Bell Municipal Code Ch. 3.28 Utility Users' Tax

This chapter shall be known as the utility users' tax ordinance of the city.

(Prior code § 4700; Ord. 1103 § 1, 1995; Ord. 1123 § 1, 1997)

This chapter is adopted pursuant to the provisions of applicable law, for the purpose of levying utility users' taxes to provide revenues to be used by the city for general municipal purposes.

(Prior code § 4701; Ord. 1103 § 1, 1995; Ord. 1123 § 1, 1997)

For the purposes of this chapter, unless otherwise apparent from the context, the following words and phrases shall be defined as follows:

"Cellular telephone users' tax"

means a cellular telephone users' tax imposed pursuant to the provisions of this chapter.

"City"

means the City of Bell.

"Electrical corporation"

shall have the same meaning as defined in Section 218 of the Public Utilities Code of the State of California as the sections now exist or shall hereafter be amended. "Electrical corporation" shall be construed to include any organization, municipality, agency or other legal entity engaged in the selling or supplying of electrical energy to a service user.

"Electricity users' tax"

means an electricity users' tax imposed pursuant to the provisions of this chapter.

"Gas corporation"

shall have the same meaning as defined in Section 222 of the Public Utilities Code of the State of California as the sections now exist or shall hereafter be amended.

"Gas users' tax"

means a gas users' tax imposed pursuant to the provisions of this chapter.

"Month"

means a calendar month.

"Paging service users' tax"

means a paging service users' tax imposed pursuant to the provisions of this chapter.

"Person"

means any natural person, domestic or foreign corporation, firm, association, syndicate, joint stock company, partnership of any kind, joint venture, club, Massachusetts business trust, common law trust, or other legal entity, and all governmental entities, except the city.

"Service supplier"

means a person who provides electrical energy; telephone services; gas; or water, to a service user, and who is required to collect from the service user and remit to the city a utility users' tax pursuant to the provisions of this chapter.

"Service user"

means a person who receives, or is entitled to receive, telephone services, electrical energy, water or gas from a service supplier and who is required to pay a utility users' tax levied by this chapter; "service user" shall not mean or include the city.

"Tax" or "utility users' tax"

means one or more of the utility users' taxes levied pursuant to the provisions of this chapter.

"Tax administrator"

means the chief administrative officer of the city or his or her designee.

"Telephone corporation"

shall have the same meaning as defined in Section 234 of the Public Utilities Code of the State of California as the sections now exist or shall hereafter be amended.

"Telephone users' tax"

means a telephone users' tax imposed pursuant to the provisions of this chapter.

"TWX teletypewriter users' tax"

means a TWX teletypewriter users' tax imposed pursuant to the provisions of this chapter.

"Water corporation"

shall have the same meaning as defined in Section 241 of the Public Utilities Code of the State of California as the sections now exist or shall hereafter be amended. "Water corporation" shall be construed to include any organization, municipality, agency or other legal entity engaged in the selling or supplying of electrical energy and/or water to a service user.

"Water users' tax"

means a water users' tax imposed pursuant to the provisions of this chapter.

(Prior code § 4702; Ord. 1103 § 1, 1995; Ord. 1123 § 1, 1997)

A. Constitutional. Nothing in this chapter shall be construed as imposing a tax upon any person when the imposition of such tax upon such person would be in violation of the Constitution of the United States, the Constitution of the State, or any valid applicable statute or regulation of either the United States or the state. The tax administrator, upon the advice of the city attorney, shall review each application for exemption from the payment of a tax, pursuant to this section, and shall allow such exemptions only where warranted.

B. Statutory. Neither a service supplier nor the city shall be obligated to pay any tax imposed pursuant to the provisions of this chapter.

C. Low Income Exemption. Persons who are determined by the tax administrator to be persons of low income, pursuant to an exemption program approved by the city council, shall be exempt from the payment of electricity users' tax, gas users' tax and telephone users' tax levied pursuant to the provisions of this chapter.

(Prior code § 4703; Ord. 1103 § 1, 1995; Ord. 1123 § 1, 1997)

A. There is imposed a telephone users' tax upon every service user in the city, who uses, or has available for use from a service supplier, intrastate telephone communication services. "Intrastate telephone communication services" as used in this chapter, includes, but is not limited to, "local telephone service" and "toll telephone service," as those phrases are now, or hereafter, defined in Section 41000 et seq., of the Revenue and Taxation Code, and facsimile transmittal services or telecopy transmittal services, commonly referred to as "fax" (collectively "services").

