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SEC. 21.8.10. REFUNDS.
 
   (a)   Whenever the amount of any tax has been overpaid or paid more than once or has been erroneously or illegally collected or received by the City under this article it may be refunded as provided in this section. Except as otherwise provided in this section, refunds of overpaid taxes shall be made in the same manner as is provided in Sec. 21.07 of this chapter for refunds of overpayments in Business Taxes.
 
   (b)   A retailer may claim a refund or take as credit against taxes collected and remitted the amount overpaid, paid more than once or erroneously or illegally collected or received when it is established in a manner prescribed by the Director of Finance that the person from whom the tax has been collected was not a user or consumer as that term is defined in Subsection (b) of Sec. 21.8.1; provided, however, that neither a refund nor a credit shall be allowed unless the amount of the tax so collected has either been refunded to the purchaser erroneously required to pay the tax or otherwise credited to them.
 
   (c)   No refund shall be paid under the provisions of this section unless the claimant establishes their right thereto by written records showing entitlement thereto.
 
 
SEC. 21.8.11. ACTIONS TO COLLECT.
 
   Any person using or consuming cigarettes within the City who has not paid the tax required by the provisions of this article, and any retailer who has failed to collect or who has collected but not remitted any tax required to be paid by the provisions of this article, shall be liable to an action brought in the name of the City for the recovery of such amount.
 
 
 
ARTICLE 1.9
REAL PROPERTY TRANSFER TAX
 
(Added by Ord. No. 132,932, Eff. 9/24/66, Operative 10/1/66;
Amended by Ord. No. 135,540, Eff. 12/16/67, Operative 1/1/68.)
 
 
Section
21.9.1   Title.
21.9.2   Tax Imposed.
21.9.3   Persons Liable.
21.9.4   Exemption – Debt Security.
21.9.5   Exemption – Governmental Agencies.
21.9.6   Exemptions – Bankruptcy, Receivership, Etc.
21.9.7   Exemptions – Orders of S.E.C.
21.9.8   Exemption – Certain Partnership Transfers.
21.9.9   Recorder Administers.
21.9.10   Refunds.
21.9.11   Duties of Clerk.
21.9.12   Exemption – Exchanges with the City.
21.9.13   Exemption – Certain Non-profit Corporation Transfers.
21.9.14   Exemption – Qualified Affordable Housing Organization.
21.9.15   Other Exemptions.
21.9.16   Additional Exemptions – City Council Approval.
 
 
SEC. 21.9.1. TITLE.
   (Amended by Ord. No. 166,976, Eff. 7/3/91, Oper. 7/1/91.)
 
   This article shall be known as the “Real Property Transfer Tax Ordinance of the City of Los Angeles.” It is adopted pursuant to the authority contained in Part 6.7 (commencing with Section 11901) of Division 2 of the Revenue and Taxation Code of the State of California. It is also enacted under the authority of Subdivision (d) of Subsection (11) of Section 2 of the Los Angeles City Charter and other authority held as a Charter City.
 
 
SEC. 21.9.2. TAX IMPOSED.
   (Amended by Initiative Approved by the Voters on 11/8/22, Ord. No. 187,692, Eff. 1/1/23.)
 
   (a)   There is hereby imposed on each deed, instrument or writing by which any lands, tenements, or other realty sold within the City of Los Angeles shall be granted, assigned, transferred or otherwise conveyed to, or vested in, the purchaser or purchasers, or any other person or persons, by the person’s or persons’ direction, when the consideration or value of the interest or property conveyed (exclusive of the value of any lien or encumbrance remaining thereon at the time of sale) exceeds $100.00, a tax at the rate of $2.25 for each $500.00 or fractional part thereof.
 
   (b)   In addition to and separate from any tax imposed under Subsection (a) of this section, starting on April 1, 2023, there is hereby imposed a tax known as the “Homelessness and Housing Solutions Tax” on each deed, instrument or writing by which any lands, tenements, or other realty sold within the City of Los Angeles shall be granted, assigned, transferred or otherwise conveyed to, or vested in, the purchaser or purchasers, or any other person or persons, by the person or their direction, when the consideration or value of the interest or property conveyed (including the value of any lien or encumbrance remaining thereon at the time of sale) exceeds:
 
   (1)   $5,000,000 but is less than $10,000,000, a tax at the rate of 4% of the consideration or value; or
 
   (2)   $10,000,000 or greater, a tax at the rate of 5.5% of the consideration or value.
 
