El Monte Municipal Code Ch. 3.20 Utility Users Tax—gas and Electricity Service

Footnotes:

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Editor's note— Ord. No. 2768, § 1, adopted Jan. 4, 2011, changed the title of Ch. 3.20 from "Utility Users Tax" to "Utility Users Tax—Gas and Electricity Service".

This chapter shall be known as the "1991 City of El Monte Utility User Tax Ordinance."

(Prior code § 6270)

This chapter was enacted in 1991 by the City Council of the city of El Monte and later amended by the City Council, and has been further amended by the City Council and the people of the city of El Monte upon the approval of the voters of city of El Monte Ordinance No. 2452, pursuant to the provisions of Government Code Section 37100.5, Government Code Sections 53723 and 53724 and other applicable law for the purpose of providing a source of general municipal tax revenues to be used for the current and usual general municipal governmental expenses of the city.

(Prior code § 6270.1)

The general taxes imposed by this chapter have been approved by a majority vote of the voters of the city voting in an election on the issue conducted on March 4, 1997.

(Prior code § 6270.2)

Except where the context otherwise requires, the definitions of the words and phrases set forth in this section shall govern the application and administration of the provisions of this chapter:

"City" means the city of El Monte.

"Cogenerator" means any corporation or person employing cogeneration (as defined in Public Utilities Code Section 218.5) for producing power for the generation of electricity for self use or sale to others from a qualified cogeneration facility (as defined in the federal Public Utility Regulatory Policies Act of 1978 and federal regulations thereunder).

"Electrical corporation" means a corporation or person as defined in Public Utilities Code Section 218.

"Exempt wholesale generator" has the same meaning as set forth in the Federal Power Act (15 United States Code Sections 79z-5a) and the federal regulations thereunder.

"Gas" means natural or manufactured gas or any alternate hydrocarbon fuel, including propane, which may be substituted therefor.

"Gas corporation" means a corporation or person as defined in Public Utilities Code Section 222.

"Month" means a calendar month.

"Nonutility supplier" means: (1) a service supplier, other than an electrical corporation franchised to serve within the city, which generates electricity in capacities of fifty (50) kilowatts, or more, for its own use or for sale to others, and includes but is not limited to any publicly-owned electric utility, investor-owned utility, municipal utility district, federal power marketing agency, electric rural cooperative, or other supplier or seller of electricity; (2) an electricity broker, marketer, aggregator, pool operator, or other supplier of electricity which is not franchised by the city to use or occupy any public right-of-way, which sells or supplies electricity or supplemental services to electric service users within the city; and (3) a gas supplier, aggregator, marketer or broker, other than a gas corporation franchised to serve within the city, which sells or supplies gas to users within the city.

"Person" means, without limitation, any natural individual, form, trust, common law trust, estate, joint stock company, joint venture, limited liability company, corporation (foreign or domestic), cooperative, or receiver, trustee, guardian or other representative appointed by order of any court.

"Service(s)" means the utility and other compensated activities provided by a service supplier to a service user. The use of the word "service" as used in a particular section of this chapter, refers to the particular utility and other compensated activities which are paid for by the service user to the service.

"Service supplier" means any entity or person required to collect (or self-collect) and remit any tax imposed under this chapter.

"Service user" means a person required to pay a tax imposed under the provisions of this chapter. In general, a service user is the person in whose name a service supplier delivers the services and other compensated activities provided by a service supplier and who is responsible for paying for the cost of such services.

"State" means the state of California.

"Tax Collector" means the Director of Finance of the city.

(Prior code § 6270.3)

(Ord. No. 2768, § 2, 1-4-2011)

A. No tax (or any portion of such a tax as specified in this section) which is approved, imposed and levied by the city pursuant to this chapter shall apply to:

1. Charges imposed by the service supplier relating to late payments by the service user, returned check fees and other late collection penalties, interest charges and the like of the service supplier;

2. The city and other public agencies;

3. Any person or service user in the event that the imposition of such tax upon that person or service user would be in violation of the Constitution of the United States or the Constitution of the State of California;

4. Any individual residential service user who resides in the city who is at least sixty-two (62) years of age or older, provided the combined adjusted gross income as used for federal income tax reporting purposes of all members of the household does not exceed the limits for "very low family income" set by the United States Department of Housing and Urban Development (HUD) in its document entitled "Revised Income Limits for Public Housing and Section 8 programs and Medium Family Incomes" for Los Angeles County;

