Farmersville Municipal Code Ch. 3.40 Telephone, Gas and Electricity Users Tax

This chapter shall be known as the "Telephone, Gas and Electricity Users Tax of this City."

(Ord. 2004-411 (part), 2004)

The following words and phrases whenever used in this ordinance shall be construed as defined in this section.

"Billing address" means the mailing address of the service user where the service supplier submits invoices or bills for payment by the customer.

"City" means the city of Farmersville.

"City administrator" means the city manager, or his or her authorized representative.

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

"Exempt wholesale generator" shall have the same meaning as set forth in the Federal Power Act (15 U.S.C. Section 79z-5a) and the regulations thereunder.

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

"Month" means a calendar month.

"Non-utility service supplier" means:

1. A service supplier, other than a supplier of electric distribution services to all or a significant portion of the city, which generates electricity for sale to others, and shall include but is not limited to any publicly-owned electric utility, investor-owned utility, co-generator, distributed generation provider, exempt wholesale generator, municipal utility district, federal power marketing agency, electric rural cooperative, or other supplier or seller of electricity;

2. An electric service provider (ESP), electricity broker, marketer, aggregator, pool operator, or other electricity supplier other than a provider of electric distribution services to all or a significant portion of the city, which sells or supplies electricity or supplemental services to electricity users within the city; and

3. A gas service supplier, aggregator, marketer or broker, other than a supplier of gas distribution services to all or a significant portion of the city, which sells or supplies gas or supplemental services to gas users within the city.

4. A garbage collection service supplier, aggregator, marketer or broker, other than a supplier of garbage collection services to all or a significant portion of the city, which supplies garbage collection or supplemental services to users within the city.

"Person" means, without limitation, any natural individual, firm, trust, common law trust, estate, partnerships of every kind, association, syndicate, club, joint stock company, joint venture, limited liability company, corporation (including foreign, domestic, and non-profit), municipal corporation (other than the city), municipal district, cooperative, or receiver, trustee, guardian or other representative appointed by court.

"Service address" means the residential street address or the business street address of the service user's primary place of usage.

"Service supplier" means any entity or person, or its billing agent, that provides telephone communication, electric or gas service to a user of such services within the city, and includes an entity or person, required to collect, or self-collect under Section 3.20.100 of this chapter, and remit a tax as imposed by this chapter, including its billing agent in the case of electric and gas suppliers.

"Service user" means a person required to pay a tax imposed by this chapter.

"State" means the state of California.

"Tax administrator" means the treasurer and/or tax collector of the city, or his or her designated representative.

"Telephone corporation" means a corporation or person as defined in Public Utilities Code Section 234.

"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 for the purpose of transmitting messages or information (including but not limited to voice, telegraph, teletypewriter, data, facsimile, video, or text) 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, fiber-optic, light wave, laser, microwave, radio wave [including, but not limited to, cellular service, commercial mobile 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)(i)—regardless of radio spectrum used], switching facilities, satellite or any other similar facilities.

(Ord. 2004-411 (part), 2004)

A. The taxes imposed by this chapter shall not apply to:

1. Any person or service when imposition of such tax upon that person or service would be in violation of a federal or California statute, the Constitution of the United States, or the Constitution of the State of California; and,

2. The city.

B. Any service user that is exempt from the tax imposed by this chapter pursuant to subsection A of this section shall file an application with the tax administrator for an exemption; provided, however, 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 communication services that has received a federal excise tax exemption certificate for such service. Such 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 providers 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 providers so that the tax administrator can properly notify the new utility service provider 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 users taxes collected and remitted to the tax administrator from such service user as a result of such non-compliance. Upon request of the tax administrator, a service supplier or non-utility supplier, or their billing agents, shall provide a list of names and addresses of those customers which, according to their billing records, are deemed exempt from the utility users 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.

(Ord. 2004-411 (part), 2004)

A. The taxes imposed by this chapter shall not apply to any person who is the head of a household and both: (1) sixty-two years old or older; and (2) receives supplemental social security benefits.

B. To qualify for the exemption set forth in this section, the person shall file an application in the form, time and manner prescribed by the tax administrator.

C. The tax administrator shall, within sixty days of receipt of an application for exemption, determine whether the exemption is granted, and if so, notify the service supplier.

D. The exemption granted to a person pursuant to this section shall become effective on the beginning of the first regular billing period which commences after the tax administrator has notified the service supplier that an exemption has been granted.