   (c)   The Director of Finance for the City of Los Angeles shall adjust the consideration or value thresholds set forth in Subsection (b) of this section adjusted annually based on the Bureau of Labor Statistics Chained Consumer Price Index (C-CPI-U), pursuant to guidelines and procedures the Director of Finance establishes pursuant to Subsection (c) of Section 21.9.11 of this Code.
 
 
SEC. 21.9.3. PERSONS LIABLE.
 
   Any tax imposed pursuant to Sec. 21.9.2 hereof shall be paid by any person who makes, signs or issues any document or instrument subject to the tax, or for whose use or benefit the same is made, signed or issued.
 
 
SEC. 21.9.4. EXEMPTION – DEBT SECURITY.
 
   Any tax imposed pursuant to this article shall not apply to any instrument in writing given to secure a debt.
 
 
SEC. 21.9.5. EXEMPTION – GOVERNMENTAL AGENCIES.
   (Amended by Ord. No. 140,085, Eff. 5/11/70.)
 
   Any deed, instrument or writing to which the United States or any agency or instrumentality thereof, any state or territory, or political subdivision thereof, is a party shall be exempt from the tax imposed pursuant to this article when the exempt agency is acquiring title.
 
 
SEC. 21.9.6. EXEMPTIONS – BANKRUPTCY, RECEIVERSHIP, ETC.
 
   Any tax imposed pursuant to this article shall not apply to the making, delivering or filing of conveyances to make effective any plan of reorganization or adjustment:
 
   (a)   Confirmed under the Federal Bankruptcy Act, as amended;
 
   (b)   Approved in an equity receivership proceeding in a court involving a railroad corporation, as defined in Subdivision (m) of Sec. 205 of Title 11 of the United States Code, as amended;
 
   (c)   Approved in an equity receivership proceeding in a court involving a corporation, as defined in Subdivision (3) of Sec. 506 of Title 11 of the United States Code, as amended; or
 
   (d)   Whereby a mere change in identity, form or place of organization is effected.
 
   Subdivisions (a) to (d), inclusive, of this section shall only apply if the making, delivery or filing of instruments of transfer or conveyances occurs within five years from the date of such confirmation, approval or change.
 
 
SEC. 21.9.7. EXEMPTIONS – ORDERS OF S.E.C.
 
   Any tax imposed pursuant to this article shall not apply to the making or delivery of conveyances to make effective any order of the Securities and Exchange Commission, as defined in Subdivision (a) of Sec. 1083 of the Internal Revenue Code of 1954; but only if:
 
   (a)   The order of the Securities and Exchange Commission in obedience to which such conveyance is necessary or appropriate to effectuate the provisions of Sec. 79k of Title 15 of the United States Code, relating to the Public Utility Holding Company Act of 1935;
 
   (b)   Such order specifies the property which is ordered to be conveyed;
 
   (c)   Such conveyance is made in obedience to such order.
 
 
SEC. 21.9.8. EXEMPTION – CERTAIN PARTNERSHIP TRANSFERS.
 
   (a)   In the case of any realty held by a partnership, no levy shall be imposed pursuant to this article by reason of any transfer of an interest in a partnership or otherwise, if:
 
   (1)   Such partnership (or another partnership) is considered a continuing partnership within the meaning of Sec. 708 of the Internal Revenue Code of 1954; and
 
   (2)   Such continuing partnership continues to hold the realty concerned.
 
   (b)   If there is a termination of any partnership within the meaning of Sec. 708 of the Internal Revenue Code of 1954, for purposes of this article, such partnership shall be treated as having executed an instrument whereby there was conveyed, for fair market value (exclusive of the value of any lien or encumbrance remaining thereon), all realty held by such partnership at the time of such termination.
 
   (c)   Not more than one tax shall be imposed pursuant to this article by reason of a termination described in Subdivision (b), and any transfer pursuant thereto, with respect to the realty held by such partnership at the time of such termination.
 
 
SEC. 21.9.9. RECORDER ADMINISTERS.
   (Amended by Ord. No. 166,976, Eff. 7/3/91, Oper. 7/1/91.)
 
