Alhambra Municipal Code Ch. 5.71 Utility Users Tax

For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

CITY. The city of Alhambra.

DIRECTOR OF FINANCE. Director of Finance means the Director of Finance of the city of Alhambra.

MONTH. A calendar month.

PERSON. Any domestic or foreign corporation, firm, association, syndicate, joint stock company, partnership of any kind, joint venture, club, Massachusetts business or common law trust' society or individuals.

SERVICE SUPPLIER. A person required to collect and remit a tax imposed by this chapter.

SERVICE USER. A person required to pay a tax imposed by this chapter.

TELEPHONE CORPORATION, ELECTRICAL CORPORATION, GAS CORPORATION, WATER CORPORATION and CABLE TELEVISION CORPORATION. The same as they are defined in Cal. Pub. Util. Code §§ 234, 218, 222, 241 and 215-5, respectively, as said sections existed on January 1, 1975.

ELECTRICAL CORPORATION and WATER CORPORATION. Includes any municipality or franchised agency engaged in the selling or supplying of electrical power and water, respectively, to a service user.

('86 Code, § 5.71.010) (Ord. 3928, passed - - )

(A) There is hereby imposed a tax on the amounts paid for any intrastate and/or interstate telephone services by every person in the city using such services. The tax imposed by this section shall be at the rate of 5% of the charges made for such services and shall be paid by the person paying for such services.

(B) As used in this section, the term “charges” shall not include charges for services paid for by inserting coins in coin-operated telephones except that where such coin-operated 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. In addition thereto, the term “charges” shall not include charges for any type of service or equipment furnished by a service supplied subject to public utility regulation during any period in which the same or similar services or equipment are also available for sale or lease from persons other than a service supplier subject to public utility regulation.

(C) As used in this section, the term “telephone communication services” shall not include land mobile services or maritime mobile services as defined in Section 2.1 of Title 47 of the Code of Federal Regulations as the section existed on June 1, 1983. Notwithstanding that exemption, cellular tele-phone companies are responsible for collecting the tax as provided in division (A) hereof. The term “telephone communication services” refers to the transmission of any communications, messages, or information, whether by fixed, mobile, portable, or other form through electronic or other means, between or among points by wire, cable, fiberoptics, laser, microwave, radio, satellite, or other methods.

(D) The telephone users tax imposed by this section is intended to, and does, apply to all charges billed to a telephone account having a situs in the city, irrespective of whether a particular communi-cation services originates and/or terminates within the city.

(E) Except as provided in § 5.71.152 of this chapter, the tax imposed by this section shall be collected from the service user by the person providing the intrastate and/or interstate telephone communication services, or the person receiving payment for such services. The amount of tax collected in one month shall be remitted to the Director of Finance on or before the last day of the following month.

(F) Notwithstanding the provisions of division (A), the tax imposed by this section shall not be imposed upon any person for using intrastate and/or interstate telephone communication services to the extent that the amounts are for any:

(1) Service paid for by inserting coins in coin-operated telephones with respect to local telephone service, or with respect to toll telephone service if the charge for such toll telephone service is less than $.25; except 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 subject to the tax.

(2) Payment received from any person for services used in the collection of news for the public press, or a news ticker service furnishing a general news service similar to that of the public press, or radio broadcasting, or in the dissemination of news through the public press, or a news ticker service furnishing a general news service similar to that of the public press, or by means of radio broadcasting, if the charge for such service is billed in writing to such person.

(3) Payment received for services furnished to an international organization, or to the American National Red Cross.

(4) Payment received for any toll telephone service which originates within a combat zone from a member of the Armed Forces of the United States performing service in such combat zone, as determined under such section, provided a certificate, setting forth such facts as the Secretary may by regulations prescribe, is furnished to the person receiving such payment.

(5) Amount paid for any toll telephone service to the extent that the amount so paid is for use by a common carrier, telephone or telegraph company, or radio broadcasting station or network in the conduct of its business as such.

(6) Amount paid by a nonprofit hospital for services furnished to such organization. For purposes of this subsection, the term NONPROFIT HOSPITAL means a hospital which is exempt from federal and state income tax under § 501(a) of the Internal Revenue Code.

(7) Payment received for services or facilities furnished to the government of any state, or any political subdivision thereof, or the District of Columbia.