(Ord. 2004-411 (part), 2004)

A. There is hereby imposed a tax upon every person in the city, except those expressly exempted herein, using interstate, intrastate or international telephone communication services in the city. The tax imposed by this section shall be at the rate of four percent of the charges made for such telephone communication services and 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 service shall apply to a service user if the billing or service address of the service user is within the city's boundaries. If the billing address of the service user is different from the service address of the service, the user's address shall be used.

B. 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 telephone communication services. As used in this section, the term "charges" shall not include charges for services paid for by inserting coins in coin-operated telephones, except that where such coin-operated telephone 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.

C. The tax administrator, from time to time, may issue and disseminate to telecommunication service suppliers which are subject to the tax collections requirements of this chapter, an administrative ruling identifying those telephonecommunication services that are subject to the tax of subsection A of this section. This administrative ruling shall be consistent with legal nexus and the federal excise tax rules, regulations, and laws pertaining to "communications services" and shall refer to the federal excise tax law on telecommunications that existed immediately prior to the date of repeal.

D. As used in this section, the term "telephone communication services" shall not include "private mobile radio service" [as defined in Part 20 of Title 47 of the Code of Federal Regulations] or "private mobile service" [as defined in 47 U.S.C.A. Section 332(d)] which is not interconnected to the public switched network. 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 communications services are not subject to or are exempt from 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 and in Section 3.40.010 of this chapter 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.

E. To prevent actual multi-jurisdictional 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 users' 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 users' tax to the fullest extent permitted by California and federal law, and as it may change from time to time.

F. The tax imposed by this section shall be collected from the service user by service supplier. The amount of tax collected in one month shall be remitted to the tax administrator, and must be received by the tax administrator on or before the twentieth day of the following month.

(Ord. 2004-411 (part), 2004)

A. There is hereby imposed a tax upon every person, not otherwise exempted herein, using electricity in the city. The tax imposed by this section shall be at the rate of four percent of the charges made for such electricity 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 non-utility service supplier to a service user. The tax shall be collected from the service user by the service supplier or non-utility service supplier, or its billing agent.

B. As used in this section, the term "charges" shall apply to all services, components and items that are: (i) necessary or common to the receipt, use and enjoyment of electric service, or (ii) currently, or historically have been, included in a single or bundled rate for electric service by a local distribution company to a class of retail customers. The term "charges" shall include, but is not limited to, the following charges;

1. Energy charges;

2. Distribution or transmission charges;

3. Metering charges;

4. Stand-by, reserves, firming, ramping, voltage support, regulation, emergency, or other similar minimum charges for services;

5. Customer charges, late charges, service establishment or reestablishment charges, demand charges, fuel or other adjustments, power exchange charges, independent system operator (ISO) charges, stranded investment or competitive transition charges (CTC), public purpose program charges, nuclear decommissioning charges, trust transfer amounts (bond financing charges), franchise fees, franchise surcharges, annual and monthly charges, and other charges, fees and surcharges which are necessary to or common for the receipt, use and enjoyment of electric service; and

6. Charges, fees, or surcharges for electricity services or programs, which are mandated by the California Public Utilities Commission or the Federal Energy Regulatory Commission, whether or not such charges, fees, or surcharges appear on a bundled or line time basis on the customer billing.

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 electricity or services related to the provision of such electricity.

D. The tax administrator, from time to time, may survey the electric service suppliers to identify the various unbundled billing components of electric retail service that they commonly provide to residential and commercial/industrial customers in the city, and the charges therefore, including those items that are mandated by state or federal regulatory agencies as a condition of providing such electric service. The tax administrator, thereafter, may issue and disseminate to such electric service supplies an administrative ruling identifying those components and items which are: (i) necessary or common to the receipt, use or enjoyment of electric service; or (ii) currently, or historically have been, included in a single or bundled rate for electric service by a local distribution company to a class of retail customers. Unbundled charges for such components and items shall be subject to the tax of subsection A of this section.

E. As used in this section, the term "using electricity" shall not be construed to include the mere receiving of such electricity by an electric public utility or governmental agency at a point within the city for resale.

F. The tax on electricity provided by self-production or by a non-utility service supplier not under the jurisdiction of this chapter shall be collected and remitted in a manner set forth in Section 3.40.070 of this chapter. All other taxes imposed by this section shall be collected from the service user by the electric service supplier or its billing agent. The amount of tax collected in one month shall be remitted to the tax administrator, and must be received by the tax administrator on or before the twentieth day of the following month; or, at the option of the person required to collect and/or remit the tax, such person shall remit an estimated amount of tax measured by the tax billed in the previous month or upon the payment pattern of the service user, which must be received by the tax administrator on or before the twentieth day of the following month, provided that the service user shall submit an adjusted payment or request for credit, as appropriate, within sixty days following each calendar quarter. The credit, if approved by the tax administrator, may be applied against any subsequent tax bill that becomes due.

