Chapter 3.20 — SPECIAL PARCEL TAX

• A. Pursuant to authority of Article XIIIC of the California Constitution and Government Code Section 50075, et seq., there is hereby levied and assessed a special tax by the City of Vernon on each parcel of property improved with a "warehouse," a "truck terminal," a "freight terminal," a "railroad facility," or a "distribution facility," as hereinafter defined. The special tax shall be levied and assessed each year, commencing in the year 1998 and continuing until modification or repeal in a manner provided by law.

• B. As used in this section, the following terms have the meanings or limitations indicated:

  1. "Assessor's parcel map" means an official map of the assessor of the County of Los Angeles designating parcels by assessor's parcel number.

  2. "Cold storage and refrigerated warehouses" means a building or part of a building used primarily to store non-durable, perishable goods under refrigeration including services for processing, preparing or packaging goods for storage.

  3. "Freight terminal" is a lot, building or part of a building, as used or designed for use, in or on which goods or freight are transferred or redistributed from one vehicle to another.

  4. "Maximum special tax" means the maximum special tax, determined in accordance with subsection C, that can be levied by the City of Vernon in any fiscal year on a parcel of property improved with a warehouse, truck terminal, freight terminal or other distribution facility.

  5. "Other distribution facility" means and includes an intermodal container transfer facility and storage areas related to such facility.

  6. "Parcel" means a lot or parcel shown on the current applicable assessor's parcel map with an assigned assessor's parcel number.

  7. "Truck terminal" means a lot, building or part of a building used or designed primarily for the storage, maintenance or servicing of highway-type vehicles carrying persons or property, including, but not limited to, trucks and buses.

  8. "Trucking uses" means any lot, building or part of a building in or on which goods or freight are transferred or redistributed from one vehicle to another, or any lot, building or part of a building used primarily for the storage, maintenance or servicing of highway-type vehicles carrying persons or property, including, but not limited to, trucks and buses, but excluding commercial repair facilities.

  9. "Railroad facilities" means rail lot yards used primarily for the switching of rail cars or transferring of freight or goods from a rail car to another vehicle, but does not include railroad spur tracks.

  10. "Retail sales" means those sales in which the City receives one percent of the sales tax.

11. "Warehouse, distribution and wholesale uses" means a building or part of a building used or designed primarily for the storage of non-perishable goods or non-refrigerated perishable goods intended for distribution to other locations, or the sale of goods for distribution to other locations for wholesale or retail sale, but does not include: (a) an accessory warehouse building that is an integral part of a manufacturing business located in the City of Vernon used for storage of goods or materials produced in that operation; (b) any wholesale, distribution and wholesale uses which pay at least $0.20 per square foot in sales tax to the City of Vernon during the subject fiscal year; and (3) cold storage and refrigerated warehouses.

• C. The maximum special tax commencing in fiscal year 1999, shall be $20.00 per 100 square feet of gross area of land.

• D. Maximum Rate.

  1. Pursuant to Section 2(b) of Article XIIIC of the California Constitution, the tax rate established by this chapter is a maximum rate, and the City Council, by resolution or ordinance, may levy a tax at any rate or amount that is equal to or less than the maximum rate or amount authorized by this chapter.

  2. The maximum rate established by this chapter shall be revised annually based upon changes in the Consumer Price Index for All Urban Consumers (CPI-U), All Items Index, Los Angeles-Anaheim—Riverside Area (1982-84=100) (herein-after "CPI") published by the United States Department of Labor, Bureau of Labor Statistics. In the event said CPI for the 12-month period ending March 31 of each year (the "adjustment date") is higher than said CPI for the 12-month period ending March 31, 1999, the maximum tax rate set forth in this chapter shall be increased by multiplying said tax rate by a fraction, the numerator of which is the CPI on the adjustment date and the denominator of which is the CPI for the 12-month period ending March 31, 1999. The resulting adjusted tax rate shall then be the maximum tax rate for the fiscal year commencing the next July 1st. There shall be no reduction in rates by operation of this provision. If, in the future, said CPI shall be changed so that the base year differs from that used as of the effective date of this chapter (this chapter was adopted by Resolution 2010-60, adopted May 24, 2010 and adopted and ratified by the voters at the election of August 31, 2010), it shall be converted in accordance with the conversion factor published by the United States Department of Labor, Bureau of Labor Statistics. The City Clerk shall submit a written report to the City Council setting forth the adjustments to the maximum tax rate required by this subsection, which the City Council shall approve by resolution.

  3. Periodically, the City Clerk shall submit to the City Council a recommendation for revising the rate to be employed in levying the tax, provided, that the recommended tax rate shall not exceed the maximum tax rate authorized by this chapter.

• E. The City Council is authorized to determine for each fiscal year, by ordinance or resolution, the special tax to be imposed on each parcel subject to this section. The special tax shall not exceed the maximum special tax rate established in subsection C of this section as adjusted by subsection D, but it may be imposed at a lower rate. The ordinance or resolution shall also list, by assessor's parcel number, all parcels subject to the tax. The ordinance or resolution shall constitute the official record of the assessment of the special tax, and a copy thereof, together with any other pertinent data, shall be transmitted to the appropriate

County or City officials to facilitate collection of the special tax.

