Agenda - 02-21-1989 - Laserfiche WebLink

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MEMO - Intergovernmental Work Group on Alternative Revenues February 01, 1989 12 Page 3 dwelling units or commercial buildings pays the tax. These individuals are further defined in Section 2 as those persons who own new constructions at the time an occupancy permit is issued. The tax would be due on or before the date an occupancy permit is issued. 3. How would the impact tam be assessed? per duelling unit or by square footage? Initially, the Work Group considered a per unit tax for residential development and a tax based on square footage for commercial development. After a good bit of discussion, the group decided that a square footage basis would be a more equitable approach for assessing residental as well as commercial development. 4. How would the tax rate be determined? Our first step is to obtain the necessary enabling legislation authorizing the impact tax. Following such legislation, the County would adopt a local ordinance establishing the tax and the rate . Based upon staff projections, impact tax revenues would meet only a portion of the expense associated with capital improvements necessitated by new growth. The impact tax rate would be set to reflect the relative impact of various forms of new construction on the need for, and provision of , new community facilities and infrastructure. The work group's recommendation is that this rate should reflect a concern for preserving affordable housing. In establishing or changing the tax rate, local elected officials would be governed by the political accountability present with other decisions affecting local taxes, fees and charges. 5. How much revenue would be generated from the impact tax? The first step in estimating the amount of revenues to be generated by an impact tax is to estimate the building activity by unit type and by square footage constructed. The following table provides estimates based on the average number of units built in each jurisdiction from 1980 to 1988.