HomeMy WebLinkAboutOrdinance #3610 ORDINANCE NO. 3610
AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH
AMENDING CHAPTER 3.36 OF THE
HUNTINGTON BEACH MUNICIPAL CODE
REGARDING THE UTILITIES TAX OF THE
CITY OF HUNTINGTON BEACH
WHEREAS, the City Council adopted in 1970 the "City of Huntington Beach Utilities
Tax"; and
The City has imposed a tax for many years on the use of telephone; electricity, gas and
video utility services in order to provide a portion of the general fund revenues required to
provide police, fire, general government and a host of other essential services to the community;
and,
State and federal regulators are encouraging competition in the provision of traditional
utility services by deregulating monopoly providers and by unbundling the billing charges for the
various components of these services; and,
In recent years there has been a substantial increase in the number of providers of
telephone, electric, and gas services in the City, and in the technologies used; all of which has
caused dramatic changes in the manner in which the services are produced, marketed and
distributed; and,
In view of these changes and in order to give guidance to the many new utility service
providers regarding their collection and remittance obligations, it is appropriate for the City to
update its utilities tax ordinance with needed clarifications regarding the scope of the City's
existing taxes and the responsibilities of the various utility service providers; and,
To assure fair and equal application of the law,the City's utilities tax ordinance should be
applied to similar utility services, regardless of the provider or the technology used to provide it;
and,
While modifying the City's utilities tax ordinance in the manner provided herein, it is the
intent of the City Council that none of the clarifications or revisions shall impose a new tax,
revise an existing tax methodology, or increase an existing tax;
NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby
ordain as follows:
SECTION 1. That Chapter 3.36 of the Huntington Beach Municipal Code is hereby
amended to read as follows:
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"Chapter 3.36. UTILITIES TAX
3.36.010 Definitions.
Except where the context otherwise requires,the definitions given in this Section
govern the construction of this Chapter:
(a) "Billing Address" means the mailing address of the Service user where the
Service supplier submits invoices or bills for payment by the customer.
(b) "Charges for Mobile Telecommunications Services"has the same meaning and
usage as set forth in the Mobile Telecommunications Sourcing Act(4 U.S.C.
Sections 116 and 124) and the regulations thereunder."
(c) "City"means the City of Huntington Beach.
(d) "City Administrator"means the City Administrator, or his or her authorized
representative.
(e) "Exempt Wholesale Generator"has the same meaning as set forth in the Federal
Power Act(15 U.S.C. Section 79z-5a) and regulations thereunder.
(f) "Gas"means natural or manufactured gas or any alternate hydrocarbon fuel, .
which may be substituted therefor.
(g) "Mobile Telecommunications Service"has the same meaning and usage as set
forth in the Mobile Telecommunications Sourcing Act(4 U.S.C. Section 124)and
the regulations thereunder.
(h) "Month"means a calendar month.
(i) "Non-Utility Service Supplier"means:
(1) -a service supplier, other than a supplier of electric distribution services to
all or a significant portion of the City, which generates electricity for sale
to others,and shall include, but is not limited to any publicly-owned
electric utility, investor-owned utility, cogenerator,distributed generation
provider, exempt wholesale generator, municipal utility district,federal
power marketing agency, electric rural cooperative,or other supplier or
seller of electricity;
(2) an electric service provider("ESP"), electricity broker,marketer,
aggregator, pool operator, or other electricity supplier other than a supplier
of electric distribution services to all or a significant portion of the City,
which sells or supplies electricity or supplemental services to electricity
users within the City; and
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(3) a gas service supplier, aggregator, marketer or broker, other than a
supplier of gas distribution services to all or a significant portion of the
City, which sells or supplies gas or supplemental services to Gas users
within the City.
(j) "Person means, without limitation, any domestic, non-profit or foreign
corporation, firm, association, syndicate,joint stock company,partnership of any
kind, limited liability company,joint venture, club,trust, Massachusetts business
or common law trust, estate, society, cooperative, receiver, trustee, guardian or
other representative appointed by order of any court, any natural individual,
municipal district or municipal corporation(other than the City).
(k) "Place of Primary Use"has the same meaning and usage as set forth in the Mobile
Telecommunications Sourcing Act (4 U.S.C. Section 116 et. seq.) and the
regulations thereunder.
(1) "Received" as that term is used in connection with receipt of taxes by the
Treasurer means actual receipt by the Treasurer. A tax is not received when it has
been postmarked and/or mailed.
(m) "Service Address means the residential street address or the business street
address of the Service user, and in the case of mobile telecommunications service,
the service user's place of primary use.
(n) "Service Supplier"means any person, including the City, that provides telephone
communication, electric, gas, water or video service to a user of such services
within the City. The term shall include any Person required to collect, or self-
collect under Section 3.36.050 of this Chapter, and remit a tax as imposed by this
Chapter, including its billing agent in the case of electric, gas, water or video
service suppliers.
(o) "Service User"means a person required to pay a tax imposed by this Chapter.
(p) "State"means the State of California.
(q) "Tax Administrator"means the Finance Officer of the City, or his or her
authorized representative.
(r) "Telephone Communication Services"means "communications services" as
defined in Sections 4251 and 4252 of the Internal Revenue Code, and the
regulations thereunder, and shall include any service that is capable of
transmitting telephonic quality communications (including the use of Internet
Protocol (IP) or other similar means for digitization and/or packetization of
telephonic quality communications for transmission over digital networks)
by analog, digital, electronic, radio or similar means through"interconnected
service" with the"public switched network" (as these terms are commonly used
in the Federal Communications Act and the regulations of the Federal
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Communications Commission—see 47 U.S.C.A. Section 332(d)), whether such
transmission occurs by wire, cable, cable modem or digital subscriber line (DSL),
internet, fiber-optic, light wave, laser, microwave, radio wave (including, but not
limited to, mobile telecommunications service, cellular service, commercial
mobile service, and commercial mobile radio service (see 47 U.S.C. Section
332(d)(1) and Part 20.3 of Title 47 of the Code of Federal Regulations),personal
communications service (PCS), specialized mobile radio (SMR), and other similar
services regardless of radio spectrum used), or other similar facilities.
(s) "Telephone Corporation, Electrical Corporation, and Water Corporation"have the
same meanings as defined in Sections 234, 218, and 241 respectively, of the
Public Utilities Code of the State of California, as said Sections existed on
January 1, 1970. "Electrical Corporation" and "Water Corporation" includes any
organization, municipality or agency engaged in the selling or supplying of
electricity or water to a Service user; however, as specified by Public Utilities
Code Section 218, does not include a corporation or person employing
cogeneration technology or producing power from other than a conventional
power source for the generation of electricity.
(t) "Treasurer" means the City Treasurer of Huntington Beach or his or her
authorized representative.
