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Help & SupportChapter 3-8: Development Excise Tax32
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 future capital improvements. The tax is an amalgamation of three revenue sources: capital excise tax, transportation excise tax, and the park land acquisition and development fee. City council intends that the combined tax continues to serve the purposes originally set forth for the three revenue sources. The prior three revenue sources served the following purposes:
(a) The capital excise tax was based upon the replacement costs of the capital improvements currently existing in the city, and was intended to provide that new capital improvement needs are met as nonresidential and residential development occurs.
(b) The transportation excise tax was determined by estimating capital project needs created by new growth and assigning costs to those projects. The total cost of projects needed due to growth was divided by all projected development and redevelopment to arrive at a per-unit or per-square-foot cost. In determining growth-related needs, the level of service identified as acceptable to the existing community was used as a standard.
(c) The purpose of park land acquisition and development fee was to fund the acquisition and development of new neighborhood and community park land and recreation centers and the development of existing parks and recreation centers to serve the needs of city residents.
The development excise tax applies regardless of the value of the property developed. The development excise tax shall be imposed in addition to the water, sanitary sewer and storm water and flood management plant investment fees imposed by sections 11-1-52, "Water Plant Investment Fee," 11-2-31, "Wastewater User Charges," and 11-5-11, "Storm Water and Flood Management Utility Plant Investment Fee," B.R.C. 1981.
(Ordinance Nos. 5216 (1989); 7144 (2001))
3-8-2 Development Excise Tax Imposed on Nonresidential and Residential Development and Annexation 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 in addition to any other fee or charge required by this code or any other ordinance of the city.
(b) Property Annexed Into The City: No person whose property is annexed into 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, no later than ten days after the effective date of an annexation ordinance annexing such property in addition to any other fee or charge required by this code or any other ordinance of the city.
(c) 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.
(d) 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 and certified by a professional engineer or architect licensed by the State of Colorado at the time of such application. If both nonresidential and residential development 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))
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, annexing, or additional floor area for nonresidential development per square foot of floor area:
| Police |
$ 0.186 |
| Fire | 0.186 |
| Human services | 0.092 |
| Municipal space | 0.222 |
| Transportation | 1.794 |
| Total: | $ 2.48 |
(2) For new and annexing detached dwelling unit:
| Police |
$ 258.16 |
| Library | 403.28 |
| Fire | 215.43 |
| Human services | 73.92 |
| Municipal space | 269.16 |
| Parks | 1,853.05 |
| Recreation | 463.28 |
| Transportation | 2,043.31 |
| Total: | $ 5,579.59 |
(3) For new and annexing attached dwelling unit or mobile home:
| Police |
$ 171.93 |
| Library | 268.71 |
| Fire | 143.47 |
| Human services | 50.10 |
| Municipal space | 179.25 |
| Parks | 1,235.99 |
| Recreation | 309.01 |
| Transportation | 1,233.54 |
| Total: | $ 3,592.00 |
(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)
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) Capital Development Fund: A portion of the development excise tax imposed by this chapter shall be deposited in a capital improvements fund which shall be used exclusively for the purpose of capital improvements and collection and administration of the tax.
(b) 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.
(c) Permanent Park and Recreation Fund: 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 and developing new neighborhood and community park land and recreation centers and the development of existing parks and recreation centers to serve the needs of city residents and collection and administration of the tax.
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 planning board, 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 planning board 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 or facilities acceptable to the city have been dedicated to the city or provided by the building permit applicant or annexee and whether the public receives perpetual use of such recreational areas in documents satisfactory to the city attorney. But public recreational areas referred to in this subsection do 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 planning board, 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 streets identified as arterials in the Transportation Master Plan for the Boulder Valley. 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 Zoning," 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 Zoning," 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 Zoning," B.R.C. 1981. This waiver applies only if the entire inclusionary zoning 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. The city manager may promulgate interpretive guidelines to define more specifically the circumstances under which rebates may be granted and to establish application procedures, review criteria, schedule or other matters necessary or desirable for implementation of this subsection or the purposes and findings in Ordinance No. 7554. Any taxes rebated pursuant to this subsection shall be deemed payable by the city's general fund.
(Ordinance Nos. 5216 (1989); 7144 (2001); 7478 (2006); 7554 (2007))
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.