Tustin Municipal Code Ch. 6 New Construction Tax

The City Council finds that the continuing increase in construction of buildings and conversion to condominium status in the City, together with the accompanying increase in population and activity of the City, has created an urgent need for additional funds to be used for the purpose of providing public safety, public works, and other municipal services. The City Council herein declares that the fees required to be paid hereby are assessed pursuant to the taxing power of the City and are solely for the purpose of producing revenue. (Ord. No. 624)

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

"Person" shall mean every person, firm or corporation constructing dwelling units itself or through the services of any employee, agent or independent contractor.

"Residential Unit" shall mean a single-family dwelling, a dwelling unit in a duplex, apartment house, condominium, hotel, motel, dwelling group which contains a kitchen, and any other place designed for human occupancy which contains a kitchen, and any space in a mobilehome park designed or intended for a house trailer, mobilehome, camper or similar vehicle.

"Commercial Unit" shall mean 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, and shall include roofed space which can be used for any of the foregoing purposes.

"Industrial Unit" shall mean any space in a building or structure designed or intended for manufacturing, processing, research, warehousing or similar purposes, (as above).

"Addition" shall mean any roofed space which can be utilized for the above described purposes.

"Condominium Conversion" shall mean the conversion of any existing apartments to a condominium.

"Mobilehome Park" shall mean any area where one or more lots or spaces are rented or held out for rent to be occupied by a house trailer, mobilehome, camper or similar vehicle. (Ord. No. 624)

a Tax Imposed

A tax is hereby imposed upon the construction of each residential unit, commercial unit, professional unit and industrial unit in the City and upon the conversion of any apartment complex to a condominium status.

b Rates

The rates of the tax hereby imposed are as follows:

(1) Residential .....

Single-family dwellings, attached or detached, per unit .....$350.00

Duplexes, per unit .....350.00

Multifamily dwellings, Townhouses or Condominiums (three or more units) or Condominium conversions (multifamily dwellings having already paid a tax may credit such amount against the new amount), per unit .....350.00

plus, per bedroom over one (1) in each unit .....$100.00

Mobile home park pads, per pad .....100.00

(Ord. No. 831, 7-8-80)

(2) Commercial, Professional or Industrial .....

For each commercial, professional or industrial building unit in the building, per square foot of gross floor area, including any area upon or within a building designed for the parking of vehicles, per square foot .....$0.10

For each hotel or motel rental unit without a kitchen, per unit .....100.00

(Ord. No. 772)

The tax imposed by Section 2603 of this Chapter shall be due and payable prior to issuance of a building permit for the construction of any such dwelling, commercial or industrial unit, prior to issuance of any grading, electrical, plumbing or mechanical permit in connection with the construction of a mobilehome park and prior to signature and recording of a final map for a condominium conversion and shall be in addition to all other building permit, grading permit, electrical permit, plumbing permit, mechanical permit fees and shall be in addition to all inspection fees required to be paid in connection with the construction of a mobilehome park. (Ord. No. 624)

The tax imposed by this Chapter shall apply to the construction or addition to all residential, commercial and industrial units or buildings, or for the construction of any mobilehome park, for which an application for a building permit is submitted after October 16, 1972, and to the enlargement or expansion of structures originally constructed after October 16, 1972, and to the enlargement or expansion of commercial and industrial units or buildings and mobilehome parks, originally constructed after October 16, 1972 and to all apartments converted to a condominium after August 1, 1974. (Ord. No. 624)

There are excepted from the tax imposed by this Chapter the following:

(a) The construction and occupancy of a residential, commercial or industrial unit which is a replacement of a unit being removed from the same lot or parcel of land, and for the same type of use.

(b) The reconstruction or remodeling of any structure existing on October 16, 1972, except condominium conversions.

(c) The enlargement or expansion of any structure existing on October 16, 1972, for the same type of use.

(d) The construction of unenclosed patios and like structures on residential properties. (Ord. No. 624)

The following shall be excluded from the tax imposed by this Chapter, so long as the said use and occupancy shall continue:

(a) The construction and occupancy of any building or unit by any bank, including national banking associations.

(b) The construction and occupancy of any building by an insurer as that term is defined in Article XIII Sections 14-4/5 of the Constitution of the State of California.

(c) The construction and occupancy of any building by the United States or any department or agency thereof or by the State of California or any department, agency or political subdivision thereof.

(d) The construction and occupancy of any building by a non-profit corporation exclusively for religious, educational, hospital or charitable purposes. Upon any change in any aforedescribed use and/or occupancy this Ordinance shall become fully applicable and enforceable as to any such building in which a change in such use and/or occupancy has occurred, immediately upon the date that any such change occurs. (Ord. No. 624)

No permit shall be issued authorizing the construction or conversion to condominium status of any residential, commercial or industrial unit or building or any mobilehome park in the City without the payment of the tax due under this Chapter. (Ord. No. 624)

Any tax paid to the City under this Chapter for any building or unit of a building or mobilehome park which is not constructed shall be refunded upon application of the taxpayer and a showing to the satisfaction of the Building Official 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 cancelled or surrendered or otherwise does not authorize the construction of the building or unit. (Ord. No. 624)

All proceeds from the tax, penalty and interest collected under this Chapter shall be deposited in the General Fund of the City, and shall be used for such municipal purposes as are authorized by law. (Ord. No. 624)