Dwelling Unit Construction Tax

“The tax collected pursuant to this article shall be placed in a "Park and Recreational Sites and Facilities Fund," to be exclusively for the acquisition and development of park and recreational sites and facilities.”

“The tax collected pursuant to this article shall be placed in a "Park and Recreational Sites and Facilities Fund," to be exclusively for the acquisition and development of park and recreational sites and facilities. Any refunds required or permitted by law, of taxes collected under this article shall be made from that Fund.”

“There is hereby imposed an excise tax upon every person who constructs or causes to be constructed any new dwelling unit in the City of Los Angeles in which said person has an equity or title.”

at building permit

“The tax imposed by this article is due and payable prior to the issuance of a building permit by the Department of Building and Safety; provided, however, that when the tax imposed on the conversion of an existing apartment building to a condominium or condominiums the tax is due and payable prior to the approval of the Final Map by the City Engineer.”

Los Angeles Department of Building and Safety (enforcement and administration by the Director of Finance)

“The tax imposed by this article shall be paid to the Department of Building and Safety. The Director of Finance is directed to enforce each and all of the provisions of this article and may make such rules and regulations as are not inconsistent with this article as may be necessary or desirable to aid in the enforcement of these provisions.”

“The tax imposed by this article shall not apply to construction which is subsidized, in whole or part, by the federal or state government, where a majority of the units are built for senior citizens or disabled persons of low income by non-profit corporations, where the property is exempt from County property taxes and any income therefrom is exempt from federal and state income taxes, and the construction and development thereof complies with the provisions of Section 17.12 of the Los Angeles Municipal Code. ... The tax imposed by this article shall not apply to the construction of any dwelling unit which qualifies a residential facility as a "shelter for the homeless," as that term is defined in Section 12.03 of this Code. ... The tax imposed by this article shall not apply to the reconstruction or replacement of a dwelling unit which was damaged or destroyed as a result of the earthquake of January 17, 1994 and its aftershocks, as determined by the Department of Building and Safety.”

“Where, as a condition of approval of a subdivision of land or of the finalization of a zone change to a zone which permits a multiple residential use, which subdivision or zone change includes the land whereon the new dwelling unit is to be constructed, a fee has been paid, or improvements or recreational facilities have been installed, constructed, or guaranteed to an existing City park or upon land being dedicated as a City park, or land has been dedicated to the City of Los Angeles, all pursuant to the provisions of Sections 12.22 or 17.12 of the Los Angeles Municipal Code, or where a voluntary payment of such a sum, or dedication of such land, or the installation or construction of such recreational facilities or improvements has been made, or any combination thereof as would have been required by Sections 12.33 or 17.12 of such Code, if applicable, has occurred, a credit shall be allowed against the tax imposed by this article in the amount of the fee so paid, or the fair market value of the land so dedicated, or the value of the improvements or recreational facilities installed, constructed or guaranteed, or a combination of any of the above. ... Provided, however, that in no event shall the amount of credit exceed the amount of tax; further provided that no credit against the tax established hereby shall be allowed, and no set-off against said tax shall be permitted, in those instances where a person received an exemption or credit under the provisions of Subdivisions 1, 3, 4 or 5 of Subsection F of Section 17.12 or Section 12.33 of the Los Angeles Municipal Code.”