4. If the Application is approved, Applicant is hereby authorized and directed to enter into, execute, and deliver all documents required or deemed necessary or appropriate to participate in the Program, and all amendments thereto (the “Program Documents”).
5. Applicant acknowledges and agrees that it shall be subject to the Application; the terms and conditions specified in the Program Documents; the Program Regulations; and any and all other applicable law.
6. The City Manager is authorized to execute and deliver the Application and the Program Documents on behalf of the Applicant for participation in the Program.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pinole held on the 5th day of September, 2023 by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
The undersigned, HEATHER BELL, CMC, CITY CLERK of Applicant, does hereby attest and certify that the foregoing is a true and full copy of a resolution of the Applicant’s governing body adopted at a duly convened meeting on the date abovementioned, and that the resolution has not been altered, amended, or repealed.
SIGNATURE: _____________________ DATE: _____________________ NAME: __________________________ TITLE: _____________________ 293 of 322
CITY COUNCIL REPORT
REPORT
DATE: SEPTEMBER 5, 2023
TO: MAYOR AND COUNCIL MEMBERS
FROM: MARKISHA GUILLORY, FINANCE DIRECTOR
SUBJECT: BACKGROUND INFORMATION ON COMMERCIAL CANNABIS TAX
RECOMMENDATION
City staff recommends that the City Council receive a report of background information on commercial cannabis tax and provide direction as appropriate.
BACKGROUND
In exploring potential local tax options for consideration, the City Council requested a future agenda item directing staff to provide a report of background information on commercial cannabis tax.
On November 8, 2016, California voters passed Proposition 64, the Adult Use of Marijuana Act (AUMA). This proposition legalized the use of nonmedicinal cannabis for adults over 21 years old. The State of California developed state-wide regulations for recreational cannabis, allowing licenses for adult-use businesses effective January 1, 2018.
With the new law in place, which allows the use of nonmedicinal cannabis, many cities in California instituted a commercial cannabis tax at the local level.
A commercial cannabis tax is a tax imposed on the purchasers of cannabis or cannabis products from cannabis retailers. A cannabis tax is typically a general tax that requires majority voter approval. According to Ballotpedia (https://ballotpedia.org/Marijuana_taxes_in_California), from 2009 to 2022, a total of 233 cannabis tax measures were placed on local ballots in California. These measures either proposed new taxes on cannabis or amending existing tax rates. Of those, 86% (200) were approved and 14% (33) were defeated. Most of the measures were placed on the 2018 ballot following the approval of Proposition 64.
Cities generally impose a two percent to twenty percent cannabis tax. Different rates may be levied on different segments of the industry, such as retail sales, distribution, cultivation, etc. Additionally, the State imposes a 15% excise tax on gross receipts of retail sales.
12A
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REVIEW AND ANALYSIS
By ordinance, a city could apply local city taxes to the retail sales, cultivation, and distribution of medical and recreational cannabis. Currently, cannabis businesses are not permitted to operate in the City of Pinole, but the City cannot prohibit a delivery business outside of Pinole from delivering in town. Residents could vote to impose a tax on cannabis businesses if the City permitted them to operate in Pinole by amending the municipal code.
The City of Pinole currently prohibits marijuana dispensaries and commercial marijuana cultivation under Pinole Municipal Code Sections 5.64.030 and 5.64.040:
• 5.64.030 MARIJUANA DISPENSARIES PROHIBITED: Marijuana dispensaries are prohibited in the City. It shall be unlawful for any person to engage in, conduct, carry on, or to permit to be engaged in, conducted or carried on, in or upon any premises in the city, the operation of a marijuana dispensary. (Ord. 2017-12 § 2 (part), 2017; Ord. 2014-02 § 3, 2014) • 5.64.040 COMMERCIAL MARIJUANA CULTIVATION PROHIBITED:
Commercial marijuana cultivation is prohibited in the City. It shall be unlawful for any person to engage in, conduct, carry on, or to permit to be engaged in, conducted or carried on, in or upon any premises in the city, commercial marijuana cultivation. (Ord. 2017-12 § 2 (part), 2017)
Considerations
There are several factors to consider in constructing a commercial cannabis tax measure. They include, but are not limited to:
• Type of tax – determine if the potential measure would be a general or special tax. Generally, cannabis tax is a general tax used to fund general municipal activities such as police, fire, parks, infrastructure, etc. In some cases, a city will enter into a community benefit/revenue sharing agreement with a cannabis retailer. This type of arrangement does not require voter approval. • Type of retail – determine the type of business structure. Commercial cannabis retailers are regulated statewide. A commercial cannabis business that engages in retail sale and delivery of cannabis or cannabis products to customers must obtain a retailer license. State law provides two distinct types of retail licenses: storefront (formerly called dispensaries) and non-storefront (delivery).
• Selection of cannabis retailers – determine how retailers will be selected whether through a Request for Proposals (RFP) or open application process.
Also, determine if a limit will be placed on the number of cannabis retailers allowed to operate within city boundaries.
• Tax rate – determine the appropriate tax rate to impose on retail cannabis sales.
• Tax receipts – the amount of revenue generated by the imposition of a commercial cannabis tax.
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• Tax receipts as a percentage of the revenue budget – the amount of tax receipts compared to the total General Fund revenue budget.
Other factors to consider may involve zoning regulations, permit requirements, and other fees such as deposits and application fees.
As a reference, Table 1 below summarizes what other jurisdictions that passed commercial cannabis tax measures have done.
There are some challenges to consider, one being the rates at which retail cannabis sales are taxed at the State and local levels. In addition to local commercial cannabis taxes, cannabis businesses are subject to a State excise tax of 15% of gross receipts from retail sales. Therefore, many jurisdictions have been decreasing their cannabis tax rates. The cannabis industry claims the overall tax rate (including State taxes) makes its very difficult for retailers to operate profitably and compete with illegal sales.
A number of cities have lowered or suspended their taxes to help the industry. The State has changed its tax structure for cannabis businesses, other than retail businesses, for the same reason. Even in cities that haven’t lowered their taxes, the data shows that receipts are decreasing in individual jurisdictions as competition increases. A few cities were able to make significant revenue early on if they legalized retail sales before other jurisdictions, but tax revenue in those jurisdictions has generally gone down when businesses opened up in neighboring jurisdictions. Local businesses also have to compete against delivery businesses.
There is a fair amount of experience with cannabis taxes at this point. An estimate for Pinole would have to make certain assumptions about retail business activity. This is not something that can use a proxy like population in order to generate a reasonable estimate. Therefore, the City could consider from engaging a consulting firm with cannabis industry expertise to assist with a fiscal analysis of a potential commercial cannabis tax.
