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HomeMy WebLinkAboutCC ORD 1994-2085 Adds §§ 6.20.030 and 6.20.050 and amends §§ 6.20.020 and 6.20.040, apartment rental (6.20)ORDINANCE NO. 94-2085 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AMENDING PORTIONS OF CHAPTER 6.20 OF THE NATIONAL CITY MUNICIPAL CODE, AMENDING SECTION 4 OF ORDINANCE NO. 1407, AND AMENDING SECTION 2 OF ORDINANCE NO. 93-2062, CONCERNING RESIDENTIAL RENTALS BE IT ORDAINED by the City Council of the City of National City as follows: Section 1. That the title of Chapter 6.20 of the National City Municipal Code is hereby amended to read as follows: Chapter 6.20 RESIDENTIAL RENTALS Section 2. That Section 6.20.020 of the National City Municipal Code, and Section 2 of Ordinance No. 93-2062, are hereby amended to read as follows: 6.20.020 License Fee. Any person, firm, corporation, partnership or other entity owning residential rental units in the city shall pay a license fee based on the number of units owned as follows: A. Persons owning one to four units at one location or a total of one to four units at various locations, shall pay fifty dollars per unit for the first unit, and fifteen dollars per unit for each additional unit. B. Persons owning a total of five or more units at various locations, but fewer than thirty-one units at any one location, shall pay a license fee of fifty dollars per unit for the first unit, and fifteen dollars per unit for each additional unit, or may, at his or her option, pay a base tax of seventy-five dollars in addition to the sum of the tax set forth in the tax table in Appendix "A" based on gross receipts (gross rents) derived by such person from all units owned by the person within the city. The gross tax rate is one tenth of one percent. C. Persons owning thirty-one to sixty units at one location shall, for each such location, pay a base tax of one hundred dollars in addition to the sum of the tax set forth in the tax table in Appendix "A" based on gross receipts (gross rents) derived by such person from each complex owned by the person within the city. The gross tax rate is one tenth of one percent. A separate calculation and payment must be provided for each location of rental properties. D. Persons owning sixty-one or more units at one location shall, for each such location, pay a base tax of one hundred fifty dollars in addition to the sum of the tax set forth in the tax table in Appendix "A" based on gross receipts (gross rents) derived by such person from each complex owned by the person within the city. The gross tax rate is one tenth of one percent. A separate calculation and payment must be provided for each location of rental properties. Ordinance No. 94-2085 Page 2 of 3 Section 3. That Section 6.20.030 is added to the National City Municipal Code, to read as follows: 6.20.030 Annual Review. The gross tax rate of one -tenth of one percent will be reviewed annually for inflation against the San Diego All Urban Consumer Price Index. The maximum annual increase in the gross tax rate shall be no more than five percent. Section 4. That Section 6.20.040 of the National City Municipal Code, and Section 4 of Ordinance No. 1407, are hereby amended to read as follows: 6.20.040 Exemptions. A. No tax shall be calculated on a residential rental unit in the following situations: 1. The unit is the primary residence of the property owner for at least six months of the year and no portion of the residence is rented, leased or sublet for any portion of the year. 2. The unit is occupied by a family member and is rented at less than current owner expense and is declared as family occupied on the owner's Federal Income Tax return. Current owner expense is defined as including mortgage payments, property taxes, association fees, assessments, property insurance, and utilities. 3. The unit is not available for rent for any period of time 4. The unit is directly owned by a Federal, State, County, Local or Special District governmental agency. 5. The unit is unoccupied and is under construction and will not be occupied for any portion of the tax year 6. The unit sold and escrow closed during first two months of the taxable year B. Proof of exemption eligibility will be required for certain exemptions and may be different for each exemption claimed. Exemption eligibility is only good for one year and must be renewed each taxable year by the tax due date or be subject to an administration fee. Section 5. That Section 6.20.050 is added to the National City Municipal Code, to read as follows: 6.20.050 Change of Ownership. All annual taxes imposed by this chapter shall be due and payable in advance on the first day of January of each year and delinquent on the first day of March. If ownership of any unit changes during this period or after the tax has been paid, the new owner will be responsible for registering and paying only the base amount of the tax and will not report and pay on gross receipts until the following January. The base amount is as follows: one to four units, fifty dollars; five to thirty units, seventy-five dollars; thirty- one to sixty units, one hundred dollars; sixty-one or more units, one hundred fifty dollars. Ordinance No. 94-2085 Page 3 of 3 Section 6. Pursuant to Section 36937(d) of the California Government Code, this Ordinance shall take effect immediately as a tax relating to the usual and current expenses of the city. PASSED and ADOPTED this 22nd day of November , 1994. George H. Waters, Mayor ATTEST: L ri Anne Peoples, City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney APPENDIX "A" UNITS BASE 1 to 4 units $50.00 /$15.00 5 to 30 units $75.00 31 to 60 units $100.00 61 + units $150.00 + gross rate + gross rate + gross rate GROSS TAX $20,000 to $99,999 $60.00 + base $100,000 to $299,999 $200.00 + base $300,000 to $599,999 $450.00 + base $600,000 to $899,999 $750.00 + base $900,000 to $1,499,999 $1,175.00 + base $1,500,000 to $2,499,999 $2,000.00 + base $2,500,000 to $3,499,999 $3,000.00 + base $3,500,000 to $4,499,999 $4,000.00 + base $4,500,000 + $5,000.00 + base Passed and adopted by the Council of the City of National City, California, on Novenlber..2.2,..1.994 by the following vote, to -wit: Ayes: Councilmen Dalla, Inzunza, Morrison, Waters Nays: Councilmen ...nAtig Absent: Councilmen ...None Abstain: Councilmen ...Zarate AUTHENTICATED BY: GEORGE H. WATERS By: Mayor of the City of National City, California City Clerk of the City of National City, California Deputy I HEREBY CERTIFY that the foregoing ordinance was not finally adopted until seven calendar days had elapsed between the days of its introduction and the days of its final passage, to wit, on ........ 1994 and on November..22,, .19.94. per. Gov't Code. Section..3 693 7(d) I FURTHER CERTIFY THAT said ordinance was read in full prior to its final passage or that the reading of said ordinance in full was dispensed with by a vote of not less than a majority of the members elected to the Council and that there was available for the consideration of each mem- ber of the Council and the public prior to the day of its passage a written or printed copy of said ordinance. I FURTHER CERTIFY that the above and foregoing is a full, true and cor- rect copy of ORDINANCE NO.94-2085of the City of National City, passed and adopted by the Council of said City on November 22, 1994 (Seal) City Clerk of the City of National City, California By: Deputy