• F. The special tax shall be due in two equal installments in accordance with the collection procedures of the Los Angeles County Tax Collector, with the first installment due November 1, and the second installment due the next succeeding February 1. The owner of the land, land and improvements, at the time set forth in California Revenue and Taxation Code Sections 405 and 2192 for each fiscal year, shall have a personal obligation to the City of Vernon until the tax is paid.

• G. The City Clerk may prepare a questionnaire to be served on the owner of a parcel or improvements subject to the tax imposed by this chapter. The questionnaire may request information which would be useful to the City Clerk in the enforcement or administration of this chapter. The failure by an owner to provide the information requested within 30 days of receipt of the request, or the act of an owner in knowingly providing false information, shall be a misdemeanor.

• H. In determining the gross square footage area of improvements the City Clerk may use County Assessor's records, City records, questionnaires and any other records the City Clerk deems reliable.

• I. Properties or entities exempt by law from the ad valorem tax imposed by Articles XIII and XIIIA of the California Constitution shall be exempt from the tax imposed by this section.

• J. The special tax imposed by this section shall be collected in the same manner as ad valorem property taxes are collected and shall be subject to the same procedure, sale and lien priority in case of delinquency as is provided by ad valorem taxes (which such procedures include the exercise of all rights and remedies permitted by law to make corrections, including, but not limited to, the issuance of amended or supplemental tax bills), as such procedure may be modified by law or by the Board of Supervisors of the County of Los Angeles from time to time; provided that the City Council shall have authority to provide, by ordinance or resolution, for a different method of collection of said taxes as it shall determine to be in the best interest of the City of Vernon. The Board of Supervisors, the Auditor-Controller, the Treasurer-Tax Collector and the Assessor of the County of Los Angeles shall perform the duties of assessment of property for the special tax, the correction of any assessment, the collection, payment, and enforcement of the special tax, including delinquent taxes, and the redemption of property from sale or other penalty for nonpayment of the special tax.

• K. The special tax imposed by this section shall be a tax upon each parcel of property, and the tax shall not be measured by the value of the property.

• L. The proceeds of the special tax shall be used for construction, improvement and maintenance of streets, bridges and other public rights-of-way, including acquisition of land and for police and fire protection services.

• M. Nothing in this chapter shall be construed as requiring the payment of a tax or the doing of an act which would constitute an unlawful burden upon or an unlawful interference with interstate or foreign commerce or which would be in violation of the constitution or the laws of the United States or the constitution or the laws of the State of California.

• N. The penalties provided for in Section 5.04.110(B) of this Code shall apply to the tax imposed by this chapter; provided, that should said tax be collected by the County of Los

Angeles, the delinquency date shall be the same date ad valorem property taxes become delinquent.

(Prior code § 5.45)

• A. Definitions. As used in this section, the following terms have the meanings indicated:

"Assessor's parcel map" means an official map of the Assessor of the County of Los Angeles designating parcels by assessor's parcel numbers.

"CPI" means the Consumer Price Index for All Urban Consumers (CPI-U), All Items Index, Los Angeles-Long Beach-Anaheim, California Area (1982-84=100) published by the United States Department of Labor, Bureau of Labor Statistics.

"Fiscal year" means the fiscal year of the City, which is the period starting July 1 and ending on the following June 30.

"Maximum rate" means the maximum rate of the special parcel tax as calculated pursuant to subsection D of this section.

"Nonresidential parcel" means any parcel other than a parcel that is improved solely with a residential structure.

"Parcel" means a lot or parcel shown on the current applicable assessor's parcel map with an assigned assessor's parcel number.

"Special parcel tax" means the special parcel tax to be levied pursuant to this section.

"Taxable parcel area" means, with respect to a parcel of taxable property and a fiscal year, the square footage of that parcel, excluding square footage that has been apportioned a share of the warehouse tax for that fiscal year. For purposes of this definition, "square footage that has been apportioned a share of the warehouse tax for that fiscal year" shall be calculated for the applicable fiscal year by dividing the amount of the warehouse tax levied against a parcel by the rate per square foot of the warehouse tax. For example, if the amount of the warehouse tax levied against a parcel is $10,000.00 in a given fiscal year, and the applicable rate of the warehouse tax in that fiscal year is $0.10 per square foot, then 100,000 square feet of the area of that parcel is square footage that has been apportioned a share of the warehouse tax for that fiscal year.

"Taxable property" means all of the nonresidential parcels within the boundaries of the City other than nonresidential parcels that: (a) are exempt from the special parcel tax pursuant to the Constitution or the laws of the United States or of the Constitution or the laws of the State of California; or (b) are exempt from the ad valorem property tax or have an ad valorem property tax liability of zero.

"Warehouse tax" means the special parcel tax levied by the City pursuant to Section 3.20.010.

• B. Levy of Special Parcel Tax. An annual special tax is hereby levied by the City on all parcels of taxable property.