(u) "Video Service Supplier"means any Person, company, or service which provides
one or more channels of video programming, including any communications that
are ancillary, necessary or common to the use or enjoyment of the video
programming, to or from an address in the City, including to or from a business,
home, condominium, or apartment, where some fee is paid, whether directly or
included in dues or rental charges for that service, whether or not public rights-of-
way are utilized in the delivery of the video programming or communications. A
"video service supplier" includes, but is not limited to, multichannel video
programming distributors (as defined in 47 U.S.C.A. Section 522(13)), open video
systems (OVS) suppliers, suppliers of cable television, master antenna television,
satellite master antenna television, multichannel multipoint distribution services
(MMDS), direct broadcast satellite (to the extent federal law permits taxation of
its video services, now or in the future), and other suppliers of video
programming or communications (including two-way communications), whatever
their technology.
(v) "Video Services"means any and all services related to the providing of video
programming (including origination programming), including any
communications that are ancillary, necessary or common to the use or enjoyment
of the video programming, regardless of the content of such video programming
or communications. "Video Services"does not include services for which a tax is
paid under Section 3.36.020 of this Chapter.
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3.36.020 Telephone Users Tax.
(a) There is hereby imposed a tax upon every person, other than a telephone
corporation, using international, interstate and intrastate telephone communication
services. The tax imposed by this Section shall be at the rate of five percent(5%)
of all charges made for such services,and shall be collected from the service user
by.the telephone communications services supplier or its billing agent. There is a
rebuttable presumption that telephone communication services, which are billed
to a billing or service address in the City, are used, in whole or in part, within the
City's boundaries, and such services are subject to taxation under this Chapter. If
the billing address of the service user is different from the service address, the
service address of the service user shall be used for purposes of imposing the tax.
Charges for mobile telecommunications services are subject to taxation under this
article if the customer's place of primary use is in the City, regardless of where
the mobile telecommunications service may originate,terminate, or pass through.
(b) As used in this Section, the term"charges" shall include the value of any other
services, credits, property of every kind or nature, or other consideration provided
by the service user in exchange for the telephone communication services. As
used in this Section,the term"charges" shall not include charges for services paid
for by inserting coins in coin-operated telephones; provided that, where such coin-
operated telephone service is furnished for a guaranteed amount, the amounts paid
under such guarantee plus any fixed monthly or other periodic charge shall be
included in the base for computing the amount of tax due.
(c) The Tax Administrator, from time to time, may issue and disseminate to service
suppliers which are subject to the tax collection requirements of this Chapter, an
administrative ruling identifying those telephone communication services that are
subject to the tax of Section 3.36.020. This administrative ruling shall not impose
a new tax, revise an existing tax methodology, or increase an existing tax. An
administrative ruling shall not constitute a new tax, a revision of an existing tax
methodology, or an increase in an existing tax if such administrative ruling is:
(1) consistent with the existing ordinance language; and,
(2) merely reflects a change in, clarification to, or new rendition of:
(a) the definition, interpretation, or application of substantial
nexus by a court of competent jurisdiction or by preemptive
state or federal law, for purposes of taxation; or,
(b) the definition, interpretation, or application of the Federal
excise tax rules, regulations, and laws pertaining to
"communications services" (Sections 4251, 4252 and 4253
of the Internal Revenue Code)by the Internal Revenue
Service, or by a state or local agency that assumes an
interpretative role of those rules, regulations, and laws in
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the event that the Federal excise tax on telecommunications
is repealed.
(d) As used in this Section, the term "telephone communication services" shall not
include "private mobile radio service" (as defined in Part 20.3 of Title 47 of the
Code of Federal Regulations) or"private mobile service" (as defined in 47
U.S.C.A. Section 332(d)(3))which is not interconnected to the public switched
network. The tax imposed under subsection(a), above, shall not be imposed upon
any person for using telephone communication services to the extent that,
pursuant to Sections 4252 and 4253 of the Internal Revenue Code, the amounts
paid for such communication services are not subject to or are exempt from the
tax imposed under Section 4251 of the Internal Revenue Code. In the event that
the Federal excise tax on"communication services as provided in Sections 4251,
4252 and 4253 of the Internal Revenue Code is subsequently repealed, any
reference in this Section and in Section 3.36.010(r)to such law, including any
related federal regulations, private letter rulings, case law, and other opinions
interpreting these sections, shall refer to that body of law that existed immediately
prior to the date of repeal, as well as to any judicial or administrative decision
interpreting such Federal excise tax law which is published or rendered after the
date of repeal.
(e) To prevent actual multi jurisdictional taxation of telephone communication
services subject to tax under this section, any service user, upon proof to the Tax
Administrator that the service user has previously paid the same tax in another
state or city on such telephone communication services, shall be allowed a credit
against the tax imposed to the extent of the amount of such tax legally imposed in
such other state or city; provided, however, the amount of credit shall not exceed
the tax owed to the City under this Section.
(f) The tax on telephone communication services imposed by this Section shall be
collected from the service user by the service supplier. The amount of tax
collected in one (1)month shall be remitted to the Treasurer, and must be
received by the Treasurer on or before the twentieth(201h) day of the following
month.
3.36.030 Electricity Tax.
(a) There is hereby imposed a tax upon every person using electricity in the City. The
tax imposed by this Section shall be at the rate of five percent (5%) of the charges
made for such electricity, and for any supplemental services or other associated
activities directly related to and/or necessary for the provision of electricity to the
Service user, which are provided by a service supplier or non-utility service
supplier to a service user. The tax shall be collected from the service user by the
service supplier or non-utility service supplier, or its billing agent.
(b) As used in this Section, the term "charges"shall apply to all services, components
and items that are: i) necessary or common to the receipt, use and enjoyment of
electric service; or, ii) currently, or historically have been, included in a single or
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bundled rate for electric service by a local distribution company to a class of retail
customers. The term"charges" shall include,but is not limited to, the following
charges:
(1) energy charges;
(2) distribution or transmission charges;
(3) metering charges;
(4) stand-by, reserves, firming, ramping, voltage support, regulation,
emergency, or other similar charges for supplemental services to self-
generation service users;
(5) customer charges, late charges, service establishment or reestablishment
charges, demand charges, fuel or other cost adjustments, power exchange
charges, independent system operator (ISO) charges, stranded investment
or competitive transition charges (CTC), public purpose program charges,
nuclear decommissioning charges,trust transfer amounts (bond financing
charges), franchise fees, franchise surcharges, annual and monthly
charges, and other charges, fees and surcharges which are necessary to or
common for the receipt, use and enjoyment of electric service; and,
(6) charges, fees,or surcharges for electricity services or programs, which are
mandated by the California Public Utilities Commission or the Federal
Energy Regulatory Commission,whether or not such charges, fees, or
surcharges appear on a bundled or line item basis on the customer billing.
