Note: Prior ordinance history: Ords. 32, 69, 155, 233, 326, 371 § 4, 512, 517, 549, 557, 581 and 620.
The city council declares that the license taxes required to be paid hereby are assessed pursuant to Section 37101 of the Government Code of the state of California and the taxing power of the city and solely for the purpose of producing revenue. This chapter is not adopted for regulatory purposes. The continued development of the city, with the consequent increase in population and in the use of public facilities, has imposed increased requirements for such facilities, including, but not limited to, parks and recreational facilities, major street improvements, bus shelters, traffic signals, storm drains, bridges and public buildings (such as fire stations, police facilities, maintenance facilities, libraries and general offices). The necessity for such facilities results directly from new construction and the need cannot be met from ordinary city revenues. The most practical and equitable method of paying for such facilities is to impose a tax upon new construction in the city.
(Ord. 670 § 1 (Exh. A), 1997; Ord. 703 § 1, 1998)
For the purposes of this chapter, the following words and phrases shall have the meanings respectively ascribed to them by this section:
"Dwelling unit"
includes each single-family dwelling and each habitation unit of an apartment, duplex or multiple-dwelling structure designed as a separate place for habitation.
"Gross floor area"
means the total area of all floors in an enclosed building measured from the outside surface of building walls.
"Mobilehome space"
means each space, area or building, in a trailer park or mobilehome park or other place designed or intended as a place to accommodate any mobilehome, trailer, van, bus or other vehicle or mobile structure, at a time when the same is being used as living or sleeping quarters for human beings.
"Person"
includes every individual, firm, partnership, joint venture, association, trust, corporation or any other group engaging in construction activities itself or through the services of any employee, agent or independent contractor.
(Ord. 670 § 1 (Exh. A), 1997; Ord. 703 § 1, 1998)
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 for which a building permit is required, shall pay a license tax in the amount not to exceed one dollar and forty-six cents per square foot of gross floor area under roof.
B. 
For each mobilehome space, five hundred dollars with no additional sum for any directly accessory structure.
C. 
For the alteration of residential structures, not including a second kitchen or more than two bedrooms, or mobilehome parks, the license tax shall be computed prorated only on the additional gross floor area in excess of five hundred square feet up to a total of seven hundred fifty square feet, if any, resulting from the alteration; and for the alteration of other buildings or structures and residential additions in excess of seven hundred fifty square feet, the license tax shall be computed only upon all the additional gross floor area, if any, resulting from the alteration.
D. 
Notwithstanding the tax rate established in subsection A of this section, the city council may by resolution authorize the collection of a lesser amount of tax than that provided for in subsection A of this section. The resolution authorizing the collection of a lesser amount of tax shall state the time period for which it is effective.
(Ord. 670 § 1 (Exh. A), 1997; Ord. 703 § 1, 1998)
The license taxes imposed pursuant to Section 3.28.030 shall be due and payable at the Building Division, Rancho Mirage, California, upon issuance of the building permit. However, for any new construction projects for which a building permit is not required, the license taxes imposed pursuant to this chapter shall be paid prior to the issuance of any ministerial permit, including, but not limited to, grading permits or grading plans, for any development activity associated with the construction or development of any portion of the subject project. The tax for a mobilehome space shall be paid prior to the issuance of the first permit for the construction of such space or if such construction is performed without a permit, at the time when construction is commenced. No permit shall issue until the tax is paid.
(Ord. 670 § 1 (Exh. A, 1997; Ord. 703 § 1, 1998; Ord. 938 § 2, 2006)
If a permit for construction work expires or if such permit is revoked and if during the one hundred twenty days following the expiration or revocation date of the permit the permittee files written application for a refund in the office of the building official, there shall be a refund of the entire tax paid. There shall be no refund if any construction work has been performed nor shall there be any partial refund. In the event of a refund, it shall be unlawful for any person to proceed in any way with further construction without first applying for another building permit and paying the tax imposed by this chapter. If no refund is made and a permit expires after work has been performed, a new building permit shall be required and the tax imposed by this chapter shall be paid; provided, however, a credit shall be given not to exceed the tax paid in connection with the expired permit.
(Ord. 670 § 1 (Exh. A), 1997; Ord. 703 § 1, 1998)
A. 
All proceeds from the tax collected pursuant to this chapter shall be paid into the general fund of the city. The general fund may thereafter be used in such amounts for the purpose of acquiring, building, improving, expanding and equipping public property, and public improvements and facilities including but not limited to the following types of capital projects: public buildings (such as maintenance and yard facilities, libraries and general city offices) parks and recreation facilities, bus shelters, major street improvements, traffic signals, storm drains, bridges and other similar projects as the council may identify within the city capital improvement plan.