(8) Amount paid by a nonprofit educational organization for services or facilities furnished to such organization. For purposes of this subsection, the term NONPROFIT EDUCATIONAL ORGANIZATION means an educational organization which is exempt from income tax under §501(a) of the Internal Revenue Code. The term also includes a school operated as an activity of an organization which is exempt from income tax under § 501(a) if such school normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on.

(9) Private mobile radio service. For purposes of this chapter PRIVATE MOBILE RADIO SERVICE is a radio communication service which is not a commercial mobile service. A MOBILE SERVICE means a radio communication service carried on between mobile stations or receivers and land stations, and by mobile stations communicating among themselves, and includes:

(a) Both one-way and two-way radio communication services;

(b) A mobile service which provides a regularly interacting group of base, mobile, portable, and associated control and relay stations (whether licensed on an individual, cooperative, or multiple basis) for private one-way or two-way land mobile radio communications by eligible users over designated areas of operation; and

(c) Any service for which a license is required in a personal communications service established pursuant to the proceeding entitled "Amendment to the Commission's Rules to Establish New Personal Communications Services" (GEN Docket No. 90-314; ET Docket No. 92-100), or any successor proceeding.

('86 Code, § 5.71.020) (Ord. 3928, passed - - ; Am. Ord. 3943, passed - - ; Am. Ord. 4159, passed - - ; Am. Ord. 4243, passed - -; Am. Ord. 4398, passed 11-20-00; Am. Ord. 4485, passed 7-24-06; Am. Ord. 4486, passed 8-7-06)

(A) There is hereby imposed a tax upon every person in the city using electrical energy in the city. The tax imposed by this section shall be at the rate of 5% of the charges made for such energy and shall be paid by the person paying for such energy.

(B) As used in this section, the term “charges” shall include charges made for:

(1) Metered energy; and

(2) Minimum charges for service, including, but not limited to, customer charges, service charges, demand charges, standby charges and annual and monthly charges, fuel, cost adjustments, and the like.

(C) As used in this section, the term “using electrical energy” shall not be construed to mean the storage of such energy by a person in a battery owned or possessed by him for use in an automobile or other machinery or device apart from the premises upon which the energy was received; provided, however, that the term shall include the receiving of such energy for the purpose of using it in the charging of batteries. In addition, the term “using electrical energy” shall not include:

(1) Electricity used and consumed by an electric utility supplier in the conduct of its business as an electric public utility,

(2) The mere receiving of such energy by an electric public utility or governmental agency at a point within the city for resale, or

(3) The use of such energy in the produc-tion or distribution of water by a public utility or a governmental agency.

(D) Except as provided in § 5.71.152 of this chapter, the tax imposed under this section shall be collected from the service user by the person supplying such energy. The amount of tax collected in one month shall be remitted to the Director of Finance on or before the last day of the following month. Remittance of tax may be predicated on a formula based upon the payment pattern of the supplier's customers.

('86 Code, § 5.71.030) (Ord. 3928, passed - - ; Am. Ord. 3943, passed - - )

(A) There is hereby imposed a tax upon every person in the city, other than a gas corporation or electrical corporation using in the city gas which is delivered through mains or pipes. The tax imposed by this section shall be at the rate of 5% of the charges made for such gas and shall be paid by the person paying for such gas.

(B) As used in this section, the term “charges” shall include:

(1) Gas which is delivered through mains or pipes; and

(2) Minimum charges for such services, including, but not limited to, customer charges, service charges, and annual and monthly charges.

(C) There shall be excluded from the base on which the tax imposed by this section is computed:

(1) Charges made for gas which is to be resold and delivered through mains or pipes;

(2) Charges made for gas, sold for use in the generation of electrical energy or for the production, or distribution of water by a public utility or governmental agency;

(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 made for gas used in the propulsion of a motor vehicle, as the same is defined in the California Vehicle Code, utilizing natural gas.

(D) Except as provided in § 5.71.152 of this chapter, the tax imposed under this section shall be collected from the service user by the person selling the gas. The person selling the gas shall, on or before the twentieth of each calendar month, commencing on the twentieth day of the calendar month after the effective date of the ordinance adopting this chapter, make a return to the Director of Finance stating the amount of taxes billed during the preceding calendar month. At the time such returns are filed, the person selling the gas shall remit tax payments to the Director of Finance in accordance with schedules established or approved by the Director of Finance. The Director of Finance is authorized to require such further information as he deems necessary to properly determine, if the tax imposed hereby is being levied and collected in accordance with this chapter. Returns and remittances are due from the person selling the gas immediately upon cessation of business, for any reason.