A good source of information and guidance on the matter of cannabis regulation at the local level is the League of California Cities’ publication, Cities Seed to Sales: A Guide to Regulating Cannabis in California Cities. It can be found at https://www.calcities.org/docs/default-source/publications/cc-cannabisver6.pdf?sfvrsn=b52d3f32_12. 296 of 322
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Table 1: Jurisdictions That Passed Cannabis Tax Measures Benicia Berkeley El Cerrito Emeryville Hayward Martinez Voter Approval Date November 2018 November 2010
(updated to include recreational use in 2018)
Not applicable November 2018 November 2016
(updated to include recreational use in 2018)
Not applicable
Type of Tax General General Not applicable General General Not applicableType of Retail Storefront Storefront and NonStorefront Storefront Storefront Storefront and Non- Storefront Storefront and Non- Storefront RFP Issued to Select Operators? Information not accessible
Information not accessible
No, open application process Yes No, open application
process
Yes
Tax Rate Up to 6% of gross
receipts
5% per $1,000 gross receipts
Community benefits agreement (revenue sharing): Five percent (5%) of annual gross receipt sales between $1.00-$4,999,999, four percent (4%) of annual gross receipt sales between $5,000,000-$9,999,999, and three percent (3%) of annual gross receipt sales greater than $10,000,000. The following benefits to the community are included in the agreement: workforce development, collective bargaining agreement with a labor organization that represents California cannabis workers, community contributions in the form of donations to non-profit organizations, local hiring, career development/apprenticeship program, and volunteer hours to nonprofit organizations.
Up to 6% of gross receipts
6% of gross receipts; voters approved up to 15% of gross receipts Community benefits agreement (details not accessible)
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Benicia Berkeley El Cerrito Emeryville Hayward Martinez Tax Receipts FY 2020/21 Actual:
Not availableFY 2021/22 Actual: $450,000
FY 2022/23 Estimated: $400,000FY 2023/24 Budget: $225,000 FY 2020/21 Actual: $1,712,641FY 2021/22 Actual: $1,250,792FY 2022/23 Estimated: $1,122,351FY 2023/24 Budget: $1,000,000 FY 2020/21 Actual: Not applicableFY 2021/22 Actual: $330,425FY 2022/23 Estimated: Not availableFY 2023/24 Budget: $600,000 FY 2020/21 Actual: $544,192FY 2021/22 Actual: $466,937
FY 2022/23 Estimated: $400,000FY 2023/24 Budget: $400,000 FY 2020/21 Actual: $442,000FY 2021/22 Actual: $843,000
FY 2022/23 Estimated: $1,100,000FY 2023/24 Budget: $1,100,000 FY 2020/21 Actual: $800,000FY 2021/22 Actual: $1,794,908 FY 2022/23 Estimated: $1,600,000FY 2023/24 Budget: $1,600,000 Percentage of General Fund Revenue Budget 0.4% 0.4% 1.2% 1.0% 0.6% 4.5% 298 of 322
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NEXT STEPS
The City is currently working with the consulting firm, Baker Tilly, to identify potential revenue generating opportunities and will provide recommendations on various local tax options. If the City Council desires, it could consider engaging a consulting firm to assist with a fiscal analysis of a potential cannabis tax.
FISCAL IMPACT
There is no fiscal impact as a result of the City Council receiving this report.
ATTACHMENTS
None
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CITY COUNCIL REPORT
REPORT
DATE: SEPTEMBER 5, 2023
TO: MAYOR AND COUNCIL MEMBERS
FROM: MARKISHA GUILLORY, FINANCE DIRECTOR
SUBJECT: BACKGROUND INFORMATION ON VACANT PARCEL TAX
RECOMMENDATION
City staff recommends that the City Council receive a report of background information on vacant parcel tax and provide direction as appropriate.
BACKGROUND
In exploring potential local tax options for consideration, the City Council requested as a future agenda item a report of background information on vacant parcel tax.
Vacant parcel tax is a special, non-value based tax on real property, generally based on either a flat per-parcel rate or a variable rate depending on the size, use or number of units on the parcel. Parcel taxes are imposed on property for the use of municipal services or facilities. Accordingly, the tax must identify which services or facilities the tax proceeds may be used to fund. The allowable uses may be broad or narrow.
Possible uses include police and fire services, parks and open space, infrastructure improvement, and libraries. Because a vacant parcel tax is a special tax, it must be approved by a two-thirds vote of the electorate.
Of note, there are both vacant property taxes and vacant property registration fees. A vacant property registration fee must not exceed the cost of the City managing a vacant property monitoring program. Vacant property taxes are parcel taxes that apply only on properties determined to be vacant, and a vacant property tax must be approved by the voters. This report focuses on vacant parcel tax.
REVIEW AND ANALYSIS
As noted above, vacant parcel tax is a special, non-value based tax on real property, generally based on either a flat per-parcel rate or a variable rate depending on the size, use or number of units on the parcel. Generally, vacant parcel tax is levied on unused or under-used properties and applied to undeveloped ground, residential (single family, multi-family), condominiums, and nonresidential/commercial properties. 12B
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Vacant parcel taxes are not common and generally provide less than one percent of city revenues statewide. The revenue generated could vary greatly depending on the tax rate and other factors. They are collected annually on property tax bills based on the vacancy status of the property.
A common goal of a vacant parcel tax is to generate revenue to support general municipal purposes (e.g., police, fire, parks, etc.) or specific purposes (e.g., blight clean-up, code compliance, housing, etc.), and to encourage use and development of vacant properties. However, vacant parcel taxes are not common and generally provide less than one percent of city revenues statewide. The revenue generated could vary greatly depending on the tax rate, property subject to the tax, and exemptions. This tax is collected annually on property tax bills based on the vacancy status of the property.
The City of Pinole currently does not impose a vacant property tax and would need to place a measure on the ballot to do so.
Considerations
There are two main issues the City Council would have to decide in considering a potential vacant parcel tax. First, the City Council will need to decide what municipal services or facilities will be funded by the tax. The specific purposes to be funded by the special tax must be identified in the balloting material provided to voters at the time of election and may be broad or narrow. Other cities with vacant parcel tax have imposed the tax for services/facilities that emphasize the nexus between the funding purposes of the tax and the underlying issues surrounding vacant properties such as blight, illegal dumping, and code compliance, etc.