5. An individual residential service user who is also a "disabled person" for the purpose of satisfying the eligibility criteria of the United States Social Security Administration as a person who is eligible to receive "Supplemental Income" as a blind or disabled person; and

6. The amount of the taxes imposed by this chapter on any person or service user, during the twelve (12) months preceding the date of submission of an application to the Tax Collector for approval of an exemption, which is equal to the difference between the sum of forty thousand dollars ($40,000.00) and the aggregate amount of all taxes imposed by this chapter which have been paid by the service user to the city during the twelve (12) months preceding the date of submission of an application for such an exemption (See Section 3.20.051);

7. Notwithstanding any provision of Section 3.20.080 to the contrary, no service user shall pay the tax imposed by Section 3.20.080 on "multichannel video programming distributor services," as this term is defined in 47 United States Code Section 522(12), which are provided to the service user by a multichannel video programming distributor which holds a "franchise," as this term is defined in 47 United States Code Section 522(9), which has been initially authorized by the city pursuant to Section 7630, et seq., of this code; and

8. The city may hereafter establish other classifications of persons or services which may be declared to be exempt, in whole or in part, from the levy, payment and collection of any tax which is otherwise imposed by this chapter. Such other classifications shall be described by resolution of the City Council and the resolution shall also contain a description of the duration of the exemption and any special tax administrating eligibility verifications and other procedures applicable to the granting of the exemption authorized by resolution of the City Council pursuant to this subsection (A)(8).

B. The exemptions authorized by subsections (A)(3)—(8) of this section shall not relieve the service supplier from the duty to collect the applicable tax amount from any service user who may be eligible to claim such an exemption or relieve any service user from the duty and liability to pay the applicable tax amount to the service supplier, unless an exemption has been applied for by the service user and granted by the Tax Collector in accordance with the provisions of this section. Any service user exempt from the payment of any of the taxes imposed by this chapter because of the provisions of subsections (A)(2)—(3) of this section may file an application with the Tax Collector for approval of an exemption. Such an application shall be submitted by the service user/applicant upon a form supplied by the Tax Collector and shall state those facts, declared under penalty of perjury, which qualify the applicant for an exemption.

C. The Tax Collector shall review all such applications and shall certify as exempt those applicants determined to be qualified hereunder. The Tax Collector shall notify all service suppliers affected that such exemptions have been approved. Upon the receipt of such notice, the service supplier shall not be required to continue to bill any further tax imposed by this chapter on such exempt service user until further notice by the Tax Collector is given. The service supplier shall eliminate such exempt service user from its tax billing procedure no later than sixty (60) days after the receipt of such notice from the Tax Collector.

D. All exemptions authorized under this section shall continue for so long as the prerequisite facts supporting the initial eligibility for exemption shall continue; provided, however, the exemption shall automatically terminate upon the earlier date of any change in the service address (or residence in the case of an individual), assignment of a different customer account number by the service supplier or by virtue of a discontinuance, suspension, termination of service to the person who has otherwise been found to be eligible for such an exemption; provided however, that such individual may nevertheless apply for a new exemption with each change of address or residence in the city.

E. The Tax Collector shall have the power and right to demand evidence of the continued eligibility of a service user for an exemption under the provisions of subsections (A)(3)—(8) of this section. Such evidence may include, but need not be limited to, copies of business records, letters, statements from public agencies such as the Social Security Administration, copies of income tax returns, and such other evidence concerning the service user or other members of this household which may tend to prove or disapprove such eligibility. The failure of a service user to provide such evidence within thirty (30) days following a written by the Tax Collector, shall be grounds for the cancellation of service user's eligibility for exemption under the provisions of this section, effective ten (10) days following the date of mailing of a notice of cancellation by the Tax Collector.

F. Any person or service user who has been confirmed to be exempt from payment of any amount of tax(es) approved in this chapter, pursuant to this section, shall notify the Tax Collector within ten (10) days of any change in the facts or circumstances which might disqualify such person or service user from further eligibility to either claim or maintain such an exemption. It shall be a misdemeanor for any person to knowingly receive the benefits of an exemption authorized by this section when the basis for such exemption either does not exist or ceases to exist.

G. If the Tax Collector determines that an application for exemption is incomplete, or that the applicant has failed to truthfully set forth facts in support of the claim for exemption or if the applicant is not eligible for an exemption, then in such event, the application for the exemption shall be denied in a written notice mailed to the applicant. The applicant shall thereafter have a right to file an amended application for an exemption or to appeal the Tax Collector's decision to the City Administrator within ten (10) days after the date of mailing of the Tax Collector's notice of denial. In the case of an appeal, the City Administrator shall review the facts in consultation with the City Attorney and the City Administrator shall render a final written determination on such appeal.