   The County Recorder shall administer this article in conformity with the provisions of Part 6.7 of Division 2 of the Revenue and Taxation Code and the provisions of any County ordinance adopted pursuant thereto. The Director of Finance of the City of Los Angeles is authorized to negotiate and enter into a contract with the County of Los Angeles or one of its officials for the administration of this article and payment to the County for its costs of administration.
 
 
SEC. 21.9.10. REFUNDS.
 
   Claims for refund of taxes imposed pursuant to this article shall be governed by the provisions of Chapter 5 (commencing with Section 5096) of Part 9 of Division 1 of the Revenue and Taxation Code of the State of California.
 
 
SEC. 21.9.11. DUTIES OF CLERK.
   (Amended by Initiative Approved by the Voters on 11/8/22, Ord. No. 187,692, Eff. 1/1/23.)
 
   (a)   The Director of Finance, in the Director’s capacity of Tax Collector of the City of Los Angeles, is hereby designated as the officer of the City responsible for maintaining relations with the County of Los Angeles for the purpose of administering the tax imposed under this article and receiving and accounting for the funds collected thereunder.
 
   (b)   If the County of Los Angeles does not collect a tax due under this article, or any portion of such tax, then the Director of Finance shall have the power and duty to enforce all of the provisions of this article. In such case, the City taxes are due prior to recordation with the County of Los Angeles of any written instrument subject to the tax and the Director of Finance may make an assessment for taxes not paid in the manner provided in Section 21.16 of this Code, and make refunds as provided in Section 22.13 of this Code.
 
   (c)   The Director of Finance is authorized and empowered, consistent with applicable law and the purposes of this article, to issue any rules and regulations reasonably necessary to enforce and administer this article, including but not limited to regulations further defining the term “realty sold” in Section 21.9.2 of this article and establishing procedures for administering exemptions to the tax imposed under this article. The Director of Finance shall provide reasonable notice prior to the effective date of any rules or regulations promulgated pursuant to this section.
 
 
SEC. 21.9.12. EXEMPTION – EXCHANGES WITH THE CITY.
   (Added by Ord. No. 170,326, Eff. 3/10/95.)
 
   Any deed, instrument or writing by which a person acquires real property in an exchange with the City shall be exempt from the tax imposed pursuant to this article where the real property received by the City is of equal or greater value than the real property received by the other person.
 
 
SEC. 21.9.13. EXEMPTION – CERTAIN NON-PROFIT CORPORATION TRANSFERS.
   (Added by Ord. No. 171,644, Eff. 8/2/97.)
 
   (a)   In the case of any realty held by a non-profit corporation, no levy shall be imposed pursuant to this article by reason of any transfer of the realty, if:
 
   (1)   The realty is transferred to a limited partnership, of which the non-profit corporation is the general partner; and
 
   (2)   The City required such transfer to be made in order to facilitate the use of tax credits and federal affordable housing development assistance.
 
   (b)   Any person exempt from the tax imposed by this article because of the provisions of Subsection (a) hereof shall pay to the County of Los Angeles the tax that would be owed if such exemption did not exist, and thereafter may apply to the Director of Finance for a refund, which refund shall be made in the same manner as is provided in Section 21.07 of this chapter for refunds of overpayments of Business Taxes.
 
 
SEC. 21.9.14. EXEMPTION – QUALIFIED AFFORDABLE HOUSING ORGANIZATION.
   (Added by Initiative Approved by the Voters on 11/8/22, Ord. No. 187,692, Eff. 1/1/23.)
 