Second, the Council needs to decide if is the purpose of the tax to raise money or make sure property is put to use and doesn’t remain vacant. For example, if the tax is very high, that may lead to property owners putting vacant properties into use, thus avoiding the tax and raising little revenue for the City. If the tax is very low, the tax probably won’t impact property owner behavior, which may lead to more revenue. In addition, there are many smaller issues that will need to be addressed. As part of this decision, the Council will need to decide what parcels are considered exempt (how long must a property be vacant before it is subject to the tax, etc.) Another consideration for the Council to consider is the significant lag in collecting the tax. Presumably the City will want to have the tax collected as part of the property tax roll, rather than take on the significant burden of administering the tax itself. For example, if the tax is approved in November 2024, and a parcel is determined “Vacant” for calendar year 2025, then the tax will be submitted to the County in August 2026 for placement on the tax roll. This means the City won’t receive any revenue until it receives its property tax distribution in December or January 2027. Determination of vacancy can’t feasibly be based on the fiscal year since that wouldn’t provide the City 301 of 322
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with sufficient time to send notices and hear appeals between July 1 and the deadline to send the property tax information to the County in early August.
A vacant parcel tax measure can make exemptions for low-income owners, individuals facing financial hardship, non-profit organizations, active development, and exceptional physical circumstances such as soil conditions, contamination, etc. This would result in less revenue.
The experience with vacant parcel tax is very limited; only a few cities have these in place and there is not much history. Moreover, the revenue is subject to collection and administrative impediments. Thorough legal advice on properly constructing a vacant parcel tax would be necessary. Currently, vacant parcel taxes are not common but have recently been successfully implemented in Oakland and Berkeley, both of which are significantly larger than Pinole in size and population.
Jurisdictions That Passed Vacant Parcel Tax Measures
The most notable cities that have passed a vacant parcel tax in the recent past is Oakland (Measure W passed 2018) and Berkeley (Measure M passed 2022).
City of Oakland Vacant Parcel Tax
The City of Oakland voters passed the “Vacant Property Tax” (Measure W) in November 2018. It is a special parcel tax enacted with the intended use to fund services to support and reduce homelessness, affordable housing, and illegal dumping.
The measure levies an annual tax of $3,000 to $6,000 on vacant property. A property is subject to the vacant property tax if it is in use less than fifty days in a calendar year and not subject to any of the exemptions. The vacant parcel tax generates approximately $5.5 million annually. The tax rates by property types are as follows:
Property Type Tax Rate
Residential $6,000 per parcel
Condominium, duplex, or townhome unit under separate
ownership
$3,000 per vacant
residential unit
Nonresidential $6,000 per parcel
Parcel with ground floor commercial activity allowed but vacant
$3,000 per parcel
Undeveloped $6,000 per parcel
Allowable exemptions for qualified owners and properties are as follows:
• Very low income
• Financial Hardship
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• Demonstratable Hardship Unrelated to Personal Finances • Exceptional Specific Circumstances
• Active Construction
• Building Permit Application
• Low Income Senior
• Disabled Owner
• Non-Profit Organization
• Substantially Complete Application for Planning
See the City of Oakland’s ordinance (Attachment A) for more information on the vacant parcel tax.
City of Berkeley Vacant Parcel Tax
The City of Berkeley voters passed the “Empty Homes Tax” (Measure M) in November 2022. It is a general tax that is intended to fund general municipal services. The measure goes into effect January 1, 2024 and expires on December 31, 2034 unless extended by the voters prior to the expiration date.
The measure imposes an excise tax on residential property that remain vacant for more than 182 days in a calendar year, and not subject to any of the exemptions. It levies an annual tax of $3,000 to $12,000 on vacant residential units based on the length of time that the property is vacant. The vacant parcel tax is expected to generate between $4 million to $6 million annually. The tax rates are as follows:
• For the first calendar year, the vacancy tax levies $3,000 per unit for the property owner’s first property and $6,000 per unit for any additional properties. • After one calendar year, the range doubles to $6,000 per unit and $12,000 per unit and is subject to inflation.
Allowable exemptions for qualified owners and properties are as follows:
• Any organization that is exempt from income taxation under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended.
• City, State, county, municipal corporation, district or other political subdivision of the State.
• A natural person or trust who is the owner of a single property of four or fewer Residential Units, inclusive of accessory dwelling units and junior accessory dwelling units, that is their principal residence shall be exempt provided that they own no other Residential Units in the City.
See the City of Berkeley’s ordinance (Attachment B) for more information on the vacant parcel tax.
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Next Steps
The City is currently working with consulting firm, Baker Tilly, to identify potential revenue generating opportunities and will provide recommendations on various local tax options. If the City Council desires, it could consider engaging a consulting firm to conduct a study to identify vacant parcels in the City and determine what the potential revenue could be if a vacant parcel tax were established in Pinole.
FISCAL IMPACT
There is no fiscal impact as a result of the City Council receiving this report.
ATTACHMENTS
A – City of Oakland Vacant Parcel Tax Ordinance
B – City of Berkeley Vacant Parcel Tax Ordinance
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FILED
OFFlCK OF THE CIT Y Cl
V AKL A NO'
APPROVED AS TO FORM AND LEGALITY
INTRODUCED BY COUNCILMEMBER im mv 12 ph 3:07
City Attorney’s Office R<a.vf S PcvVej
OAKLAND CITY COUNCIL
ORDINANCE NCF. 1 8 5 7 1cJls.
ORDINANCE AMENDING OAKLAND MUNICIPAL CODE TITLE 4,
CHAPTER 4.56 TO CLARIFY AND FURTHER DEFINE VARIOUS
SECTIONS OF THE OAKLAND VACANT PROPERTY TAX AND
ESTABLISH A METHOD FOR IDENTIFYING VACANT PROPERTY
WHEREAS, on July 24, 2018, the City of Oakland adopted Resolution 87319 C.M.S calling for voter consideration of a ballot measure to adopt a special parcel tax on vacant properties (“Measure W”); and
WHEREAS, on November 6, 2018, Oakland voters approved Measure W by greater than a 2/3rds margin; and
WHEREAS, Measure W established an annual tax on vacant property at a maximum rate of $6,000 for certain properties and $3,000 fpr other properties to support and fund homelessness programs and services, affordable housing, code enforcement, and clean-up of blighted properties and illegal dumping (the “Vacant Property Tax”); and WHEREAS, pursuant to Measure W, a property will generally be considered “vacant” if it is in use less than fifty (50) days during a calendar year; and WHEREAS, Measure W defines “use” as “the performance of a function or operation”; and
WHEREAS, Measure W defines ten (10) categories of tax exemptions, including exemptions for financial and non-financial hardships, exceptional circumstances, and properties in active development or construction;
WHEREAS, Measure W calls for the Gity Council to establish, by ordinance, a method of determining and identifying the use and vacancy status of each parcel of real property in the City;
WHEREAS, Measure W allows the City Council to provide supplemental definitions for the categories of exemptions;
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ATTACHMENT A
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WHEREAS, establishment of a method for determining and identifying the use and vacancy status of real property and further supplemental definitions to the categories of exemptions is critical to the administration of the Vacant Property Tax; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF OAKLAND DOES ORDAIN AS FOLLOWS:
SECTION 1. Title 4, Chapter 4.56 of the Oakland Municipal Code containing the operative sections of the Vacant Property Tax is amended to add, delete or modify sections as set forth below (section numbers and titles are indicated in bold type; additions are indicated by underscoring and deletions are indicated by strike-through type.) Portions of regulations not cited or not shown in underscoring or strike-through are not changed.
