Colton Municipal Code Ch. 3.40 Utility User Tax

The Following words and phrases whenever Used in this chapter Shall be construed as defined in this section.

"City" means the City of Colton.

Except as otherwise provided in this chapter, "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 services being provided. If a nontaxable service and a taxable service are billed together under a single charge, the entire charge Shall be deemed taxable unless the Service Supplier can reasonably identify charges not subject to the Utility User tax based upon its books and records that are kept in the regular course of Business, which Shall be consistent with generally accepted accounting principles.

"Co-Generator" means any Person employing co-generation technology (as defined in Section 218.5 of the California Public Utilities Code) for producing power from other than a conventional power source for the generation of electricity for self-use or Sale to others.

"Gas" means natural or manufactured Gas or any alternate hydrocarbon fuel which May be substituted therefor.

"Month" means a calendar Month.

"Nonutility Supplier" means: (a) an electricity supplier, other than an electrical corporation Franchised to serve the City, which generates electrical energy in capacities of at least fifty kilowatts for its own Use or for Sales to others, including those using co-generation or fuel cell technologies; or (b) a Gas supplier, other than a Gas corporation Franchised to serve the City, that sells or supplies Gas to other Uses within the City.

"Person" means 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" means any entity required to collect or self-impose and remit a tax as imposed by this chapter.

"Service User" means a Person required to pay a tax imposed by this chapter.

"Tax Administrator" means the Finance Director of the City of Colton.

"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 telephonic quality communication that is interconnected to the public switched network, and Shall include, without limitation, for the purpose of transmitting messages or information (including, but not limited to voice, telegraph, teletypewriter, data, facsimile, video, or test) by 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 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), fiber-optic, light wave, laser, microwave, radio wave [including, but not limited to, cellular service, personal communications service (PCS), specialized mobile radio (SMR), and other types of personal wireless service—see 47 U.S.C.A. Section 332(c)(7)(C)(1)—regardless of radio spectrum Used], switching facilities, satellite or any other similar facilities.

"Telephone Corporation," "electrical corporation," "Gas corporation" and "water corporation" Shall have the same meanings as defined in Sections 234, 218, 222, and 241, respectively, of the California Public Utilities Code except, "electrical corporation," "Gas corporation" and "water corporation" Shall also be construed to include any municipality or public agency engaged in the selling or supplying of electrical power, Gas or water to a Service User.

"Video Programming" means multichannel Video Programming or communications; open video systems (OVS); cable television, including digital cable television and all other forms of digital services; master Antenna television; satellite master Antenna television; multichannel multipoint distribution; direct broadcast satellite (to the extent allowed by Federal Law); and other forms of Video Programming or communications (including two-way communications), whatever their technology.

"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 and 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 services, 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, direct broadcast satellite (to the extent allowed by Federal Law), and other suppliers of Video Programming or communications (including two-way communications), whatever their technology.

"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 and enjoyment of the Video Programming, regardless of the content of such Video Programming or communications. "Video Services" Shall not include services for which a tax is paid under Section 7.70.050 of this chapter.

(Ord. 0-01-04 § 1 (part), 2004)

A. Nothing in this chapter Shall be construed as imposing a tax upon: (1) any Person or service when imposition of such tax upon that Person or service would be a Violation of a Federal or California statute, the Constitution of the United States or that of the State of California; (2) the City; (3) any governmental entity, including but not limited to the County of San Bernardino and the Colton Unified School District; or (4) religious or Nonprofit Organizations which are exempt from taxation pursuant to State or Federal Law, and which have applied for and received tax-exempt status from either the State of California or the Federal government.

B. Any Service User that is exempt from the taxes imposed by this chapter pursuant to subsection A. of this section, Shall file an Application with the Tax Administrator for an exemption; provided, however, that 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. The Application Shall be 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 Utility 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 Utility Service Suppliers so that the Tax Administrator can properly notify the new Utility Service Supplier 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 Utility User taxes collected and remitted to the Tax Administrator from such Service User as a result of such noncompliance.

