This chapter establishes a construction excise tax on commercial
and residential improvements to provide funding for affordable housing
in the city of Cannon Beach.
(Ord. 17-7 § 1)
means any structure designed or intended to be used, or actually
used, for occupancy for other than residential purposes.
means erecting, constructing, enlarging, altering, repairing,
improving, or converting any building or structure for which the issuance
of a building permit is required pursuant to the provisions of Oregon
law.
means any improvements to real property resulting in a new
structure, additional square footage added to an existing structure,
or the addition of living space to an existing structure.
means median family income by household size for the city
of Cannon Beach as defined by the United States Department of Housing
and Urban Development as adjusted for inflation and published periodically.
means revenues remaining after the administrative fees described in Section 3.20.210(A) are deducted from the total construction excise tax collected.
means any structure designed or intended to be used, or actually
used, for occupancy for residential purposes including any residential
structure, dwelling, or dwelling unit.
means the total value of the improvement as determined by
the construction permit or building permit for the improvement.
(Ord. 17-7 § 1)
The city manager is responsible for the administration of this
chapter. In exercising the responsibilities of this chapter, the city
manager may act through designated representatives.
(Ord. 17-7 § 1)
A.
Each
person who applies to construct a commercial improvement in the city
of Cannon Beach shall pay a commercial construction excise tax in
the amount of one percent of the value of the improvement.
B.
Each
person who applies to construct a residential improvement in the city
of Cannon Beach shall pay a residential construction excise tax in
the amount of one percent of the value of the improvement.
C.
The
construction excise tax shall be due and payable prior to the issuance
of any building permit.
(Ord. 17-7 § 1)
A.
No tax
imposed under this chapter shall be imposed upon the following improvements:
1.
Residential
housing units guaranteed to be affordable, under guidelines established
by the United States Department of Housing and Urban Development,
to households that earn no more than eighty percent of the median
household income, for a period of at least ten years following the
date of construction of the residential housing;
2.
Public
school improvements;
3.
Public
improvements as defined in ORS 279A.010;
4.
Public
or private hospital improvements;
5.
Improvements
to religious facilities primarily used for worship or education associated
with worship;
6.
Long
term care facilities, as defined in ORS 442.015, operated by a not-for-profit
corporation;
7.
Residential
care facilities, as defined in ORS 443.400, operated by a not-for-profit
corporation;
8.
Continuing
care retirement communities, as defined in ORS 101.020, operated by
a not-for-profit corporation.
B.
The
city may require any person seeking an exemption to demonstrate that
the person is eligible for an exemption and to establish all necessary
facts to support the exemption.
(Ord. 17-7 § 1)
The city may not issue a building permit to any person who has failed to pay the tax required by Section 3.20.070.
(Ord. 17-7 § 1)
It is a violation of this chapter for any person to fail to
state or to misstate the full value of the improvement.
(Ord. 17-7 § 1)
A.
Interest.
If the city manager determines that a person has failed to pay to
the city all or any part of the construction excise tax due under
this chapter, interest shall be due on the entire unpaid amount, assessed
at the rate of 0.833 percent simple interest per month or fraction
thereof (ten percent per annum), computed from the original due date
of the fee to the fifteenth day of the month following the date of
the underpayment. Interest amounts properly assessed in accordance
with this section may not be waived or reduced by the city manager.
B.
Penalties.
In addition to assessing interest, the city manager may assess a penalty
of five percent of the otherwise applicable tax liability upon:
C.
Penalties
and Interest Merged with Tax. Any accrued interest and imposed penalties
under the provisions of this section shall be merged with and become
a part of the construction excise tax required to be paid under this
chapter. If delinquency continues, requiring additional penalty and
interest calculations, previously assessed penalty and interest are
added to the tax due. This amount becomes the new base for calculating
new interest amounts.
(Ord. 17-7 § 1)
The construction excise tax, and any assessed interest and penalties, due and owing under this chapter constitutes a debt owing to the city by the person liable for the tax as set forth in Section 3.20.070.
(Ord. 17-7 § 1)
A.
The
city shall issue a refund to any person who has paid a construction
excise tax the amount of the tax actually paid:
1.
If the person establishes that the tax was paid for improvements that were otherwise eligible for an exemption under Section 3.20.080.
2.
If
the person establishes that construction of the improvements was not
commenced and the associated building permit has been cancelled by
the city.
3.
Upon
a determination by the city manager that the amount of any construction
excise tax, penalty, or interest has been erroneously collected or
paid to the city under this chapter.
B.
The
city shall either refund all amounts due under this section within
thirty days of a complete request for the refund or give written notice
of the reasons why the request has been denied. Claims for refunds
shall be made upon forms provided by the city. The request for the
refund must be submitted within three years from the date of payment
of the construction excise tax.
(Ord. 17-7 § 1)
A.
Administrative
Review. Any written determination issued by the city applying the
provisions of this chapter believed to be in error may be reviewed
by the city manager if requested in writing by the recipient. The
request for administrative review must be received within ten days
of the determination, and must include all documentation supporting
the request. The city manager's determination in the administrative
review shall be served by regular mail.
B.
Appeals.
Any written determination from the city manager applying the provisions
of this chapter regarding liability for payment of construction excise
taxes may be appealed to the city council.
C.
The
filing of any notice of appeal shall not stay the effectiveness of
the written determination unless the city manager so directs.
(Ord. 17-7 § 1)
A.
The
city may retain up to four percent of the taxes collected for payment
toward administrative expenses related to collection and distribution
of the tax.
B.
For
the tax imposed on residential improvements, the net revenues, after
deducting administrative expenses, will be distributed as follows:
1.
Fifteen
percent of net revenue will be remitted to the Oregon Department of
Housing and Community Services to fund home ownership programs.
2.
Fifty
percent of net revenue will be transferred to the affordable housing
fund to support developer/builder incentives for affordable housing
authorized by the city.
3.
Thirty-five
percent of net revenue will be transferred to the city's affordable
housing fund to support the city's affordable housing program.
C.
For
the tax imposed on commercial improvements, one hundred percent of
net revenue will be distributed to the affordable housing fund to
support the city's affordable housing program.
(Ord. 17-7 § 1)
