Rancho Palos Verdes Municipal Code Ch. 3.20 Environmental Excise Tax

The city council finds and determines that the development and construction of new residential living units and of new commercial or industrial structures within the city creates an immediate and present danger to the existing quality of life and ecology of the city, and threatens to contaminate and pollute the air, water and land within and surrounding the city, and threatens to burden and overtax existing public facilities of the city which provide public services, police and fire protection, public utilities, water, and treatment and disposal of sanitary sewage, which thus pose a direct threat and danger to the health, safety and general welfare of the city and its inhabitants, and their environment. The city council further finds and determines that the imposition and collection of a special, nonrecurring tax upon the occupancy and construction of new residential dwelling units and of new commercial and industrial buildings within the city is the most practical and equitable method of providing revenues with which the city may meet and deal with and solve the serious ecological and environmental problems created by the occupancy and construction of such facilities within the city. Further, the city council finds that the number of bedrooms in a dwelling unit tends to be reasonably proportionate to the impact that the occupation of said unit will have on the environment of the city and on the quantity of municipal service required of the dwelling unit, and that the gross area of commercial or industrial buildings is a reasonable gauge of the impact of such buildings.

(Code 1981, § 3.20.010; Ord. No. 14, § 1(part), 1974; Ord. No. 14U, § 1(part), 1974)

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

Bedroom means and includes any room in a dwelling unit which is determined by the city engineer to be intended, designed or constructed so as to be suitable for use as a room to accommodate the sleeping needs of a resident or guest of a dwelling unit.

Dwelling unit means and includes any dwelling designed for human occupancy, which has one or more rooms, with or without a kitchen or cooking facilities, except a "hotel" as that term is defined in section 139.2 of the Los Angeles County Zoning Ordinance No. 1494.

(Code 1981, § 3.20.020; Ord. No. 14, § 1(part), 1974; Ord. No. 14U, § 1(part), 1974)

An environmental excise tax is imposed upon the occupancy and construction of each new dwelling unit and each new commercial and industrial building within the city.

(Code 1981, § 3.20.030; Ord. No. 14, § 1(part), 1974; Ord. No. 14U, § 1(part), 1974)

The rate of the environmental excise tax imposed by this chapter is $500.00 per bedroom, to a maximum of $1,000.00 per dwelling unit for residential buildings and $0.30 per square foot of gross building area for new industrial and commercial buildings. The rates specified above shall be changed on January 1, 1979, and on January 1 of each year thereafter, as follows:

A. On January 1, 1979, such rates shall be equal to an amount to be determined by adding to the current rate the product obtained by multiplying the average gross national product deflator factor, for goods and services purchased by state and local government, as published by the United States Department of Commerce, for the four calendar quarters available prior to January 1, 1979, by such current rate.

B. On January 1 of each year thereafter, all such rate shall be equal to an amount to be determined by adding to the rate in the previous calendar year the product obtained by multiplying the average gross national product deflator factor, for goods and services purchased by state and local government, as published by the United States Department of Commerce, for the four calendar quarters available prior thereto by such rate in the previous calendar year.

(Code 1981, § 3.20.040; Ord. No. 14, § 1(part), 1974; Ord. No. 14U, § 1(part), 1974; Ord. No. 106U, § 1, 1978)

The amount of tax due under this chapter shall be determined either at the time of the issuance of the building permit for the building or at the time of the issuance of any certificate of occupancy for any dwelling unit requiring a certificate of occupancy, and the full amount of tax shall be due and payable to the city prior to the occupancy of such dwelling unit or units, or industrial or commercial building. If the city council finds it is in the public interest to do so, the city council may waive all or partial payment of the fee due and payable under this chapter by nonprofit corporations or public corporations providing an institutional use.

(Code 1981, § 3.20.050; Ord. No. 14, § 1(part), 1974; Ord. No. 14U, § 1(part), 1974; Ord. No. 136, § 1, 1980)

The city engineer or their designee shall collect the tax due under this chapter. The full amount due under this chapter shall constitute a debt to the city. An action for the collection thereof may be commenced in the name of the city in any court having jurisdiction of the cause.

(Code 1981, § 3.20.060; Ord. No. 14, § 1(part), 1974; Ord. No. 14U, § 1(part), 1974)

No certificate of occupancy shall be issued for, and no person shall occupy or offer for occupancy, any new dwelling unit or new commercial or industrial building in the city unless the tax imposed upon the occupancy and construction thereof by this chapter has been paid.

(Code 1981, § 3.20.070; Ord. No. 14, § 1(part), 1974; Ord. No. 14U, § 1(part), 1974)

Notwithstanding the provisions of sections 3.20.060 and 3.20.070, the city council may in its discretion upon the written request of the owner demonstrating hardship, at any time prior to the issuance of a certificate of occupancy of the new dwelling unit or commercial or industrial building concerned, determine that the payment of the excise tax imposed by this chapter with respect to the construction and occupancy of such building, be made in one or more annual installments not to exceed five, and that the payment of the tax so deferred shall bear interest on the unpaid balance at the rate of seven percent. Such interest shall begin to run on the first day of the month next after such action by the city council. The indebtedness for such tax shall be:

(A) Evidenced by an instrument signed by the owner in a form provided by the city and suitable for recording as a lien on the real property on which such building is constructed; or

(B) By order of the city council a notice of lien on said real property shall be delivered to the county auditor and tax collector to be entered on the county assessment book opposite the description of the particular property and the amount accruing in any year shall be collected together with all other taxes thereon against such property.

Such taxes shall be subject to the same procedure for sale in case of delinquency as provided for ordinary city taxes.

(Code 1981, § 3.20.080; Ord. No. 34, § 1, 1974)

All proceeds from the tax collected under this chapter shall be paid into a special fund of the city to provide open space, improve the quality of life and the ecology of the city, or of any distressed or environmentally endangered portion thereof, and to fight pollution and contamination of the air, water and land within and surrounding the city, to be entitled the environmental excise tax fund, which fund is created. Said fund shall be used for the purposes of purchasing land, constructing buildings and improvements, and purchasing machinery, equipment and other capital type facilities with which the city may develop, improve, and expand public parks, public services, police and fire protection, public utilities, water, and the treatment and disposal of sanitary sewage. In expending said fund for said purposes, the city may act alone or may exercise its powers jointly with any other public entity to accomplish any of the foregoing purposes for the benefit of the whole, or any portion, of the city.

(Code 1981, § 3.20.090; Ord. No. 14, § 1(part), 1974; Ord. No. 14U, § 1(part), 1974)

Any person may appeal any determination of the county engineer involved in the administration or application of this chapter to the city manager, and if not satisfied with their decision (to be rendered within 15 days of the filing of the appeal) to the city council.

(Code 1981, § 3.20.100; Ord. No. 14, § 1(part), 1974; Ord. No. 14U, § 1(part), 1974)