C. Upon request of the Tax Administrator, a Service Supplier or nonutility 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 Utility User tax. With respect to a Service User of Telephone Communication Services, a Service Supplier of such Telephone Communication Services doing Business in the City Shall, upon request of the Tax Administrator, provide a Copy of the Federal exemption certificate for each exempt customer within the City that is served by such Service Supplier.

D. At the request of a Service Supplier, the Tax Administrator Shall prepare a list of the Persons exempt from the provisions of this chapter by virtue of this section and furnish a Copy thereof to the Service Supplier.

(Ord. 0-01-04 § 1 (part), 2004)

A. There is hereby imposed a tax upon every Person who Uses any international, interstate and/or intrastate Telephone Communication Services in the City, other than a Telephone Corporation. For industrial, commercial or any Use other than service to the Person's principal place of residence, the tax imposed by this section Shall be at the rate of six percent of the charges made for such Telephone Communication Services. For Persons using telephone service for their principal place of residence, the tax imposed by this section Shall be at the rate of four percent of the charges made for such Telephone Communication Services. The tax Shall be collected from the Service User by the Telephone Communication Services supplier or its billing agent. To the extent allowed by Law, the tax on Telephone Communication Services Shall apply to a Service User if the billing or service address of the Service User is within the City's boundaries, irrespective of whether a particular Telephone Communication Service originates and/or terminates within the City. If the billing address of the Service User is different from the service address, the service address of the Service User Shall be Used.

B. The tax imposed under subsection A. of this section, 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 exempt from or are not subject to 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 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.

C. Notwithstanding any other provision of this chapter, as Used in this section, the term "charges" Shall not include:

1. 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.

2. Charges for any type of service or equipment furnished by a Service Supplier 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.

D. To prevent actual multijurisdictional 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. For purposes of establishing sufficient legal nexus for the imposition and collection of Utility User tax on charges for Telephone Communication Services pursuant to this chapter, "minimum contacts" Shall be construed broadly in favor of the imposition and collection of the Utility User tax to the fullest extent Permitted by California and Federal Law, and as it May change from time to time.

(Ord. 0-01-04 § 1 (part), 2004)

A. There is hereby imposed a tax upon every Person using Video Services in the City from a Video Service Supplier. For industrial, commercial or any Use other than service to the Person's principal place of residence, the tax imposed by this section Shall be at the rate of six percent of the charges made for such Video Services. For Persons using Video Service for their principal place of residence, the tax imposed by this section Shall be at the rate of four percent 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. 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 may, thereafter, issue and disseminate to such Video Service Suppliers an administrative ruling identifying those Components that are: (i) necessary or common to the receipt, Use and enjoyment of Video Service; or, (ii) which currently are, are 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. of this section.

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. If a nontaxable service and a taxable service are billed together under a single charge, the entire charge Shall be deemed taxable unless the Service Supplier can reasonably identify charges not subject to the Utility User tax based upon its books and records that are kept in the regular course of Business, which Shall be consistent with generally accepted accounting principles.

D. The tax imposed in 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 collected in one Month Shall be remitted to, and received by, the Tax Administrator on or before the last Day of the Following Month.

(Ord. 0-01-04 § 1 (part), 2004)

A. There is hereby imposed a tax upon every Person using electricity in the City, 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 nonutility Service Supplier to a Service User. For industrial, commercial or any Use other than service to the Person's principal place of residence, the tax imposed by this section Shall be at the rate of six percent of the charges made for such electricity by an electrical corporation Franchised to serve the City and Shall be paid by the Person using the energy. For Persons using electricity for their principal place of residence, the tax imposed by this section Shall be at the rate of four percent of the charges made for such electricity by an electrical corporation Franchised to serve the City and Shall be paid by the Person using the energy. The applicable tax for electricity provided by a Nonutility Supplier Shall be determined by applying the tax rate to the equivalent charges the Service User would have incurred, if the energy Used had been provided by the electrical corporation Franchised by the City. Rate schedules for this purpose Shall be available from the City. Nonutility Suppliers Shall install and maintain an appropriate Utility-type metering system which will enable compliance with this section, or May arrange another methodology for applying the tax acceptable to the Tax Administrator. "Charges," as Used in this section, Shall include charges made for: (1) metered energy and (2) minimum charges for service, including customer charges, service charges, demand charges, standby charges and all other annual and monthly charges, fuel or other cost adjustments. The tax Shall be collected from the Service User by the Service Supplier or nonutility Service Supplier, or its billing agent.

