Agenda Packet 4-15-20 Work Session

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Ordinance - Page 3 of 4 (1) Revenues from the construction excise tax will be allocated to fund programs, incentives, and services related to the housing of households earning 100 percent of area medium income and below, and in accordance with state law. (2) Up to 4 percent of the taxes collected may be retained by the city for payment toward the city’s administrative expenses related to collection and distribution of the construction excise tax. 3.740 Construction Excise Tax – Interest and Penalties. In addition to assessing any civil penalties, 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 section 3.732 of this code, interest shall be due on the entire unpaid amount, assessed at the rate of .833 percent simple interest per month or fraction thereof (10 percent per annum), computed from the original due date of the tax. 3.742 Construction Excise Tax – Implementing Rules. The city manager may adopt administrative rules pursuant to section 2.019 of this code for implementation of sections 3.732, 3.734, 3.736, 3.738, 3.740, 3.744, 3.746 and 3.748 of this code, the billing and collection of the construction excise tax due thereunder, and enforcement of those provisions. 3.744 Construction Excise Tax – Appeal. Any person aggrieved by any decision under this code may appeal the decision in the manner provided in section 2.021 of this code. The appeal shall be heard and determined as provided in section 2.021 of this code. 3.746 Construction Excise Tax – Violations. No person required to pay a construction excise tax under section 3.732 of this code may fail to state or to misstate the full value of the improvement. 3.748 Construction Excise Tax – Program Review. Beginning in 2021, and every two years thereafter, the city council shall review the overall management and outcomes of the construction excise tax program. Section 2. The System Development Charges (SDCs) of persons required to pay the construction excise tax pursuant to Section 3.732 will be calculated in accordance with City Code and the City’s adopted SDC Methodology. However, for the period of July 1, 2019 through June 30, 2021, the amount of the construction excise tax the person paid pursuant to Section 3.732 will be subtracted from the total amount of City-imposed SDCs the person owes. The person will owe the total City-imposed SDC amount remaining after the construction excise tax is subtracted. Also, the person will owe in its entirety the Regional Wastewater SDC. If the amount of the construction excise tax the person paid pursuant to Section 3.732 exceeds the total amount of City-imposed SDCs owed, the excess construction excise tax paid will be subtracted from a permit fee the person owes. April 15, 2020, Work Session – Item 2CC Agenda - Page 7