H. The Tax Collector shall annually prepare a list of the service users who have submitted applications and been found to be exempt by the Tax Collector under the provisions of subsections (A)(3)—(8) of this section, and furnish a copy thereof to each service supplier. The list shall contain the name of the service user, together with the current address to which such is supplied.

I. The Tax Collector shall adopt and thereafter may modify from time to time as appropriate, additional written procedure for the administration of this section, as provided in Section 3.20.170.

(Ord. 2695 § 2 (part), 2007; prior code § 6270.4)

A. Any person or service user subject to any tax imposed under this chapter and/or Chapter 3.22 (Communication Users' Tax) may opt to pay a fixed tax sum of forty thousand dollars ($40,000.00) per calendar year. This fixed tax sum shall be paid in lieu of any actual, aggregate tax sums which would otherwise be collected on behalf of the city by a service supplier in amounts that would otherwise be due pursuant to this chapter and/or Chapter 3.22 during any given calendar year. The fixed tax sum shall be paid directly to the city by the person or service user in bi-annual increments of twenty thousand dollars ($20,000.00) which shall be due and payable on or before the close of business on January 1st and July 1st of each calendar year. If January 1st or July 1st falls on a date in which the city is closed for business, the applicable deadline shall be extended to the close of business on the next business day in which the city is open for business.

B. In order to qualify for the tax payment alternative set forth under this section, a prospective applicant must submit, under penalty of perjury, true and correct documentation (e.g., utility bills and other like documentation) demonstrating to the reasonable satisfaction of the Tax Administrator that over the twelve (12) consecutive months immediately preceding the submission of the application, the aggregate amount of taxes collected from, or otherwise paid by, the applicant pursuant to this chapter and/or Chapter 3.22 exceeded the sum of forty thousand dollars ($40,000.00).

C. If approved by the Tax Administrator, participation under the alternative payment procedures set forth under this section shall become effective upon January 1st or July 1st, which ever date most immediately follows the date upon which the application was approved; the first incremental payment of twenty thousand dollars ($20,000.00) shall be due and payable at this time. Consistent with subsection A of this section, above, incremental payments of twenty thousand dollars ($20,000.00) shall be due and payable to the city on January 1st and July 1st of each calendar year until such time as the applicant opts out of or the applicant's participation is terminated, all in accordance with subsections D and E of this section, below.

D. An applicant may opt out of the alternative payment procedures afforded under this section at any time, provided such request is submitted to the Tax Administrator in writing; thereafter, the applicant shall be taxed, and such tax collected, in the manner otherwise provided under this chapter and/or Chapter 3.22 effective January 1st or July 1st whichever date most immediately follows the date upon which the Tax Administrator receives the written request to opt out of the alternative payment procedures set forth under this section.

E. Notwithstanding, any other provisions set forth under this chapter or Chapter 3.22 relating to the disposition of delinquencies and/or the imposition of collection penalties, the Tax Administrator may unilaterally terminate an applicant's participation under the alternative payment procedures set forth herein in the event the applicant fails to timely pay any or all sums due under this section. Such termination shall become effective thirty (30) days from the date the Tax Administrator issues written notice of any delinquency to the delinquent applicant, unless all delinquent sums owed are actually received by the city prior to the expiration of the thirty (30) day grace period. In the event of termination, a terminated applicant shall be barred from reapplying under this section for a period of one year. Upon the effective date of the termination, the applicant shall be taxed, and such tax collected, in the manner otherwise provided under this chapter and/or Chapter 3.22.

F. The terms "person," "service user" and "service supplier" as used in this section include all persons, service users and service suppliers within the meaning of this chapter and within the meaning of Chapter 3.22. For purposes of this section, the terms "person," "service user," and "service supplier" shall be construed to have the broader, more encompassing meaning in the event of any conflict or inconsistency as between the meanings set forth under this chapter and the meanings set forth under Chapter 3.22.

(Ord. 2695 § 2 (part), 2007)

(Ord. No. 2768, § 4, 1-4-2011)

Editor's note— The inclusion of § 3.20.051 (Alternative Tax Payment Option) under Chapter 3.20 (Utility Users Tax — Gas and Electricity) represents an effort to harmonize non-repealed portions of Chapter 3.20 with the addition of the new Chapter 3.22 (Communication Users' Tax). Section 3.20.051 was adopted by way of Ordinance No. 2695 which was in turn approved by El Monte voters as Measure "A" at the General Municipal Election of November 6, 2007 in accordance with Proposition 218.

