407 § 2, 1974)

The gross tax rate of one-tenth of one percent will be reviewed annually for inflation against the San Diego All Urban Consumer Price Index. The maximum annual increase in the gross tax rate shall be no more than five percent.

(Ord. 2085 § 3, 1994)

A. No tax shall be imposed on a residential rental unit in any of the following situations:

1. The unit is the primary residence of the property owner for at least six months of the year and no portion of the residence is rented, leased or sublet for any portion of the year;

2. The unit is occupied by a family member, is rented at less than current owner expense, and is declared as family occupied on the owner's county property tax declaration or federal income tax return. "Current owner expense" is defined to include mortgage payments, property taxes, association fees, assessments, property insurance, and utilities;

3. The unit is not available for rent for any period of time;

4. The unit is directly owned by a federal, state, county, local or special district governmental agency;

5. The unit is unoccupied and is under construction and will not be occupied for any portion of the tax year; or

6. The unit sells and escrow closes during the first two months of the taxable year.

B. Proof of exemption eligibility will be required for certain exemptions and may be different for each exemption claimed. Exemption eligibility is only good for one year and must be renewed each taxable year by the tax due date or be subject to an administration fee.

(Ord. 2224 § 5 (part), 2003: Ord. 2085 § 4, 1994: Ord. 1407 § 4, 1974)

All annual taxes imposed by this chapter shall be due and payable in advance on the first day of January of each year and delinquent on the first day of March. If ownership of any unit changes during this period or after the tax has been paid, the new owner will be responsible for registering and paying only the base amount of the tax and will not report and pay on gross receipts until the following January. The base amount is as follows:

A. One to four units, fifty dollars;

B. Five to thirty units, seventy-five dollars;

C. Thirty-one to sixty units, one hundred dollars;

D. Sixty-one or more units, one hundred fifty dollars.

(Ord. 2085 § 5, 1994)

A. The finance director is responsible for the administration of this chapter. The provisions of Chapter 6.04 pertaining to the application and issuance of business licenses and the collection, enforcement and penalties for delinquent taxes shall be utilized in the administration of this chapter.

B. The finance director shall issue a residential rental tax license upon payment by the person or entity liable for the taxes described in this chapter, commencing in calendar year 2004.

C. It is unlawful to operate or rent a residential rental unit without payment of required fees and taxes, to violate any of the mandatory provisions or prohibitions of this chapter or to knowingly or intentionally misrepresent to any officer or employee of this city any material fact in connection with the administration or collection of taxes pursuant to this chapter. Each violation of any of the mandatory provisions or prohibitions in this chapter is a misdemeanor, punishable by a fine of one thousand dollars, imprisonment for six months or both. Each day a violation continues shall constitute a separate violation for which the violator may be separately charged.

(Ord. 2247 § 2, 2004; Ord. 2224 § 5 (part), 2003)

Appendix A