Skip to content

   advanced search

Site Navigation

Colorado Code Books Home

Boulder Revised Code Home

1. Charter
2. Title 1 General Administration
3. Title 2 Government Organization
4. Title 3 Revenue and Taxation
1. Chapter 3-1 Definitions
2. Chapter 3-2 Sales and Use Tax
3. Chapter 3-3 Public Accommodations Tax
4. Chapter 3-4 Admissions Tax
5. Chapter 3-5 Tax Refund Program
6. Chapter 3-6 Occupation Tax on Local Exchange Telephone Service Suppliers
7. Chapter 3-7 Occupation Tax
8. »Chapter 3-8 Development Excise Tax
9. Chapter 3-9 Housing Excise Tax
10. Chapter 3-10 Trash Tax
11. Chapter 3-11 Education Excise Tax (Repealed)
12. Chapter 3-12 Climate Action Plan Excise Tax
13. Chapter 3-13 Utility Occupation Tax
5. Title 4 Licenses and Permits
6. Title 5 General Offenses
7. Title 6 Health, Safety and Sanitation
8. Title 7 Regulation of Vehicles, Pedestrians, and Parking
9. Title 8 Parks, Open Space, Streets, and Public Ways
10. Title 9 Land Use Regulation
11. Title 10 Structures
12. Title 11 Utilities and Airport
13. Title 12 Human Rights
14. Title 13 Elections and Campaign Disclosures and Activities
15. Title 14 Arts
16. Index
17. Ordinances Pending Codification

Page Contents

• 3-8-1 Purpose and Legislative Intent
• 3-8-2 Development Excise Tax Imposed on Nonresidential and Residential Development of Developed Land
• 3-8-3 Tax Imposed on Nonresidential and Residential Development
• 3-8-4 Development Excise Tax on Redevelopment
• 3-8-5 Development Excise Tax to be Revised
• 3-8-6 Development Excise Tax Revenues to be Earmarked
• 3-8-7 Development Excise Tax Credit
• 3-8-8 Collection of Unpaid Taxes

Chapter 3-8: Development Excise Tax³²

3-8-1 Purpose and Legislative Intent.

(a) Purpose: The purpose of this chapter is to impose a development excise tax on persons engaged in nonresidential and residential development in the city to fund the costs of growth related capital improvements for transportation and park land acquisition. City council intends that the combined tax for park land acquisition and transportation continue to serve the purposes originally set forth for the two revenue sources.

(b) Legislative Intent: The city council recites the following legislative findings and statements of intent that were taken into consideration in the adoption of this chapter:

(1) Prior to 1998, the city collected development-related fees and taxes for public services, including parks and recreation, transportation, human services, municipal facilities, libraries, fire and police facilities, through a development excise tax, a transportation excise tax and a park land acquisition and development fee, to help ensure that new development pay for its growth-related impacts on public facilities.

(2) In 1998, under a ballot measure in Ordinance No. 6019, the voters authorized the city council to repeal the city's transportation excise tax and park land acquisition and development fee and consolidate them into the development excise tax.

(3) The 1998 ballot measure was based in part from the recommendations in a study entitled "Development Excise Tax, Boulder, Colorado – July 29, 1996," prepared by Tischler & Associates, consultants with expertise in fiscal impact analysis, capital facilities analysis and growth policy planning.

(4) The city council stated its intent in Ordinance No. 6019 that the allocation of the funds from the development excise tax could be changed at any time and the ballot measure stated that the proceeds from the authorized tax could be collected and spent without limitation.

(5) Tishler-Bise, a fiscal, economic and planning consulting firm, updated the 1996 study which provides the basis for the transportation and park land acquisition excise taxes of this chapter, entitled "Development Excise Tax Study, City of Boulder Colorado – Jan. 9, 2009."

(6) Tishler-Bise also completed an updated 1996 study which provides the basis for the development impact fees that are in chapter 8-9, "Capital Facility Impact Fee," B.R.C. 1981, which is entitled "Development Impact Fee Study, City of Boulder Colorado – Jan. 9, 2009."

(7) The city council intends that the taxes collected pursuant to this chapter and chapter 8-9, "Capital Facility Impact Fees," will recover a portion of the costs related to the capital facilities needs associated with nonresidential and residential development for transportation, park land acquisition, library, police, fire, human service, parks and recreation and municipal services.

(8) The development excise tax applies regardless of the value of the property developed. The development excise tax shall be imposed in addition to the capital facility impact fees imposed by chapter 8-9 and water, sanitary sewer and storm water and flood management plant investment fees imposed by sections 11-1-52, "Water Plant Investment Fee," 11-2-33, "Wastewater Plant Investment Fee," and 11-5-11, "Storm Water and Flood Management Utility Plant Investment Fee," B.R.C. 1981, or any other fees, taxes, or charges of the city.

Ordinance Nos. 5216 (1989); 7144 (2001); 7698 (2009)

3-8-2 Development Excise Tax Imposed on Nonresidential and Residential Development of Developed Land.