B. The tax imposed in this section Shall be collected from the Service User by any energy Service Supplier or Nonutility Supplier. An energy supplier providing wheeling services for delivery of electricity through its distribution system Shall collect the tax from the Service User based upon the cost of wheeling the electricity. The tax on energy provided by self-production or by a Nonutility Supplier Shall be collected and remitted in the manner set forth in Section 3.40.110.

(Ord. 0-01-04 § 1 (part), 2004)

A. The tax imposed on every Person using co-generated electrical energy in the City Shall be at the rate specified in Section 3.40.050. The tax applicable to co-generated electrical energy Used on site Shall be determined by applying the tax rate to the equivalent charges the Co-Generator would have incurred if the energy Used had been provided by the electrical corporation Franchised by the City.

B. The Co-Generator Shall install and maintain an appropriate metering system which will enable compliance with this section.

C. The tax Shall be collected and paid by the Co-Generator under Section 3.40.110 if the Co-Generator consumes the energy. If the Co-Generator sells the energy for consumption in the City, the tax will be imposed by applying the tax rate to the equivalent charges for such service, the Service User would have incurred if the energy Used had been provided by the electrical corporation Franchised by the City, and Shall be collected from the Service User by the energy supplier.

(Ord. 0-01-04 § 1 (part), 2004)

A. There is hereby imposed a tax upon every Person using Gas in the City, Gas which is transported through a pipeline distribution system or by mobile transport. For industrial, commercial or any Use other than service to the Person's principal place of residence, the tax imposed by this section Shall be at the rate of six percent of the charges made for such Gas and Shall be paid by the Person using the Gas. For Persons using Gas for their principal place of residence, the tax imposed by this section Shall be at the rate of four percent of the charges made for such Gas and Shall be paid by the Person using the Gas. The tax applicable to Gas provided by Nonutility Suppliers Shall be determined by applying the tax rate to the equivalent charges the Service User would have incurred, if the Gas or Gas transportation had been provided by the Gas corporation Franchised by the City. "Charges" as Used in this section Shall include: (1) the charge for Gas which is delivered through a Gas pipeline distribution system or by mobile transport; (2) Gas transportation charges; and (3) demand charges, service charges, customer charges, minimum charges, annual and monthly charges and any other charges authorized by the California Public Utilities Commission or the Federal Energy Regulatory Commission.

B. There Shall be excluded from the tax imposed in this section: (1) charges made for Gas which is to be resold and delivered through a Gas pipeline distribution system or mobile transport; (2) charges made for Gas Used by a Co-Generator or as the primary fuel in a fuel cell to generate electricity; and (3) charges made for natural Gas Used in the propulsion of a motor Vehicle, as that phrase is defined in the Vehicle Code of the State of California, utilizing natural Gas.

C. Tax imposed in this section Shall be collected from the Service User by the Gas Service Supplier. A Gas supplier providing transportation services for delivery of Gas through a pipeline distribution system Shall collect the tax from the Service User based upon the cost of transporting the Gas. The tax on Gas provided by self-production or by a Nonutility Supplier Shall be collected and remitted in the manner set forth in Section 3.40.110.

