Santa Cruz Municipal Code Part 2 Parcel Tax

(a) Definitions. For purposes of this part only, the following terms shall be defined as set forth below:

1. “Building” shall mean any structure having a roof supported by columns or by walls and designed for the shelter or housing of any person, chattel or property of any kind. The word “building” includes the word “structure.”

2. “City” shall mean the city of Santa Cruz, California.

3. “Occupancy” shall be as defined by Section 24.22.574.

4. “Owner” shall mean the person having title to real estate as shown on the most current official assessment roll of the Santa Cruz County assessor.

5. “Parcel” shall mean a unit of real estate in the city of Santa Cruz as shown on the most current official assessment roll of the Santa Cruz County assessor.

6. “Person” shall mean 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.

7. “Possessory interest,” as it applies to property owned by any agency of the government of the United States, the state of California, or any political subdivision thereof, shall mean possession of, claim to, or right to the possession of, land or improvements and shall include any exclusive right to the use of such land or improvements.

(b) Tax Rates. For each year during which the Act is in effect, beginning in fiscal year 2026-2027, there is hereby imposed a tax on all owners of parcels in the city for the privilege of using municipal services and the availability of such services. The tax imposed by this section shall be assessed on the owner or the owner’s parcel unless the owner is by law exempt from taxation, in which case, the tax imposed shall be assessed to the holder of any possessory interest in such parcel, unless such holder is also by law exempt from taxation. The tax is imposed as of July 1st of each year on the person who owned the parcel on that date. The tax shall be collected at the same time, by the same officials, and pursuant to the same procedures as the one percent ad valorem property tax imposed pursuant to Article XIII A of the California Constitution. The tax hereby imposed shall be set at the annual rate of ninety-six dollars per parcel, which shall not be increased during the twenty-year term of this measure. An owner of residential rental property shall be prohibited from passing any portion of the tax imposed by this section onto their tenant or tenants.

(Ord. 2025-29 § 4, 2025).

(a) Low-Income Household Exemption. The following is exempt from this tax: an owner of a single-family residential unit (1) who resides in such unit and (2) whose combined family income, from all sources for the previous year, is at or below the income level qualifying as sixty percent of area median income for a family of such size under Section 8 of the United States Housing Act of 1937 (42 U.S.C.A. Sections 1437 et seq.), or successor legislation, for such year. The director of finance shall set forth procedures for annual applications from owners for the exemption, which may require information such as federal income tax returns and W-2 forms of owner occupants eligible for the exemption, or procedures for an alternative process.

(b) Senior Household Exemption. The following is exempt from this tax: an owner of a single-family residential unit (1) who resides in such unit, (2) who is sixty-five years of age or older and (3) whose combined family income, from all sources for the previous year, is at or below the income level qualifying as eighty percent of area median income for a family of such size under Section 8 of the United States Housing Act of 1937 (42 U.S.C.A. Sections 1437 et seq.), or successor legislation, for such year. The director of finance shall set forth procedures for annual applications from owners for the exemption, which may require information such as federal income tax returns and W-2 forms of owner occupants eligible for the exemption, or procedures for an alternative process.

(c) Exemption for One Hundred Percent Affordable Housing Projects. Rental housing for senior, disabled, and low-income households that are exempt from ad valorem property tax pursuant to California Revenue and Taxation Code Sections 214(f), (g) and (h) are exempt from this tax.

(d) Real property owned by religious organizations, schools or other entities that are exempt from property taxes under California law are exempt from this tax. To qualify for this exemption, each religious organization, school or entity seeking such exemption shall submit such information required to determine eligibility for such exemption.

(Ord. 2025-29 § 4, 2025).

It shall be the duty of the director of finance to collect and receive all taxes imposed by this chapter. The director of finance is charged with the enforcement of this chapter and may adopt rules and regulations relating to such enforcement.

(Ord. 2025-29 § 4, 2025).

The director of finance or their designee is hereby authorized to examine assessment rolls, property tax records, records of the Santa Cruz County recorder and any other records of the county of Santa Cruz deemed necessary in order to determine ownership of parcels and computation of the tax imposed by this chapter. The director of finance or the director of finance’s designee is hereby authorized to examine the books, papers and records of any person subject to the tax imposed by this chapter, including any person who claims an exemption, for the purpose of verifying the accuracy of any petition, claim or return filed and to ascertain the tax due. The director of finance or the director of finance’s designee is hereby authorized to examine any person, under oath, for the purpose of verifying the accuracy of any petition, claim or return filed or to ascertain the tax due under this chapter and for this purpose may compel the production of books, papers and records, whether as parties or witnesses, whenever the director of finance believes such persons have knowledge of such matters. The refusal of such examination by any person subject to the tax shall be deemed a violation of this chapter and of the Santa Cruz Municipal Code and subject to any and all remedies specified therein.

(Ord. 2025-29 § 4, 2025).

The tax shall be delinquent if the city does not receive it on or before the delinquency date set forth in the notice mailed to the owner’s address as shown on the most current assessment roll of the Santa Cruz County tax collector; and the tax shall be collected in such a manner as the city council may decide. The city may place delinquencies on a subsequent tax bill. A one-time penalty in the amount of twenty-five percent of the tax due per fiscal year is hereby imposed by this chapter on all taxpayers who fail to timely pay the tax provided by this chapter. In addition, the city council may assess interest at the rate of one percent per month on the unpaid tax and the penalty thereon.

Every penalty imposed and such interest as accrues under the provisions of this chapter shall become a part of the tax herein required to be paid.

The city may authorize the county of Santa Cruz to collect the taxes imposed by this chapter in conjunction with and at the same time and in the same manner as the county collects property taxes for the city. If the city elects to authorize the county of Santa Cruz to collect the tax, penalties and interest shall be those applicable to the nonpayment of property taxes.

(Ord. 2025-29 § 4, 2025).

The amount of any tax, penalty, and interest imposed under the provisions of this chapter shall be deemed a debt to the city. Any person owing money under the provisions of this chapter shall be liable to an action brought in the name of the city for the recovery for such amount.

(Ord. 2025-29 § 4, 2025).

Whenever the amount of any tax, penalty, or interest imposed by this chapter has been paid more than once or has been erroneously or illegally collected or received by the city, it may be refunded provided a verified written claim for refund, stating the specific ground upon which such claim is founded, is received by the director of finance within one year of the date of payment. The claim shall be filed by the person who paid the tax or such person’s guardian, conservator, or the executor of their estate. No representative claim may be filed on behalf of a taxpayer or a class of taxpayers. The claim shall be reviewed by the director of finance and shall be made on forms provided by the director of finance. If the claim is approved by the director of finance, the excess amount collected or paid may be refunded or may be credited against any amounts then due and payable from the person from whom it was collected or by whom paid, and the balance may be refunded to such person, or such person’s administrators or executors. Filing a claim shall be a condition precedent to legal action against the city for a refund of the tax.

(Ord. 2025-29 § 4, 2025).

The city manager is hereby authorized to promulgate such regulations as he or she shall deem necessary in order to implement the provisions of this chapter.

(Ord. 2025-29 § 4, 2025).