(c) As used in this section, the term"charges" shall include the value of any other
services, credits,property of every kind or nature, or other consideration provided
by the service user in exchange for the electricity or services related to the
provision of such electricity.
(d) The Tax Administrator, from time to time, may survey the electric service
suppliers to identify the various unbundled billing components of electric retail
service that they commonly provide to residential and commercial/industrial
customers in the City, and the charges therefor, including those items that are
mandated by state or federal regulatory agencies as a condition of providing such
electric service. The Tax Administrator,thereafter, may issue and disseminate to
such electric service suppliers an administrative ruling identifying those
components and items which are: i) necessary or common to the receipt, use or
enjoyment of electric service; or, ii) currently, or historically have been, included
in a single or bundled rate for electric service by a local distribution company to a
class of retail customers. Unbundled charges for such components and items shall
be subject to the tax of subsection(a) above
(e) As used in this Section, the term"using electricity" shall not be construed to
include electricity used in water pumping by water corporations; nor shall the
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term include the mere receiving of such electricity by an electrical corporation or
governmental agency at a point within the City for resale.
(f) The tax on electricity provided by self-production or by a non-utility service
supplier not under the jurisdiction of this Chapter shall be collected and remitted
in the manner set forth in Section 3.36.050 of this Chapter. All other taxes on
charges for electricity imposed by this Section shall be collected from the service
user by the electric service supplier or its billing agent. The amount of tax
collected in one (1) month shall be remitted to the Treasurer, and must be
received during normal business hours by the Treasurer on or before the twentieth
(20th) day of the following month; or, at the option of the person required to
collect and/or remit the tax, such Person shall remit an estimated amount of tax
measured by the tax billed in the previous month or upon the payment pattern of
the service user, which must be received by the Treasurer on or before the
twentieth(20th) day of the following month, provided that the service user shall
submit an adjusted payment or request for credit, as appropriate, within sixty(60)
days following each calendar quarter. The credit, if approved by the Tax
Administrator,may be applied against any subsequent tax bill that becomes due.
3.36.040 Gas Users. "
(a) There is hereby imposed a tax upon every person using gas in the City which is
delivered through a pipeline distribution system. The tax imposed by this Section
shall be at the rate of five percent (5%) of the charges made for such gas,
including all services related to the storage,transportation and delivery of such
gas. The tax shall be collected from the service user by the service supplier or
non-utility service supplier, or its billing agent.
(b) As used in this section, the term"charges" shall apply to all services, components
and items for gas service that are: i)necessary for or common to the receipt, use
and enjoyment of gas service; or, ii) currently, or historically have been, included
in a single or bundled rate for gas service by a local distribution company to a
class of retail customers. The term"charges" shall include, but is not limited to,
the following charges:
(1) the commodity charges for purchased gas, or the cost of gas owned by the
service user(including the actual costs attributed to drilling, production,
lifting, storage, gathering,trunkline, pipeline, and other operating costs
associated with the production and delivery of such gas), which is
delivered through a gas pipeline distribution system;
(2) gas transportation charges (including interstate charges to the extent not
included in commodity charges);
(3) storage charges; provided, however,that the service supplier shall not be
required to apply the tax to any charges for gas storage services when the
service supplier cannot, as a practical matter, determine the jurisdiction
where such stored gas is ultimately used; but it shall be the obligation of
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the service user to self-collect the amount of tax not applied to any charge
for gas storage by the service supplier and to remit the tax to the
appropriate jurisdiction;
(4) capacity or demand charges, late charges, service establishment or
reestablishment charges, transition charges, customer charges,minimum
charges,annual and monthly charges, and any other charges which are
necessary or common to the receipt, use and enjoyment of gas service;
and,
(5) charges, fees,or surcharges for gas services or programs,which are
mandated by the California Public Utilities Commission or the Federal
Energy Regulatory Commission, whether or not such charges,fees, or
surcharges appear on a bundled or line item basis on the customer billing.
(c) As used in this Section, the term"charges" shall include the value of any other
services, credits, property of every kind or nature, or other consideration provided
by the service user in exchange for the gas or services related to the delivery of
such gas.
(d) The Tax Administrator, from time to time,may survey the gas service suppliers to
identify the various unbundled billing components of gas retail service that they
commonly provide to residential and commercial/industrial customers in the City,
and the charges therefor, including those items that are mandated by state or
federal regulatory agencies as a condition of providing such gas service. The Tax
Administrator,thereafter, may issue and disseminate to such gas service suppliers
an administrative ruling identifying those components and items which are: i)
necessary or common to the receipt, use or enjoyment of gas service; or, ii)
currently, or historically have been, included in a single or bundled rate for gas
service by a local distribution company to a class of retail customers. Unbundled
charges for such components and items shall be subject to the tax of subsection
(a) above.
(e) There shall be excluded from the base on which the tax imposed in this Section is
computed:
(1) Charges made for gas which is to be resold and delivered through a
pipeline distribution system;
(2) Charges made for gas to be used in the generation of electricity by an
electrical corporation;
(3) Charges made by a gas public utility for gas used and consumed in the
conduct of the business of gas public utilities; and
(4) Charges for gas used in water pumping by a water corporation.
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(f) The tax on gas provided by self-production or by a non-utility service supplier not
under the jurisdiction of this Chapter shall be collected and remitted in the manner
set forth in Section 3.36.050 of this Chapter. All other taxes on charges for gas
imposed by this Section shall be collected from the service user by the gas service
supplier or its billing agent. The amount of tax collected in one (1) month shall
be remitted to the Treasurer, and must be received during normal business hours
by the Treasurer, on or before the twentieth (20'h) day of the following:month;or,
at the option of the person required to collect and/or remit the tax, such person
shall remit an estimated amount of tax measured by the tax billed in the previous
month or upon the payment pattern of the service user, which must be received by
the Treasurer on or before the twentieth (201h) day of the following month,
provided that the service user shall submit an adjusted payment or request for
credit, as appropriate, within sixty (60) days following each calendar quarter. The
credit, if approved by the Tax Administrator, may be applied against any
subsequent tax bill that becomes due.
3.36.050 Collection of Tax from Service Users Receiving Direct Purchase of Gas or
Electricity.
(a) Any service user subject to the tax imposed by Section 3.36.030 or by Section
3.36.040 of this Chapter, which (i)produces gas or electricity for self-use, (ii)
receives gas or electricity, including any related supplemental services, directly
from a non-utility service supplier not under the jurisdiction of this Chapter, or
(iii) for any other reason,is not having the full tax collected and remitted by its
service supplier, a non-utility service supplier, or its billing agent on the use of
gas or electricity in the City, including any related supplemental services,
shall report said fact to the Tax Administrator and shall remit the tax due directly
to the Treasurer. All taxes owed pursuant to this subsection must be received
during normal business hours by the Treasurer on or before the twentieth(201h)
day of the month following the gas or electricity usage. In lieu of paying said
actual tax, the service user may, at its option, remit to the Treasurer within thirty
(30) days of such use an estimated amount of tax measured by the tax billed in the
previous month, or upon the payment pattern of similar customers of the service
supplier using similar amounts of gas or electricity, provided that the service user
shall submit an adjusted payment or request for credit, as appropriate,within sixty
(60) days following each calendar quarter. The credit, if approved by the Tax
Administrator, may be applied against any subsequent tax bill that becomes due.
