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July 10, 2012 > Statutory Increase in Construction Tax

Statutory Increase in Construction Tax

Submitted By Harriet Commons, Finance Director City of Fremont

Every person who constructs a new dwelling, makes additions in habitable space to any existing dwelling, or improves land as a mobile home shall be subject to a construction tax. Pursuant to Municipal Code Sec. 5-1204.1, Construction Tax, Ordinance No. 1876, approved at an election held June 6, 1989, the Finance Director shall set the annual rates effective July 1 of each year based on the change in the gross national product (GNP) deflator.

The new statutory rate is calculated by multiplying the present rate by the percentage increase of the revised GNP-Deflator, State and Local sub-index (GDP Table 1.1.9, Implicit Price Deflator, Consumption Expenditures and Gross Investment, State and Local Government), between the first quarter of 2012 over the first quarter of 2011; and then, adding the dollar change computed for each tax category to the present rate. The index value for the first quarter 2012 was 125.531 and the index value for the first quarter 2011 was 122.374 resulting in a statutory percentage increase of 2.58%. The computed dollar increases by tax category are shown adjacent to the new statutory rates effective July 1, 2012, below.

NEW DWELLINGS
Amount of tax, per dwelling unit Present Rate New Statutory Rate Increase
Single Family dwellings $2,178 $2,234 $56
Two-Family dwellings $1,840 $1,887 $47
Multiple $1,618 $1,660 $42

STRUCTURAL ADDITIONS TO ALL DWELLINGS
Amount of tax, per square foot Present Rate New Statutory Rate Increase
of floor area added $0.70 $0.72 $0.02

MOBILE HOME LOTS
Amount of tax, per mobile home lot Present Rate New Statutory Rate Increase
improved in a mobile home park $1,545 $1,585 $40

Please call Ms. Commons for questions regarding the construction tax (510) 284-4010

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