Sausalito Municipal Code Ch. 3.16 Construction Tax

The City Council finds that the increased development of land within the City has created an urgent need for additional municipal services, the acquisition of property for public buildings and for public improvements and facilities.

(Ord. 807 § 1, 1973)

For the purpose of this chapter:

A.

"Dwelling unit"

is defined as set forth in Chapter 10.88 SMC; and

B.

"Floor area"

is defined as set forth in Chapter 10.88 SMC.

(Ord. 807 § 2, 1973)

An excise tax is imposed upon the construction of any building or portion thereof in the City.

(Ord. 807 § 3, 1973)

The City Council declares that the tax imposed by this chapter is imposed pursuant to the taxing power of the City and shall be solely for the purpose of producing revenue.

(Ord. 807 § 9, 1973)

The rates of the excise tax imposed by this chapter are as follows:

A. Each dwelling unit, $300.00;

B. Any building or portion thereof planned or designed for use for any use other than dwelling unit use, $0.20 per square foot for commercial and $0.05 per square foot for industrial floor area.

(Amended during 2013 reformat; Ord. 807 § 4, 1973)

The tax imposed by this chapter is due from the person by or on behalf of whom a building is constructed, whether such person is the owner or the lessee of the land on which the construction is to occur. 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. 807 § 7, 1973)

There are exempted from the tax imposed by this chapter the following:

A. The reconstruction of any building or portion thereof which was damaged or destroyed by earthquake, fire, flood or other cause over which the owner had no control (provided that compliance with any building code or other ordinance requirement of the City or of any other applicable law shall not be deemed a cause over which the owner has no control), but only if the number of dwelling units in the building is not increased and the number of square feet in a building devoted to any use other than dwelling unit use is not increased. If the number of dwelling units in the building and/or the number of square feet in the building devoted to any use other than dwelling unit use is increased, then the tax imposed under this chapter shall apply to such increased number of dwelling units and/or such increased floor area;

B. The enlargement, remodeling and/or alteration of a building, but only if the number of dwelling units therein is not increased and the number of square feet of floor area devoted to any use other than dwelling unit use is not increased. If the number of dwelling units in the building is increased and/or the number of square feet in the building devoted to any use other than dwelling unit use is increased, then the tax imposed under this chapter shall apply to such increased number of dwelling units and/or such increased floor area;

C. The construction of any building by an "insurer," as that term is defined in Article 13, Section 14-4/5ths of the California Constitution;

D. The construction and use of any building by a nonprofit corporation exclusively for religious, educational, scientific, hospital or charitable purposes if the same would be exempt under California Revenue and Taxation Code Section 214;

E. 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;

F. The construction of any building if the application of the tax thereto would be in violation of the laws or constitutions of the United States or the State.

(Ord. 807 § 6, 1973)

The amount of the tax due under this chapter shall be paid at the time an original building permit is issued for the construction of any building or portion thereof.

(Ord. 807 § 5, 1973)

No person shall begin the construction of nor occupy any building in the City without first having paid the tax due to the City under this chapter.

(Ord. 807 § 8, 1973)