This limitation/exemption has been consolidated with other exemptions. See now Section 3.20.050, Exemptions.

(Prior code § 6270.5)

This limitation/exemption has been consolidated with other exemptions. See now Section 3.20.050, Exemptions.

(Prior code § 6270.6)

Editor's note— The telecommunication services user tax previously set forth under this § 3.20.080 was repealed and substituted by Ordinance No. 2695 which established a new Chapter 3.22 (Communications Users' Tax) which sets forth a revised rate and methodology for the levying the tax previously covered under Chapter 3.20 in general and § 3.20.080 in particular. Ordinance No. 2695 was approved by El Monte voters at the General Municipal Election of November 6, 2007 as Measure "A" in accordance with Proposition 218.

A. There is approved, imposed and levied by the city a tax upon every person using electricity, including cogenerated electricity, in the city. The tax approved and levied by this section shall be at the rate of seven (7) percent of the charges made for such electricity (or cogenerated electricity, as applicable) and for any supplemental services provided by a service supplier or nonutility supplier to a service user related to the provision of electricity. The tax shall be paid by the service user/person paying for such electricity or supplemental services.

B. The word "charges," as used in this section, shall include charges payable by the service user for: (1) metered energy; (2) minimum charges for services, customer charges, service charges, demand charges, standby charges, fuel or other cost adjustments, standard investment or competitive transition charges, and all other annual and monthly charges or surcharges for electricity services or programs, which are authorized by the California Public Utilities Commission, whether or not such charges appear on a bundled or line item basis on the customer billing. The words "charges for supplemental services related to the provision of electricity" as used in this section shall include charges payable by the service user for wheeling, transmission (including congestion charges), distribution, and stand-by, reserves, firming, ramping, voltage, support, regulation, emergency, or other similar services. The word "charges" as used in this section shall also include the value of any other services, credits, property of every kind or nature, or other consideration payable by the service user to the service supplier in exchange for the electricity or services related to the provision of such electricity.

C. As used in this section, the words or term "using electricity" shall not be construed to mean the storage of electrical energy by a person in a battery that he owns or possesses for use in an automobile or other machinery or device apart from the premises upon which the electricity was received; provided, however, the term shall include the receiving of such electricity for the purpose of using it in the charging of batteries; nor shall the term include the mere receiving of such electricity of an electrical corporation or governmental agency at a point within the city for resale.

D. The tax approved in this section shall be collected from the service user by the electricity service supplier or nonutility supplier who provides such service. The amount of tax collected in one month shall be remitted by U.S. Mail, to the Tax Collector, and must be received by the Tax Collector on or before the last day of the following month.

E. The tax approved by this section on electricity provided to the service user by a self-production or by a nonutility supplier or an electric utility not otherwise collecting and remitting the tax to the Tax Collector under this section in the case of one or more of its customers shall be collected and remitted in the manner set forth in Section 3.20.110C.

F. The tax approved, imposed and levied by this section on cogenerated electricity shall be calculated at the rate specified in subsection A of this section on the value of the cogenerated electricity consumed by the service user in the city. For the purpose of this subsection, the value of cogenerated electricity consumed by the service user in the city shall be determined by reference to the electric utility supplier's combined "Avoided Cost Energy Pricing and Avoided Cost Capacity Pricing" reporting procedure which is filed with the California Public Utilities Commission or by such successor formula authorized by the California Public Utilities Commission. The cogenerated electricity service user shall pay the tax approved by this section to the Tax Collector in the manner provided in Section 3.20.110C.

1. If the cogenerator sells the energy for consumption by other service users in the city, the value of the cogenerated electricity sold to each such service user in the city shall be based upon the actual charges made for such service, and the amount of the tax approved by this section shall be collected from the service user by the cogenerator/nonutility supplier. The cogenerator shall install and maintain an appropriate metering system for meaning the number of kilovolts of cogenerated electricity provided to the service user such that the cogenerator and the Tax Collector may verify compliance with the obligation of the service user to pay the tax amount approved by this subsection F. The amount of tax collected in one month shall be remitted by U.S. Mail, to the Tax Collector, and must be received by the Tax Collector on or before the last day of the following month. The tax on cogenerated electricity provided by a nonutility supplier shall be collected and remitted in the manner set forth in Section 3.20.110C.

