HomeMy WebLinkAboutO-1132 - Excise tax on residential development; repeals Ord. 1065 (Repealed by 1251)..-,'.
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CIT y..0 F MAR Y S V ILL E
M~rysville,Washington
'ORDINANCE .NO.113~'
An Ordinance of the City of.M~rysville relating
to ·and providing for an exc is e tax on the business
and occupation of subdividing,rezon~ng and,
obtaining development permits for the:residential
~se of iand;and the construction.of residential
structures thereon;allowing credits against said
tax for dedication of land to .public use;prescribihg
procedures and penalties for th~impl~ment~tion and
enforcement of said excise tax;prescribing and
limiting th0~puTposes for which the City may use
tax revenl1t:sj .an d repealing Ordinance No.1065 .
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.t THE CTTY COUNCIL OF THE CITY OF.MARYSVILLE~.WASHINGTON ·DO
ORDAIN AS FOLLOWS:'
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S~ction '1(:.'Fihdin:gs aI).d ·D~cl·ara·ti.'on of Purpose.
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(a)The developmert~and coristr~ction of new resid~ntial
living units within t he .C.:i.ty cr ea t es an .i.mmed i.a t e and present danger
to the existing qualitib£.lif~;~~n~thre~tens to burden and over
tax ex:i.st:ing City street's,·:park.sancl~Tecreationa1 facil:i.ties,st.orm
drainage and flood control f~cilit[es,and the'response capabilities
of the Cit.v Police and Fire Department~.,
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(c)Such new development and'construction,presents the .C'it y
with the imminent necessity of expanding and improving its street
systems,parks 'and recreational facilities,storm drainage and floo·d
control facilities,and making capitalimpr~vements for the Police and
Fire Departments and acquisitions of vehicles and equipment for said
departments.Because of the size and·configuration of the City of
Marysville,it is determined that al~residential areas benefit equally
from such improvements and acqui~ition~,regardless of the location
of the same;th~refore,all.new residential growth should equally bear
financial responsibility for the same..
(c)In'order to raise money to provide for such improve-
ments.and acquisitions,it ·is deemed in the best interest of the public
to impose an ex~ise tax upon persons engaged in the business of
devel~ping real estate for resident.ial purposes,and upon persons
eng~ged in thG business 'of constructing new.residential dwelling units.
Su~h a tax is authorized pursuant to RCW 35A.'82.020.
(d)The imposition and collection of an excise tix upon
such businesses is reasonable and:appropriate in that it shifts to the
persons responsible for new r e.si.den tia I growth the financial burden .
of provi~ing expanded facjlities and'services which would not othirwise
be necessary.
Ordinance/l
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,(e)The tax rates fixed by thischipter are fair and
r easonab l.e -and b e'ar a substantial rela.tionship to the above o bj ec tive s,
~ndspecifically be~r a's~bstantialrelationshipt6 the City's:
costs in providing.expanded .and'improved ~treets,parks and recreationil
facilities,storm drainage and flood.corrtrolfaciliti~s"and police.
and fire servic~s,as nece~sitated biryew're~idential gTo~th..
,(f)The p'roceedsreceived from this excise'tax should be
used exclu~ively fot the.~~rp0se of meeting the,cost of servicing
expanded r e.s iden t i al vg r owt.h,'Such proceeds should 'not'be used to
recdverthe City's T~utinegovernmental ~xpense~for operation-and
.maintenance,nor should'theyconstitute a recaptu~i or rec6very of any""
preexisting costs incurred by :the,City prior to,the impact of the
new residential growth:
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(g)The provision~of this chanidr shall be dee~ed to be an
exercise of the po~er of the City to impo~eex~is~ta~es for reg~li~
tion and ~eve~ue purposes.
Section'2.'De f ini t ions.
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.'For'purposes of this chapter,the "f o Ll.owi.n g definitions
shall;be,applied:
, '(a)
·unit.which is
of.sleeping.
Bedroom:M~ans and incl~~es 'any room in a dwelling '.,
designed ~nd intended fo~hum~n o~cupancr for'purp6sds
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,(b)'Business':_En cLudes all activities,e.ng aged .i n 'with
,thd obje~t of gain,benefit'or advantrige to'one's self o~to another.
person,directly or indirectly.:
.(c)C~ristrutiDi New R~~idGntialpwellingUnits:Means and
includes the .bui :I:ding or;remodel .i rrg of.a s truc ture'cl,es igned ancl
intendedfdr huma~r~siclential..occupari~y;and th~plac~fuehtofa mob~le
home on a 'lot for the pur;P6·se of "permanent ·human r-e s i.den't i.aI occupancy.