• C. Duration. The special parcel tax shall first be collected for fiscal year 2023-24. The final year for which the special parcel tax shall be collected is fiscal year 2027-28.

• D. Tax Rate.

  1. For fiscal year 2023-24, the maximum rate of the special parcel tax shall be $0.03683 per square foot of taxable parcel area.

2. For fiscal year 2024-25 and each subsequent fiscal year through and including fiscal year 2027-28, the maximum rate of the special parcel tax shall be automatically adjusted based upon changes in CPI. For any fiscal year in which the CPI for the month of March of the immediately preceding fiscal year is greater than the CPI for March 2023, the maximum rate for such fiscal year shall be equal to the product of the maximum rate for fiscal year 2023-24 multiplied by a fraction, the numerator of which is the CPI for the applicable month of March and the denominator of which is the CPI for March 2023. For each fiscal year in which the CPI for the month of March of the immediately preceding fiscal year is not higher than the CPI for March 2023, the maximum rate for such fiscal year shall not be adjusted and such maximum rate shall be equal to the maximum rate for fiscal year 2023-24. If, in the future, the CPI is changed so that the CPI for March 2023 differs from the CPI for such month used as of the effective date of this section, the CPI for such month shall be converted in accordance with the conversion factor published by the United States Department of Labor, Bureau of Labor Statistics. The Finance Director shall submit a written report to the City Council each fiscal year setting forth the adjustments to the maximum rate calculated in accordance with this subsection.

• E. Annual Proceedings. For each fiscal year, the City Council shall determine, by ordinance or resolution, the amount of the special parcel tax to be imposed on each parcel of taxable property. The tax amounts determined by the City Council for a fiscal year shall be calculated based on the applicable maximum rate for such fiscal year but may, at the discretion of the City Council, be determined based on lower rates. The ordinance or resolution shall list each taxed parcel by assessor's parcel number. The ordinance or resolution shall constitute the official record of the assessment of the special parcel tax, and a copy thereof, together with any other pertinent data, shall be transmitted to the appropriate County officials to facilitate collection of the special parcel tax.

• F. Collection of Special Parcel Tax. The special parcel tax shall be collected by the County Treasurer and Tax Collector in the same manner and subject to the same penalty and procedure as ad valorem property taxes collected by the County Treasurer and Tax Collector. Unpaid special parcel taxes shall bear interest at the same rate as the rate for unpaid ad valorem property taxes until paid.

• G. Special Parcel Tax Not an Ad Valorem Tax. The special parcel tax is not an ad valorem tax. The amount of the special parcel tax to be imposed on a parcel is not calculated or measured based on the value of that parcel.

• H. Statement of Specific Purpose of Special Parcel Tax Proceeds to Be Applied Only to Such Specific Purpose. The proceeds of the special parcel tax, together with any interest and penalties thereon, shall be applied only to the payment of the costs of: (1) City police services and projects; (2) City health services and projects; and (3) contracted City fire protection services and projects. Services and projects include, but are not limited to, salaries, benefits, equipment, contracted services, and capital improvements.

• I. Accountability Measures. The proceeds of the special parcel tax shall be deposited in a special account, to be created and maintained by the City. For so long as proceeds of the special parcel tax remain unexpended, the Finance Director of the City shall file an annual report with the City Council no later than the second Council meeting in January of each year, commencing January 1, 2025, stating: (1) the amount of special parcel tax funds collected and expended; and (2) the status of any project required or authorized to be funded pursuant to this section. Such annual report shall relate to the fiscal year most recently ended, and may be incorporated into or filed with the annual budget, audit or other appropriate routine report to the City Council.

• J. Amendment. The City Council may, by ordinance, amend, repeal, renumber or recodify any or all of the provisions of this section; provided, however, that no ordinance extending or increasing the special parcel tax shall be effective unless submitted to, and approved by, the voters of the City as required pursuant to the applicable law at the time of such action.

• (Prior code § 5.46; Ord. 1288 § 1, 2023)

• A. In calculating the tax imposed pursuant to Section 3.20.010 upon a parcel whose improvements are in multiple uses, the gross land area of the parcel shall be apportioned between the various uses of the parcel, and the amount of the tax against the parcel shall be based only on the land area apportioned to uses that would otherwise trigger the tax. The gross land area shall be apportioned proportionally to the use of the square footage of improvements on the parcel, with improved common space areas (such as break rooms, restrooms, hallways and loading docks that are shared by the occupants, tenants or uses of a building) allocated proportionally to the improved square footage of the uses. For example, if a 150,000 square foot parcel is improved with a single 100,000 square foot structure, 60,000 square feet of which is used for the storage of non-perishable goods, 30,000 square feet of which is used for the storage of non-durable perishable goods under refrigeration, and 10,000 square feet of which is common spaces shared by both the nonperishable and refrigerated storage uses, the tax upon the parcel pursuant to Section 3.20.010 would be calculated as if the parcel were a 100,000 square foot parcel improved and used entirely for the storage of non-perishable goods.

• B. The City Clerk or designee is authorized to issue guidelines for the implementation and interpretation of this section.

• (Prior code § 5.47)