(b) The Tax Administrator may require said service user to identify its non-utility
service supplier and provide, subject to audit: invoices; books of account; or other
satisfactory evidence documenting the quantity of gas or electricity used,
including any related supplemental services, and the cost or price thereof. If the
service user is unable to provide such satisfactory evidence, or, if the
administrative cost of calculating the tax in the opinion of the Tax Administrator
is excessive, the Tax Administrator may determine the tax by applying the tax rate
to the equivalent charges the service user would have incurred if the gas or
electricity used, including any related supplemental services, had been provided
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by the service supplier that is the primary supplier of gas or electricity within the
City. Rate schedules for this purpose shall be available from the City.
3.36.060 Water Users Tax--Imposed.
(a) There is hereby imposed a tax upon every person using water in the City which is
delivered through a pipeline distribution system. The tax imposed by this Section
shall be at the rate offive percent (5%) of the charges made for such water and
shall be collected from the service user by the service supplier, or its billing agent.
(b) As used in this section,the term "charges" shall apply to all services, components
and items that are: i)necessary or common to the receipt,use and enjoyment of
water service; or,ii) currently, or historically have been, included in a single or
bundled rate for water service by a local distribution company to a class of retail
customers. The term"charges" shall include, but is not limited to,the following
charges:
(1) water commodity charges (potable and non-potable);
(2) distribution or transmission charges;
(2) metering charges;
(4) customer charges, late charges, service establishment or reestablishment
charges, franchise fees, franchise surcharges, capital improvement
surcharges, annual and monthly charges, and other charges, fees and
surcharges which are necessary for or common to the receipt, use and
enjoyment of water service; and,
(5) charges, fees, or surcharges for water services or programs, which are
mandated by a water district or a state or federal agency, whether or not
such charges, fees, or surcharges appear on a bundled or line item basis on
the customer billing.
(c) As used in this section, the term "charges" shall include the value of any other
services, credits, property of every kind or nature, or other consideration provided
by the service user in exchange for the water services.
(d) The Tax Administrator, from time to time, may survey the water service suppliers
in the City to identify the various unbundled billing components of water retail
service that they commonly provide to residential and commercial/industrial
customers in the City, and the charges therefor, including those items that are
mandated by a water district or a state or federal agency as a condition of
providing such water service. The Tax Administrator, thereafter, may issue and
disseminate to such water service suppliers an administrative ruling identifying
those components and items which are: i)necessary or common to the receipt,
use or enjoyment of water service; or, ii) currently, or historically have been,
included in a single or bundled rate for water service by a local distribution
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company to a class of retail customers. Unbundled charges for such components
and items shall be subject to the tax of subsection(a) above.
(e) There shall be excluded from the base on which the tax imposed in this Section is
computed charges made for water which is to be resold and delivered through a
pipeline distribution system, and charges made by a municipal water department,
public utility or a county or municipal water district for water used and consumed
by such department,utility or district in the conduct of the business of such
department, utility or district.
(f) The tax on water service imposed by this Section shall be collected from the
service user by the service supplier or its billing agent. The amount of tax
collected in one (1) month shall be remitted to the Treasurer, and must be
received during normal business hours by the Treasurer on or before the twentieth
(20th) day of the following month.
3.36.070 Video Users Tax.
(a) There is hereby imposed a tax upon every person in the City using video services
from a video service supplier. The tax imposed by this Section shall be at the rate
of five percent(5%) of the charges made for such video services. The tax shall be
collected from the service user by the video service supplier, or its billing agent.
(b) As used in this Section, the term"charges" shall apply to all services,
components and items that are: i) necessary or common to the receipt, use and
enjoyment of video service; or, ii) currently, or historically have been, included in
a single or bundled rate for video service by a local video service supplier to a
class of retail customers. The term"charges" shall include, but is not limited to,
the following charges:
(1) franchise fees and access fees (PEG),whether designated on the
customer's bill or not;
(2) initial installation of equipment necessary for provision and receipt of
video services;
(3) late fees, collection fees, bad debt recoveries, and return check fees;
(4) activation fees, reactivation fees, and reconnection fees;
(5) all programming services (e.g., basic services,premium services, audio
services, video games,pay-per-view services, and electronic program
guide services);
(6) equipment leases (e.g., converters, remote devices);
(7) service calls, service protection plans, name changes, changes of services,
and special services; and
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(8) the leasing of channel access.
(c) As used in this Section, the term"charges" shall include the value of any other
services, credits,property of every kind or nature, or other consideration provided
by the service user in exchange for the video services.
(d) The Tax Administrator, from time to time, may survey the video service suppliers
in the City to identify the various components of video service that are being
offered to customers within the City, and the charges therefor. The Tax
Administrator,thereafter, may issue and disseminate to such video service
suppliers an administrative ruling identifying those components: i)that are
necessary or common to the receipt, use or enjoyment of video service; or, ii)
which currently are, or historically have been, included in a bundled rate for video
service by a local distribution company. Charges for such components shall be
subject to the tax of subsection(a) above.
(e) The tax imposed by this Section shall be collected from the service user by the
video service supplier, its billing agent, or a reseller of such services. In the case
of video service, the service user shall be deemed to be the purchaser of the bulk
video service (e.g., an apartment owner), unless such service is resold to
individual users, in which case the service user shall be the ultimate purchaser of
the video service. The amount of tax collected in one (1) month shall be remitted
to the Treasurer, and must be received during normal business hours by the
Treasurer on or before the twentieth (20th) day of the following Month.
3.36.080 Effect of Commingling Non-Taxable with Taxable Items.
If one or more non-taxable items are bundled or billed together with one or more taxable
items (as provided for by this Chapter)under a single charge on a service user's bill,the entire
single charge shall be deemed taxable.
3.36.090 Constitutional Exemptions.
(a) Nothing in this Chapter shall be construed as imposing a tax upon:
(1) any person or service if imposition of such tax upon that person or service
would be in violation of a federal or California statute, the Constitution of
the United States or the Constitution of the State of California; and,
(2) the City.