   The Homelessness and Housing Solutions Tax imposed by Subsection (b) of Section 21.9.2 of this Code shall not apply with respect to any deed, instrument or writing by which any lands, tenements, or other realty sold within the City of Los Angeles shall be granted, assigned, transferred or otherwise conveyed to, or vested in, a purchaser or purchasers, or any other person or persons, by the person or their direction if such transferee is: (1) a non-profit entity within Internal Revenue Code Section 501(c)(3); (2) a Community Land Trust, as defined in Section 22.618.2 of the Los Angeles Administrative Code; (3) a Limited-Equity Housing Cooperative, as defined by California Civil Code Section 817; or (4) a limited partnership or limited liability company in which only bona fide nonprofit corporations, Community Land Trusts, and/or Limited-Equity Housing Cooperatives are the general partners or managing members. To qualify for an exemption under this section, the transferees or one of its partners or members must demonstrate a history of affordable housing development and/or affordable housing property management experience, as determined by the Los Angeles Housing Department, or its successor agency, according to a procedure that will be promulgated by the Los Angeles Housing Department, or its successor agency. Community Land Trusts and Limited- Equity Housing Cooperatives may qualify for an exemption under this subsection without demonstrating a history of affordable housing development and/or affordable housing property management experience by (a) partnering with experienced non-profit organizations as the Los Angeles Housing Department, or its successor agency, defines those terms consistently with the purpose of Article 9 of Chapter 24 of Division 22 of the Los Angeles Administrative Code; or (b) recording at the time of acquisition an affordability covenant consistent with Section 22.618.3(d)(l)(i)b. of the Los Angeles Administrative Code.
 
 
SEC. 21.9.15. OTHER EXEMPTIONS.
   (Added by Initiative Approved by the Voters on 11/8/22, Ord. No. 187,692, Eff. 1/1/23.)
 
   The Homelessness and Housing Solutions Tax imposed by Subsection (b) of Section 21.9.2 of this Code shall not apply with respect to any deed, instrument or writing by which any lands, tenements, or other realty sold within the City of Los Angeles shall be granted, assigned, transferred, or otherwise conveyed to, or vested in, the purchaser or purchasers, or any other person or persons, if such transferee is:
 
   (a)   a non-profit entity within Internal Revenue Code Section 501(c)(3), which received its initial Internal Revenue Service Determination Letter at least ten years prior to the purchase and has assets of less than $1 billion;
 
   (b)   the United States or any agency or instrumentality thereof, any state or territory, or political subdivision thereof, or any other federal, state, or local public agency or public entity; or
 
   (c)   any other transferee exempt from the City’s taxation power under the state or federal Constitutions.
 
 
SEC. 21.9.16. ADDITIONAL EXEMPTIONS – CITY COUNCIL APPROVAL.
   (Added by Initiative Approved by the Voters on 11/8/22, Ord. No. 187,692, Eff. 1/1/23.)
 
   The People of the City Los Angeles authorize the City Council to enact ordinances, without further voter approval, to exempt from the Homelessness and Housing Solutions Tax imposed by Subsection (b) of Section 21.9.2 of this article property acquired by non-profit organizations to produce income-restricted affordable housing, as the Council may define those terms consistently with the purposes set forth in Article 9 of Chapter 24 of Division 22 of the Los Angeles Administrative Code.
 
 
 
ARTICLE 1.10
DWELLING UNIT CONSTRUCTION TAX
 
(Amended by 0rd. No. 145,220, Eff. 12/23/73.)*
 
 
   * The provisions of this ordinance shall not be applicable to any subdivision filed for the purpose of converting a presently existing structure to a condominium, the Tentative Map for which has been filed prior to the thirty-first day following the effective date hereof.
 
 
Section
21.10.1   Definitions.
21.10.2   Constitutional Exemptions.
21.10.3   Dwelling Unit Construction Tax.
21.10.4   Due Date.
21.10.5   Assessment – Administrative Remedy.
21.10.6   Refunds.
 
 
SEC. 21.10.1. DEFINITIONS.
 
   The following words and phrases whenever used in this article shall be construed as defined in this section:
 
   (a)   “Person” shall mean any individual, receiver, administrator, executor, assignee, trustee in bankruptcy, trust, estate, firm, partnership, joint venture, club, company, joint stock company, business trust, domestic or foreign corporation, association, syndicate, society, or any group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit or otherwise, and shall include a municipal corporation. (Amended by Ord. No. 175,083, Eff. 3/25/03.)
 
   (b)   “Dwelling Unit” shall be defined as it is presently defined in Section 12.03 of this Code except that it shall also include every mobile home site.
 
   (c)   “Condominium” shall mean an estate in real property consisting of an undivided interest in common in a portion of a parcel of real property together with a separate interest in space in an apartment building on such real property. A condominium may include in addition a separate interest in other portions of such real property.
 