B. The telephone users' tax imposed pursuant to this section shall be in an amount equal to 10% of the gross charges made by a service supplier to each service user for such services. The service user shall pay to the service supplier, or its designated agent, all telephone users' taxes lawfully levied pursuant to this chapter.

C.

1. As used in this section, the term "gross charges" shall not include:

a. Charges for services which are paid for by inserting coins in coin-operated telephones, 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 periodic charge thereon, shall be deemed gross charges upon which a telephone users' tax is imposed hereby;

b. Customer deposits;

c. Directory (Yellow Pages) advertising;

d. Rental or sale of directories, including reverse directories;

e. Installation charges;

f. All charges land mobile or maritime mobile services as defined in Section 2.1 of Title 47 of the Code of Federal Regulations, as it existed on October 1, 1992;

g. Private line service charges;

h. PBX and Centrex System charges (excluding trunk charges);

i. All charges made for Universal Life Line services;

j. All charges for using intrastate telephone communication services to the extent that the amounts paid for such services are exempt from and not subject to the tax imposed under Division 2, Part 20 of the California Revenue and Taxation Code, or the tax imposed under Section 4251 of the Internal Revenue Code.

2. "Gross charges" as used in this section, shall include, but not be limited to:

a. Monthly service charges for telephone services and foreign exchange service; and

b. Charges for special listings in the White Pages of the telephone directory; and

c. Charges for nonpublished (unlisted) numbers; and

d. Directory assistance charges; and

e. Message unit or zone rate charges; and

f. Repair charges; and

g. Toll or long distance messages; and

h. WATS or 800 service.

D. The telephone users' tax levied by this section is intended to, and does, apply to all gross charges billed to the account of a service user located in the city irrespective of whether all or any part of the services originate and/or terminate within the city.

E. The telephone users' tax levied by this section shall be paid by the service user to the service supplier or its authorized agent.

F. The taxes levied under this section shall not be imposed upon any person or organization for using intrastate telephone communications services to the extent that the amounts paid for such services are exempt from or not subject to the tax imposed under Division 2, Part 20 of the California Revenue and Taxation Code, or the tax imposed under Section 4251 of the Internal Revenue Code.

G. The amount of telephone users' taxes collected by a service supplier shall be remitted to the tax administrator periodically, as directed by the tax administrator, following its receipt by a service supplier or its agent. Each such payment shall be accompanied by a written report, prepared by the service supplier, in a form approved by the tax administrator, reflecting the sources of the tax revenues remitted.

(Prior code § 4704; Ord. 1103 § 1, 1995; Ord. 1123 § 1, 1997)

A. There is imposed a cellular telephone users' tax upon every service user in the city who uses, or has available for use from a service supplier, cellular telephone communication services with the billing address for such services in the city. The tax imposed by this section shall be at the rate of 10% of the total charges made for such services, including, but not limited to, access and basic monthly charges, though not including "airtime" or "airtime usage" charges. This tax shall be paid by the person paying for such services.

B. As used in this section, the term "charges" does not include charges for services paid for by inserting coins in coin-operated cellular 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; nor does the term "charges" 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 regulations. The term "cellular telephone communication services" refers to that service which, by means of portable or fixed cellular radio telephones, provides access to a telephone system and the privilege of telephone-quality communication with substantially all persons having telephone stations which are part of such telephone system. The term "cellular telephone communication services" also includes aeronautical mobile service, land mobile service, maritime mobile service, and mobile-satellite services, as defined in Section 2.1 of Title 47 of the Code of Federal Regulations, as it existed on October 1, 1992. The cellular telephone users' tax is intended to, and does, apply to all charges billed to a cellular telephone account having a billing address in the city, irrespective of whether a particular communication service originates and/or terminates within the city.

C. The tax imposed by this section shall be collected from the service user by the person providing the cellular telephone communications services, or the person receiving payment for such services. The amount of the tax collected in one month shall be remitted to the tax administrator on or before the last day of the following month.

D. Notwithstanding the provisions of subsection A of this section, the tax imposed under this section shall not be imposed upon any person for using intrastate telephone communication services to the extent that the amounts paid for such services are exempt from and not subject to the tax imposed under Division 2, Part 20 of the California Revenue and Taxation Code, or the tax imposed under Section 4251 of the Internal Revenue Code. Additionally, the tax imposed under this section shall not apply to any prohibited charges for access to local emergency telephone services under California Public Utilities Code Section 2892.