(b) Any service user that is exempt from the tax imposed by this Chapter pursuant to
subsection(a) shall file an application with the Tax Administrator for an
exemption; provided, however, this requirement shall not apply to a service user
that is a state or federal agency or subdivision with a commonly recognized name,
or is a service user of telephone communications services that has received a
federal excise tax exemption certificate for such service. Said application shall be
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made upon a form approved by the Tax Administrator and shall state those facts,
declared under penalty of perjury, which qualify the applicant for an exemption,
and shall include the names of all service suppliers serving that service user. If
deemed exempt by the Tax Administrator, such service user shall give the Tax
Administrator timely written notice of any change in its service suppliers so that
the Tax Administrator can properly notify the new service suppliers of the service
user's tax exempt status. A service user that fails to comply with this Section
shall not be entitled to a refund of the utilities tax collected and remitted to the
Tax Administrator from such Service user as a result of such non-compliance.
Upon request of the Tax Administrator, a service.supplier or non-utility service
supplier, or its billing agent, shall provide a list of the names and addresses of
those customers which, according to its billing records, are deemed exempt from
the utilities tax. With respect to a service user of telephone communication
services, a service supplier of such telephone communication services doing
business in the City, upon request of the Tax Administrator, shall provide a copy
of the federal exemption certificate for each exempt customer within the City that
is served by such service supplier.
(c) The decision of the Tax Administrator on a tax exemption application may be
appealed pursuant to Section 3.36.210 of this Chapter. Filing an application with
the Tax Administrator pursuant to this Section and an appeal to the City
Administrator pursuant to Section 3.36.210 of this Chapter is a prerequisite to a
suit thereon.
3.36.110 Substantial Nexus /Minimum Contacts.
For purposes of imposing a tax or establishing a duty to collect and remit a tax under this
Chapter, "substantial nexus" and"minimum contacts" shall be construed broadly in favor of the
imposition, collection and/or remittance of the utility users tax to the fullest extent permitted by
state and federal law, and as it may change from time to time by judicial interpretation or by
statutory enactment.
3.36.120 Duty to Collect and Remit- Procedures.
The duty of service suppliers to collect and remit the taxes imposed by the provisions of
this Chapter shall be performed as follows:
(a) The tax shall be collected insofar as practicable at the same time as, and along
with the charges made in accordance with the regular billing practice of the
service supplier. Where the amount paid by a service user to a service supplier is
less than the full amount of the charge and tax which was accrued for the billing
period, a proportionate share of both the charge and the tax shall be deemed to
have been paid. In those cases where a service user has notified the service
supplier of refusal to pay the tax imposed on said charges, Section 3.36.160 of
this Chapter shall apply.
(b) The duty of a service supplier to collect the tax from a service user shall
commence with the beginning of the first regular billing period applicable to the
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service user where all charges normally included in such regular billing are
subject to the provisions of this Chapter. Where a person receives more than one
billing, one or more being for different periods than another,the duty to collect
shall arise separately for each billing period.
3.36.130 Filing Return and Payment.
Each person required by this Chapter to remit a tax shall file a return with the Treasurer,
on forms approved by the Tax Administrator, on or before the due date. The full amount of the
tax owed shall be included with the return and remitted to the Treasurer,who will forward the
return to the Tax Administrator. The Tax Administrator is authorized to require such further
information as he or she deems necessary to properly determine if the tax herein imposed is
being levied, collected and remitted in accordance with this Chapter. Returns and tax
remittances are due immediately upon cessation of business for any reason. Pursuant to Revenue
and Tax Code Section 7284.6, the Tax Administrator, and its agents, shall maintain such filing
returns as confidential information, and not subject to the Public Records Act.
3.36.140 Collection Penalties—Service Suppliers or Self-Collectors.
(a) Taxes collected from a service user, or self-collected by a service user subject to Section
3.36.050 of this Chapter, are delinquent if not received by the Treasurer on or before the
due,date during normal business hours. Should the due date occur on a weekend or legal
holiday, the return must be received by the Treasurer during normal business hours on the
first regular working day following the weekend or legal holiday. A direct deposit,
including electronic fund transfers and other similar methods of electronically
exchanging monies between financial accounts, made by a service supplier in satisfaction
of its obligations under this Section shall be considered timely if the transfer is initiated
on or before the due date, and the transfer settles into the City's account on the following
business day.
(b) If a service supplier, or a service user subject to Section 3.36.050 of this Chapter, fails to
remit any tax collected, on or before the due date, said person shall pay a penalty for such
delinquencies at the rate of ten percent(10%) of the total tax that is delinquent in the
remittance.
(c) If payment is not received by the Treasurer within thirty(30) days following the date on
which the remittance first became delinquent, the service supplier or service user shall
pay a second delinquency penalty of ten percent(10%) of the amount of tax in addition to
the amount of the tax and the penalty first imposed.
(d) The Tax Administrator shall have the power to impose additional penalties upon persons
required to collect and/or remit taxes pursuant to the provisions of this Chapter for fraud
or gross negligence in reporting or remitting at the rate of twenty-five percent(25%) of
the amount of the tax collected and/or required to be remitted, or as recomputed by the
Treasurer.
(e) In addition to any other penalties imposed by this Chapter, any service supplier required
to collect and/or remit any tax imposed by the provisions of this Chapter who fails to
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collect the tax (by failing to properly assess the tax on one or more services or charges on
the service user's billing) or fails to remit the tax collected on or before the due date, or,
in the case of a service user that fails to properly self-collect and remit the tax under
Section 3.36.050 of this Chapter on or before the due date, shall pay interest at the rate of
one and one-half percent (1-1/2 %)per month, or any fraction thereof, on the amount of
the tax, exclusive of penalties, from the date on which the remittance first became
delinquent, until paid.
(f) For collection purposes only, every penalty imposed and such interest that is accrued
under the provisions of this section shall become a part of the tax herein required to be
paid.
3.36.150 Deficiency Determination and Assessment—Tax Application Errors.
(a) The Tax Administrator shall make a deficiency determination if he or she determines that
any person required to collect or self-collect taxes pursuant to the provisions of this
Chapter has failed to collect and remit the proper amount of tax by improperly or failing
to apply the tax to one or more taxable services or charges.
(b) The Tax Administrator shall mail a notice of such deficiency determination to the person
required to pay or remit the tax,which notice shall refer briefly to the amount of the taxes
owed,plus interest at the rate of one and one-half percent (1-1/2%)per month, or any
fraction thereof, on the amount of the tax from the date on which the tax should have
been received by the City. Within fourteen (14) calendar days after the date of service of
such notice, the person may request in writing to the Tax Administrator for a hearing on
the matter. If the person fails to request a hearing within the prescribed time period, the
amount of the deficiency determination shall become a final assessment, and shall
immediately be due and owing to the City.
(c) If the person requests a hearing,the Tax Administrator shall cause the matter to be set for
hearing not later than fourteen(14) days after receipt of the written request for hearing.
Notice of the time and place of the hearing shall be mailed by the Tax Administrator to
such person at least ten(10)calendar days prior to the hearing, and, if the Tax
Administrator desires said person to produce specific records at such hearing, such notice
may designate the records requested to be produced.