2. Whether the cogenerator consumes or sells the cogenerated electricity, the service user of the cogenerator shall also pay the tax on all "charges for supplemental services" related to the provision of cogenerated electricity which includes the analogous matters covered in the definition of this term as found in subsection (B)(2) of this section.

(Prior code § 6270.8)

A. There is approved, imposed and levied by the city a tax upon every person using gas in the city, which is delivered to a service user through a pipeline distribution system or by mobile transport. The tax approved, imposed and levied by this section shall be at the rate of seven (7) percent of the charges made for such gas, including all services related to the storage, transportation and delivery of such as, and shall he paid by the person using such gas; provided, however, that the tax shall not apply to any charge for gas storage services when the service supplier cannot, as a practical matter, determine the location where such stored gas is ultimately used. The word "charges" as used in this section shall include: (1) the commodity charges payable by a service user for purchased gas, or the cost of gas owned by the service user, which is delivered through a gas pipeline distribution system or by mobile vehicle transport; (2) gas transportation charges (including interstate charges), customer charges, minimum charges, annual and monthly charges, and any other charges for gas services or programs, which are authorized by the California Public Utilities Commission or the Federal Energy Regulatory Commission. The words "cost of gas owned by the service user" as used in this section shall include the actual costs attributed to drilling, production, lifting, storage, gathering, trunkline, pipeline, and other operating costs associated with the production and delivery of such gas. The word "charges" as used in this section shall also include the value of any other services, credits, property of every kind or nature, or other consideration payable by the service user in exchange for the gas or services related to the delivery of such gas.

B. There shall be excluded from the calculation of the tax approved in this section: (1) charges payable by a service user for gas which is to be resold and delivered through a pipeline distribution system or by mobile vehicle transport; (2) the cost of gas used in the city by: (i) a cogenerator in the production of cogenerated electricity; (ii) an electric corporation; (iii) a public agency that supplies or sells electricity; or (iv) an exempt wholesale generator; and (3) charges payable by a service user at the time of sale of propane or other alternate hydrocarbon fuel which is to be used by the service user in motor vehicles or charges for propane or other alternate hydrocarbon fuels payable by the service user where the quality of the propane or alternate hydrocarbon fuel at each time of delivery is twenty five (25) gallons or less.

C. The tax that is calculated on charges for gas provided by self-production or by a nonutility supplier not otherwise remitting the tax to the Tax Collector under this section shall be collected and remitted in the manner set forth in Section 3.20.110C. All other taxes on charges for gas approved by this section shall be collected from the service user by the gas service supplier. The amount of the tax collected in one month shall be remitted by U.S. Mail, to the Tax Collector, and must be received by the Tax Collector on or before the last day of the following month.

D. Where a gas service supplier is providing commodity transportation service to a service user but the service user has purchased the commodity from a third party, then the commodity transporting service supplier shall collect the tax imposed by this section from the service user, which shall be calculated as follows:

1. Seven (7) percent of the commodity transportation charges, including interstate transportation charges to the extent not included in the commodity charge, transition charges or any other charges for gas services or programs, which are authorized by the California Public Utility Commission or the Federal Energy Regulatory Commission; plus,

2. Seven (7) percent of the imputed value of the transported commodity (net of the amount described in subsection (D)(1) of this section as calculated in accordance with Public Utilities Code Section 6353(a) (b) and (c), or at the election of the service user, seven (7) percent of the actual charges for the transported commodity (net of the amount described in subsection (D)(1) of this section).

E. If the service user elects to pay the tax approved by this section based upon the actual charges for the transported commodity as provided in subsection (D)(2) of this section, the service user must:

1. Give thirty (30) days prior written notice to the Tax Collector of the exercise of such an election; and,

2. Submit to the Tax Collector an adjusted payment or request for credit, as appropriate within sixty (60) days following each calendar quarter to reflect the difference between the tax based upon the imputed value in accordance with the Public Utilities Code Section 6353 (a) (b) and (c) and the actual charges of the transported commodity. A credit, if approved by the Tax Collector, may be applied against any subsequent tax bill relating to the tax imposed by this section that becomes due.

(Prior code § 6270.9)

The duty of each service supplier (including certain direct purchases of electricity or gas services) to collect and remit to the city the tax amounts approved and levied by any provisions of this chapter from each service user who is a customer of the service supplier shall be performed as follows:

A. The tax shall be collected by the service supplier insofar as practicable at the same time as, and along with, the charges made in accordance with the regular service billing practice of the service supplier. In the event that any amount paid by a service user to a service supplier includes less than the full amount of the charge and tax imposed by this chapter which accrued during the billing period, such an amount and any subsequent payments by a service user shall be applied to the utility service charges: first (or net of the amount of the tax imposed under this chapter) until such other charges of the service supplier have been fully satisfied; and second, any remaining balance shall be applied to the tax amount due from service user under this chapter. In those cases where a service user has notified the service supplier of a refusal to pay a tax amount approved by this chapter, Section 3.20.140E shall apply.