   (d)   “Apartment” shall be defined as a residential building designed or used for five or more dwelling units.
 
 
SEC. 21.10.2. CONSTITUTIONAL EXEMPTIONS.
 
   Nothing in this article shall be construed as imposing a tax upon any person when imposition of such tax upon that person would be in violation of the Constitution of the United States or that of the State of California.
 
 
SEC. 21.10.3. DWELLING UNIT CONSTRUCTION TAX.
 
   (a)   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. The tax imposed by this section shall be at the rate of two hundred dollars ($200.00) per dwelling unit.
 
   1.   The tax imposed by this section shall be imposed regardless of whether the new dwelling unit is created by new construction or by modification of existing structures. The tax imposed shall apply to new mobile home park sites regardless of whether they are part of a new mobile home park or an addition to an existing park. The tax imposed shall also apply to the conversion of an existing apartment building into a condominium or condominiums if the construction of the apartment building did not subject any person to the tax imposed by this article.
 
   (b)   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. As used herein the term “fair market value” shall mean the valuation of the particular land by the Board of Recreation and Park Commissioners and shall be based upon the proportionate portion of the appraised value of all the land within the subdivision or zone change property which the area dedicated bears to the area of all the land within the subdivision or zone change property, which appraisal is prepared by a qualified real estate appraiser, approved by the Real Estate Division of the Bureau of Engineering of the City, and employed by the property owner at the property owner’s own expense, and which appraisal, after report and recommendation by the Real Estate Division of the Bureau of Engineering is accepted as reasonable by the Board of Recreation and Park Commissioners. The value of the improvements or the facilities referred to in this section shall be established pursuant to Section 17.12 F.8. of the Los Angeles Municipal Code. A credit shall also be allowed where a conversion of an existing apartment building into a condominium or condominiums has resulted in the payment of a fee, the construction, installation or guarantee of recreational facilities or improvements, or the dedication of land, or any of the above, to the City of Los Angeles pursuant to the provisions of Sections 12.33 or 17.12 of the Los Angeles Municipal Code. A credit shall also 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; 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. (Amended by Ord. No. 163,797, Eff. 8/8/88.)
 
   (c)   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 Director of Finance may demand statements in writing from any person subject to tax calling for information as the Director of Finance may deem pertinent for the administration and collection of the tax. It shall be the duty of any such person receiving such a demand from the Director of Finance to furnish such information. The Director of Finance may require any statement to be verified. (Amended by Ord. No. 175,083, Eff. 3/25/03.)
 
   (d)   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.
 
   (e)   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.)
 
   (f)   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.)
 
   (g)   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.)
 
 
SEC. 21.10.4. DUE DATE.
   (Amended by Ord. No. 148,246, Eff. 5/24/76.)
 
   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. The Department of Building and Safety shall not issue a building permit until the tax imposed by this article has been paid. Any person owing money to the City under the provisions of this article shall be liable in any action brought in the name of the City for the recovery of such amount.
 
   Any tax paid under the provisions of this article may be refunded if the application for the building permit is not approved, or if approved, is not used for construction of dwelling unit, or units, or where the final map has been approved by the City Engineer for the conversion of an existing apartment building to a condominium or condominiums and such apartment building is not converted.
 
 
SEC. 21.10.5. ASSESSMENT – ADMINISTRATIVE REMEDY.
 
   (a)   The provisions of Sections 21.17, 21.20 and 21.21 of this chapter shall apply to the administration and collection of the tax imposed under the provisions of this article in the same manner as they apply to the administration and collection of the Business Tax.
 
   (b)   The Director of Finance may make an assessment for taxes not remitted by a person required to remit under this article. The manner of making and providing notice of such assessment; the right to a hearing and the conduct of decision; filing exceptions; and passing upon exceptions shall be the same as provided in Section 21.16 of this chapter.
 
 
SEC. 21.10.6. REFUNDS.
 
   (a)   Whenever the amount of any tax has been overpaid or paid more than once or has been erroneously or illegally collected or received by the City under this article, refund shall be made in the same manner as is provided in Section 21.07 of this chapter for refunds of overpayments in Business Taxes.
 
   (b)   No refunds shall be paid under the provisions of this section unless the claimant establishes their right thereto by written records showing entitlement thereto.
 
