Vallejo Municipal Code Ch. 3.05 Property Development Excise Tax

This chapter shall be known as the "property development excise tax." Revenue derived from this tax shall be added to the city's general fund to support general community services provided now and in the future.

(Ord. 1058 N.C.(2d) § 3 (part), 1989.)

For the purposes of this chapter, the following words and phrases are defined as follows. They shall be construed in such a way unless it is apparent from their use that a different meaning is intended.

A. "Developer" means any person, firm, corporation, partnership, or association who proposes to develop real property for itself or others, except that employees and consultants of such persons or entities, acting in such capacity, are not developers.

B. "Development" means any approved project undertaken for any of the purposes outlined in Government Code Section 65927, such approval coming in the form of city issuance of a permit for construction, reconstruction, or to operate. "Development" includes ministerially approved projects as well as discretionarily approved projects.

C. "Nonresidential development" means any development not described under the definition of "residential development."

D. "Ownership interest" means an individual, firm, association, syndicate, co-partnership, or corporation with enough proprietary interest in land sought to be developed to commence and maintain proceedings to develop it. While used in the masculine gender or singular number, ownership interests also means the feminine and neutered gender and plural number whenever required.

E. "Residential development" means development for uses allowing the occupancy of living accommodations on a wholly or primarily nontransient basis, including uses accessory to such residential uses. This definition does not include institutional living arrangements providing twenty-four-hour care to seven or more persons; nor does it include the provision of forced residence, such as asylums and prisons. Residential development is further defined in the zoning title at Sections 16.06.050 et seq.

F. "Square foot" refers to any such increment of measurement included within surrounding exterior walls of a building or portion thereof, exclusive of vent shafts and court. It also includes such increments of measurement not provided with surrounding exterior walls but comprising usable area under horizontal projections of roofs or floors above. (Uniform Building Code Section 407.)

G. "Unit" refers to each dwelling, in the case of single-family or multifamily residential uses, intended to be occupied exclusively by one household.

(Ord. 1058 N.C.(2d) § 3 (part), 1989.)

A. Authority. This property development excise tax is imposed under Article XI, Section 5 of the California Constitution and Section 707 of the city's Chapter.

B. Basis. This tax is imposed on development of real property in the city on a per-unit basis, as defined. It taxes the privileges of developing property (as long recognized by this State's Supreme Court); and of using and benefiting from municipal services both before and after development occurs (which is reflected in part by increased property values).

C. Liability. Liability for the taxes imposed under this chapter shall accrue in favor of the city; be personal, joint, and several; and shall be imposed on the following persons in its entirety:

1. The developer of the property at issue;

2. Any successor in interest to the rights of the developer of the property at issue;

3. Any person who has an ownership interest in the property at the time the city receives an application for a building permit to authorize construction of improvements covered by this chapter.

D. Rate.

1. The tax hereby imposed shall be levied on development as follows:

a. Residential development: $3,000/unit.

b. Nonresidential development: $0.30/sq. ft.

2. Inflation Adjustment. Each year, on July 1, the finance director shall adjust the tax due. The amount of the adjustment shall be based on the average of the most recent annual percentage change in the Bureau of Labor Statistics (BLS) Consumer Price Index—All Urban Consumers—San Francisco—Oakland—San Jose and the percentage change in the BLS' Consumer Price Index—Urban Wage Earners and Clerical Workers—San Francisco—Oakland—San Jose; or on any other responsible index of general local prices.

E. Method of Collection.

1. Payment. The taxes imposed in this chapter shall be paid before approval and issuance of a building permit for any property development as defined. Any person who owes money to the city under this chapter shall be able in an action brought in the name of the city for recovery of the tax amount.

2. Enforcement. It is a violation of this chapter to use property for new uses contemplated by approval of property development without first having paid the property development excise tax.

In addition to refusing to approve and issue a building permit, the city may enforce this chapter through a civil action: (a) for collection of taxes; and, (b) to enjoin any person, firm or corporation from using their property contrary to the terms of this chapter. In such an action, persons found to have violated this chapter shall be liable for taxes imposed herein, a fifty percent penalty, attorney's fees and all expenses incurred in collecting the tax.

(Ord. 1058 N.C. 2(d) § 3 (part), 1989.)

The following rules shall apply with respect to exemptions from payment of the property development excise tax.

A. No property development excise tax shall be payable if an existing building or structure has been damaged more than fifty percent by fire, casualty, or act of God, if:

1. A building permit has been applied for and issued within one year of the date of such damage;

2. The new building or structure contains no more units or square feet (whichever is applicable) than contained in the pre-damaged building or structure.

B. A new building or structure that would fit within subsection (A) of this section except for the fact that it contains additional square feet or units shall be required to pay only the property development excise tax for additional units or square feet above those that existed in the pre-damaged structure or building.

C. Accessory dwelling units as defined in Section 16.04.011 of this code, are exempt from payment of the property development excise tax.

(Ord. 1058 N.C.(2d) § 3 (part), 1989.; Ord. No. 1804 N.C.(2d), § 1, 9-25-2018)

The property development excise tax paid or deemed to have been paid and applicable to a particular building or structure on a particular lot or parcel shall not be transferable or creditable to the property development excise tax applicable for any her different building or structure on any other lot or parcel.

(Ord. 1058 N.C.(2d) § 3 (part), 1989.)

If any provision, sentence, clause, section or part of this chapter is found to be unconstitutional, illegal or invalid, such a finding shall affect only that portion of the ordinance codified in this chapter. It shall not affect or impair any of the remaining parts of this chapter.

(Ord. 1058 N.C.(2d) § 3 (part), 1989.)

The city finance director is authorized to promulgate such regulations as he or she deems necessary to implement the provisions of this chapter.

(Ord. 1058 N.C.(2d) § 3 (part), 1989.)