SECTION 2. Code Amendments.
Title 4, Chapter 4.56 is amended as follows:
4.56.010 - Definitions.
"City" means the City of Oakland.
"Commission" means the Commission on Homelessness authorized by this Chapter. “Calendar Year” refers to the 12-month period from January 1 through December 31 pursuant to which the City will determine whether any parcel, property, or unit is subject to the Tax.
"County" means Alameda County.
“Ground Floor Commercial Space” means the around floor space of any parcel of land where ground floor commercial activities are allowed bv the applicable zoning (with or without a use permit) or are a legal nonconforming use. "Heavily Impacted Neighborhoods" means the geographic area defined by the boundaries of 2010 Census Tracts 4007, 4008, 4009, 4010, 4014, 4015, 4016, 4017, 4018, 4022, 4024, 4025, 4026, 4027, 4030, 4033, 4057, 4053.02, 4054.01,4054.02, 4055, 4056, 4058, 4059.01,4059.02, 4060, 4061,4062.01,4062.02, 4063, 4064, 4065, 4071.01,4071.02, 4072, 4073, 4074, 4075, 4076, 4077, 4085, 4086, 4087, 4088, 4089, 4090, 4091,4092, 4093, 4094, 4095, 4096, 4097, 4102, 4103, 4104, and 4105. See Map (Attachment A) below.
"Mixed-Use Parcel" means a parcel that is improved with both:
i) At least one (1) residential unit; and
ii) Uses other than a residential unit.
"Multifamily Residential Parcel" means all parcels that are improved with more than one (1) residential unit.
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"Net General Purpose Fund Budget for Non-Safety Departments" means the total general purpose fund appropriation to the operating budgets of the non-safety departments, excluding expenditures that are offset by fees or other non-tax revenues. "Nonresidential Parcel" means all parcels that are improved with uses other than residential units.
"Non-Safety Departments" means all operating departments of the City, except police and fire.
"Owner" means the owner or owners of the real property located within the City of Oakland as of the first day of January following the calendar year pursuant to which a property is deemed to be vacant or not vacant. For the purposes of applying any exemptions defined in Section 4.56.090. the Owner shall not be exempt from the Tax unless each person or entity that owns a portion of the real property can separately demonstrate that they are entitled to an exemption.
"Parcel" shall mean a unit of real property in the City of Oakland as shown on the most current official assessment role of the Alameda County Assessor. "Residential Parcel" means all parcels that are improved with one (1) or more residential units.
"Residential Unit" means a building or structure, or portion thereof, designed for or occupied exclusively by one (1) household, including unrelated persons who live together and maintain a common household.
"Single-Family Residential Parcel" means all parcels which are improved with only one (1) residential unit.
"Tax" or "Oakland Vacant Property Tax" means the special tax authorized by this Chapter.
"Undeveloped Parcel" means all parcels, regardless of zoning or other land use designation, upon which no permanent improvements have been constructed or placed.
"Use" means the performance of a function or operation. 2850545vl
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4.56.080 - “In Use” Determinations.
For the purpose of making a determination of vacancy pursuant to Section 4.56.020. the following functions or operations are considered “use”:
A. Physical occupancy of a Residential Parcel, condominium, duplex, ortownhouse unit bv a lawful inhabitant.
B. Carrying on of any civic, commercial, industrial, agricultural, or extractive activity, as those terms are defined bv the Planning Code, and including any religious or community gatherings, on or in a Nonresidential Parcel. Undeveloped Parcel, or Ground Floor Commercial Space, except that:
Any Nonresidential Parcel. Undeveloped Parcel, or Ground Floor Commercial Space used for warehousing, storage, or distribution activities, as those terms are used in OMC section 17.10.583, will not be considered in use unless at least 40% of the parcel or unit’s floorsoace available for warehousing, storage, or distribution is occupied:
Any Ground Floor Commercial Space will not be considered in use unless either leased out to a bona fide tenant intending to use the space for a legal activity, or actually occupied, bv an Owner or some other party, for some substantially similar purpose.
1. 2.
C. Maintenance of an Undeveloped Parcel that is contiguous or within 500 feet of an occupied Residential Parcel owned bv the same Owner.
D. Ingress and egress of persons or vehicles across substantially all of the parcel.
E. Other functions or operations as the City Administrator may deem appropriate.
4.56.090 - Exemptions.
For the purpose of determining whether an Owner is entitled to claim an exception pursuant to Section 4.56.030(J)(1) the following rules and clarifications apply:
A. “Very Low Income” - - 4.56.030(J)(1)(a)
The “very low income” exemption applies if the Owner’s combined family income for the relevant Calendar Year is eoual to or less than the United States Department of Housing and Urban Development “Very Low Income Limit” for the Oakland-Fremont. CA HUD Metro FMR Area.
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B. “Financial Hardship” - - 4.56.030(JH1Hb)
The following circumstances constitute a “financial hardship due to specific factual circumstances”:
The Owner, for any period of time during the relevant Calendar Year, was a natural person and a debtor-party in an individual bankruptcy action.
The Owner, for any period of time during the relevant Calendar Year, experienced a significant medical event that kept the Owner from engaging in their normal work or business activities for at least thirty (30) days.
1. 2.
The Owner, on or after December 1 of the year preceding the relevant Calendar Year, was involuntarily terminated from employment and was unemployed for at least sixty (60) days during the relevant Calendar Year.