(d) At the time fixed for the hearing, the Tax Administrator shall hear all relevant testimony
and evidence, including that of any other interested parties. At the discretion of the Tax
Administrator,the hearing may be continued from time to time for the purpose of
allowing the presentation of additional evidence. Within a reasonable time following the
conclusion of the hearing, the Tax Administrator shall issue a final assessment (or non-
assessment), thereafter, by confirming, modifying or rejecting the original deficiency
determination, and shall mail a copy of such final assessment to person owing the tax.
The decision of the Tax Administrator may be appealed pursuant to Section 3.36.210 of
this Chapter. Filing an application with the Tax Administrator and appeal to the City
Administrator pursuant to Section 3.36.210 of this Chapter is a prerequisite to a suit
thereon.
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(e) Payment of the final assessment shall become delinquent if not received by the Tax
Administrator on or before the thirtieth(30th) day following the date of receipt of the
notice of final assessment. The penalty for delinquency shall be that set forth at Section
3.36.140. The applicable statute of limitations regarding a claim by the City seeking
payment of a tax assessed under this Section 3.36.160 shall commence from the date of
delinquency as provided in this subsection(e).
(f) All notices under this section may be sent by regular mail,postage prepaid, and shall be
deemed received on the third calendar day following the date of mailing, as established
by a proof of mailing.
3.36.160 Administrative remedy—Nonpaying Service Users.
(a) Whenever the Tax Administrator determines that a service user has deliberately withheld
the amount of the tax owed by the service user from the amounts remitted to a person
required to collect the tax, or whenever the Tax Administrator deems it in the best interest
of the City, he or she may relieve such person of the obligation to collect the taxes due
under this chapter from certain named service users for specific billing periods.
Whenever the service user has failed to pay the amount of tax owed for a period of two
(2) or more billing periods, the service supplier shall be relieved of the obligation to
collect taxes due. The.service supplier shall provide the City with the names and
addresses of such service users and the amounts of taxes owed under the provisions of
this Chapter.
(b) In addition to the tax owed, the service user shall pay a delinquency penalty at the rate of
ten percent(10%) of the total tax that is owed, and shall pay interest at the rate of one and
one-half percent (1-1/2%)per month, or any fraction thereof, on the amount of the tax,
exclusive of penalties, from the due date, until paid.
(c) The Tax Administrator shall notify the non-paying service user that the Tax
Administrator has assumed the responsibility to collect the taxes due for the stated
periods and demand payment of such taxes, including penalties and interest. The notice
shall be served on the service user by personal delivery or by deposit of the notice in the
United States mail,postage prepaid, addressed to the service user at the address to which
billing was made by the person required to collect the tax; or, should the service user
have a change of address, to his or her last known address.
(d) If the service user fails to remit the tax to the Tax Administrator within thirty (30) days
from the date of the service of the notice upon him or her, the Tax Administrator may
impose an additional penalty of ten percent (10%) of the amount of the total tax that is
owed.
Section 3.36.170 Actions to Collect.
(a) Any tax required to be paid by a service user under the provisions of this Chapter shall be
deemed a debt owed by the service user to the City. Any such tax collected from a service
user which has not been remitted to the Treasurer shall be deemed a debt owed to the
City by the person required to collect and pay and shall no longer be a debt of the service
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user. 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,
including penalties and interest as provided for in this Chapter, 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.
(b) _The Treasurer may compromise a collection action and any penalty or interest imposed
pursuant to Section 2.16.030(e) of the Municipal Code.
3.36.180 Additional Powers and Duties of Tax Administrator.
(a) The Tax Administrator shall have the power and duty, and is hereby directed to enforce
each and all of the provisions of this Chapter.
(b) The Tax Administrator shall have the power to adopt rules and regulations not
inconsistent with provisions of this Chapter for the purpose of interpreting, clarifying,
carrying out and enforcing the payment, collection and remittance of the taxes herein
imposed. A copy of such rules and regulations shall be on file in the Tax Administrator's
Office.
(c) Upon a proper showing of good cause, the Tax Administrator may make administrative
agreements, with appropriate conditions, to vary the strict requirements of this Chapter
and thereby: i) conform to the billing procedures of a particular Service supplier(or
Service user subject to Section 3.36.050 of this Chapter) so long as said agreements result
in collection of the tax in conformance with the general purpose and scope of this
Chapter; or, ii)to avoid a hardship where the administrative costs of collection and
remittance greatly outweigh the tax benefit. A copy of each such agreement shall be on
file in the Tax Administrator's Office and are voidable by the Tax Administrator or the
City at any time.
(d) The Tax Administrator may conduct an audit, to ensure proper compliance with the
requirements of this Chapter, of any person required to collect and/or remit a tax pursuant
to this Chapter. The Tax Administrator shall notify said person of the initiation of an
audit in writing. In the absence of fraud or other intentional misconduct, the audit period
of review shall not exceed a period of three (3) years next preceding the date of receipt of
the written notice by said person from the Tax Administrator. Upon completion of the
audit,the Tax Administrator may make a deficiency determination pursuant to Section
3.36.150 of this Chapter for all taxes,penalties and interest owed and not paid, as
evidenced by information provided by such person to the Tax Administrator. If said
person is unable or unwilling to provide sufficient records to enable the Tax
Administrator to verify compliance with this Chapter, the Tax Administrator is
authorized to make a reasonable estimate of the deficiency. Said reasonable estimate
shall be entitled to a rebuttable presumption of correctness.
(e) Upon receipt of a written request of a taxpayer, and for good cause, the Tax
Administrator may extend the time for filing any statement required pursuant to this
Chapter for a period of not to exceed forty-five (45) days, provided that the time for filing
the required statement has not already passed when the request is received. No penalty
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for delinquent payment shall accrue by reason of such extension. Interest shall accrue
during said extension at the rate of one and one-half percent (1-1/2%)per month,
prorated for any portion thereof.
(f) The Tax Administrator shall determine the eligibility of any person who asserts a right to
exemption from, or a refund of, the tax imposed by this Chapter.
3.36.190 Records.
(a) It shall be the duty of every person required to collect and/or remit to the City any tax
imposed by this Chapter to keep and preserve, for aperiod of at least three (3) years, all
records as may be necessary to determine the amount of such tax as he may have been
liable for the collection of and remittance to the Treasurer,which records the Tax
Administrator shall have the right to inspect at a reasonable time.
(b) The City may issue an administrative subpoena to compel a person to deliver, to the Tax
Administrator, copies of all records deemed necessary by the Tax Administrator to
establish compliance with this Chapter,including the delivery of records in a common
electronic format on readily available media if such records are kept electronically by the
Person in the usual and ordinary course of business. As an alternative to delivering the
subpoenaed records to the Tax Administrator on or before the due date provided in the
administrative subpoena, such person may provide access to such records outside the City
on or before the due date, provided that such person shall reimburse the City for all
reasonable travel expenses incurred by the City to inspect those records, including travel,
lodging, meals, and other similar expenses, but excluding the normal salary or hourly
wages of those persons designated by the City to conduct the inspection.