(Ord. 0-01-04 § 1 (part), 2004)

A. There is hereby imposed a tax upon every Person in the City using water which is delivered through mains or pipes. For industrial, commercial or any Use other than service to the Person's principal place of residence, the tax imposed by this section Shall be at the rate of six percent of the charges made for such water at one location and Shall be paid by the Person paying for such water. For Persons using water for their principal place of residence, the tax imposed by this section Shall be at the rate of four percent of the charges made for such water at one location and Shall be paid by the Person paying for such water.

B. 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 mains or pipes.

C. The tax imposed in this section Shall be collected from the Service User by the Person supplying the water.

D. The phrase "one location" as Used in subsection A of this section Shall mean one or more contiguous sites for which the Service User receives one or more Utility billings.

(Ord. 0-01-04 § 1 (part), 2004)

A. There is hereby imposed a tax upon every Person in the City using sewer services provided by the City. For industrial, commercial or any Use other than service to the Person's principal place of residence, the tax imposed by this section Shall be at the rate of six percent of the charges made for such sewer services at one location and Shall be paid by the Person paying for such sewer services. For Persons using sewer service for their principal place of residence, the tax imposed by this section Shall be at the rate of four percent of the charges made for such sewer services at one location and Shall be paid by the Person paying for such sewer services.

B. The tax imposed in this section Shall be collected from the Service User by the City.

C. The phrase "one location" as Used in subsection A. of this section Shall mean one or more contiguous sites for which the Service User receives one or more Utility billings.

(Ord. 0-01-04 § 1 (part), 2004)

A. There is hereby imposed a tax upon every Person in the City receiving Refuse hauling services from the City or any Refuse hauler Franchised by the City. For industrial, commercial or any Use other than service to the Person's principal place of residence, the tax imposed by this section Shall be at the rate of six percent of the charges made for such service and Shall be paid by the Person paying for such Refuse hauling service. For Persons using Refuse hauling services for their principal place of residence, the tax imposed by this section Shall be at the rate of four percent of the charges made for such service and Shall be paid by the Person paying for such Refuse hauling service.

B. The tax imposed in this section Shall be collected from the Service User by the Person furnishing the Refuse hauling service.

(Ord. 0-01-04 § 1 (part), 2004)

A. Any Service User subject to the tax imposed by Section 3.40.050, 3.40.060, or 3.40.070 of this chapter, who produces electricity or Gas for self-use or who receives electricity or Gas directly from a Nonutility Supplier not under the jurisdiction of this chapter or otherwise not having the full tax due on the Use of Gas or electricity in the City directly billed and collected by the Service Supplier, Shall report that fact to the Tax Administrator and remit the tax due directly to the City within thirty Days of such Use.

B. The Tax Administrator May require the Service User to identify its Nonutility Supplier and provide, subject to audit, filed tax returns or other satisfactory evidence documenting the quantity of electricity or Gas Used and the price thereof.

(Ord. 0-01-04 § 1 (part), 2004)

The Following maximum amount Shall be payable under the provisions of this chapter:

A. The combined total maximum of electricity, co generated electricity, Gas, telephone communications services, water, and Video Services User taxes paid by any single Service User for one location under this chapter Shall not exceed the sum of twenty thousand dollars during any twelve-month period between April 1 and March 31.

B. A Service User May deposit the maximum tax specified in subsection A of this section with the Tax Administrator during the Month of April each Year as payment in advance of taxes due under this chapter for the twelve-month period commencing the first Day of that Month and ending on March 31 thereafter. Any Service User making a deposit of maximum tax Shall not thereafter be billed for any tax under this chapter for that twelve-month period. The Tax Administrator Shall notify each Service Supplier when to cease and when to resume billing the tax to such Service Users.

C. The penalty assessment provided in Section 3.40.130 of this chapter Shall not be counted in computing the maximum tax as provided in subsection A. of this section.

D. Any Service User paying more than a maximum tax provided for in subsection A. of this section during any twelve-month period commencing April 1 and ending March 31, May claim a refund or credit for such overpayment from the Tax Administrator.

E. The term "one location" as Used in subsection A. of this section Shall mean one or more contiguous sites from which the Service User receives one or more Utility billings.