3. C. “Demonstrable Hardship Unrelated to Personal Finances” - - 4.56.030fJK1Hc) The following circumstances constitute a “demonstrable hardship":
The subject property was, for at least one-hundred and eighty (180} days during the relevant Calendar Year, subject to a lis pendens, or similar court order, giving notice of a conflict regarding title or ownership interests, pursuant to any pending lawsuit, bankruptcy proceedingprobate action, condemnation action or other action or proceeding filed
1. with any court.
The Owner, for at least sixty (60) days during the relevant Calendar Year, was serving in the military and deployed overseas.
2. 3. The then Owner died at some time during the relevant Calendar Year.
The Owner inherited the subject property during the relevant Calendar Year or in the immediately preceding calendar year.
4. D. “Exceptional Specific Circumstances” - - 4.56.030(J)(1)(d) An exceptional specific circumstance includes any circumstance that, in the judgment of the City Administrator, prevents any use or development of the property. The City Administrator may reguest and consider any relevant evidence to determine whether an exceptional specific circumstance exists. The City Administrator shall consider any evidence that the property was damaged bv a recent natural disaster, that the property adjoins a residential parcel and is used as a yard, or that a licensed engineer, or similar professional, has endorsed a written opinion concluding that physical conditions of the property prevent any development. If the City Administrator determines that an exceptional specific circumstance exists, the City Administrator may grant an exemption for up to five (5) calendar years. But such exemption shall not be effective unless and until the Owner of the subject property records a notice against the subject property. approved bv the City Attorney, summarizing the basis for the exemption. 2850545vl
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Exemptions granted pursuant to this section may be renewed bv the City Administrator, for up to five (5) years, if the City Administrator determines that the conditions prohibiting development of the parcel persist and that the person(s) who owned the parcel during the term of the previously granted exemption made all reasonable attempts to put the property into use.
E. “Active Construction - - 4.56.030(J)(1)(e)
The “active construction” exemption applies if the Owner held, for at least fifty (50) days during the relevant Calendar Year, a valid and active building permit for the subject parcel.
F. “Building Permit Application” - - 4.56.030(J)(1)(f)
The “building permit application” exemption applies if during or previous to the relevant Calendar Year, the Owner submitted a building permit application to the City and the total number of days during which the application was pending plus any number of days after the application was approved but before the end of the relevant Calendar Year was at least fifty (50) days.
G. “Low Income Seniors” - - 4.56.030(J)(1)(g)
The “low income seniors” exemption applies if the Owner is at least sixty-five (65) years of age or older and their combined family income for the relevant Calendar Year is eoual to or less than the United States Department of Housing and Urban Development “Low Income Limit” for the Oakland-Fremont, CA HUD Metro FMR Area.
H. “Disabled Owner” - - 4.56.030(J)(1)(h)
The “disabled owner” exemption applies if the Owner, for any period in the relevant Calendar Year received supplemental security income for disability or social security disability insurance benefits and the Owner’s income for the relevant Calendar Year did not exceed two hundred fifty percent (250%) of the 2012 federal poverty guidelines issued bv the United States Department of Health and Human Services.
L “Non-profit organization” - - 4.56.030(J)(1)(i)
The “non-profit organization” exemption applies if the Owner was, for at least one hundred and eighty (180) days during the relevant Calendar Year, a lawfully functioning organization pursuant to Internal Revenue Code section 501(c)(3). 2850545vl
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J. “Substantially Complete Application for Planning Approvals” - - 4.56.030(J)(1)(i) The “substantially complete application for planning approvals” exemption applies if the Owner held a notice from the City stating that an application for planning approvals with respect to the subject property was complete and such application remained pending for at least fifty (50) days during the relevant Calendar Year. After an application for planning approvals is approved for a subject parcel, the Owner may apply for an administrative two-vear exemption, exempting the subject property from being deemed vacant for the calendar year during which the application for planning approvals was approved and for the following calendar year.
4.56.100 - Method for Identifying Vacancy Status.
A. Initial Determination.
The City Administrator may develop administrative methods appropriate to identify, based on objective, available data, properties that are most likely to be vacant, and not exempt from tax, pursuant to Section 4^56.020. The City Administrator may send initial determination notices for the properties that the City Administrator determines are most likely to be vacant.
B. Petition of Vacancy.
Upon receiving an initial determination notice pursuant to Section 4.56.100(A). an owner may, within twenty (20) days of service of the notice, file a petition of vacancy. The petition of vacancy must be submitted in a form and manner determined bv the City Administrator and include appropriate evidence demonstrating that the property was not vacant pursuant to Section 4.56.020 or was entitled to an exemption. Such evidence may include sworn statements. pictures, utility records, and any records necessary to demonstrate entitlement to an exemption.
C. Decision on Vacancy.
Upon receiving a petition of vacancy pursuant to Section 4.56.1CKXBT the City Administrator may reguest further evidence or clarification and shall issue a decision.
D. No WaiverNothing in the section may be interpreted as waiving an Owner’s obligation to pay the tax if they do not receive a notice pursuant to this Section. 2850545vl
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4.56.110 - Appeal Process.
A. Request for HearingFollowing the issuance of a decision on vacancy pursuant to Section 4.56.100, an Owner may, within twenty (20) days of service of such decision on vacancy, file a petition and request an appeal hearing before a hearing officer. Upon such request, the City Administrator shall appoint an independent hearing officer.
B. Pre-Hearing ProcedurePrior to the hearing, the hearing officer may receive supplemental materials and evidence from the petitioner and the City, As soon as practical, the hearing officer shall set a deadline to receive any supplemental materials and evidence and shall set a hearing date.
C. Hearing Procedure-.
Formal rules of evidence shall not apply to the conduct of the hearing. The hearing officer shall have the authority and discretion to permit examination of witnesses. Any party to a hearing may be assisted bv a representative, including an attorney.
D. Decision Following Hearing.
As soon as practical following the hearing, the hearing officer shall issue a written decision regarding the vacancy status of the subject property. In the discretion of the hearing officer, the decision may, but is not required to. include findings of fact. The hearing officer’s decision shall be considered final on the dav it is executed bv the hearing officer.
E. Further ActionAfter the hearing officer issues a final decision, any party may seek further appropriate relief from the superior court. Any person whose complaint, claim, or petition may be resolved bv employing the administrative remedies provided in Sections 4.56.100 or 4.56.110 must exhaust those remedies before filing any suit for refund, rebate, exemption, cancellation, amendment, adjustment, or other modification of the Tax.