B. The duty of the service supplier to collect the tax approved by this chapter from a service user shall commence with the beginning of the first 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 service user receives more than one billing from the service supplier relating to one or more billing periods or relating to one or more separate service accounts, the duty of the service supplier to collect the amount of the tax approved by this chapter from the service user shall arise separately for each billing period and/or for each separate account payable by that service user.

C. Any service user subject to the tax imposed by Section 3.20.090 or Section 3.20.100 hereof, which produces electricity or gas for self-use, as applicable, or any service user who purchases gas or electricity directly from a nonutility supplier which does not collect the applicable tax amount approved and levied by this chapter from the service user, or any such service user who does not otherwise pay the full tax due for the use of such gas or electricity (as applicable), shall report said fact to the Tax Collector and shall remit the tax due directly to the Tax Collector within thirty (30) days of use of such gas or electricity. In lieu of paying the actual amount of any of the taxes referenced in the first sentence of this section, the service user may, at its option, remit to the Tax Collector within thirty (30) days of such use an estimated amount of the tax payable based upon an average monthly estimated payment pattern for use of comparable amounts of gas or electricity (as applicable), provided that the service user shall submit an adjusted payment or request for credit, as appropriate, to the Tax Collector within sixty (60) days following the end of each calendar quarter. A credit, if approved by the Tax Collector, may he applied against any subsequent tax bill that becomes due. The Tax Collector may require the service user to identify its nonutility supplier and provide, subject to audit, invoices, books of account, or other satisfactory evidence documenting the quantity of gas or electricity used and the cost of price thereof. If the service user is unable to provide satisfactory evidence relating to the calculation of the tax, or, if the Tax Collector may determine the amount of the tax payable by applying the tax rate to the equivalent service charges which the service user would have incurred if the gas or electricity used had been provided by a gas corporation or electrical corporation, as applicable, which is a primary provider of gas or electricity within the city. Rate schedules for this purpose shall be prepared by the Tax Collector.

D. Nothing contained in this chapter shall prohibit the city from directly billing any service user or directly collecting from any service user the amount of any tax approved by this chapter in accordance with such direct tax billing and/or direct tax collection procedure as may be provided by rule or regulation of the Tax Collector approved by resolution of the City Council.

(Prior code § 6270.10)

Each service supplier (and each service user subject to Section 3.20.110C shall prepare and file a written tax return to the Tax Collector on forms provided by the Tax Collector. The amount of the tax collected shall be included with the return and filed with the Tax Collector once per month or on such other schedule of reporting and payment as may be authorized by the Tax Collector. The Tax Collector is authorized to specify such additional information as deemed necessary to determine if the tax is being calculated and collected by the service supplier in accordance with this chapter. Returns are due immediately upon cessation of business for any reason.

(Prior code § 6270.11)

Taxes collected by a service supplier from a service user which are not remitted to the Tax Collector on or before the due date provided in this chapter are delinquent. Taxes owned by a service user subject to Section 3.20.110C are delinquent if not received by the Tax Collector on or before the due date. Should the due date for the remittance of any tax/return and/or tax amount payable to the Tax Collector occur on a weekend or legal holiday, the tax return and the corresponding tax amount must be received by the Tax Collector on the first regular business day of the city following a Saturday/Sunday, or legal holiday.

(Prior code § 6270.12)

A. Civil penalties for delinquency in either the filing of a tax return and/or the remittance to the city of any tax amounts collected by a service supplier, or any deficiency determination thereof, shall attach and be paid by the service supplier at the rate of fifteen (15) percent of the total tax amount imposed by the provisions of this chapter during the period of such delinquency.

B. The Tax Collector shall have the power to impose additional civil penalties upon any service supplier or other person required to collect and remit tax amounts pursuant to the provisions of this chapter (in addition to the amount assessable under subsection A of this section) for fraud and negligence in reporting or remitting to the city of any tax amounts at the rate of fifteen (15) percent of the tax amount imposed by the city, or as recomputed by the Tax Collector during the period of time that such fraud or negligence is alleged to have occurred.

C. Each penalty amount imposed pursuant to the provisions of this section shall become a part of the tax amount required to be remitted to the Tax Collector.