(Ord. 0-01-04 § 1 (part), 2004)

A. Taxes collected from a Service User, or owed by a Service User pursuant to Section 3.40.110 in this chapter, which are not remitted to the Tax Administrator on or before the due dates provided in this chapter are delinquent. Should the due date occur on a weekend or legal Holiday, the return May be postmarked on the first regular Working Day Following a Saturday/Sunday, or legal Holiday.

B. If the Person required to collect and/or remit the Utility User tax fails to collect the tax (by failing to properly assess the tax on one or more services or charges on the customer's billing) or fails to remit the tax collected, the Tax Administrator Shall Attach a penalty for such delinquencies or deficiencies at the rate of ten percent of the total tax that is delinquent or deficient in the remittance.

C. Any Person who fails to remit any delinquent remittance within a period of thirty Days Following the date on which the remittance first became delinquent Shall pay a second delinquency penalty of ten percent of the amount of the tax in addition to the amount of the tax and the ten percent 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 fifteen percent of the amount of the tax collected and/or required to be remitted, or as recomputed by the Tax Administrator.

E. In addition to any other penalties imposed by this chapter, any Person required to collect and/or remit any tax imposed by the provisions of this chapter who fails to collect the tax (by failing to properly assess the tax on one or more services or charges on the customer's billing) or fails to remit the tax collected, Shall pay interest at the rate of one percent 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. Every penalty imposed under the provisions of this section Shall become a Part of the tax required to be remitted.

(Ord. 0-01-04 § 1 (part), 2004)

Any tax required to be paid by a Service User under the provisions of this chapter Shall be deemed a debt owed to the City by the Person required to collect and remit. 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.

(Ord. 0-01-04 § 1 (part), 2004)

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

A. The tax imposed by this chapter Shall be collected insofar as practicable at the same time as and along with the charges made in accordance with the regular billing practices 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 has accrued for the billing period, such amount and any subsequent payments by a Service User Shall be applied to the Utility charge first until such charge has been fully satisfied. Any remaining balance Shall be applied to taxes due. In those cases where a Service User has notified the Service Supplier of refusal to pay the tax imposed on such charges Section 3.40.130 will apply.

B. The duty to collect tax from a Service User Shall commence with the beginning of the first full regular billing period applicable to the 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.

C. The taxes imposed by this chapter Shall be collected from Service Users by Service Suppliers. The amount of tax collected in one Month Shall be remitted to the Tax Administrator on or before the last Day of the Following Month; and Must be received by the Tax Administrator on or before the last Day of the Following Month.

(Ord. 0-01-04 § 1 (part), 2004)

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 carrying out and enforcing the payment, collection and remittance of the taxes imposed in this chapter. A Copy of such rules and regulations Shall be on file in the Tax Administrator's Office.

C. The Tax Administrator May make administrative agreements to vary the strict requirements of this chapter so that collection of any tax imposed in 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 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 determine the eligibility of any Person who asserts a right to exemption from the tax imposed by this chapter or a right to refund of a portion of the tax imposed by this chapter as May be determined by Resolution of the City Council establishing either an exemption or refund policy. In the event that an exemption policy is established by Resolution of the City Council, the Tax Administrator Shall provide the Service Supplier with the name of any Person whom the Tax Administrator determined is exempt from the tax imposed hereby, together with the address to which service is supplied to any such exempt Person. If an exemption policy is Approved by Resolution of the City Council, the Tax Administrator Shall also notify the Service Supplier of termination of any Person's right to exemption hereunder, or the change of any address to which service is supplied to any exempt Person.

E. The Tax Administrator Shall provide Written Notice to all Service Suppliers of any change in the City's boundaries at least ninety Days prior to any annexation or other change in the City's boundaries. The Notice Shall set forth the revised boundaries by Street and address along with a Copy of the final annexation order from Local Agency Formation Commission.