(a) Nonresidential and Residential Development: No person engaged in nonresidential or residential development in the city shall fail to pay the development excise tax in the amounts specified in section 3-8-3, "Tax Imposed on Nonresidential and Residential Development," B.R.C. 1981, prior to the scheduling of final building inspection for new structures or buildings and at the time of building permit issuance for all other types of development, in addition to any other fee, tax or charge required by this code or any other ordinance of the city.

(b) Definitions: For purposes of this chapter:

"Accessory use" means a portion of developed property that is incidental to but a necessary part of the principal development, which is operated for the benefit and convenience of the occupants, employees, and customers of or visitors to the principal development and which is served by any utility for the principal development.

"Development" and "developed property" mean the construction or existence of any structure attached to real property.

"Floor area" means the total square footage of all levels included within the outside walls of a building or portion thereof, but excluding courts, garages useable exclusively for the storage of motor vehicles, and uninhabitable areas that are located above the highest inhabitable level or below the first floor level.

"Nonresidential development" means the principal use of developed property as other than a single-unit or multi-unit dwelling and includes, without limitation, motels, hotels, resorts and bed and breakfasts.

"Permanently affordable unit" means a dwelling unit that is defined as a "permanently affordable unit" in section 9-16-1, "General Definitions," B.R.C. 1981.

"Uninhabitable area" means a room that has a six-foot or less floor-to-ceiling height, or a room housing mechanical or electrical equipment that serves the building, with less than three feet of clearance in any dimension between the equipment (except supply and return air ducts and wiring) and the adjacent wall.

(c) Measurement of Nonresidential Floor Area: No person applying for a building permit for nonresidential development shall fail to provide the city with a floor area measurement of the proposed building signed by a professional engineer or architect licensed by the State of Colorado or in another form acceptable to the city manager at the time of such application. If both nonresidential and residential developments exist within a particular developed property, the floor area measurement shall specify the amount of floor area dedicated to nonresidential development, and the tax imposed by this chapter shall be apportioned according to such measurement. The rate of tax for each accessory use shall be the same as that for the principal development to which the accessory use is related.

Ordinance Nos. 5150 (1988); 5196 (1989); 5216 (1989); 7144 (2001); 7698 (2009)

3-8-3 Tax Imposed on Nonresidential and Residential Development.

(a) Tax Rate: No person engaged in nonresidential or residential development in the city shall fail to pay a development excise tax thereon according to the following rates:

(1) For new or additional floor area for nonresidential development per square foot of floor area:

Transportation	$2.48
Total:	$2.48

(2) For new detached dwelling unit:

Park land	$1,060.00
Transportation	2,061.90
Total:	$3,121.90

(3) For new attached dwelling unit or mobile home:

Park land	$   737.00
Transportation	1,528.00
Total:	$2,265.00

(b) Waiver of Tax Imposed on Annexation of Developed Residential Land: For property annexed with existing residential development, the tax imposed by this chapter is prorated in accordance with the following formula: one twenty-sixth of the applicable tax is waived for each full year the residence existed prior to July 17, 1988. The date on which residential development existed for determination of the waiver is the date of the issuance by Boulder County of a certificate of occupancy for the structure.

Ordinance Nos. 5366 (1991); 7008 (1999); 7087 (2000); 7168 (2001); 7240 (2002); 7329 (2003); 7406 (2004); 7439 (2005); 7495 (2006); 7564 (2007); 7629 (2008); 7698 (2009)

3-8-4 Development Excise Tax on Redevelopment.

Whenever existing developed property in the city is redeveloped, no person shall fail to pay the development excise tax imposed by section 3-8-3, "Tax Imposed on Nonresidential and Residential Development," B.R.C. 1981, for the net increase in floor area or number of dwelling units prior to obtaining a building permit.

3-8-5 Development Excise Tax to be Revised.

In 2000, and every year thereafter, the development excise tax imposed by this chapter shall be recomputed by raising or lowering it in an amount equal to the percentage of change for the preceding year in the consumer price index (all items) of the U.S. Department of Labor, Bureau of Labor and Statistics for the statistical area which includes the city.³³

3-8-6 Development Excise Tax Revenues to be Earmarked.

The city council hereby delegates to the city manager the duty to reflect the historical allocation of the recodified development excise tax in each annual budget. The funds collected will be allocated according to the following:

(a) Transportation Development Fund: A portion of the development excise tax imposed by this chapter shall be deposited in the transportation development fund which shall be exclusively for the purpose of constructing growth-related transportation capital improvements and collection and administration of the tax.

(b) Park Land Acquisition: A portion of the development excise tax imposed by this chapter shall be deposited in the permanent park and recreation fund which shall be exclusively for the purpose of acquiring park land to serve the needs of city residents and collection and administration of the tax.

Ordinance No. 7698 (2009)

3-8-7 Development Excise Tax Credit.