E. To prevent actual multiple taxation of any service that is subject to tax under subsection A of this section and which consists of a call that originates or terminates outside of the city, any service user, upon proof that such service user has paid a tax in another taxing jurisdiction on such call, shall be allowed a credit against the tax imposed in subsection A of this section to the extent of the amount of such tax properly due and paid in such other taxing jurisdiction. However, no credit may be allowed for any tax paid to another taxing jurisdiction on any call to the extent that such call may not, under the Constitution and statutes of the United States, be made the subject of taxation by such other taxing jurisdiction.

(Prior code § 4705; Ord. 1103 § 1, 1995; Ord. 1123 § 1, 1997)

A. There is imposed a paging service users' tax upon every service user in the city who uses, or has available for use from a service supplier, paging services with the billing address for such services in the city. The tax imposed by this section shall be at the rate of 10% of the total charges made for such services, including, but not limited to, access and basic monthly charges, though not including "airtime" or "airtime usage" charges. This tax shall be paid by the person paying for such services.

B. The term "paging service" refers to that service which, by means of portable or fixed receivers (commonly referred to as "pagers" or "beepers"), provides a method by which substantially all persons having telephone stations which are part of a telephone system may transmit a telephone number or message to a particular receiver regardless of its location in the service area. The term "paging service" does not include any services which are included in the definition of "cellular telephone communication services." The paging service users' tax is intended to, and does, apply to all suitable charges billed to a paging service account having a billing address in the city, irrespective of whether a particular communication service originates and/or terminates within the city.

C. The tax imposed by this section shall be collected from the service user by the person providing the paging services, or the person receiving payment for such services. The amount of the tax collected in one month shall be remitted to the tax administrator on or before the last day of the following month.

D. To prevent actual multiple taxation of any service that is subject to tax under subsection A of this section, any service user, upon proof that such service user has paid a tax in another taxing jurisdiction on such paging service or a portion of such paging service, shall be allowed a credit against the tax imposed in subsection A of this section to the extent of the amount of such tax properly due and paid in such other taxing jurisdiction. However, no credit may be allowed for any tax paid to another taxing jurisdiction on any paging service to the extent that such call may not, under the Constitution and statutes of the United States, be made the subject of taxation by such other taxing jurisdiction.

(Prior code § 4706; Ord. 1103 § 1, 1995; Ord. 1123 § 1, 1997)

A. There is imposed an electricity users' tax upon every service user in the city who consumes, utilizes or employs or has available for use, electrical energy ("energy") at a location in the city.

B. The electricity users' tax imposed by this section shall be in an amount equal to 10% of the gross charges made for such energy by the service supplier of such energy, to each service user, which tax shall be paid by such service user to the service supplier. "Gross charges," as used in this section, shall include, without limitation, charges made for (1) metered energy, and (2) minimum charges for energy use, including, but not limited to, customer charges, service charges, demand charges, standby charges and annual and monthly charges, fuel and cost adjustments, and similar charges. "Gross charges" as used in this section, shall not include charges made for energy supplied to a service user who is included in an energy service supplier's low income assistance program.

C. As used in this section, the term "energy" shall not be construed to mean: (1) the storage of such electrical energy by a person in a battery owned or possessed by such person for use in an automobile or other machinery or device; provided, however, that "energy" shall include the receiving of such electrical energy for the purpose of using it in the charging or recharging of batteries; nor (2) electricity used and consumed by a service supplier in the conduct of its business as a public utility; nor (3) the mere receiving of energy by an electric public utility or a governmental agency at a point within the city, for resale; nor (4) the use of energy in the production or distribution of water by a public utility or a governmental agency.

D. The electrical users' tax imposed under this section shall be paid by the service user to the service supplier or its authorized agent.

E. The amount of electricity users' taxes collected by a service supplier shall be remitted to the tax administrator periodically, as directed by the tax administrator, following its receipt by a service supplier or its agent. Each such payment shall be accompanied by a written report, prepared by the service supplier, in a form approved by the tax administrator, reflecting the sources of the tax revenue remitted.

(Prior code § 4707; Ord. 1103 § 1, 1995; Ord. 1123 § 1, 1997)

A. There is imposed a gas users' tax upon every service user using or having available for use, natural gas ("gas") at a location in the city, which gas is delivered or transported through mains and pipes.

B. The gas users' tax imposed by this section shall be in an amount equal to 10% of the gross charges made for gas by a service supplier to a service user, which tax shall be paid by such service user to a service supplier, or its authorized agent.

C.