F. The Tax Administrator may, from time to time, Survey the various Service Suppliers to identify 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 services. The Tax Administrator may, thereafter, issue and disseminate to such Service Suppliers administrative rulings identifying those Components and items which are: (1) necessary for the various unbundled billing Components of retail service that are common to the receipt, Use and enjoyment of a given service; or (2) currently, or historically have been, included in a single or bundled rate for service by a Local distribution company or other Service Supplier to a class of retail customers. Unbundled charges for such Components and items Shall be subject to the taxes established by this chapter. Such administrative rulings Shall be consistent with legal nexus requirements and any State or Federal excise tax rules, regulations, and Laws pertaining to the services in question, and Shall not impose a new tax, revise an existing tax methodology, or increase an existing tax.

(Ord. 0-01-04 § 1 (part), 2004)

A. The Tax Administrator May make an assessment for taxes not remitted by a Person required to remit.

B. 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 that a Service User has refused to pay the amount of tax, the Tax Administrator May relieve such Person 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 with amounts refused and/or unpaid with the names and addresses of the Service Users neglecting to pay the tax imposed under provisions of this chapter. Whenever the Service User has failed to pay the amount of tax for a period of two or more billing periods, the Service Supplier Shall be relieved of the obligation to collect taxes due.

D. The Tax Administrator Shall notify the Service User that the Tax Administrator has assumed responsibility to collect the taxes due for the States periods and demand payment of such taxes. 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 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 addresses, to the last known address. If a Service User fails to remit the tax to the Tax Administrator within fifteen Days from the date of the service of the Notice, which Shall be the date of mailing if service is not accomplished in Person, a penalty of twenty-five percent of the amount of the tax set forth in the Notice Shall be imposed, but not less than five dollars. The penalty Shall become Part of the tax required in this chapter to be paid.

(Ord. 0-01-04 § 1 (part), 2004)

A. 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 liability for the remittance to the Tax Administrator, which records the Tax Administrator Shall have the right to inspect at all reasonable times.

B. A Person providing transportation services of natural Gas to a User for delivery through a Gas pipeline distribution system Shall make available to the Tax Administrator records of the names and addresses of Service Users for whom only transportation services are provided by such Persons. All information provided to the Tax Administrator pursuant to this section Shall be Used solely for the purposes of this chapter.

(Ord. 0-01-04 § 1 (part), 2004)

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 Tax Administrator under this chapter, it May be refunded by the Tax Administrator.

B. Notwithstanding the provisions of subsection A of this section, a Service Supplier May claim a refund; or take as credit against taxes remitted the amount overpaid, paid more than once, or erroneously or illegally collected or received when it is established that the Service User from whom the tax has been collected did not owe the tax; provided however, that neither a refund nor a credit Shall be allowed unless the amount of the tax erroneously or illegally collected has either been refunded to the Service User or credited to charges subsequently payable by the Service User to the Person required to collect and remit. A Service Supplier that has collected any amount of tax in excess of the amount of tax imposed by this chapter and actually due from a Service User, May refund such amount to the Service User and claim credit for such overpayment against the amount of tax which is due upon any other monthly returns, provided such credit is claimed in a return dated no later than three Years from the date of overpayment.

C. No refund Shall be paid under the provisions of this section unless the claimant establishes the right thereto by Written records showing entitlement thereto.

D. 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 refunded to 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. In the event this chapter is repealed, the amounts of any refundable taxes will be borne by the City.

E. A Service Supplier May refund the taxes collected to the Service User in accordance with this section or by the Service Supplier's customary practice.

(Ord. 0-01-04 § 1 (part), 2004)

A. The tax imposed by this chapter Shall not apply to utilities supplied to the separately metered or billed residence of a Service User if: (1) the Service User is at least sixty-five Years of age or older; or (2) the combined Gross Income of all members of the Service User's residence is less than the amount established for San Bernardino County by the United States Department of Housing and Urban Development for low income or very low-income families for the applicable household size; and (3) such conditions are demonstrated to the Tax Administrator's satisfaction.

