San Rafael Municipal Code Ch. 3.26 Property Development Excise Tax

This chapter shall be known as the "Property Development Excise Tax."

(Ord. 1110 § 1 (part), 1973).

The city council declares that these taxes are imposed pursuant to the taxing power of the city and solely for the purpose of producing revenue. The increased development of land in the city has created a need for the acquisition of public property and for public improvements and facilities which cannot be met by the ordinary revenues of the city and has created an urgent need for the planning, acquisition, improvement and expansion and maintenance of public parks, playground and recreational facilities to serve the increasing population of the city and the means for providing additional revenues with which to finance such public facilities and the most practical and equitable method of collecting the funds necessary for such purposes is to impose an excise tax upon the construction and occupancy of commercial and industrial development within the city.

(Ord. 1110 § 1 (part), 1973).

For the purpose of this chapter, the words defined in this section shall have the meaning assigned to them unless from the context it appears that a different meaning is intended.

(1) "Commercial unit," as used in this chapter, means any space in a building or structure designed or intended to be occupied or used for business or commercial purposes, including sleeping rooms in hotels and motels without kitchens or kitchen facilities.

(2) "Industrial unit," as used in this chapter, means any space in a building or structure designed or intended for manufacturing, processing, research, warehousing and similar uses.

(3) "Person" includes every person, firm or corporation constructing a commercial or industrial unit itself, or through the services of an employee, agent or independent contractor.

(Ord. 1110 § 1 (part), 1973).

An excise tax is imposed upon the construction and occupancy of each commercial or industrial unit in the city.

(Ord. 1110 § 1 (part), 1973).

Commencing on September 5, 1973, the rates of the excise tax imposed by this chapter are as follows:

(1) Commercial. For each commercial building or commercial unit in a building, the amount of ten cents per square foot of gross floor area, including any area in a building designed for the parking of vehicles.

(2) Industrial. For each industrial building or industrial unit in a building, the amount of five cents per square foot of gross floor area, including any area in a building designed for the parking of vehicles.

(Ord. 1110 § 1 (part), 1973).

The property development excise tax shall be established by resolution of the San Rafael city council.

(Ord. 1235 § 3, 1976).

The taxes imposed by this chapter are due from the person by or on behalf of whom a commercial or industrial unit or building is constructed, or a building or part thereof occupied for commercial or industrial use, whether such person is the owner or a lessee of the land upon which the construction is to occur. The city treasurer shall collect the tax and any penalty or interest due hereunder. 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.

(Ord. 1110 § 1 (part), 1973).

No person shall begin the construction of any commercial or industrial unit or building in the city without first having paid the tax and any penalty and interest due the city under this chapter.

(Ord. 1110 § 1 (part), 1973).

The amount of the tax due according to the provisions of this chapter shall be determined at the time a building permit is sought for the construction or use of commercial or industrial units or buildings, and the full amount of the tax shall be due and payable concurrently with the application for such permit. If such tax is not fully paid, no building permit shall be issued therefor.

(Ord. 1110 § 1 (part), 1973).

There shall be added to the tax for any unit or for so much of the tax as becomes delinquent, a penalty of twenty-five percent which shall thereupon become payable in the same manner as the tax. The tax and penalty shall bear interest at the rate of fifty-eight one-hundredths of one percent per month until paid.

(Ord. 1110 § 1 (part), 1973).

There is excepted from the tax imposed by this chapter the construction of a commercial or industrial unit or building which is a replacement for a unit or building being removed from the same lot or parcel of land. The exemption shall equal but not exceed the tax which would be payable thereunder if the unit being replaced were being newly constructed.

(Ord. 1110 § 1 (part), 1973).

There is excluded from the tax imposed by this chapter the following:

(1) The construction of any building or unit by any bank, including national banking associations;

(2) The construction of any building by a nonprofit corporation exclusively for religious, educational, hospital or charitable purposes;

(3) The construction of any building by the United States or any department or agency thereof or by the state or any department, agency, or political subdivision thereof.

(Ord. 1110 § 1 (part), 1973).

Any tax, penalty, or interest paid to the city under this chapter for any building or unit of a building which is not constructed shall be refunded upon application of the taxpayer and a showing to the satisfaction of the city treasurer that the building or unit has not been constructed or construction commenced and that the building permit issued for the building or unit has been canceled or surrendered or otherwise does not authorize the construction of the building or unit.

(Ord. 1110 § 1 (part), 1973).

All proceeds from the tax, penalty and interest collected under this chapter shall be paid into the parks and recreation facilities fund heretofore established pursuant to Section 3.24.070. These proceeds shall be used solely for the acquisition, improvement and expansion and maintenance of public parks, playground and/or recreational purposes.

(Ord. 1110 § 1 (part), 1973).