Bakersfield Municipal Code Ch. 3.30 In-Lieu Taxes

Sections: 3.30.010 Definitions. 3.30.020 Municipal utilities designated. 3.30.030 Payments by municipal utilities in lieu of taxes. 3.30.040 Enjoining collection forbidden. 3.30.050 Action to challenge validity. 3.30.060 Refunds.

Whenever used in this chapter, unless a different meaning clearly appears from the context, the words set forth in this section shall have the following meanings:

A. Municipal utility means a utility owned by the city of Bakersfield as set forth in Section 3.30.020 of this chapter. (Ord. 3543 § 1, 1993)

The current municipal utilities of the city are as follows:

A. River and agricultural water division, an operating division of the water resources department.

B. Domestic water division, an operating division of the water resources department.

C. Solid waste division, an operating division of the public works department.

D. Wastewater treatment division, an operating division of the public works department.

E. Airpark division, an operating division of the public works department.

F. Parking division, an operating division of the financial services department.

G. Any future municipal utility created by the city. (Ord. 4962 § 1, 2019; Ord. 4939 § 1, 2018; Ord. 3543 § 1, 1993)

A. In any fiscal year, a municipal utility may be required to pay to the city, in lieu of property taxes, other taxes, franchise fees and other fees and other associated cost of doing business normally placed upon private business and public utilities, an amount designated by the city council. Such amount shall not be limited by limitations placed on such taxes and fees by state law for private businesses and public utilities except for domestic water. Such amounts may include fees which reflect the difference between the interest rate paid by a municipal utility and the rate such utility would pay if it were a non-municipal utility, which difference is due to the city assuming additional financial risk on behalf of such municipal utility.

B. The amount, if any, of said in-lieu tax shall be set by resolution of the city council prior to July 1 of any fiscal year in coordination with adoption of the city’s annual budget. (Ord. 3550 § 1, 1993; Ord. 3543 § 1, 1993)

No injunction or writ of mandate or other legal or equitable process shall issue any suit, action, or proceeding in any court against the city or any officer thereof, to prevent or enjoin the collection of in-lieu taxes sought to be collected. (Ord. 3700 § 1, 1996)

Notwithstanding any provision of law to the contrary, any taxpayer may, no later than thirty days after the effective date of this section, seek declaratory relief in the superior court of Kern County alleging that the in-lieu taxes have been illegally or unconstitutionally assessed or collected or are to be so assessed or collected.

The relief granted pursuant to this section shall be limited to a declaration that the taxes assessed or collected or to be assessed or collected are unconstitutional or otherwise legally invalid.

This section shall not be interpreted to allow a taxpayer to postpone payment of in-lieu taxes pending the decision of the court. All assessment and collection provisions of Chapter 3.30 shall continue to apply to businesses affected by this section.

This section shall be applicable only in instances where the alleged illegal or unconstitutional assessment or collection occurs as the direct result of a change in administrative regulations or statutory or constitutional law that became effective not more than twelve months prior to the date the action is initiated by the taxpayer.

The procedure for obtaining a declaratory relief judgment under this section shall be the same as that used to obtain a writ of mandate. (Ord. 3700 § 1, 1996)

No refund of taxes paid pursuant to this chapter shall be required in whole or in part unless a written claim for refund is filed within one year of the date the tax was paid. (Ord. 3700 § 1, 1996)