It shall not mean'or inc:Iiud;ei·any'remodeling,'.r es t or a t i on 'or replacement
of a residential -s t ru c.t ur e .wh i ch .d oe s not i.nc r ea se :the number of
clwe 11 ing uni t s 'orbe<:fr:ocnil's p r evi o usl.y ex i sting on the,property.
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.(d)'\De~e'}oping 'Real E~t'ate for Resi'clential Purposes:Means
and .in cLu des "t h e'Fo.Llow i.n g -ac ti-v it.i.esv-wi t h r es pe c t to real estate
within the c:fty:.';,'.:..::.,'~.",,",':'.r";;''~,·~r··. .
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.(1)~bt~ining·a r~~on~'fo;~~operty which authorizes
an increase in the po~enti~l~~e~iclential densities for
the s am e .:\"'>....,;....;-:.'"',"'",...
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, (2)'Obtaining it,cond i t icnaL'u se.vperm i t for property .
.which au t.ho r i-ze s-jc o ns ttarct i.on "O;f'i a. dup lex thereon.
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(3)Obtaining~,permit !orproperty which a~thorizes
.deve Lopmen t of a t r ai l.er .camp .01'mobile home park t he r e.orr .
.'..(4)Ob t a i ni ng short-'plat appnova I.for a':residential
subdivision .
Ordinance!2'
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.'(-5)Obtaining final plat.approval f or a residential
subdivision.
(g)Engaging in Business."Means commencing,conduct.ing
or continuing in bU~lness.',
(h)Per~on or Persons:M~afis any individual,firm,'co-'
part.nership,joint venture,club,company,joint.stock ~ompanY"busin~ss'
trust.,corpotati6n,association,~ociety,or any group of individuals
acting as a unit,whether mutual,'coqperat~ve,f~at~rnal,non-profit
or otherwise,but'shall'exclude any'gov er nmen tal subdivision whether
federal,state"county or city.
(i)'Plat:Means the division ,of land into five or more lots,
tracts,paree Is,sit e s 'or'di vi s ions f or the purpose of s ale or'
lease for resid~ntial use and ~evelopment.
'(j)Sho~t Plat:Means the division of land into four or less
,lots,tracts,.p ar cc l s ,s it es or subdivisi.onsTor the purpose of sale or'"
or lease for residential use and development.For purposes of this
'chapter,short plat shalT not include boundary lineadju~tments,
or'divisions of land which do not create any new lots suitable for
residential use and development.""
(k)TaxpayeT:,MeaDS any person'I iab Le for'the e xc is e tax
imposed'by this chapter.
Section 3.Impositio~of'Tax ,:·:Person Subject to Tax.
From and ~fter ~d;)',',;,1980,there is hereby
imposed an excise tax up~gros~nus i ne s s of persons engaging ,
in the following businesses within the City limits:'
(a)
(b)
Devel6ping Real Esi~te for Residential Purposes.
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Cons t ruc.t i.n g _Ne~'l Residential Dwelling Uni ts.'
The gross bu s.i ne ss su19J~c\:"to said,UlX sh,al.l.be measured by:and equal
'to the app LicabLe i r ar.e or rates described i n Section 4 of .t h is chapter,
and payable,accordirig to the provision~of Section]~f this chapter.
The tax sh~llbci'irnposed on ill persons eng~gingin'such businesses
whether .f o r:the p er s ona I use of sikh per,sons~,or'for speculation,sale,
offer for sale,rental)l'ease Cir 'a,ny oth:\E?r u til i za t i on or disposition
of the sub j ec t property.'.
Section 4.Tax Ra te ,/:
The rate ofexCi'Se"t'ax'hereby imposed is as follows:
• .-']:'y_<>....,"_......;..:t .~
ea)'The bu si.n es's :6fl'I)'ev'eloR:im~;',Real .Es t a t e 'for Re.s i.de nt ia I
Purposes shall be t~xed at the rate of $400.00 per potential dwelling
Ordinance/3
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uni't-on the,subject :property .'''''This 5ha:1'1 oxcludcdwe.I l.ing units'·~hith;wer.e;.cons t ruct ed
and occupred on'the .subject p'roperty pri or rto.tl1enewdeve16pment'approval.''~,~.'The '
tax shall 'be applied only 'once to the full development process~and
shall not be assessed ,cumulatively at each intermediat~'stage.