B. 
Designation of expenditures of funds available from the general fund shall be made by the city council in the context of approval of the city's annual operating and capital improvements budget or at such other time as the council may direct. At the discretion of the city council, funds may be accumulated in unlimited amounts for expected future capital improvement costs.
(Ord. 670 § 1 (Exh. A), 1997; Ord. 703 § 1, 1998)
There is excepted from the tax imposed by this chapter, the following:
A. 
The construction of a building or structure or mobilehome space which is a replacement for a building or space being removed from the same lot or parcel of land. The exception shall equal but not exceed the tax which would be payable hereunder if the building being replaced were being newly constructed. If the tax imposed on the new building exceeds the amount of this exception, such excess shall be paid;
B. 
Accessory structures in mobilehome parks, such as a swimming pool or laundry facilities;
C. 
Structures which are clearly accessory to an existing use such as fences, pools, patios and unenclosed parking spaces;
D. 
A residential addition of five hundred square feet or less of gross floor area if such addition does not include a second kitchen or more than two bedrooms. This exception is limited to one per structure;
E. 
The city council may grant an exception for a low cost housing project where the city council finds such project consistent with the housing element of the general plan and that such exception is necessary. In approving an exception for low cost housing, the city council may attach conditions, including limitations on rent or income levels of tenants. If the city council finds a project is not being operated as a low cost housing project in accordance with all applicable conditions, the tax, which would otherwise be imposed by this chapter, shall immediately become due and payable.
(Ord. 670 § 1 (Exh. A), 1997; Ord. 703 § 1, 1998)
There is excluded from the tax imposed by this chapter:
A. 
Any person when imposition of such tax upon that person would be in violation of the Constitution and laws of the United States or the state of California.
(Ord. 670 § 1 (Exh. A), 1997; Ord. 703 § 1, 1998)
A. 
A reimbursement of license tax paid shall be provided for those public improvements installed as a condition of project approval which are included in the public facilities needs study prepared as the basis of the license tax on new construction. A reimbursement shall only be provided for the specific public facilities of roads, traffic signals, bicycle paths and sidewalks, bus shelters, median islands and landscaping thereof, and utility undergrounding which were required by the city to be installed by the developer and which are in the public facilities needs plan. Reimbursements apply only to the development project which was required by the city to install such improvements. Reimbursements shall not be applicable for those public facilities for which the developer may be reimbursed in the future for such construction by development which may occur adjacent or across from such construction. In no event shall the total reimbursement exceed the amount of license tax imposed on the project for the particular public facility type constructed or the established cost of the public improvement as determined by the public works director. The reimbursement shall not reduce any other development specific exaction, mitigation, local impact fee imposed by the city or any other agency.
B. 
Reimbursements shall be provided annually by the city following a calculation of license tax payments for the preceding fiscal year for eligible public facilities installed by the developer and accepted by the city. An account of remaining eligibility for license tax credits will be determined with the annual reimbursement calculation.
(Ord. 670 § 1 (Exh. A), 1997; Ord. 703 § 1, 1998; Ord. 734 § 1 (Exh. A), 2000)
A. 
The taxes imposed by this chapter are due from the person by or on behalf of whom a residential, industrial or commercial building or mobilehome space is constructed, whether such person is the owner or a lessee of the land upon which the construction is to occur. The building official shall collect the tax due hereunder. The full amount due under this chapter shall constitute a debt to the city. An action for the collection thereof may be commenced in the name of the city in any court having jurisdiction of the cause.
B. 
The city manager shall be responsible for the administration and enforcement of this chapter. His decision may be appealed to the city council whose decision shall be final.
(Ord. 670 § 1 (Exh. A), 1997; Ord. 703 § 1, 1998)
The taxes imposed by this chapter shall be applicable with respect to building permits for construction activities, issued on or after the effective date of the ordinance adopting or amending the tax. Any person constructing one or more dwelling units, or otherwise engaging in construction taxable hereunder, pursuant to a building permit applied for on or after the date, or applied for before the date but not actually issued until on or after the date, shall be liable for payment of the tax irrespective of whether the tax was collected at the time of building permit application or issuance. No occupancy permit shall be issued with respect to any completed structure or construction taxable hereunder, unless and until the proper tax due has been paid.
(Ord. 670 § 1 (Exh. A), 1997; Ord. 703 § 1, 1998)