HomeMy WebLinkAbout1983-08-16; City Council; 5778-12; Ordinance re: imposition of Businesss License Taxr>
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CITY JF CARLSBAD — AGENDA ^ILL **&
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MTG. 8/16/83
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TITLE: AN ORDINANCE CLARIFYING THE IMPOSITION
OF THE BUSINESS LICENSE TAX
DEPT. HD.JSQ-
CITY ATTY\J/2^
CITY MQR.Q^3
RECOMMENDED ACTION:
Staff recommends the introduction of Ordinance No. (pO'J ^* •
ITEM EXPLANATION:
Presently the business license tax is imposed upon all new construction in the City.
For alterations the existing law provides that the tax will be imposed on "the square
footage of additional dwelling units or mobile home spaces." For residential ad-
ditions or in the case of all other building alterations on "the additional square
footage, if any, resulting from the alteration." Carlsbad Municipal Code, Section
5.05.030(c). This language is vague because it speaks of "alterations" only in
terms of "additions" to buildings. In many instances, particularly in the cases of
industrial or commercial buildings, a builder will construct a "shell building" and
later when the occupants of the building are determined will do extensive work with-
in the shell to make the building useful for the occupant. This work results in
added value to the building and in added impacts to the community. To deal with
this situation, staff has consistently interpreted the existing language as impos-
ing a tax on the value added by such intentional alterations. The proposed ordinance
eliminates the vagueness of the existing law. The proposed ordinance codifies the
existing administrative interpretation.
The proposed ordinance will specify the tax for construction done on existing
buildings as follows:
1. Residential structures (including mobile homes) - tax levied on
value of additional "dwelling units" only. If no dwelling units
.are added, there is no tax for a remodel.
2. Nonresidential structures -
Additions - tax levied on value of addition only.
Alterations - tax levied on value added by the
alteration. Alterations are taxed only if the
alteration changes the use potential of the building,
results in the ability to accommodate a more intense
operation of the existing use, or makes the building
suitable for occupancy.
FISCAL IMPACT:
This ordinance reduces staff time in collecting the license tax for some projects
where the tax amount has been challenged or refunded in the past.
EXHIBITS:
1. Ordinance No. 6c
ORDINANCE NO.6072
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AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF CARLSBAD, CALIFORNIA AMENDING TITLE 5,
CHAPTER 5.09 OF THE CARLSBAD MUNICIPAL CODE
BY THE AMENDMENT OF SECTION 5.09.030 TO
CLARIFY THE CIRCUMSTANCES FOR IMPOSITION OF
THE BUSINESS LICENSE TAX ON NEW CONSTRUCTION.
The City Council of the City of Carlsbad, California
does ordain as follows:
SECTION 1: That Title 5, Chapter 5.09 of the Carlsbad
Municipal Code is amended by the amendment of Section 5.09.030
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 two percent (2%) of the valuation of
the building or structure established by the Building Official
pursuant to this Code for determining the building permit fee.
In determining valuation the -Building Official may use the
valuation multipliers approved by the San Diego Chapter of the
International Conference of Building Officials.
b) The developer of a mobilehome park shall pay a
license tax fee of $1,500.00 for each mobilehome space. The
license tax for mobilehome spaces shall be automatically
increased or decreased on January 1 of each year by the same
percentage as the percentage of increase or decrease in
construction costs between December 1 of each of the two
immediately preceding years, for which purpose construction costs
and the increase or decrease therein shall be based on the
Engineering News - Record Construction Cost Index.
c) For the alteration of or addition to residential
structures or mobilehome parks, the license tax shall be
computed only on the valuation of additional dwelling units or
mobilehome spaces, if any, resulting from the alteration or
addition.
(d) For additions to structures, other than
residential structures, the tax shall be calculated on the value
of the addition only.
(e) For the alteration of structures, other than
residential structures, the tax shall be calculated on the value
added by the alteration. The tax shall be imposed upon
alterations only where the alteration changes the use potential
for the structure, results in the ability to accommodate a more
intense operation of the existing use, or results in making the
structure suitable for occupancy or use pursuant to the building
code.
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SECTION 2: That the amendments made by section 1
of this ordinance are declarative of existing law and the
administrative interpretation of the existing law by the
Building Official. The amendments are necessary to codify the
administrative interpretation of the existing law.
SECTION 3: 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 Calrsbad Journal, a newspaper of general circulation
printed and published in the City of Carlsbad.
INTRODUCED AND FIRST READ at a regular meeting of the
Carlsbad City Council held on the 16th day of August /
1983, and thereafter
PASSED AND ADOPTED at a regular meeting of said City
Council held on the 6th day of Septerriber , 1983 by the
following vote, to wit:
AYES: Council Members Casler, Lewis, Kulchin, Chick and Prescott
NOES: None
ABSENT: None
/
MARY H. /C/ASLER, Mayor
ATTEST:
ALETHA L. RAUTENKRANZ, City Clerk
(SEAL)