(b)The business of Const.ructing New Residential Dwelling
Units shall be taxed at the r~te of $150.00 per bedrbom,to a ~a~imurn
of $600.00 per dwelling unit.This sh~ll exclude bedrooms in a
dwelling unit which preexist the remodeling,restoration or replacement
of the same.
Section'S.Credits Against Tax For Dedication of Land.
A~'the option of the citY,legislative or administrative .
authority i~stiing the 'development or construction approval,an applicant
for such apprbval may be ,required to dedicate land,or cause land to be
dedi~ated,to the City for public purposes.In such a case,the
applicant/taxpayer'shall be granted a credit against any part or all'
of the tax obligations imposed,by Se~tion 4 ab6ve,to the extent of the
appraised valu~of the land which is dedicated.The implementation
of this credit shaLI he in accordance wi t h the following criteria:
(a)Dedica~ion of land §hall only be required by the City
upon a finding of public nece~sity.
(b)No credit shall be giyen for dedication of larid for
publi c road Tight-of-way.,;:'..'...':(
:(c)In evalu~tirig{a'specific parcel of land for dedication,
the City shall con si.de r ,t'ile,following f ac t or s :
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,(1),C6~patibil{ty of t~e lind with the City's
then:curr en t compr ehen sive vpLan.fOT .pubLi c facilities.
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(2)Topo.g r-aphy.,~·ge-orogY.i"a oce ss and location oft'.. ' .\'.-..the land,a~the same relite ~o its effective develop-
ment and use for .pub l i c pu.r pos es .
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(3),The protl~i~i~~~tB~,land to preexisting
property ~nder,pUblic pwnership.
(4):The,prox,imity,6:t::'t'he l(~inil to existing and
forseeable population'concentratibns.
'(5)The po~sibility of combining the land 'with
abutting properties which ar evp r es en t Ly under public
owrie r shi.p or ar e anticipated f.or future acquisi t i o n:
(6)The environmentaJ and economic impact of
developing and using the lan~for public purposes.
(7)Th~appraised value of the land.
(8)1he extent,ii'any,which dedic~tion of the,
land to the public would unreaso~ably interf&8 ~ith
the private developm~nt and use,of abutting properties.
Cd)Within ~ixty days pf th~date of application.for
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Or di.n anc ey d
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.•d~~eloprnent orconstruciion approval,the City shall notify the
applicant of its'intent to:obtain an option.'£01'·the dedi.ca t i on of public'
land.Thereafter,at a mut ua Lly a gr e eab Le :time,the City and the
applicint shall r~tain th;~~~vic~s of a qualified appraiser who shall
investigate and.rep'ort 't,,6;the parties t he appraised value:of the .
subjectland~Thi c6~t ~f the appraisal shall be borneequally by the
Ci t y and the,app Li c arrt .Within thirty days f r omvt he date of the appraisal
r epo r t ;the City,shall notify t he appl,icant',in:writing,of its decision
to exercise'or decline the qp,t:io~tot,a;~'q:lli;re the s ub j ect land.." .,...'~.,":..".:..;.f.":.\',_t J .
(e)In th~:ev~nt"th~'C'ity:ex'e'rii:se~the option t o r r equir e
land dedication,the owner pf 'the proper~y shall de~d or dedicate the
same to t he v C'it y rw ith a wa:r.rarq;y dr,:cl,~aJ;title,as a.condi t i on of .
receiving final 'app r.ova I ofthe'de;v,'elo;p}!ient or construction stage in
question,"··
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(f)The a'pp1icant:jtaxpay:ex"shaLl"be given ,a credit against the
tax'obligation r~ferred to in Section 4 above which is equal to the
appraised value,of the dedicated land.
'(g)The City shall have complete discretion with re~pect tG
the use,of,th~dedicated land,and ,the schedule for the development
of 'the same;Provided,that any 'such use and development shall be
consistent with all applicable 'laws of the CitY,State and f ede r aI
government.
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Section 6 ..Credits Against Tax 'POl'Public Work on
Regional Imp~ovements.
,',In any case w~ere an applicant/taxpayer requests permission,
to develop,at its cost,'a regional improvement to the pubLi c street
system~park and recreational filcilities,sto~m drainage and flood control
facilities,or public safety facilities,which are located either on the
subject property oroff.7si te,and whi.chrtheCi.tywou.Id otherWise .be respons ib.le
'to'develop "'at its cost pursuant to Section I.of Ordinance No.(/33 '
the City may"in its sole distretion,grartt permission to the app1itantl
taxpayer to perform such ~ublic work~and the valu~.pf the same shal~,
be credited against the ~xcise tax obligati6n of the appli~ant/taxpayer.