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4.56.120 - Administrative Regulations & Delegation
The City Administrator is authorized to adopt rules and regulations consistent with this Chapter as needed to implement this Chapter, subject to the review and approval of the Office of the City Attorney, and to develop all related forms and/or other materials and take other steps as needed to implement this Chapter, and make such interpretations of this Chapter as they may consider necessary to achieve the purposes of this Chapter.
The City Administrator may delegate any authority within their discretion pursuant to this Chapter 4.56 as they deem reasonably necessary.
SECTION 3. Severability. If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the Chapter. The City Council hereby declares that it would have passed this Ordinance and each section, subsection, clause or phrase thereof irrespective of the fact that one or more other sections, subsections, clauses or phrases may be declared invalid or unconstitutional.
SECTION 4. Effective Date. This ordinance shall become effective immediately on final adoption if it receives six or more affirmative votes; otherwise it shall become effective upon the seventh day after final adoption.
In Council, Oakland, California,
PASSED BY THE FOLLOWING VOTE:
AYES - FORTUNATO BAS, GALLO,
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'{ KALB,4$$TAYLOR, THAO AND PRESIDENT KAPLAN
noes-2* MegOuvtkj
ABSENT -p ‘
ABSTENTION
Attest:
laS/mmons
City Clerk andpietxof the Council
of the City of Oakland, California
Introduction Date
NOV 0 5 2011 Date of Attestation:
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NOTICE AND DIGEST
ORDINANCE AMENDING OAKLAND MUNICIPAL CODE TITLE 4,
CHAPTER 4.56 TO CLARIFY AND FURTHER DEFINE VARIOUS
SECTIONS OF THE OAKLAND VACANT PROPERTY TAX AND
ESTABLISH A METHOD FOR IDENTIFYING VACANT PROPERTY
This ordinance amends portions of the City of Oakland’s Vacant Property Tax, Oakland Municipal Code, Chapter 4.56. The Vacant Property Tax ordinance, originally approved by Oakland voters as Measure W in November 2018, imposes a special parcel tax on parcels deemed “vacant” in a calendar year, each year for twenty (20) years following the initial imposition of the tax. Parcels are deemed vacant if they, or in some situations permanent improvements built upon them, are not “in use” for at least fifty (50) days during the calendar year, and are not subject to any often (10) listed exemptions. This ordinance further defines the functions and operations of a parcel or permanent improvement that constitute “use” for purposes of the Vacant Property Tax, and further defines the various exemptions. The ordinance also describes an administrative process for the City to determine whether a parcel is vacant in any given calendar year, and establishes a process for parcel owners to appeal the City’s determination. 2850545vl
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ORDINANCE NO. #,###-N.S.
ADDING CHAPTER 7.54 TO THE BERKELEY MUNICIPAL CODE TO IMPOSE AN
EXCISE TAX ON KEEPING RESIDENTIAL PROPERTY VACANT TO FUND GENERAL
MUNICIPAL SERVICES
BE IT ORDAINED by the people of the City of Berkeley as follows:
Section 1. That Chapter 7.54 of the Berkeley Municipal Code is added to read as follows:
Chapter 7.54
Empty Homes Tax
Sections:
7.54.010 Short Title.
7.54.020 Findings and Purpose.
7.54.030 Definitions.
7.54.040 Imposition of Tax.
7.54.050 Returns; Presumption of Vacancy.
7.54.060 Exemptions.
7.54.070 Administration; Penalties.
7.54.080 Use of Funds for General Municipal Purposes.
7.54.090 Technical Assistance to the City Manager; Annual Reports.
7.54.100 Authorization and Limitation on Issuance of Bonds.
7.54.110 Severability.
7.54.120 Savings Clause.
7.54.130 Liberal Construction.
7.54.010 Short Title.
This Chapter shall be known as the “Empty Homes Tax Ordinance,” and the tax it imposes shall be known as the “Empty Homes Tax.”
7.54.020 Findings and purpose.
The People of the City of Berkeley find and declare as follows:
A. Residential vacancies are an ongoing concern in Berkeley.
B. Of total vacancies, the Berkeley Rent Stabilization Board data from 2022 indicates that 1,128 fully or partially regulated units in buildings with more than two units have been classified by their owners as not available to rent. Returning these and other vacant units to the housing market is a key strategy for ensuring long-term affordability.
C. Prolonged vacancy restricts the supply of available housing units, is often the result of housing speculation and runs counter to the City’s housing objectives. Prolonged vacancies can also decrease economic activity in neighborhoods and lead to blight.
D. The housing affordability crisis has created an urgent need to pay for additional services and programs including, but not limited to, construction of new affordable housing for households with a household income of 80% or less of Area Median Income,
ATTACHMENT B
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2 including by providing pre-development funding to non-profit affordable housing developers, and the acquisition and rehabilitation of multi-unit buildings for affordable housing, and the operation of such buildings acquired and/or rehabilitated.
E. The City is also working to ensure all public funds available to build affordable housing are being maximized, from the City, Alameda County, State and Federal governments.
F. Even with the addition of City, County, State, and Federal resources, the City is unable to house all of its residents.
G. The increased costs of meeting the challenges of the housing crisis have impacted the City’s General Fund.
H. The City needs new funds to pay for municipal services. The Empty Homes Tax is intended to disincentivize prolonged vacancies and housing speculation, thereby increasing the number of housing units available for occupancy, while also raising funds for municipal services, including but not limited to constructing, acquiring, and rehabilitating affordable housing.
7.54.030 Definitions.
Unless otherwise defined in this Chapter, the terms used in this Chapter shall have the meanings given to them in Chapters 2.44 and 9.04 of the Municipal Code, as amended from time to time. For purposes of this Chapter, the following definitions shall apply:
A. “Affiliate” means an entity under common majority ownership or common control, whether that ownership or control is direct or indirect, with any other person or entity, including but not limited to a person or entity that majority owns or controls, or is majority owned or controlled by, any other person or entity.
B. “Building Permit Application Period” means the period following the date that an application for a building permit for repair, rehabilitation, or construction with respect to a Residential Unit is filed with the City through the date the Planning Department or its successor agency grants or denies that application, not to exceed one year.
Notwithstanding the preceding sentence, if more than one building permit application is filed by or on behalf of one or more persons in the Owner’s Group for the same Residential Unit, the Building Permit Application Period shall mean only the applicable period following the date the first application is filed with the City by or on behalf of anyone in the Owner’s Group. In the case of an owner qualifying for the Disaster Period in subsection D, the Building Permit Application Period may be extended beyond one year if the owner makes a good faith effort, as determined by the building official, to obtain a building permit.
