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Home My WebLink About1987-11-03; Notices Proofs (5)crrYOFCARLSBAD Proposition K (This proposition will appear on the ballot In the following form.) K Shall Ordinance No. 6082 be adopted amending Chapter 5.09 of the Carlsbad Municipal Code to ratify the existing 2.50% license tax on new construction and to authorize an increase to 3.5% to insure that new development generates the general revenues necessary to provide the facilities and services required by the Growth Management Ran? ORDINANCE NO. 6082 AN ORDINANCE OF THE CITY OF CARLSBAD, CALIFORNIA, AMENDING TITLE 5, CHAPTER 5.09 OF THE CARLSBAD MUNICIPAL CODE BY THE AMENDMENT OF SECTIONS 5.09.030(a) AND 5.09120 TO RATIFY THE EXISTING 2.5% LICENSE TAX ON NEW CONSTRUCTION AND TO INCREASE SAID TAX TO 3.5%. The People of the City of Carlsbad do ordain as follows: SECTION 1: That Title 5, Chapter 5.09 of the Carlsbad Municipal Code is amended by the amendment of Sections 5.09.030(a) and 5.04.120 to read as follows: "5.09.030 Imposition of Tax - Amount, (a) In addition to any other fee, license or tax required by this code, every person constructing or causing to be constructed or erected any building or structure in the City of Carlsbad for which a building permit is required, shall pay a license tax in the amount of 3.5 percent of the valuation of the building or structure established pursuant to this code for determining the buildingpermit fee. 5.09.120 Effective Date. The taxes imposed by this chapter shall be applicable with respect to building permits for construction activities, issued on or after November 3, 1987, provided any person constructing one or more dwelling units, or otherwise engaging in construction taxable hereunder, pursuant to a building permit applied for before July 28,1987, but not actually issued until on or after the date, shall not be liable for payment of the tax provided such person has obtained all other discretionary approvals required for the project, has had the application accepted as complete, paid the plan check fee, and who obtains the permit applied for within 180 days of the date the application was accepted and diligently pursues the project to completion." SECTION 2: The City Council may amend this ordinance from time to time to add exceptions or adjust the rate or application of tax or make such other changes as they determine to be necessary provided, the rate of the tax to be imposed by this ordinance shall not be increased. SECTION 3: As a part of approving an increase in the license tax from 2.5% to 3.5%, passage of this ordinance will also ratify the collection of the 2.5 percent license tax on new construction imposed by the City Council after August 1, 1985 and prior to the effective date of Section 53727 of the California Government Code in compliance with the requirements therefore adopted by the People by their passage of Proposition 62 at the November 4,1986 General Election. SECTION 4: This ordinance, being an ordinance relating to taxes for usual and current expenses of the City, pursuant to Section 36937(d) of the Government Code shall take effect immediately upon its passage. Before the expiration of fifteen days after its passage, this ordinance shall be published once in the Carlsbad Journal, newspaper of general circulation printed and published in the City of Carlsbad. 2nd PROOF NPR-1309.1 Martin & Chapman 1309S/1 PASSED, APPROVED AND ADOPTED by the People of the City of Carlsbad at an election held on the 3rd day of November, 1987. CLAUDE A. LEWIS, Mayor ATTEST: ALETHA L. RAUTENKRANZ, City Clerk (SEAL) APPROVED AS TO FORM: VINCENT F. BIONDO, JR., City Attorney CITY ATTORNEY'S IMPARTIAL ANALYSIS Proposition K asks the People of Carlsbad to adopt an Ordinance amending Sections 5.09.030(a) and 5.09.120 of the Carlsbad Municipal Code to increase the existing 2.5% license tax on new construction by 1% to 3.5% of the valuation of new buildings as determined for purposes of the building permit fee. The current tax exemptions would remain the same. This increase in tax would not apply to a mobile home or to the construction by a non-profit corporation for religious, educational, hospital or charitable purposes or to additions to existing residential structures if the addition does not create a new dwelling or to any low cost housing project excepted from the provisions of this tax by the City Council of the City of Carlsbad. The license tax on new construction supplements City Council Policy No. 17 which requires payment of an identical public facilities fee prior to Issuance of a building permit. Any new construction which has paid the fee would receive a credit against the tax. Most of the money would be collected as public facilities fees which can only be spent for libraries, parks and other public facilities required by Proposition E and the City's Growth Management System. New construction not having paid the fee would be subject to this additional license tax which is a general tax the proceeds of which may be used for any legitimate governmental purpose. This ordinance has been unanimously approved by the City Council. Proposition 62 passed at the November 4 1986 election requires approval by a majority vote of the voters voting in this election, Proposition 62 also requires that the previous Increase of this tax from 2% to 2.5% imposed by the Council after August 1,1985, be ratified by a majority vote of the voters voting in an election or it shall cease to be imposed after November 15,1988. Approval of this measure will satisfy those requirements and the 3.5% rate would start on November 4,1987. If this measure is not approved the City will continue to collect the existing 2.5% tax until November 15, 1988 when the City will be required to reduce it to 2%. NPR-1309.2 Martin & Chapman 1309S/2 ARGUMENT IN FAVOR OF PROPOSITION* The policy of the City of Carlsbad Is that growth pays its own way. The financing ol growth should not be a burden on existing taxpayers and residents. New development requires additional facilities to provide required services. The City Council adopted a public facilities fee that required each new development pay a public facility fee equal to 2% of the building value at the time of issuance of a building permit. The fee is to pay fire facilities, libraries, park Improvements, public buildings, traffic signals and selected streets. The City Council has monitored growth in the City to ensure that sufficient public facility fees were collected from new development. After careful review, the City Council raised the public facility fee from 2% to 2.5% in 1986 and again this year from 2.5% to 3.5% to provide funds to finance needed public facilities such as libraries and Macario Canyon Park, Last November, the voters of California approved Proposition 62 requiring voter approval of any measure increasing general or special taxes. The public facilities fee does not qualify as a general or special tax. However, the City has a license tax on new construction which requires voter approval that is applied to new developments which do not pay the public facilities fee. The City's license tax on new development needs to be increased from 2% to 3.5% to continue to provide the monies necessary for future public facilities. "yes" vote will assure that all new development pays its share of public facilities costs. This increase in the license tax is paid on new development only and is no charged to existing residents and businesses. CLAUDE A. LEWIS ANN J. KULCHIN Mayor Mayor Pro Tern JOHN J. MAMAUX MARK PETTINE Council Member Council Member ERIC LARSON Council Member ARGUMENT AGAINST PROPOSITION K No argument against the proposition was filed in the office of the City Clerk. NPR-1309.3 Martin & Chapman 1309S/3