B. The income exemption limit provided in this chapter Shall be revised annually by the Tax Administrator to conform to the most current low-income and very low-income limits for San Bernardino County for applicable household sizes, as determined by the United States Department of Housing and Urban Development (HUD) with regard to the public housing and Section 8 program.

C. The exemption granted by this section Shall not eliminate the duty of the Service Supplier, Nonutility Supplier, or Person to collect and remit Utility User taxes for exempt Persons, or the duty of exempt Persons to pay such taxes, unless an exemption is applied for and granted in accordance with Section 3.40.210.

D. The tax imposed by this chapter Shall not apply to charges related to late payments, returned checks and collection charges.

(Ord. 0-01-04 § 1 (part), 2004)

A. Any Service User meeting the exemption qualifications of Section 3.40.200 May file an Application with the Tax Administrator for an exemption. Such Application Shall be made on forms supplied by the Tax Administrator and Shall recite under Oath facts which qualify the Applicant for an exemption.

B. The Tax Administrator Shall review all such Applications, certify qualified Applicants as exempt, and notify all affected Service Suppliers when an exemption is Approved, stating the name of the Applicant, the address to which exempt service 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 User from its tax billing procedure. The Service Supplier Shall remove the exempt Service User from its tax billing procedure no later than sixty Days after receipt of such Notice from the Tax Administrator.

C. Approved exemptions under this section Shall not apply retroactively.

D. Except as provided hereinafter, exemptions Shall be renewed by the Tax Administrator as long as the facts supporting the Application for exemption continue. An exemption granted Shall automatically terminate with any change in the residence of the Person exempted, but such Person May apply for a new exemption with each change of residence.

E. Any Person exempt from the tax Shall notify the Tax Administrator within ten Days of any change in fact or circumstance which might cause the Person to become ineligible for exemption.

F. Any Person knowingly receiving the benefits of this exemption when the basis for such exemption does not exist or ceases to exist, Shall be guilty of a misdemeanor.

G. Any Service Supplier who determines that a new or nonexempt Service User is receiving exempt service through a meter or connection previously Used by an exempt Service User Shall immediately notify the Tax Administrator of such fact. The Tax Administrator Shall ascertain whether or not the provisions of this article have been complied with and, where appropriate, order the Service Supplier to commence collecting the tax from the nonexempt Service User.

(Ord. 0-01-04 § 1 (part), 2004)

The tax revenues collected under this chapter Shall be Used for the purpose of defraying the costs of City services by supplementing the City's General Fund and May be Used for any purpose for which General Fund monies May be Used.

(Ord. 0-01-04 § 1 (part), 2004)

This chapter Shall become effective April 6, 2004. The tax imposed under this chapter Shall apply to charges appearing on bills rendered on or after April 6, 2004, or as soon thereafter as the respective utilities are physically and mechanically able to reflect such charges on customer billings (within sixty Days but not more than ninety Days after the effective date), through June 30, 2011. The tax imposed under this chapter Shall be reviewed annually by the City Council. The City Council May determine, in its discretion, to direct the collection of an amount less than the maximum amount imposed by this chapter for a period of time or from time to time. Such reduced collection, for whatever period of time, Shall not reduce or waive the City Council's right to direct the collection of the maximum amount imposed by this chapter at any time.

(Ord. 0-01-04 § 1 (part), 2004)

Any Person violating any provision of this chapter is guilty of an infraction, which upon conviction thereof is punishable in accordance with the provisions of Chapter 1.12 of this Code.

(Ord. 0-01-04 § 1 (part), 2004)

If any section, subsection, Subdivision, paragraph, sentence, clause or phrase of this chapter or any Part thereof is for any reason held to unconstitutional, such Decision Shall not affect the validity of the remaining portion of this chapter or any Part thereof. The voters of the City of Colton hereby declare that they would have passed each section, subsection, Subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsection, Subdivision, paragraph, sentence, clause or phrases be declared unconstitutional.

(Ord. 0-01-04 § 1 (part), 2004)