(c) The Tax Administrator, or the Tax Administrator's designated representative, is
authorized to execute a non-disclosure agreement approved by the City Attorney to
protect the confidentiality of customer information pursuant to California Revenue and
Tax Code Sections 7284.6 and 7284.7. The Tax Administrator, may request from a
person providing transportation or distribution services of gas or electricity to service
users within the City, a list of the names,billing addresses and service addresses,
quantities of gas or electricity delivered, and other pertinent information, of its
transportation customers within the City pursuant to Section 6354(e) of the California
Public Utilities Code.
(d) If a service supplier uses a billing agent or billing aggregator to bill, collect, and/or remit
the tax,the service supplier shall: i) provide to the Tax Administrator the name, address
and telephone number of each billing agent and billing aggregator currently authorized by
the service supplier to bill, collect, and/or remit the tax to the City; and, ii) upon request
of the Tax Administrator, deliver, or effect the delivery of, any information or records in
the possession of such billing agent or billing aggregator that, in the opinion of the Tax
Administrator, is necessary to verify the proper application, calculation, collection and/or
remittance of such tax to the City.
(e) If any person subject to record-keeping under this Section unreasonably denies the Tax
Administrator, or the Tax Administrator's designated representative, access to such
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records, or fails to produce the information requested in an administrative subpoena
within the time specified, the Tax Administrator or the Tax Administrator's designated
representative may impose a penalty of five hundred dollars ($500) on such Person for
each day following: i)the initial date that the person refuses to provide such access; or,
ii)the due date for production of records as set forth in the administrative subpoena. This
penalty shall be in addition to any other penalty imposed under this Chapter.
3.36.200 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 Treasurer under this Chapter, it may
be refunded as provided in this Section.
(b) The Tax Administrator may refund any tax that has been overpaid,paid more than once,
or has been erroneously or illegally collected or received by the Tax Administrator under
this Chapter,provided that no refund shall be paid under the provisions of this Section
unless the claimant or his or her guardian, conservator, executor or administrator has
submitted a written claim, under penalty of perjury,to the Tax Administrator within one
year of the overpayment or erroneous or illegal collection of said tax. Such claim must
clearly establish claimant's right to the refund by written records showing entitlement
thereto. Nothing herein shall permit the filing of a refund claim on behalf of a class or
group of taxpayers. Where the amount of any individual refund claim is in excess of five
thousand dollars ($5,000), City Council approval shall be required.
(c) It is the intent of the City that the one year written claim requirement of this Section be
given retroactive effect; provided, however, that any claims which arose prior to the
enactment of the one year claims period of this Section, and which are not otherwise
barred by a then-applicable statute of limitations or claims procedure, must be filed with
the Tax Administrator as provided in this subsection within ninety(90) days following
the effective date of this Ordinance.
(d) The Tax Administrator, or the City Council where the claim is in excess of five thousand
dollars($5,000) and the Tax Administrator has approved the claim, shall act upon the
refund claim within forty-five (45)days of the initial receipt of the refund claim. Said
decision shall be final. If the Tax Administrator/City Council fails or refuses to act on a
refund claim within the forty-five (45) day period,the claim shall be deemed to have
been rejected by the Tax Administrator/City Council on the forty-fifth(45th) day. The
Tax Administrator shall give notice of the action in a form which substantially complies
with that set forth in Government Code Section 913.
(e) The filing of a written claim is a prerequisite to any suit thereon. Any action brought
against the City pursuant to this Section shall be subject to the provisions of Government
Code Sections 945.6 and 946.
(f) Notwithstanding other provisions of this Section, whenever a service supplier, pursuant
to an order of the California Public Utilities Commission or a court of competent
jurisdiction, makes a refund to service users of charges for past utility services, the taxes
paid pursuant to this Chapter on the amount of such refunded charges shall also be
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refunded to such service users, and the service supplier shall be entitled to claim a credit
for such refunded taxes against the amount of tax which is due upon the next monthly
returns.
(g) Notwithstanding subsections (b) and (c) above, a service supplier shall be entitled to take
any overpayment as a credit against an underpayment whenever such overpayment has
been received by the City within the three (3) years next preceding a notice of tax
deficiency or assessment by the Tax Administrator, or during any year for which the
service supplier, at the request of the Tax Administrator, has executed a waiver of the
defense of the statute of limitations with regard to any claim the City may have for a
utilities tax. A service supplier shall not be entitled to said credit unless it clearly
establishes the right to the credit by written records showing entitlement thereto. Under
no circumstances shall an overpayment taken as a credit against an underpayment
pursuant to this subsection qualify a service supplier for a refund to which it would not
otherwise be entitled under the one-year written claim requirement of this section.
3.36.210 Appeals.
(a) The provisions of this Section apply to any assessment, decision or administrative ruling
of the Tax Administrator, other than a decision relating to a refund pursuant to Section
3.36.200 of this Chapter. Any person aggrieved by any assessment, decision or
administrative ruling of the Tax Administrator(other than a decision relating to a refund
pursuant to Section 3.36,200 of this Chapter), deficiency determination, assessment, or
administrative ruling of the Tax Administrator, shall be required to comply with the
appeals procedure of this Section. Compliance with this Section shall be a prerequisite to
a suit thereon. (See, Government Code Section 935(b).) Nothing herein shall permit the
filing of a claim or action on behalf of a class or group of taxpayers.
(b) If any person aggrieved by any decision (other than a decision relating to a refund
pursuant to Section 3.36.200 of this Chapter), deficiency determination, assessment, or
administrative ruling of the Tax Administrator, he or she may appeal to the City
Administrator b filing a notice of appeal with the City Clerk within fourteen 14 days
Y g pp Y ( ) Y
of the date of the decision, deficiency determination, assessment or administrative ruling
of the Tax Administrator which aggrieved the service user or service supplier. The City
Administrator may appoint a hearing officer to hear the appeal.
(c) The matter shall be set for hearing no more than thirty (30) days from the receipt of the
appeal. The appellant shall be served with notice of the time and place of the hearing, as
well as any relevant materials, at least five (5) calendar days prior to the hearing. The
hearing may be continued from time to time upon mutual consent. At the time of the
hearing,the appealing party,the Tax Administrator, and any other interested person may
present such relevant evidence as he or she may have relating to the determination from
which the appeal is taken.
(d) Based upon the submission of such evidence and the review of the City's files, the City
Administrator shall issue a written notice and order upholding, modifying or reversing
the determination from which the appeal is taken. The notice shall be given within thirty
(30) days after the conclusion of the hearing and shall state the reasons for the decision.