C. “Disaster Period” means the two-year period following the date that a Residential Unit was made uninhabitable or unusable due to fire, natural disaster, or other catastrophic event, except where a negligent, reckless or willful act or omission by the owner or agent of the owner contributed to or caused the Residential Unit to become uninhabitable or unusable due to fire, natural disaster or other catastrophic event.
D. “Homeowners’ Exemption Period” means the period during which a Residential Unit is the principal place of residence of any owner of that Residential Unit and for which 316 of 322
3 such owner validly has claimed either the homeowners’ property tax exemption under Section 218 of the California Revenue and Taxation Code or the disabled veterans’ exemption under Section 205.5 of that Code, as those sections may be amended from time to time.
E. “Hotel” means any property registered under Section 7.36.060 of the Municipal Code and excludes any properties regulated under Chapter 23.314 of the Municipal Code.
F. “Lease Period” means the period during which any owner of a Residential Unit or any person in the Owner’s Group of that owner leases that Residential Unit to one or more tenants under a bona fide lease intended for occupancy, but not including any lease or rental of that Residential Unit to anyone in the Owner’s Group or to travelers, vacationers, or other transient occupants.
G. “Owner Death Period” means, with respect to a co-owner or decedent’s estate, heirs, or beneficiaries, the period during which a Residential Unit is unoccupied, uninhabited, or unused because of the death of any owner of a Residential Unit who was the sole occupant of that Residential Unit immediately prior to such owner’s death, provided that such period shall not exceed the longer of two years or the period during which the Residential Unit is subject to the authority of a probate court.
H. “Owner In Care Period” means the period during which a Residential Unit is unoccupied, uninhabited, or unused because the occupant of the Residential Unit who used that Residential Unit as their principal residence is residing in a hospital, long term or supportive care facility, medical care or treatment facility, or other similar facility.
I. “Owner’s Group” means for each owner of a Residential Unit, with respect to each Residential Unit, the owner, any current or former co-owner, and any Related Person or Affiliate of the owner or any current or former co-owner.
J. “Rehabilitation Period” means the two-year period following the date that the City issues a building permit for repair, or rehabilitation, with respect to a Residential Unit, provided that if the City issues multiple building permits to or for the benefit of one or more persons in the Owner’s Group for the same Residential Unit, the Rehabilitation Period shall mean only the two-year period following the issuance of the first building permit to or for the benefit of anyone in the Owner’s Group.
K. “Related Person” means a spouse, domestic partner, child, parent, or sibling.
L. “Residential Unit” means a house, an apartment, a group of rooms, or a single room that is designed as separate living quarters Separate living quarters are those in which the occupants live and eat separately from any other persons in the building and which have a kitchen and direct access from the outside of the building or through a common hall. For purposes of this Chapter, a Residential Unit shall not include a unit in a Hotel, a currently operational nursing home, residential care facility, or other similar facility, or any unit that is fully exempt from property tax under the welfare exemption under Section 214(g) of the California Revenue and Taxation Code, as may be amended from time to time.
M. “Vacancy Exclusion Period” means the Building Permit Application Period, Rehabilitation Period, Disaster Period, Homeowners’ Exemption Period, Lease Period, Owner Death Period, or Owner In Care Period.
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4 N. “Vacant” means unoccupied, uninhabited, or unused, for more than 182 days, whether consecutive or nonconsecutive, in a calendar year.
7.54.040 Imposition of Tax.
A. Except as otherwise provided in this Chapter, the City imposes an annual Empty Homes Tax on each person that owns a Residential Unit for keeping that Residential Unit Vacant for more than 182 days, whether consecutive or nonconsecutive, in a calendar year except for those periods defined as a Vacancy Exclusion Period.
B. The Empty Homes Tax on an owner keeping a Residential Unit Vacant shall be as follows:
1. For the first calendar year that the Residential Unit is Vacant, the tax shall be $3,000 per Residential Unit in a vacant condominium, duplex, single family dwelling, or townhouse unit under separate residential unit ownership and $6,000 per any other vacant Residential Unit.
2. For the second consecutive calendar year and each subsequent calendar year thereafter that the Residential Unit is Vacant, the tax shall be $6,000 per Residential Unit in a vacant condominium, duplex, single family dwelling, or townhouse unit under separate residential unit ownership and $12,000 per any other vacant Residential Unit.
C. The rates set forth in subsection B. of this Section shall be adjusted annually in accordance with the increase in the Consumer Price Index: All Urban Consumers for the San Francisco/Oakland/San Jose Area for All Items as reported by the United States Bureau of Labor Statistics, or any successor to that index, as of December 31st of the preceding year, beginning with the 2025 calendar year.
D. The Empty Homes Tax shall be payable by the owner or owners of the Residential Unit kept Vacant. Not more than one tax per Residential Unit shall be imposed under this Section for a calendar year by reason of multiple liable owners. If there are multiple liable owners, each owner shall be jointly and severally liable for the tax, which shall be the highest amount of tax payable by any owner for that Residential Unit for that calendar year.
E. In determining whether an owner has kept a Residential Unit Vacant during a calendar year, days within any Vacancy Exclusion Period shall be disregarded if that Vacancy Exclusion Period applies to that owner for that Residential Unit, as shall days in which the Residential Unit was not owned by the owner, but the owner shall be deemed to have kept the Residential Unit unoccupied, uninhabited, or unused on all other days that such Residential Unit is unoccupied, uninhabited, or unused during the calendar year.
F. The Empty Homes Tax shall take effect on January 1, 2024. The Empty Homes Tax shall expire on December 31, 2034, unless reauthorized by the voters prior to such date.
G. The Empty Homes Tax shall be suspended for as long as the Berkeley COVID-19 Residential Eviction Moratorium is in effect pursuant to BMC 13.110 and the tax shall resume upon expiration.
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5 H. Upon declaring a citywide emergency, the Council may suspend the tax in whole or part by a supermajority vote of two-thirds of the entire City Council upon a finding that a declared emergency has undermined the ability of owners to fill vacancies in their Residential Units. Such a suspension shall last for no more than 60 days from its enactment by the Council, but may be extended on or before its expiration by a twothirds supermajority vote of the Council so long as the emergency continues and the required findings can be made. The Empty Homes Tax shall resume upon the expiration of the emergency.
I. The Council may, by majority vote of the entire City Council, amend this Chapter in furtherance of its purposes or to correct ambiguities or errors in language, provided that such amendments do not alter the dollar amounts of the tax as provided in Section
7.54.040 B, or expand the applicability of the exemptions in Section 7.54.060, or amend subsection H. or this subsection I. of Section 7.54.040.
