HB 2323

For the exercise of the privilege of development, present law authorizes a county to levy a tax based on the floor area of any new development. A county initially levying such a tax may levy the tax at a rate not to exceed $1.50 per square foot on residential property and $1.50 per square foot on up to 150,000 sq uare f eet of commercial property. Whenever a county has levied such a tax or increased the rate of the tax, the county must not increase the rate of the tax , or levy an additional tax , on the pri vilege of development for a period of four years from the effective date of the tax or rate increase. After four years from the date the county initially levies the tax , or from the date of the last increase in the rate of the tax, the county legislative body may increase the rate of the tax by a percentage not to exceed 10% . However, the governing body must not levy such a tax unless it has adopted a capital improvement program , which may be amended by the governing body. AUTHORITY OF MUNICIPALITIES TO LEVY SUCH TAX This bill authorizes an incorporated city or a town that does not have a school system or LEA within its jurisdiction ( a " municipality ""), by ordinance adopted by its governing body, to levy a tax on the privilege of engaging in the act of development within the boundaries of the municipality. Any such tax must be levied at the rate and under the terms, conditions, and limitations contained in present law as described in the prior paragraph. This bill requires t he taxes collected pursuant to this bill to be remitted to the municipal official designated in the ordinance to collect such taxes. The taxes must be placed in a fund designated by the governing body, and the proceeds must be used exclusively for the purpose of funding a capital improvement program for the construction and improvement of roads, streets, sidewalks, trails, and other similar transportation infrastructure within the municipality. The municipality may adopt administrativ e guidelines, procedures, regulations, and forms as necessary to properly implement, administer, and enforce this bill."