D. Whenever the Tax Collector determines that a service user has deliberately withheld the amount of the tax owed by the service user from the amounts remitted to a service supplier or other person required to collect the tax, or whenever the Tax Collector deems it in the best interest of the city, the Tax Collector may relieve such service supplier or other person of any further obligation to collect the tax amounts due under this chapter from certain named service users for specific billing periods. Whenever the service user has failed to pay the amount of the tax owed for a period of two (2) or more consecutive billing periods, the service supplier shall be relieved from the further obligation to collect the tax amounts owed by such user which correspond to the period of such delinquency; provided however, that the service supplier has first provided the city with the name and address of such a service user and the amount of the tax owed under the provisions of this chapter.

E. The Tax Collector shall notify each nonpaying service user as identified in subsection D of this section that the Tax Collector has assumed the responsibility to collect the tax amounts due for the stated periods and demand payment of such taxes. The notice shall be served on the service user 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 service supplier or other person required to collect the tax; or, should the service user have changed its address to the last known address. If the service user fails to remit the tax to the Tax Collector within fifteen (15) days from the date of the mailing of the notice, a penalty of twenty-five (25) percent of the amount of the tax set forth in the notice shall be imposed, but not less than five dollars ($5.00). The penalty shall become a part of the tax required to be paid.

F. The Tax Collector may make an assessment for any tax amount not paid or remitted by a service user or other person required to pay or remit such tax amount to the city. A notice of the assessment shall refer briefly to the amount of the taxes and penalties imposed and the time and place when such assessment shall be submitted to the City Council for confirmation or modification. The City Clerk shall mail a copy of such notice to the service supplier and to the service user at least ten (10) days prior to the date of the hearing and shall post such notice for at least five (5) continuous days prior to the date of the hearing. Any interested party having any objections may appear and be heard at the hearing provided his objection is filed in writing with the City Clerk prior to the time act for the hearing. At the time fixed for considering such assessment, the City Council shall hear the same, together with any objections filed as provided in this subsection, and thereupon may confirm or modify such assessment by motion.

(Prior code § 6270.13)

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 (3) years, all records as may be necessary to determine the amount of such tax as he or she may have been liable for the collection of and remittance to the Tax Collector, which records the Tax Collector, or the Tax Collector's designated representative, shall have the right to inspect at all reasonable times. The Tax Collector, or the Tax Collector's designated representative, is authorized to execute a nondisclosure agreement approved by the City Attorney to protect the confidentiality of customer information.

B. The Tax Collector, or the Tax Collector's designated representative, may request from a person providing transportation services of gas or electricity to service users within the city a list of the names and addresses of its transportation customers within the city pursuant to Section 6254(e) of Chapter 2.56 of Division 3 of the California Public Utilities Commission.

C. If any person subject to record-keeping under this section unreasonably denies the Tax Collector, or the Tax Collector's designated representative, access to such records, then the Tax Collector may impose a penalty of five hundred dollars ($500.00) on such person for each day following the initial date that the person refuses to provide such access.

(Prior code § 6270.14)

Whenever the amount of any tax imposed under this chapter has been overpaid or paid more than once or has been erroneously or illegally collected or received by the Tax Collector, it may be refunded as provided in this section.

A. The Tax Collector may refund any tax amount that has been overpaid or paid more than once or has been erroneously or illegally collected or received by the Tax Collector under this chapter, provided that no refund shall be paid under the provisions of this section unless the claimant has submitted a written claim for a refund of the tax amount paid to the Tax Collector within one year of the date of the overpayment or the date of erroneous or illegal collection of said tax. Such a tax refund claim must clearly establish claimant's right to the refund by written record showing entitlement thereto. The submission of a written tax refund claim, which complies with the claim filing procedures of Government Code Section 910, et seq. shall be a prerequisite to the initiation of any legal proceeding to recover a refund of any tax amount or assert any other challenge to the validity of any tax approved and levied by this chapter. The City Council shall act upon each tax refund claim within the time period set forth in Government Code Section 9110.4. If the City Council fails or refuses to act on a tax refund claim within the time prescribed by Government Section 910.4, the claim shall be deemed to have been rejected by the City Council on the last day of the period within which the City Council is required to act upon the claim as provided in Government Section 9101.4. It is the intent of the City Council that any tax refund claim which may have arisen prior to the commencement of the one-year tax refund claim period of this section and which is not otherwise barred by the applicable statute of limitation or claim procedure found elsewhere in this title shall be filed with the Tax Collector in accordance with the tax refund claim procedure applicable to any such claim arising prior to the operative date of this chapter.

