Residential Development Tax

“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 (enforced 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. (Amended by Ord. No. 175,083, Eff. 3/25/03.)”

“(d) 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. (Amended by Ord. No. 168,771, Eff. 7/9/93, Oper. 1/1/89.) ... (e) 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. (Added by Ord. No. 164,785, Eff. 6/5/89.) ... (f) 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. (Added by Ord No. 169,952, Eff. 8/26/94.)”

“A credit against the tax shall be allowed for the amount of tax paid under this article because of the modification of a structure when the structure is subsequently converted from an apartment building into a condominium or condominiums. Provided, however, that in no event shall the amount of credit exceed the amount of tax.”