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Help & SupportChapter 3-9: Housing Excise Tax34
It is the purpose of this chapter to promote the development and provision of housing in the city that is affordable to low income people by establishing a housing excise tax on new development. Revenues from the tax shall be deposited in the general fund and shall therefore be available to pay for the general expenses of government. However, although the city council recognizes that it cannot bind future city councils, it nonetheless declares its intention that the revenues generated by the housing excise tax be appropriated by future city councils only for purposes of the Community Housing Assistance Plan, to be established by the city to provide housing for the "working poor," that is, households earning fifteen to sixty percent of the Area Median Income. It is also intended that the rate for nonresidential construction be adjusted annually to reflect changes in the cost of living for the previous twelve months as shown in the "all items" category of the United States Department of Labor Consumer Price Index for all Urban Consumers for the metropolitan statistical area which includes the city.
(Ordinance Nos. 5425 (1991); 7335 (2004))
3-9-2 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, prior to the scheduling of final building inspection, a tax thereon according to the following rates:
| Year in Which Building Permit Is Issued | Tax Rate Per Square Foot Of Floor Area |
|---|---|
| 1995-1998 | 0.16 |
| 1999 | 0.18 |
| 2000 | 0.185 |
| 2001 | 0.19 |
| 2002 | 0.195 |
| 2003 | 0.20 |
| 2004 | 0.206 |
| 2005 | 0.21 |
| 2006 | 0.215 |
| 2007 | 0.22 |
| 2008 | 0.225 |
| Year in Which Building Permit Is Issued | Tax Rate Per Square Foot Of Floor Area |
|---|---|
| 1995-1998 | 0.34 |
| 1999 | 0.39 |
| 2000 | 0.40 |
| 2001 | 0.41 |
| 2002 | 0.42 |
| 2003 | 0.43 |
| 2004 | 0.44 |
| 2005 | 0.45 |
| 2006 | 0.46 |
| 2007 | 0.47 |
| 2008 | 0.48 |
(b) Exceptions: This tax shall not apply to the construction of an addition to, renovation, or remodeling of an existing dwelling unit, nor to the construction of a dwelling unit which replaces an existing dwelling unit, provided, however, that the replacement dwelling unit is located on the same lot as the existing dwelling unit and that the existing dwelling unit is demolished before the building permit for the replacement dwelling unit is issued.
(c) Affordable Housing Exemption: The development excise tax shall not apply to dwelling units that are permanently affordable units, as defined in section 9-16-1, "General Definitions," B.R.C. 1981.
(d) Credits: Any person holding a credit for units offered beyond requirements may surrender that credit to the city and receive therefor a credit against this housing excise tax in the amount of $3,300.00. Alternatively, any person holding a credit for units offered beyond requirements which was first acquired by that person before January 23, 1991, may surrender that credit to the city in lieu of paying the housing excise tax due on any six and two-thirds dwelling units which that person developed.
(e) Definitions: For purposes of this chapter:
"Floor area" shall have the same meaning as defined in chapter 3-8, "Development Excise Tax," B.R.C. 1981.
"Nonresidential development" shall have the same meaning as defined in chapter 3-8, "Development Excise Tax," B.R.C. 1981.
Ordinance Nos. 5363 (1991); 5425 (1991); 6039 (1998); 7008 (1999); 7087 (2000); 7168 (2001); 7240 (2002); 7329 (2003); 7406 (2004); 7439 (2005); 7495 (2006); 7564 (2007)
3-9-3 Housing Excise Tax on Commercial Redevelopment.
Whenever an existing commercial development in the city is redeveloped, no person shall fail to pay the housing excise tax imposed by section 3-9-2, "Tax Imposed on Nonresidential and Residential Development," B.R.C. 1981, for the net increase in floor area.
(Ordinance No. 5363 (1991))
3-9-4 Collection of Unpaid Taxes.
Unpaid housing excise taxes constitute a lien on the property. In addition to other collection remedies, the city manager may certify due and unpaid development 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.
The housing excise tax shall apply to the construction of any dwelling unit or commercial development for which an application for a building permit is submitted to the city after January 22, 1991.
(Ordinance No. 5363 (1991))
In 2000, and every year thereafter, the housing 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.35
(Ordinance No. 7008 (1999))
34 Adopted by Ordinance No. 5342.
35 Ordinance No. 6019, approved by the voters in 1998, authorizes this adjustment of this tax.