1. "Gross charges" as used in this section means and includes:

a. Charges for gas which is delivered or transported through mains or pipes; and

b. Minimum charges for such services, including customer charges, service charges, and annual and monthly charges, and other similar charges.

2. There shall be excluded from gross charges:

a. Charges made for gas which is delivered through mains or pipes for resale; and

b. Charges made for gas used in the propulsion of a motor vehicle, as that phrase is defined in the Vehicle Code of the state; and

c. Charges made for gas used by a service user who is included in a gas service supplier's low income assistance program.

D. The gas users' tax imposed by this section shall be paid by the service user to the service supplier or its authorized agent.

E. The amount of gas users' taxes collected by a service supplier shall be remitted to the tax administrator periodically, as directed by the tax administrator, following its receipt by a service supplier or its agent. Each such payment shall be accompanied by a written report, prepared by the service supplier, in a form approved by the tax administrator, reflecting the sources of the tax revenue remitted.

(Prior code § 4708; Ord. 1103 § 1, 1995; Ord. 1123 § 1, 1997)

A. There is imposed a water users' tax upon every service user in the city using water which is delivered through mains or pipes, or having such water available for use ("water").

B. The water users' tax imposed by this section shall be in an amount equal to 10% of the gross charges made for such water by each service supplier to each service user, which shall be paid by the service user to the service supplier or its authorized agent.

C. "Gross charges," as used in this section, means and includes:

1. Charges made for water which is delivered through mains or pipes; and

2. Minimum charges for service, including, but not limited to, customer charges, service charges, demand charges, standby charges and annual and monthly charges.

D. The water users' tax imposed by this section shall be paid by the service user to the service supplier or its authorized agent.

E. The amount of water users' taxes collected by a service supplier shall be remitted to the tax administrator periodically, as directed by the tax administrator, following its receipt by a service supplier or its agent. Each such payment shall be accompanied by a written report, prepared by the service supplier, in a form approved by the tax administrator, reflecting the sources of the tax revenue remitted.

(Prior code § 4709; Ord. 1103 § 1, 1995; Ord. 1123 § 1, 1997)

A. There is imposed a TWX teletypewriter tax on every service user in this city using or having available intrastate TWX teletypewriter services ("services").

B. The TWX teletypewriter tax imposed by this section shall be in an amount equal to 10% of the gross charges made for such services by the service supplier to the service user.

C. The tax imposed by this section shall be paid by the service user to the service supplier or its authorized agent.

D. The amount of TWX users' taxes collected by a service supplier shall be remitted to the tax administrator periodically, as directed by the tax administrator, following its receipt by a service supplier or its agent. Each such payment shall be accompanied by a written report, prepared by the service supplier, in a form approved by the tax administrator, reflecting the sources of the tax revenue remitted.

(Prior code § 4710; Ord. 1103 § 1, 1995; Ord. 1123 § 1, 1997)

A. Every service supplier, and each authorized agent of a service supplier, receiving payment of gross charges from a service user, shall collect the amount of all taxes imposed by this chapter from each such service user.

B. The taxes imposed pursuant to the provisions of this chapter shall be collected at the same time as, and along with, the collection of gross charges made in accordance with the regular billing practices of each service supplier.

C. The duty to collect a tax from a service user by a service supplier shall commence with the beginning of the first full regular billing period applicable to the service user commencing after the effective date of this chapter.

D. Any tax required to be paid by a service user under the provisions of this chapter shall be deemed a civil debt owed by the service user to the city and shall be collected in the manner set forth in this chapter, or as directed by the tax administrator.

(Prior code § 4711; Ord. 1103 § 1, 1995; Ord. 1123 § 1, 1997)

A. Utility users' taxes collected from a service user by a service supplier or an agent of a service supplier which are not remitted to the tax administrator on or before the due dates established by the tax administrator, as provided in this chapter, shall be deemed delinquent.

B. Penalties for delinquency in remittance of any utility users' tax collected by a service supplier or its agent, shall attach to and be paid by the service supplier, in an amount equal to 15% of the total utility users' taxes collected and not remitted on or before the due dates therefor, as provided by this chapter.

C. An additional penalty shall be imposed upon any service supplier who fraudulently fails to timely remit utility users' taxes collected, in an amount equal to 15% of the amount of utility users' tax collected.

D. Every penalty imposed under the provisions of this section shall be paid, forthwith, by each service supplier, to the city.

E. In addition to the penalties imposed pursuant to this chapter, each service supplier who fails for any reason to remit all taxes collected by it or its authorized agents, within the time set for the remission of the same to the city, shall pay interest on the full amount of taxes and penalties due to the city, and upon the full amount of all penalties due thereon. The interest rate shall be the same rate applied by law to judgments rendered by a court of competent jurisdiction.