The value of such work shall be determined by the City Engineer and
shall be c ons i s t erit with the p r'ob able .c os t o.f such work if it were
putout for public bid.Iri authorizing such publtc work,and in granting
a tax credit,therefor,the City legislative.or ad~inistrative authority
considering the matter must find that said work is in the public
i~terest and me6ts the following standards:
(a)The,public work must be a regional improvement which
is provided for and anticipated,in the City,'s ,Comprehensive Plan.
(b).Th e public work must'be directly related to'the mitigation
of i"mpacts created or contributed.to,by the residential development being
proposed by the applicant/taxpayer.'
(c)The timing for the development of th~public work must be"
consistent with the long-range scheduling,f~r,such developm~nt'bythe
'City,
(d)The applicant/taxpayer must demonstrate its financial
,and professional ability ~o perform the ~roje~t in a workmanlike manner
,and in compliance with all specifications ~or the 'project and all
governm~ntal regulati~ns relating~thereto,
O'r d i.n an e eZ S
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,...(e)The applicant/taxpayer ihall be,required to tomply with
all bo~ding and warrant~requirements 9the~wise applicable to public
works.
(f)The app.l Lc an t z t.axpay er sha Ll be,required to deposit with
the City cash in a stirn equal to the publi~work .contract retainage
requirement specified in'RCW 60.28.010.Said deposit shall be subject
to all p r ov i s ions can t ai ne d,in Chapter.60.28·RCW ...."
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..'(g}The,~ppritant/taxpayeT shall deed and tonvey the
c omp Let.e dv pr-o jec t..and'facilities t o it he C'i t y.,for no cost,as 'a
condition o£receiVing final approv~l of the residential development
or cons.truction ip question.:.,.,'l.',,~
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.Sec t ion''7 ...···0:r,~dits 'Agains t~':f'ax,'f()T':Pr iva te Parks.,
Where private,open space'for pa~k~nd recreational facilities
is provided in a proposed d.ev eI opm'en't ,.'and such space is to.be privately
owned and maintained byr,):he fu-t ur e-residents of the development,such'
space may,in the sole discretion of the City,be credited against the
'excis e ta x ob 1 i gat ion"of the,-app.l Lc a I).t .a t.:its appraised,value.
Provided,that such credit shall n otrexc e'ed the sum of $300.00 per
dwelling unit on the subject property.In allowing Suth a credit.the
City legislati~e or administrative authority considering the application.'
must find that the private park or re'creational facili t y is in the
publ~c interest and meets the following standards:
,(a)The y~rds,court.areas,setbacks and other open aTeas
required ·to be maintained by the zonirig and building regulations are
not included in the computation,of such private open space.
(b)The private ownership and maintenance of the open spaces
are hdequ~tely provided for by recorded covenants which run with the land
in favor of the futur~owners of the propert~within the development,
and which cannot be defeated or'eli~in~ted without the consent of the
City Council.
,(c)The use of t he private open space 'is restricted f o-rvpar k
and recreational purposes by recorded covenants whi~h run with the larid
in favor of the future owners of the property within the development,
and which cannot be defeated or eliminated without th~'consent 'of the
.City Council.
Cd)The proposed private open space i~reaso~ably adaptable
for use for park and recreational purposes,taking into consideration
SUCh factbrs as size,shape,topography,geology,~ccess"and location,
(e)Facilities proposed-for o pen vs p a'ces are .in general accord
with the intent'of Ma r y sv i Lle '5 Comp r ehen s.i.v e Park and Re cr e at i.on aI
-P'l an ,and.are approved by the Ci ty.-
Cf) The open space and/or facilities will provide foj the
park and recreational n~eds of the re~idents of the development in such
a manner as to reduce the impact on existing park or recreational
facilities within the City,or ,will reduce'the need to provide new
,p~rk or,recreational facilities within the CitY.
or din anc e/6
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-:".Section 8.Adminfsiration o£,Tax~
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(a)for pufpQs~s of determining the amount of excise .