('86 Code, § 5.71.040) (Ord. 3928, passed - - ; Am. Ord. 3943, passed - - )

(A) There is hereby imposed a tax upon every person in the city using water which is delivered through mains or pipes. The tax imposed by this section shall be at the rate of 5% of the charges made for such service and shall be paid by the person paying for such service.

(B) There shall be excluded from the base on which the tax imposed under this section is computed:

(1) Charges made for water which is to be resold and delivered through mains or pipes; and

(2) 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.

(C) Except as provided in § 5.71.152 of this chapter, the tax imposed under this section shall be collected from the service user by the person supplying the water. The amount collected in one month shall be remitted to the Director of Finance on or before the last day of the following month.

('86 Code, § 5.71.050) (Ord. 3928, passed - - ; Am. Ord. 3943, passed - - )

(A) There is hereby imposed a tax upon every person in the city using cable television service. The tax imposed by this section shall be at the rate of 5% of the charges made for such service and shall be paid by the person paying for such service.

(B) Except as provided in § 5.71.152 of this chapter, the tax imposed under this section shall be collected from the service user by the person furnishing the cable television service. The amount collected in one month shall be remitted to the Director of Finance on or before the last day of the following month.

('86 Code, § 5.71.060) (Ord. 3928, passed - - ; Am. Ord. 3943, passed - - )

(A) Taxes collected from a service user which are not remitted to the Director of Finance on or before the due dates provided in this chapter shall be delinquent.

(B) Penalties for delinquency in remittance of any tax collected or any deficiency determination pursuant to this chapter shall attach to, and be paid by, the person required to collect and remit at the rate of 15% of the total tax collected or imposed by this chapter.

(C) The Director of Finance is hereby empowered to impose additional penalties upon persons required to collect and remit taxes under the provisions of this chapter for fraud or negligence in reporting or remitting at the rate of 15% of the amount of the tax collected or as recomputed by the Director of Finance.

(D) Every penalty imposed under the provisions of this section shall become a part of the tax required to be remitted.

('86 Code, § 5.71.070) (Ord. 3928, passed - - )

Any such tax received from a service user which has willfully been withheld from the Director of Finance shall be deemed a debt owed to the city by the person required to collect and remit. Any person holding such money contrary to the provisions of this chapter shall be liable to an action brought in the name of the city for the recovery of such amount.

('86 Code, § 5.71.080) (Ord. 3928, passed - - )

The duty to collect and remit the taxes imposed by this chapter shall be performed as follows:

(A) The tax shall be collected insofar as practic-able at the same time as and along with the charges made in accordance with the regular billing practices of the service supplier. If the amount paid by a service user is less than the full amount of the energy charge and tax which has accrued for the billing period, such amount and any subsequent payments by a service user shall be applied to the energy charge first until such charge has been fully satisfied. Any remaining balance shall be applied to the taxes due.

(B) 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.

('86 Code, § 5.71.090) (Ord. 3928, passed - - )

(A) It shall be the duty of the Director of Finance to enforce each and all of the provisions of this chapter.

(B) The Director of Finance may adopt admini-strative rules and regulations not inconsistent with the provisions of this chapter for the purpose of imple-menting and enforcing the payment, collection and remittance of the taxes herein imposed.

(C) The Director of Finance may make admini-strative agreements to vary the street requirements of this chapter so that collection of any tax imposed herein may be made in conformance with the billing procedures of a particular service supplier so long as the agreements result in the collection of the tax in conformance with the general purpose and scope of this chapter. A copy of each such agreement shall be on file in the office of the Director of Finance.

('86 Code, § 5.71.100) (Ord. 3928, passed - - )

(A) The Director of Finance may make an assessment for taxes not paid or remitted by a person required to pay or remit.

(B) Whenever the Director of Finance deter-mines that a service user has deliberately withheld the amount of the tax owed by him from the amounts remitted to a service supplier, or that a service user has failed to pay the amount of the tax for a period of two or more billing periods, or whenever the Director of Finance deems it in the best interest of the city, he may relieve the service supplier of the obligation to collect taxes due under this chapter from certain named service users for specified billing periods.