(Prior code § 4712; Ord. 1103 § 1, 1995; Ord. 1123 § 1, 1997)

A. Whenever the tax administrator determines that a service user has deliberately withheld the amount of any utility users' taxes due pursuant to this chapter, or that a service user has failed to pay the amount of any utility users' tax for a period of two or more billing periods, or whenever the tax administrator deems it in the best interest of the city, he or she shall relieve the service supplier of the obligation to collect taxes due under this chapter as to such service user for billing periods specified by the tax administrator.

B. The service supplier shall provide the city with amounts due; the identity and address of the service user; the account number; and the reasons given, if any, by the service users for refusing to pay the utility users' taxes levied under the provisions of this chapter.

C. The tax administrator shall notify any such service user that he/she/it has the responsibility to pay the utility users' taxes due for the stated periods pursuant to this chapter, and shall demand payment of such taxes. The notice shall be served on the service user by personal service or by deposit of the notice in the custody of the United States Postal Service, or its lawful successor, postage prepaid thereon, addressed to the service user at the address to which billing was made by the service supplier; or should the service user have changed his or her address, to his, her or its last known address. Such notices shall be deemed given as of the date of personal service, or two consecutive calendar days following its deposit in the custody of the United States Postal Service. If a service user fails to remit the tax to the tax administrator within 15 consecutive calendar days from the date of the giving of the notice by the tax administrator, a penalty of 25% of the amount of the tax due shall be imposed; in no case shall the penalty be less than $5. The penalty shall become part of the utility users' tax herein required to be paid. The service user, following the imposition of a penalty pursuant to this section, shall pay interest on the total utility users' tax, from such date, to the date of payment of the same in full. The rate of interest shall be that rate imposed by law upon money judgments.

(Prior code § 4713; Ord. 1103 § 1, 1995; Ord. 1123 § 1, 1997)

It shall be the duty of every service supplier to keep and preserve, for a period of three years, all such records which may be necessary to determine the amount of utility users' tax each service user is liable for the payment of pursuant to this chapter. The tax administrator upon request, shall have the right to inspect such records at all reasonable times.

(Prior code § 4714; Ord. 1103 § 1, 1995; Ord. 1123 § 1, 1997)

A. Whenever the amount of any utility users' tax has been overpaid or paid more than once or has been erroneously or illegally collected or received by the city under this chapter, it may be refunded as provided in subsection B of this section, provided a claim in writing therefor, stating under penalty of perjury the specific grounds under which the claim is founded, is filed with the tax administrator within one year following the date of payment. The claim shall be on forms furnished by the tax administrator.

B. Any service user may obtain a refund of taxes overpaid, or paid more than once, or erroneously or illegally collected or received by the city, by filing a claim in the manner provided in this section.

C. No refund shall be paid under the provisions of this section, unless the claimant establishes a right thereto by written records showing entitlement thereto.

D. Notwithstanding any other provision of this chapter, 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.

(Prior code § 4715; Ord. 1103 § 1, 1995; Ord. 1123 § 1, 1997)

A. The tax administrator shall have the power and duty, and is 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 carrying out and enforcing the payment, collection and remittance of the utility users' taxes imposed by this chapter.

C. The tax administrator may make administrative agreements to vary the strict requirements of this chapter so that collection of a tax imposed by this chapter may be made in conformance with the billing procedures of a particular service supplier so long as such agreements result in collection of the utility users' tax in conformance with the general purpose and scope of this chapter. A copy of each such agreement shall be on file in the tax administrator's office.

D. The tax administrator shall provide the service supplier with the name of any person who the tax administrator determines is exempt from all or any portion of a tax, together with the address and account number of any such exempt person. The tax administrator shall notify the service supplier of the termination of any person's right to exemption under this chapter.

(Prior code § 4716; Ord. 1103 § 1, 1995; Ord. 1123 § 1, 1997)

If the city must take action to collect taxes due pursuant to this chapter, from either a service user or a service supplier, the city shall be entitled to recover its reasonable attorneys fees and costs resulting from such action. If litigation is necessary to collect taxes due pursuant to this chapter, from either a service user or a service supplier, the city shall be entitled to an award of its reasonable attorneys fees and costs if taxes are found to be due and owing to the city from such service user or service supplier.

(Prior code § 4717; Ord. 1103 § 1, 1995; Ord. 1123 § 1, 1997)