Seal Beach Municipal Code Ch. 4.45 Environmental Reserve Tax

The city council previously has determined that the development and construction of new residential living units 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 that provide public services, police and fire protection, public utilities, water, and the 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 determined that the imposition and collection of a special, non-recurring tax upon the occupancy and construction of new residential dwelling units within the city is the most practical and equitable method of providing revenues with which the city may address the serious ecological and environmental problems created by the occupancy and construction of such new residential dwelling units within the city.

(Ord. 1515)

For the purpose of this chapter, the following words and phrases shall mean:

Dwelling Unit:

any dwelling designed for human occupancy that has one or more rooms, with or without a kitchen or cooking facilities. "Dwelling unit" does not include a "hotel" as defined in the transient occupancy tax ordinance.

Conforming Dwelling Unit:

any dwelling unit situated within a RLD Zone and having a minimum floor area of at least 1,200 square feet, and any such dwelling unit situated within a RMD Zone and having a floor area of at least 1,000 square feet and any such dwelling unit within a RHD Zone and having a floor area of at least 700 square feet.

Nonconforming Dwelling Unit:

any dwelling unit situated within a RLD Zone and having a floor area of less than 1,200 square feet, and any such dwelling situated within an RMD Zone and having a floor area less than 1,000 square feet, and any such dwelling unit within an RHD Zone and having a floor area of less than 700 square feet.

(Ord. 1515)

A. An environmental reserve tax shall be imposed upon the occupancy and construction of each new dwelling unit within the city.

B. No occupancy permit shall be issued for, and no person shall occupy or offer for occupancy, any dwelling unit in the city unless the tax and any penalty or interest imposed upon the occupancy and construction thereof by this chapter has been paid.

(Ord. 1515)

The rates of the environmental reserve tax are:

A. 151¢ per square foot for each square foot of floor area within each conforming dwelling unit located on any of the first 3 floors of any building so occupied or constructed within the city.

B. 351¢ per square foot for each square foot of floor area within each nonconforming dwelling unit located on any of the first 3 floors of any building so occupied or constructed within the city.

(Ord. 1515)

The amount of tax due hereunder shall be determined prior to the issuance of any occupancy permit for any dwelling unit subject to the tax. The full amount of the tax shall be due and payable to the city concurrently with any application for an occupancy permit for such dwelling unit or units.

(Ord. 1515)

There shall be added to the tax for any such dwelling unit, or so much of the tax as becomes delinquent, a penalty of 25%, which shall thereupon become payable in the same manner as the tax. The tax and penalty shall bear interest at the prime lending rate per month until paid.

(Ord. 1515)

The director of finance shall collect the tax and any penalty and 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.

(Ord. 1515)

Any tax, penalty or interest paid under this chapter for any dwelling unit that is not constructed shall be refunded upon application of the taxpayer and showing to the satisfaction of the director of administrative services/treasurer that the dwelling unit has not been constructed or construction commenced and that the building permit issued for such dwelling unit has been cancelled or surrendered or otherwise does not authorize the construction of such dwelling unit.

(Ord. 1515)

All proceeds from the tax, penalty and interest collected under this chapter shall be paid into a special capital outlays 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 Reserve Fund," which fund has previously been created. Such fund shall be used only 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 and public utilities, water, and the treatment and disposal of sanitary sewage. In expending such fund for these 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.

(Ord. 1515)