   (c)   The Director of Finance shall have the same power to compromise claims for Dwelling Unit Construction Tax, and the same power to accept and record underpayments or overpayments of such tax, as is granted to the Director of Finance under Subsections (f) and (g) of Section 21.15 with respect to Business Taxes.
 
   (d)   With respect to any tax paid pursuant to the provisions of this article for 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, Subsection (f) of Section 21.10.3 of this article shall be deemed to have been in effect and operative three years prior to its actual effective date. (Added by Ord. No. 164,785, Eff. 6/5/89.)
 
   (e)   The City shall refund any tax collected under this article which was paid after May 23, 1984 and prior to August 8, 1988, provided that such tax would not have been required had Subsection (b) of Section 21.10.3 of this article, as amended by Ordinance No. 163,797, been in effect at the time of payment thereof. Claims for such refund shall be made pursuant to Subsection (a) of this section. (Added by Ord. No. 166,422, Eff. 12/31/90.)
 
   (f)   The Director of Finance shall enforce the provisions of Subsection (a) above as if Subsection (g) of Section 21.10.3 of the Los Angeles Municipal Code was in effect on January 17, 1994. (Added by Ord No. 169,952, Eff. 8/26/94.)
 
 
 
ARTICLE 1.11
PAYROLL EXPENSE TAX
 
(Repealed by Ord. No. 174,272, Eff. 11/26/01.)
 
 
 
ARTICLE 1.12
TAX PENALTY AMNESTY OF 2020
 
(Article Repealed and Replaced by Ord. No. 186,785, Eff. 11/12/20.)
 
 
Section
21.12.1   Development and Administration of Program.
21.12.2   Duration and Application of Program.
21.12.3   Elements of Program.
21.12.4   Previous Assessments, Payments, and Litigation.
21.12.5   Requisites for Compliance with Program.
21.12.6   Subsequent Deficiencies.
21.12.7   Implementation of Article.
 
 
SEC. 21.12.1. DEVELOPMENT AND ADMINISTRATION OF PROGRAM.
 
   The Director of Finance shall develop and administer a Tax Penalty Amnesty program as authorized and provided in this article.
 
 
SEC. 21.12.2. DURATION AND APPLICATION OF PROGRAM.
 
   The Tax Penalty Amnesty program shall be conducted during the period of October 1, 2020, through December 17, 2020. The program shall apply to penalties for delinquent tax liabilities for tax periods ending on or before December 17, 2020, with respect to Article I (Business Taxes, including taxes imposed with respect to cannabis pursuant to Los Angeles Municipal Code Section 21.51), Article 1.1 (Telephone, Electricity, and Gas Users Taxes), Article 1.3 (Commercial Tenant’s Occupancy Taxes), Article 1.7 (Transient Occupancy Tax), and Article 1.15 (Parking Occupancy Taxes) of this Chapter.
 
 
SEC. 21.12.3. ELEMENTS OF PROGRAM.
 
   For any taxpayer who meets the requirements of Section 21.12.5 of this article:
 
   (a)   The tax penalties imposed under Article I (Business Tax, including taxes imposed with respect to cannabis pursuant to Los Angeles Municipal Code section 21.51), Article 1.1 (Telephone, Electricity, and Gas Users Taxes), Article 1.3 (Commercial Tenant’s Occupancy Taxes), Article 1.7 (Transient Occupancy Taxes), and Article 1.15 (Parking Occupancy Taxes) of this Chapter shall not apply to any taxes for the tax periods for which Tax Penalty Amnesty is requested. The Tax Penalty Amnesty shall not apply to any tax or tax period which the taxpayer did not clearly identify in the application for Tax Penalty Amnesty.
 
   (b)   No criminal action based upon the non-reporting or under-reporting of tax liabilities or the nonpayment of any taxes shall be brought against the taxpayer for any tax period for which the taxpayer has complied with the provisions of Section 21.12.5 of this article.
 
 
SEC. 21.12.4. PREVIOUS ASSESSMENTS, PAYMENTS, AND LITIGATION.
 