(C) The service supplier shall provide the city as a matter of routine with the amounts refused along with the names, addresses and reasons of the service users refusing to pay the tax imposed under the provisions of this chapter.

(D) The Director of Finance shall notify the service user that he has assumed responsibility to collect the taxes due for the stated periods and demand payment of such taxes. The notice shall be served on the service user by handing it to him personally; or by deposit of the notice in the United States mail, postage prepaid thereon, 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 changed his address, to his last known address.

(E) If a service user fails to remit the tax to the Director of Finance within 15 days from the date of the service of the notice upon him, which shall be the date of mailing if service is not accomplished in person, a penalty of 25% of the amount of the tax set forth in the notice shall be imposed, but not less than $5. The penalty shall become part of the tax herein required to be paid or remitted.

('86 Code, § 5.71.110) (Ord. 3928, passed - - )

A Utility Users Committee, composed of the City Manager or his designee, the Director of Finance and the Water and Sewer Systems Superintendent, is hereby created to serve without additional compen-sation. It shall be the duty of this Committee to conduct the public hearings required by the provisions of this chapter. The Committee shall have the power to revoke, confirm or modify any assessments levied pursuant to § 5.71.110 of this code; to summon witnesses; take testimony; direct investigations; and to do and perform all other acts which may be necessary or proper within the scope of its duties and functions.

('86 Code, § 5.71.120) (Ord. 3928, passed - - )

(A) Right of appeal. Any person aggrieved by any ruling of any officer enforcing any of the provisions of this chapter or by any assessment made pursuant to § 5.71.110 of this code may appeal such ruling or assessment to the Utilities Users Committee by filing an appeal therefrom in writing in the office of the Director of Finance within 15 days from the date any such ruling or assessment is made.

(B) Fee. The fee for filing any such appeal shall be $25 which fee shall be paid at the time of filing such written appeal and nonrefundable. The purpose of such fee is to partially defray the expense to the city for processing such appeal and conducting the hearing necessitated thereby.

(C) Hearing. The Director of Finance shall set a date for hearing the appeal which date shall not be more than 30 days from the date of filing, and shall give written notice of the date thereof to the appellant at least five days before the date of such hearing. Such hearing may be continued from time to time.

(D) Action. At the conclusion of the hearing, the Utilities Users Committee shall either sustain or deny the appeal, and such decision of the Utilities Users Committee shall be final.

('86 Code, § 5.71.130) (Ord. 3928, passed - - )

It shall be the duty of every person required to collect and remit to the city any tax imposed by this chapter to keep and preserve, for a period of three 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 Director of Finance, which records the Director of Finance shall have the right to inspect at all reasonable times.

('86 Code, § 5.71.140) (Ord. 3928, passed - - ) Penalty, see § 1.12.010

(A) Claim required. Whenever the amount of any tax has been overpaid or paid more than once or has been illegally, erroneously or wrongfully collected or received by the city under this chapter, it may be refunded or credited as provided in divisions (B), (C) and (D) of this section; provided that a claim in writing therefor, duly verified by the person paying such tax or penalty, his or her attorney, duly authorized agent, guardian, or his or her executor or administrator, shall have been filed with the Director of Finance within one year after the date or payment of the amount sought to be refunded. Such claim shall include the name and address of the claimant, the amount and date of payment sought to be refunded, and state under penalty of perjury the reasons or grounds upon which the claim for refund is based. The claim shall be on forms fnnished by the Director of Finance. In no case shall any judgment be rendered for the plaintiff in any proceeding brought to enforce the payment of any claim arising hereunder if such action or proceeding is brought by any person other than the persons designated herein. Except as expressly provided herein, § 3.16.060(C) of this code shall apply to claims filed hereunder.

(B) Service supplier. A service supplier may claim a refirnd or take a 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 did not owe the tax.

(C) Service user. Any service user may obtain a refund of taxes overpaid, or paid more than once or erroneousiy or illegally collected or received by the city by filing a claim provided in division (A) of this section, but only when the service user having paid the tax to the service supplier establishes to the satisfaction of the Director of Finance that the service user has been unable to obtain a refund from the service supplier who collected the tax.