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If the City Administrator fails or refuses to act on a refund claim within the fourteen(14)
day period, the claim shall be deemed to have been rejected by the City Administrator on
the fourteenth(14th) day.
(e) An appeal from a decision by the City Administrator may be filed with the City Clerk no
later than fourteen(14)calendar days after the date of the decision. The notice of appeal
shall be accompanied by the fee fixed by resolution of the City Council. The City Clerk
shall set the matter for hearing before the City Council at the next regularly scheduled
City Council meeting and shall give notice of the hearing to the appellant. The City
Council shall issue a written notice and order upholding, modifying or reversing the City
Administrator's determination. The notice shall specify that the decision is final and that
any petition for judicial review shall be filed within ninety (90) days from the date of the
decision in accordance with Code of Civil Procedure Section 1094.6.
(f) All notices under this section may be sent by regular mail,postage prepaid, and shall be
deemed received on the third calendar day following the date of mailing, as established
by a proof of mailing.
3.36.220 No Injunction/Writ of Mandate.
No injunction or writ of mandate or other legal or equitable process shall issue in any
suit, action, or proceeding in any court against this City or against any officer of the City to
prevent or enjoin the collection under this Chapter of any tax or any amount of tax required to be
collected and/or remitted.
3.36.230 Remedies cumulative.
All remedies and penalties prescribed by this Chapter or which are available under any
other provision of law or equity, including but not limited to the California False Claims Act
(Government Code Section 12650 et seq.) and the California Unfair Practices Act(Business and
Professions Code Section 17070 et seq.) are cumulative. The use of one or more remedies by the
City shall not bar the use of any other remedy for the purpose of enforcing the provisions of this
Chapter.
3.36.240 Notice of Changes to Ordinance.
If a tax under this Chapter is added, repealed, increased, reduced, changes the tax base or
makes any other charges or interpretation to the tax that would effect the collection or remittance
of the tax, (such as administrative rulings from the Tax Administrator),the Tax Administrator
shall follow the notice requirements of Public Utilities Code Section 799. Prior to the effective
date of the ordinance change,the service supplier shall provide the Tax Administrator with a
copy of any written procedures describing the information that the service supplier needs to
implement the ordinance change. If the service supplier fails to provide such written
instructions, the Tax Administrator, or its agent, shall send, by first class mail, a copy of the
ordinance change to all collectors and remitters of the City's utilities taxes according to the latest
payment records of the Tax Administrator.
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3.36.250 Senior Citizen's Exemption.
(a) The tax imposed by this Chapter shall not apply to any individual service user sixty-two
(62) years of age or older who uses telephone, electric, water or gas services, in or upon
any premises occupied by such individual,provided the combined adjusted gross income
as used for federal income tax reporting purposes of all members of the household in
which such service user resides does not exceed the "HUD Income Guidelines Very
Low Income Category" currently on file at the City's Office of the Housing
Rehabilitation Administrator, for the calendar year prior to the fiscal year(July 1 through
June 30) for which the exemption provided by this Chapter is applied.
(b) Any service user, meeting the requirements for the senior citizen's exemption, may file a
verified application with the Tax Administrator on a form furnished by him or her. The
Tax Administrator shall review all applications and certify those service users as exempt
who meet the requirements for the exemption provided by this Chapter.
(c) The Tax Administrator shall compile a list of all service users entitled to the senior
citizen's exemption, together with the addresses, account numbers, if any, of such service
users, and such other information as may be necessary for service suppliers to remove
exempt service users from their tax billings.
(d) No service supplier shall be required to bill any exempt senior citizen for any tax
imposed by this Chapter after receipt of notice from the Tax Administrator that such
service user has met the requirements for exempt status established by the provisions of
this Chapter.
(e) The senior citizen's exemption provided for in this Chapter shall continue and be
renewed automatically from year to year except as hereinafter provided. An exempt
service user shall notify the Tax Administrator within ten (10) days of a change of
address, or of any other fact or circumstance which might disqualify him or otherwise
affect his exempt status. All exempt service users shall file with the Tax Administrator
new verified applications in order to receive exempt service at a new address or location.
(f) All service suppliers shall remove exempt service users from their tax billings for the first
regular full billings dated on or before October 15, 1980, and thereafter within sixty(60)
days after notice from the Tax Administrator to do so.
(g) It is unlawful and a misdemeanor for any person knowingly to receive the exemption
provided by this Chapter when such person has not met the requirements on which such
exemption is based, or when such person can no longer meet the requirements on which
such exemption is based, and upon conviction thereof shall be subject to a fine of five
hundred dollars ($500) or imprisonment in the county jail for a period not to exceed six
(6)months, or by both such fine and imprisonment. Each such person shall be guilty of a
separate offense for each and every day or portion thereof during which a violation is
committed or continued."
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SECTION 2. If any section, subsection, sentence, clause, phrase or portion of this
ordinance is for any reason held to be invalid, unlawful or unconstitutional by the decision of any
court of competent jurisdiction, such decision shall not affect the validity of the remaining
portions of this ordinance.The City Council of the City of Huntington Beach hereby declares
that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase
or portion thereof irrespective of the fact that any one or more sections, subsections, sentences,
clauses, phrases, or portions be declared invalid, unlawful or unconstitutional.
SECTION 3. This ordinance shall become effective thirty days after its adoption.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 1*4" day of Jyjj , 2003.
3wG "L./
Mayor
ATTEST: APPROVED AS TO FORM:
City Clerk City Attorney u(�°3
REVIEWED AND APPROVED. INITIATED AND APPROVED.
Administrator y�63 Crty Atto y
/l
INITIATED ND APPROVED:
Director of ministrat>ve S rvices
24
Ordinance/2003/Utilities Tax
6/2/03
Ord.No. 3610
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the
City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do
hereby certify that the whole number of members of the City Council of the City of
Huntington Beach is seven;that the foregoing ordinance was read to said City Council at
a regular meeting thereof held on the]6th day of June,2003, and was again read to said
City Council at a re ular meeting thereof held on the 7th day of July, 2003, and was
passed and adopted by the affirmative vote of at least a majority of all the members of
said City Council.
AYES: Sullivan, Coerper, Green,Boardman, Cook,Houchen,Hardy
NOES: None
ABSENT: None
ABSTAIN: None
I,Connie Brockway,CITY CLERK of the City of
Huntington Beach and ex-officio Clerk of the City
Council,do hereby certify that a synopsis of this
ordinance has been published in the Huntington Beach
Fountain Valley Independent
on
tiJ l� 1 1,—2003.
In accordance with the City Charter of said City
Connie,BrocjgwLay, City Clerk City Clerk and ex-officio Clerfr
Deputy City Clerk of the City Council of the City
of Huntington Beach, California