(a) Capital Improvements: The city council may grant a development excise tax credit to a taxpayer on any or all of the tax imposed by this chapter if the city council, after receiving a recommendation from the city manager, finds that the taxpayer has agreed to make and dedicate to the city any police, fire, library, human services, or municipal offices capital improvements beyond those required by any provision of this code that would benefit the public at large to the same degree as collection of the tax, and that granting the credit will not result in a substantial increase in the city's costs of providing capital improvements in the future. The amount of the credit shall be equal to the cost of such improvements to the taxpayer, as determined by the city manager, and in no event shall the credit be greater than the amount of development excise tax that would be due on the property. No certificate of occupancy, temporary or otherwise, shall be issued for the property until such improvements have been completed to the satisfaction of the city manager and dedicated to the city, or a financial guarantee in a form allowed under section 9-12-13, "Subdivider Financial Guarantees," B.R.C. 1981, and in an amount sufficient to secure the full costs, as determined by the city manager, of constructing or installing the improvements, has been provided by the developer.

(b) Park Dedications and Improvements: The city council may grant a development excise tax credit to a taxpayer on any or all of the tax imposed by this chapter and deposited in the permanent park and recreation fund if the city council, after receiving recommendations from the city manager and parks and recreation advisory board, finds that such a credit is in the public interest. In making this determination, the council shall consider whether sufficient public recreational areas, facilities or park land acceptable to the city has been dedicated to the city or provided by the building permit applicant and whether the public receives perpetual use of such recreational areas, facilities or additional park land in documents satisfactory to the city attorney. But public recreational areas, facilities or park land referred to in this subsection does not include yards, setbacks or any other areas required by city zoning and building regulations.

(c) Transportation Improvements: The city council may grant a development excise tax credit to a taxpayer on any or all of the tax imposed by this chapter and deposited in the transportation development fund if the city council, after reviewing a recommendation from the city manager, finds that such a credit is in the public interest. In making this determination, the council shall consider whether such improvements to be constructed by a developer are consistent with the ultimate configuration of the Transportation Master Plan for the Boulder Valley and do not solely benefit the private interests of the specific development project. No certificate of occupancy, temporary or otherwise, shall be issued for the property until such improvements have been completed to the satisfaction of the city manager and dedicated to the city, or a financial guarantee in a form allowed under section 9-12-13, "Subdivider Financial Guarantees," B.R.C. 1981, and in an amount sufficient to secure the full costs, as determined by the city manager, of constructing or installing the improvements, has been provided by the developer. The amount of the credit shall be based on reasonable project costs for constructing the improvement. The amount of the credit shall not exceed the total transportation excise tax owed to the city.

(d) Affordable Housing, Facilities Serving the General Public, and Urban Renewal Areas: The city council may grant a development excise tax credit to a taxpayer on any or all of the tax imposed by this chapter if the city council finds the public interest is adequately served and the waiver or reduction is intended to assist in the provision of affordable housing or facilities serving the general public or in order to promote development in an urban renewal area established under state law. Any such decision by the city council to grant a development excise tax credit is at its discretion and is legislative in nature.

(e) Waiver of Tax for Permanently Affordable Housing: The development excise tax does not apply to those permanently affordable units that are provided on site within a single development that are in excess of the number of units required by chapter 9-13, "Inclusionary Housing," B.R.C. 1981. In addition, for every permanently affordable unit provided on site within a single development in excess of the number required by chapter 9-13, "Inclusionary Housing," B.R.C. 1981, the development excise tax will be waived for one of the permanently affordable dwelling units required by chapter 9-13, "Inclusionary Housing," B.R.C. 1981. This waiver applies only if the entire inclusionary housing requirement for the development is constructed on the site within a single development.

(f) Business Incentive Rebates: The city manager may grant rebates of development excise taxes paid by primary employers in connection with equipment acquisition, construction projects, construction equipment and construction materials when, in the judgment of the city manager, the rebate will serve the economic interests of the city by helping attract or retain a primary employer which contributes to a socially, environmentally and economically sustainable community.

(Ordinance Nos. 5216 (1989); 7144 (2001); 7478 (2006); 7554 (2007); 7639 (2009); 7698 (2009); 7701 (2010))

3-8-8 Collection of Unpaid Taxes.

Unpaid development excise taxes constitute a lien on the property. Any promise to pay such tax is a covenant running with the land enforceable against the personal representatives, heirs, successors, and assigns of the property owner. In addition to other collection remedies, the city manager may certify due and unpaid development excise taxes to the Boulder County Treasurer for collection in the same manner as general property taxes are collected as provided in section 2-2-12, "City Manager May Certify Taxes, Charges, and Assessments to County Treasurer for Collection," B.R.C. 1981.

---

³² Adopted by Ordinance No. 5044. Amended by Ordinance No. 6039.

³³ Ordinance No. 6019, approved by the voters in 1998, authorizes this adjustment of this tax.

Top of Page