7.54.050 Returns; Presumption of Vacancy.
A. Each person that is required to pay the Empty Homes Tax shall file a return in the form and manner prescribed by the City Manager or their designee.
B. Each person that owns a Residential Unit at any time during a calendar year and that is not exempt from the Empty Homes Tax with respect to that Residential Unit under any one of subsections A. through D. of Section 7.54.060 shall file a return for that calendar year in the form and manner prescribed by the City Manager or their designee. A person that fails to file the return required by this subsection B. for a Residential Unit shall be presumed to have kept that Residential Unit Vacant for the calendar year for which such return is required. The person who fails to file the required return may rebut the presumption by producing satisfactory evidence that such person did not keep the Residential Unit Vacant during the calendar year for which the return is required.
7.54.060 Exemptions.
A. For only so long as and to the extent that the City is prohibited by the Constitution or laws of the State of California or the Constitution or laws of the United States from imposing the Empty Homes Tax on any person that person shall be exempt from the Empty Homes Tax.
B. Any organization that is exempt from income taxation under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, shall be exempt from the Empty Homes Tax.
C. The City, the State of California, and any county, municipal corporation, district, or other political subdivision of the State shall be exempt from the Empty Homes Tax, except where any constitutional or statutory immunity from taxation is waived or is not applicable.
D. A natural person or trust who is the owner of a single property of four or fewer Residential Units, inclusive of accessory dwelling units and junior accessory dwelling units, that is their principal residence shall be exempt provided that they own no other Residential Units in the City. Additionally, for the purposes of this subsection D. only, the 319 of 322
6 “owner” of such Rental Property shall not be any of the following set forth under California Civil Code Section 1947.12(d)(5)(A)(i)-(iii) (“AB 1482”): a real estate investment trust, as defined in Section 856 of the Internal Revenue Code; a corporation; or a limited liability company.
E. Any taxpayer seeking an exemption under this Section shall be required to demonstrate their entitlement thereto annually by submitting an application and supporting documentation to the City Manager or their designee in the manner and at the time established in regulations and/or guidelines hereafter promulgated by the City Manager subject to review by the City Council in its discretion. Such applications shall be on forms provided by the City Manager, or their designee.
7.54.070 Administration; Penalties
A. The City Manager or their designee shall enforce the provisions of this Chapter and may prescribe, adopt, and enforce rules and regulations relating to the administration and enforcement of this chapter.
B. The tax required by this Chapter is delinquent if not received by the tax administrator on or before February 28 of each year.
C. Any person who fails to pay the tax required by this Chapter to the City or any amount of tax required to be collected and paid to the City within the time required shall pay a penalty of ten percent of the tax or amount of the tax, in addition to the tax or amount of tax, plus interest at the rate of one percent per month from the date on which the tax or the amount of tax required to be collected became due and payable to the City until the date of payment.
D. Transactions with the principal purpose of avoiding or evading all or a portion of the Empty Homes Tax shall be disregarded for purposes of determining the amount of the Empty Homes Tax and whether the Empty Homes Tax is due. Any owner determined to have engaged in one or more transactions with the principal purpose of avoiding or evading all or a portion of the Empty Homes Tax shall be liable for the Empty Homes Tax and also liable for a penalty in an amount equal to the Empty Homes Tax.
E. Any tax required to be paid by an owner under the provisions of this chapter shall be deemed a debt owed by the owner to the City. Any person owing money to the City under the provisions of this chapter shall be liable to an action brought in the name of the City for the recovery of such amount, along with any collection costs incurred by the City as a result of the person’s noncompliance with this chapter, including, but not limited to, reasonable attorneys’ fees, plus interest and penalties as herein provided.
7.54.080 Use of Funds for General Municipal Purposes.
A. The Council may deposit any portion of the proceeds generated by the Empty Homes Tax into the Housing Trust Fund, subject to its operating rules, or it may use any of the proceeds to fund any general municipal services designated by the Council.
7.54.090 Annual Reports.
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7 Commencing with a report filed no later than February 15, 2026, covering the fiscal year ending June 30, 2025, the City Manager shall file annually with the Council, by February 15 of each year, a report containing the amount of monies collected from the tax during the prior fiscal year.
7.54.100 Authorization and Limitation on Issuance of Bonds.
The City shall be authorized to pledge revenues generated by the Empty Homes Tax to the repayment of limited tax bonds or other forms of indebtedness authorized under this Section. The Council shall by ordinance or resolution, as applicable, establish the terms of any limited tax bonds or other forms of indebtedness authorized hereby, including but not limited to, the amount of the issue, date, covenants, denominations, interest rate or rates, maturity or maturities, redemption rights, tax status, manner of sale, and such other particulars as are necessary or desirable.
7.54.110 Severability.
If any word, phrase, sentence, part, section, subsection, or other portion of this ordinance, or any application thereof to any person or circumstance is declared void, unconstitutional, or invalid for any reason, then such word, phrase, sentence, part, section, subsection, or other portion, or the prescribed application thereof, shall be severable, and the remaining provisions of this chapter, and all applications thereof, not having been declared void, unconstitutional or invalid, shall remain in full force and effect. The People of the City of Berkeley hereby declare that they would have passed this ordinance, and each section, subsection, sentence, clause and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases had been declared invalid or unconstitutional.
7.54.120 Savings Clause.
No section, clause, part, or provision of this Chapter shall be construed as requiring the payment of any tax that would be in violation of the Constitution or laws of the United States or of the Constitution or laws of the State of California.
7.54.130 Liberal Construction.
This Chapter shall be liberally construed to effectuate its purpose.
Section 2. Increase Appropriations Limit. Pursuant to California Constitution Article XIII B and applicable laws, for four years from November 8, 2022, the appropriations limit for the City shall be increased by the aggregate sum collected by the levy of the general tax imposed under this ordinance.
Section 3. California Environmental Quality Act Requirements. This Ordinance is exempt from the California Environmental Quality Act, Public Resources Code section 21000 et seq., under, including without limitation, Public Resources Code section 21065 321 of 322
8 and CEQA Guidelines sections 15378(b)(4) and 15061(b)(3), as it can be seen with certainty that there is no possibility that the activity authorized herein may have a significant effect on the environment and pursuant to Public Resources Code section 21080, subdivision (b)(8), and CEQA Guidelines section 15273 as the approval of government revenues to fund existing services.
Section 4. General Tax; Majority Vote Requirement. This Ordinance imposes a general tax for general revenue purposes and shall be effective only if approved by a majority of the voters voting thereon.
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