Tax on Construction of a Residential Unit

“Imposition—Rate. A business license tax is hereby imposed solely for revenue purposes, in addition to any other business license tax imposed in this title, upon every person transacting and carrying on the business of the construction of a residential unit or units in the city.”

“5.50.080 - Proceeds of tax. The proceeds of the tax received pursuant to Section 5.50.020 shall be placed in the city's general fund. (Ord. 1569 § 2 (part), 1985).”

“upon every person transacting and carrying on the business of the construction of a residential unit or units in the city”

1985

“5.50.010 - Definitions. In this chapter, unless the context otherwise requires: A. "Residential unit" is a structure or part thereof designed for residential use. B. "Construction" includes construction of new units as well as alteration to existing units which would increase the square footage of the unit. (Ord. 1569 § 2 (part), 1985).”

Ordinance No. 1569 (1985) — chapter enacted; rate last set by Ordinance No. 1772 (1990)

“5.50.010 - Definitions. In this chapter, unless the context otherwise requires: A. "Residential unit" is a structure or part thereof designed for residential use. B. "Construction" includes construction of new units as well as alteration to existing units which would increase the square footage of the unit. (Ord. 1569 § 2 (part), 1985).”

at building permit

“Due date—Computation. The amount of the tax shall be determined and paid at the time of issuance of a building permit for the construction applied for.”

City of Merced, the agency that levies it. City of Merced finance officer

“The tax shall be due from the person by whom a residential unit is constructed. The finance officer or his designee shall collect the tax as set forth in Section 5.50.020 above. The amount due shall constitute a debt payable to the city, and an appropriate city official may bring action in the name of the city for the collection of such debt.”

“5.50.030 - Exceptions. The tax imposed by this chapter shall not apply to the following: A. The construction of a residential unit which is equal or smaller in size for a unit being removed from the same parcel of land; B. The construction of any building or unit by a bank, including national banking associations; C. The construction of a building by an "insurer," as that term is defined in Article XIII, Section 14-4/5, of the California Constitution; D. The construction of a building on property which qualifies for tax exemption under Sections 206, 207, and 214 of the Revenue and Taxation Code, State of California, if the applicant for the building permit indicates that the building when constructed an the property shall be used for the same purposes for which said property is granted exemption. E. The construction of a building by the federal or state government or any political subdivision of the state.”

“5.50.040 - Credit against tax. In the event that a residential unit is constructed upon land covered by an agreement with the city and such agreement provides for the payment of a cost revenue impact fee (CRIS fee) payable at the time of the issuance of the building permit and such fee is paid pursuant to the terms of such agreement, then the fee so paid shall be credited toward the payment of the tax herein provided.”