(D) Credit for refund payment. Notwithstanding any 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 refunded to service users by the service supplier, 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 return. In the event the enabling ordinance of this division is repealed, amounts of any refundable taxes will be borne by the city.

('86 Code, § 5.71.150) (Ord. 3928, passed - - ; Am. Ord. 4159, passed - -; Am. Ord. 4320, passed 3-24-97)

(A) (1) Commencing on January 1, 1989, the total amount of all utility taxes (hereinafter called “Taxes”) imposed by this chapter upon any service user for any one commercial or industrial plant location during any one calendar year shall not exceed the amount of $90,000.

(2) Commencing on January 1, 1990, and annually thereafter, the taxes payable pursuant hereto shall be adjusted in relation to the Consumer Price Index issued by the Bureau of Labor Statistics of the United States Department of Labor for All Urban Consumers of the Greater Los Angeles Area as follows:

(a) For the taxes set forth in division (A)(1) of this section; and

(b) For the most recent month for which such price index figure is available on the date any such taxes are due and annually thereafter.

(3) The adjustment in the taxes for any such one-year period shall be determined as follows:

(4) The price index figure for (a), the price index figure for (b) and the annual license fee set forth in the division (A)(1) of this section shall be the basis upon which such adjustment shall be computed. The difference, if any, between the price index figure for (a) and the price index figure for (b) shall be ascertained by subtracting the lesser from the greater of such figures. Thereafter, such differences shall be divided by the price index figure for (a) which will provide the percentages of change, if any, in the price index figure. If such percentage of change represents an increase, then the taxes shall be the taxes as set forth in division (A)(1) of this section plus the sum derived by multiplying the taxes by such percentage of change. In no event, however, shall any taxes be less than those amounts set forth in the division (A)(1) of this section.

(B) Those service users whose total amount of all utility taxes imposed by this chapter for any one commercial or industrial plant location during any one calendar year exceeds $70,000 may pay such annual maximum amount directly to the Director of Finance in two installments of $35,000 each. Each such installment shall be due and payable to the city on or before January 1 and July 1 of each calendar year. Upon receipt of each such installment, the Director of Finance shall notify each service supplier not to impose the utility users tax required by this chapter for the ensuing six-month period.

(C) Any service user paying more than the maximum tax provided for in this section during any one calendar year may claim a refund or credit for such overpayment in the manner provided in § 5.71.150 of this code.

(D) The phrase “one commercial or industrial plant location” as used in this section shall mean one or more contiguous sites for which the service user receives one or more utility billings.

('86 Code, § 5.71.152) (Ord. 3928, passed - - ; Am. Ord. 3943, passed - - ; Am. Ord. 4075, passed - - )

(A) Utility Users Tax Account. The Director of Finance shall establish a “utility users tax account” within the general fund and shall place therein any and all of the taxes collected under this chapter which are in excess of the amounts needed to fund the general fund budget during any one fiscal year.

(B) Quarterly reports. Commencing on December 31, 1983, and quarterly thereafter, the Director of Finance shall prepare a report to be furnished to the City Council and the City Manager of the amount of all of the taxes collected under this chapter and the disposition of same, including the balance, if any, in the utility users tax account, for the previous quarter.

(C) Annual review. Each year in conjunction with the city's annual budget deliberations, the City Council shall reconsider the provisions and rate of the utility users tax as well as any surplus which may have accumulated in the utility users tax account during the current fiscal year, after which the City Council may modify the provisions and rate of the tax and/or may provide no tax on one or more utilities for the ensuing fiscal year. The tax imposed shall continue to be levied for each fiscal year under the provisions of this chapter unless modified by the City Council.

(D) No tax collected for electrical for certain years. Pursuant to division (C) of this section, the City Council has determined that for fiscal years 1987-88, 1988-89 and 1989-90, there will be no utility users tax collected for residential properties on electrical energy and water delivered through mains or pipes. The determination to not impose the tax on residential electricity and water usage does not impair the City Council's ability to impose the same in subsequent fiscal years.

Exception: Electrical - All residential accounts classified by the utility as Revenue Rate Code 01. Exemption status will be applicable to the first full billing period of the utility after the effective date of the ordinance.