B. Notwithstanding other provision of this section, whenever a service supplier, pursuant to an order of the California Public Utilities Commission or a court of competent jurisdiction, orders the service supplier to pay a refund to one or more service users of charges for past services, the taxes paid by each such affected service user pursuant to this chapter on the amount of such refunded charges shall also be refunded to each such affected service user by the service supplier; provided however, the service supplier shall be entitled at its option to claim a credit for the amount of such refunded tax against the amount of the tax which is due and payable to the city with the next monthly return following the date of payment of such refunded charges for past services.

(Prior code § 6270.15)

A. The Tax Collector shall have the power and duty, and is directed, to enforce each and all of the provisions of this chapter.

B. The city may adopt rules and regulations by resolution of the City Council which are not inconsistent with provisions of this chapter for the purpose of carrying out and enforcing the payment, collection and remittance of the taxes herein imposed. A copy of such rules and regulations shall be on file in the Tax Collector's office.

C. The Tax Collector may enter into administrative agreements to vary from the strict 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 (or service user subject to Section 3.20.110C) as long as said 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 Tax Collector's office.

D. The Tax Collector, or designee, shall provide prompt written notice to all service suppliers of any change in the city's boundaries following any annexation or other change in the city's boundaries. Said notice shall set forth the revised boundaries by street and address along with a copy of the final annexation order from the Local Agency Formation Commission.

(Prior code § 6270.16)

The amount of any tax required to be paid by a ser vice user under the provisions of this chapter shall be deemed a debt owed by the service user to the city. Any amount of a tax collected from a service user by a service supplier which has not been remitted to the Tax Collector shall be deemed a debt owed to the city by the service supplier. Any person owing money to the city under the provisions of this chapter shall be liable to pay such an amount upon entry of judgment in an action brought in the name of the city for the recovery of such sum, including reasonable attorneys fees, costs and interest.

(Prior code § 6270.17)

Upon written notification from the Tax Collector that the City Council has authorized a termination or suspension of any tax approved under this chapter, each service supplier shall implement the direction of the City Council terminating or suspending the tax for the period of time indicating in such a written notice, commencing with the first full billing period which occurs after the effective date of such an action authorized by resolution of the City Council.

(Prior code § 6270.18)

A. The taxes imposed under Ordinance No. 2324, dated August 27, 1991, and this chapter, together with certain additional telephone service charges as described in Urgency Ordinance No. 2332, dated September 24, 1991, because applicable to utility bills transmitted to service users on or after sixty (60) days following the passage of Ordinance No. 2324, or as soon thereafter as was practicable. The additional amount of taxes imposed by Ordinance No. 2355, dated September 8, 1992, and this chapter, became applicable upon passage of Ordinance No. 2355, and the additional amount of the taxes imposed under Ordinance No. 2355 on or after sixty (60) days from the date of final passage or as soon thereafter as was practicable for the imposition of the tax rates authorized by Ordinance No. 2355 and this chapter.

B. The amendment of this chapter authorized by Ordinance No. 2452 was approved by the voters on March 4, 1997 and each of the amendments of this chapter by said ordinance shall become operative immediately upon acceptance by the City Council of the certified results of the March 4, 1997 municipal election confirming that Ordinance No. 2452 amending this chapter has been approved by a majority vote of the electorate in accordance with Government Code Section 53723. (Amended during 1999 recodification; prior code § 6270.19)

No person shall pay a tax of more than seven (7) percent to the city of any services, subject to a tax under this chapter, nor shall any person pay in the aggregate more than seven (7) percent in taxes to the city of all services subject to tax under this chapter.

(Prior code § 6270.20)

Each of the tax rates approved, imposed and levied by Sections 3.20.090, 3.20.100 and 3.20.110 on the operative date of Ordinance No. 2452 which adds this section to this chapter, may be temporarily reduced and levied at a rate of less than seven (7) percent by resolution of the City Council. Each such temporary reduction of the tax rate shall be in effect and may be levied at a reduced rate only for a period of time authorized in the City Council resolution and upon the end of the temporary period of the tax rate reduction authorized in the resolution, the tax shall be levied at the full amount of the rate in effect on the operative date of Ordinance No. 2452 which adds this section to this chapter. No such temporary reduction in a tax rate approved by a resolution of the City Council shall require the approval of the voters of the before the temporary tax rate reduction may take effect for the term as specified in the resolution.

(Prior code § 6270.21)