tax owed in,the,ca$~Qfa business'Developing Real Estate£or Residential'
Purposes,th~'Clty,Pl~nning Of£ici~l shall certify to the City Finance
officer the:',n,umb~r6f po t entiaI dwe Llim g units which'could be constructed
or,p laced on.the sub je cf 'Pr'o'perty.;;,~',:Such ~ce r.t-i'fi cat ion shall take into
account the maxi.mum id errs ity 'permitted 'by'the<app Lic ab l.e zoning classifi-
cation,topography and otheienvironm~ntal cbnstraints,and any plat
restrictions or development'co:1!t;ract.s,imposed on -t he property.The
taxpayer shall pay the eici~~tax i~s,a:d6ndition of receiving approval
of the final development stage ~ef~rred to in Section 2 (d)abo~e ~hich
is applicable to thci subject pioperty.:CoDfirmation must be received
from the City F inance Q'~~.f?1Ce,r't'h a ~('the :Eu]:!:tax,has 'been pa id before such
approval becomes effect!ve~-:ProVided,that upon writ~en .application,
a taxpayer whose develo~~ent requires only a rezo~e or a planned unit
development approval shall be granted the right to defer payment of
up to $200 per potential dwelling unit until the time ,of applying for.,
the first building permit for the subject property a~a whole.
This tax shall be applicable to developments which may be irt
progress on the effective date hereof,a~long as such developments have
not.reached the final stage referred to above,which is the point .of
tax incidence.
(b)For purposes of determining the amo~nt of the excise tax
in the case oJa business Cons t r uc ti ng New Res ide n tia I Dwe Lli ng Units,
the City Building Official shall certify to the City Finance Officer
the numberd bedrooms per dwelling unii which are b~ing constructed
or place d on the subj ect -pro per t y .This tax shall be administered and
collected on a unit-bj-unit basis.No b~ilding.permit shall be issued
to any pers~n until the Finance Officer·has confirmed that all excise
taxes app I i cab l e to .s aid unit and the en tire deve Loprnent wi thin which
it is located have been paid in full,pursuant to this chapter.
Section 9.Use of Tax Prbceeds.
All pr6ceeds from the taxes collected unde~this chapter
sh~ll be deposited in the Growth Management Fund established under
Chapter 3.12 of the Marysville Municipal Code,and shall be used only for
the purpose of capital acquisitions and'expenditures ne~essitated by new
residential g~owth in the City..
Section 10.Appeals t~City Council.
. Any taxpayer aggrieved by the a~ount 6f the tax fciund to .be
required by a City administrative official,or by a determination requiiing
the dedicatio~of landi may appeal said finding or determination to the .
City Council by filing a written notice of appeal with the City Clerk
within twenty days from th~date thereof.The City Countil shall hold
a hearing on such app~al within thirty days'after ihe date ori which the
,notice 6f appeal was filed.Notice of the 'time ~nd place of the hearing
shalJ bemailedtothe·taxpayer.Atthehearingthetaxpayershall.be
entitled to be heard and intrbduce evidence on his own behalf.The City
council sh~ll thereupon ascertain th~correct amount of the tax,and any·
credits which will be allowed ~gain~t the smne for land dedication~and
the City Clerk shall i~mediately notify the taxpayer thereof,by mail,which
amcun t must be pa i.d pu rsuan t,to t hecp r-ov i.si ons of Sec t i.on 8,above.The
Ordinance!?
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decision of ,thef.Ci ~y Co~ricil~.hail.b~:>f:i;T~~t~.:
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Se~tion 11.Penalties.
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Any person subject·.t6,th~s~Ehapter who shall fail or refuse
to pay the excise tax when due,oi who shall make any false statement
or representation in anY'do~umen~submitted to the City in connection
w ith the a s ses sme nt of 's{i';i(~tq.x,"oT.iihO:;s ha Ll.otherwise violate or '
refuse Or fail to comply ~ith this~ch~pter,shall be guilty of a
misdemeanor,and upon conviction thereof'shallbe subject to·.afine not
to exceed $250.'00.Each day that the violation continuessh~lI coristitute
a separate crime.
Se c t i o nv Lz .Severability.
The invalidity.or unconstitutionality of any provision or
section of this chapter shall not render any other pro~i~ion'or section
of..this chapter invalid orunconsti tut.ional.
Section 13.Repealer.
Ordinance No.l06~,passed by t.he City Council of the City of
Ma r y sv i.Ll.e on September 10,'1979,.is .her eby REPI~ALED,the same havi.n g been
superceded by the foregoing sections of this ordinance.
Citj Council and APPROVED by the Mayor this
1980.
lHECITY OF MARYSVILLE
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, .,k1fayor ':'!I!&rEM.
At.test:
Approved a~,Jo Form:
Ordinance/8