   The Tax Penalty Amnesty shall not apply and no refund or credit shall be granted of any penalty if, prior to the time the taxpayer makes a request for tax penalty amnesty pursuant to Section 21.12.5 of this article, the penalty has been paid by the taxpayer. The Tax Penalty Amnesty shall apply to tax penalties being challenged administratively or through litigation provided the tax penalty has not been paid at the time of the application and the tax otherwise qualifies under this article, provided the Tax Penalty Amnesty does not result in a refund or credit.
 
 
SEC. 21.12.5. REQUISITES FOR COMPLIANCE WITH PROGRAM.
 
   (a)   The provisions of this article shall apply to any taxpayer who, on or after October 1, 2020, and on or before December 17, 2020, files an application for tax penalty amnesty and complies with the following conditions:
 
   1.   Substantially complies with the application procedure created and administered by the Director of Finance;
 
   2.   Pays in full all taxes and interest due before December 17, 2020, relating to the application submitted to the Office of Finance; and
 
   3.   Pays all costs and fees incurred with respect to the collection of any delinquent taxes at the time the application is submitted to the Office of Finance.
 
   (b)   For any taxes subject to amnesty under this program, the Director of Finance may enter into an installment payment agreement, as provided for in Section 21.18 of Article I of this Chapter, in lieu of the complete payment required under Subdivision 2. of Subsection (a) of this section. Failure of the taxpayer to fully comply with the terms of the installment payment agreement shall render the waiver of any penalty applicable thereto null and void, unless the Director of Finance determines that the failure was due to reasonable cause and the taxpayer substantially complied with the terms of the installment agreement. An installment agreement under this article shall have a maximum term of six months, by which date all taxes, interests, fees, and costs must be fully paid, unless the taxpayer has already entered into an installment agreement with the Office of Finance, in which case the Director may use the Director’s discretion to alter any existing installment agreement to reflect the intent of the Tax Penalty Amnesty Ordinance of 2020.
 
 
SEC. 21.12.6. SUBSEQUENT DEFICIENCIES.
 
   If, subsequent to December 17, 2020, the Director of Finance issues a billing, deficiency determination or assessment for a tax period for which Tax Penalty Amnesty was granted, penalties shall not be imposed with respect to the amounts paid to satisfy the requirements for the Tax Penalty Amnesty Program. This section shall not invalidate any waiver granted under Section 21.12.3 of this article.
 
 
SEC. 21.12.7. IMPLEMENTATION OF ARTICLE.
 
   The Director of Finance shall adequately publicize the tax penalty amnesty program, issue forms and instructions, and take other actions needed to implement this article. The Director of Finance shall have the discretion to create the application for the Tax Penalty Amnesty of 2020. The Office of Finance shall have the discretion to determine whether a taxpayer has substantially complied with the requirements of the Tax Penalty Amnesty of 2020. No later than May 31, 2021, the Director of Finance shall report to Council the number of taxpayers for whom penalties were waived and the total amount of penalties waived pursuant to this article.
 
 
 
ARTICLE 1.13
RESIDENTIAL DEVELOPMENT TAX
 
(Art. 1.13, Added by Ord. No. 162,421, Eff. 6/29/87. Oper. 7/1/87.)
 
 
Section
21.13.1   Definitions.
21.13.2   Constitutional Exemptions.
21.13.3   Residential Development Tax.
21.13.4   Due Date.
21.13.5   Assessment – Administrative Remedy.
21.13.6   Refunds.
 
 
SEC. 21.13.1. DEFINITIONS.
 
   The following words and phrases whenever used in this article shall be construed as defined in this section.
 
   (a)   “Person” shall mean any individual, receiver, administrator, executor, assignee, trustee in bankruptcy, trust, estate, firm, partnership, joint venture, club, company, joint stock company, business trust, domestic or foreign corporation, association, syndicate, society, or any group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit or otherwise, and shall include a municipal corporation. (Amended by Ord. No. 175,083, Eff. 3/25/03.)
 
   (b)   “Dwelling Unit” shall be defined as it is presently defined in Section 12.03 of this Code except that it shall also include every mobile home site.
 
   (c)   “Condominium” shall mean an estate in real property consisting of an undivided interest in common in a portion of a parcel of real property together with a separate interest in space in an apartment building on such real property. A condominium may include in addition a separate interest in other portions of such real property.
 
   (d)   “Apartment” shall be defined as a residential building designed or used for five or more dwelling units.
 
 
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