(E) No tax collected for gas for certain years. Pursuant to division (C) of this section, the City Council has determined that effective January 1, 1989, for the remainder of 1988-89 fiscal year and for the 1989-90 fiscal year, there will be no utility users tax collected for residential properties on gas energy delivered through mains or pipes. The deter-mination to not impose the tax on residential gas usage does not impair the City Council's ability to impose the same in subsequent fiscal years.

('86 Code, § 5.71.154) (Ord. 3928, passed - - ; Am. Ord. 4030, passed - - ; Am. Ord. 4075, passed - - )

(A) Nothing in this chapter shall be construed as imposing a tax upon the city or any of its depart-ments, agencies, boards or commissions or upon the City School and High School Districts or upon any other person when imposition of such tax upon that person would be in violation of the Constitution of the United States or the Constitution of the State of California.

(B) Notwithstanding any 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 refunded to service users by the service supplier, 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 return. In the event the ordinance enacting this chapter is repealed, the amount of any refundable taxes will be borne by the city; provided, however, the same have been remitted to the city by the service supplier and have been received by the city.

('86 Code, § 5.71.160) (Ord. 3928, passed - - )

(A) Eligibility.

(1) Commencing on July 1, 1985, any service user shall be eligible for an exemption from the taxes imposed by this chapter if the annual gross income of the household in which such individual resides is less than the annual amount prescribed by resolution of the City Council.

(2) As used herein “gross income” shall mean income subject to federal and state income tax-ation, social security payments, pensions, annuities, welfare payments, gifts, inheritances, interest or tax exempt investments, and all other income regardless of source.

(B) Application. Application for exemption shall be filed with the Director of Finance on such forms as he may provide.

(C) Time to file. Applications may be filed at any time.

(D) Contents of application. Applications shall be verified by declaration under perjury and shall contain such information as may be required by the Director of Finance.

(E) Review and certification. The Director of Finance shall review each application and shall certify the applicant as exempt if the eligibility requirements for division (A) are met, except that no exemption shall be granted to an applicant who is receiving service from a service supplier through a master meter, or who is sharing or prorating service with other service users even though such services users qualify under the provisions of division (A) and no exemption shall be granted with respect to any tax imposed by this chapter which is or has been paid by a public agency or where the applicant receives funds from a public agency specifically for the payment of such tax.

(F) Notice to service supplier. If an applicant is certified as exempt, the Director of Finance shall promptly notify applicant's service suppliers, stating the name of the applicant, the address to which such exempt services is being supplied, the account number, if any, and such other information as may be necessary for the service supplier to remove the exempt service from its tax billing procedure.

(G) Discontinuance of billing. Upon receipt of such notice, the service supplier shall within 60 days discontinue billing applicant for taxes imposed by this chapter, except as otherwise provided in division (H).

(H) Prior taxes to be collected. Taxes billed by the service supplier to the service user prior to removing the service user from its tax billing procedure shall be collected from the service user, and the service user shall pay such taxes to the service supplier. Taxes billed to and paid by the service user between the time that the application for exemption is filed and the service supplier removes the service user from its taxing procedure will not be refunded to the service user.

(I) Duration of exemption. Exemptions certified by the Director of Finance shall continue so long as the facts supporting the qualification for exemption shall exist; provided, however, that the exemption shall automatically terminate with any change in the service address or residence of the exempt individual or assignment of a different account number by the service supplier because of discontinuance or suspension of service at the request of the service user; and provided further that such individual may nevertheless apply for a new exemption with each change of address or residence.

(J) Duty to disclose disqualification.

(1) Any service user who has been exempted under this section shall notify the Director of Finance within ten days of any change in fact or circumstance which might disqualify the individual from receiving such exemption. It shall be a misdemeanor for any person to knowingly receive the benefits of the exemption provided by this section when the basis for such exemption does not exist or ceases to exist.

(2) Any service supplier, who determines by any means that a view or nonexempt service user is receiving service through a meter or connection exempt by virtue of an exemption issued to a previous user or exempt user of the same meter or connection, shall immediately notify the Director of Finance of such fact and the Director of Finance shall connect an investigation to ascertain whether or not the provisions of this section have been complied with, and where appropriate, order the service supplier to commence collecting the tax from the nonexempt service user.

('86 Code, § 5.71.170) (Ord. 3977, passed - - )