(Ord. 2004-411 (part), 2004)

A. There is hereby imposed a tax upon every person, not otherwise exempted herein, using gas in the city which is delivered through a pipeline distribution system. The tax imposed by this section shall be at the rate of four percent of the charges made for such gas, including all services related to the storage, transportation and delivery of such gas. The tax shall be collected from the service user by the service supplier or non-utility service supplier, or its billing agent.

B. As used in this section, the term "charges" shall apply to all services, components and items for gas service that are: (i) necessary or common to the receipt, use and enjoyment of gas service, or, (ii) currently, or historically have been, included in a single or bundled rate for gas service by a local distribution company to a class of retail customers. The term "charges" shall include, but is not limited to, the following charges:

1. The commodity charges for purchased gas, or the cost of gas owned by the service user (including the actual costs attributed to drilling, production, lifting, storage, gathering, trunk line, pipeline, and other operating costs associated with the production and delivery of such gas), which is delivered through a gas pipeline distribution system;

2. Gas transportation charges (including interstate charges to the extent not included in commodity charges);

3. Storage charges; provided, however, that the service supplier shall not be required to apply the tax to any charges for gas storage services when the service supplier cannot, as a practical matter, determine the jurisdiction where such stored gas is ultimately used; but it shall be the obligation of the service user to self-collect the amount of tax not applied to any charge for gas storage by the service supplier and to remit the tax to the appropriate jurisdiction;

4. Capacity or demand charges, late charges, service establishment or reestablishment charges, transition charges, customer charges, minimum charges, annual and monthly charges, and any other charges which are necessary or common to the receipt, use and enjoyment of gas service; and,

5. Charges, fees, or surcharges for gas services or programs, which are mandated by the California Public Utilities Commission, whether or not such charges, fees, or surcharges appear on a bundled or line item basis on the customer billing.

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 gas or services related to the delivery of such gas.

D. The tax administrator, from time to time, may survey the gas service suppliers to identify the various unbundled billing components of gas retail service that they commonly provide to residential and commercial/industrial customers in the city, and the charges therefore, including those items that are mandated by state or federal regulatory agencies as a condition of providing such gas service. The tax administrator, thereafter, may issue and disseminate to such gas service suppliers an administrative ruling identifying those components and items which are: (i) necessary or common to the receipt, use or enjoyment or gas service, or (ii) currently, or historically have been, included in a single or bundled rate for gas service by a local distribution company to a class of retail customers. Unbundled charges for such components and items shall be subject to the tax of subsection A of this section.

E. There shall be excluded from the base on which the tax imposed by this section is computed charges made for gas which is to be resold and delivered through a pipeline distribution system.

F. The tax on gas provided by self-production or by a non-utility service supplier not under the jurisdiction of this chapter shall be collected and remitted in the manner set forth in Section 3.40.070 of this chapter. All other taxes imposed by this section shall be collected from the service user by the gas service supplier or its billing agent. The amount collected in one month shall be remitted to the tax administrator, and must be received by the tax administrator on or before the twentieth day of the following month, or, at the option of the person required to collect and/or remit the tax, such person shall remit an estimated amount of tax measured by the tax billed in the previous month or upon the payment pattern of the service user, which must be received by the tax administrator on or before the twentieth day of the following month, provided that the service user shall submit an adjusted payment or request for credit, as appropriate, within sixty days following each calendar quarter. The credit, if approved by the tax administrator, may be applied against any subsequent tax bill that becomes due.

(Ord. 2004-411 (part), 2004)

A. Any service user subject to the tax imposed by Section 3.40.050 or Section 3.40.060 of this chapter, which produces gas or electricity for self-use; which requires gas or electricity, including any related supplemental services, directly from a non-utility service supplier not under the jurisdiction of this chapter; or which, for any reason, is not having the full tax collected and remitted by its service supplier, a non-utility service supplier, or its billing agent on the use of gas or electricity in the city, including any related supplemental services, shall report the fact to the tax administrator and shall remit the tax due directly to the tax administrator within thirty days of such use. In lieu of paying the actual tax, the service user may, at its option, remit to the tax administrator within thirty days of such use an estimated amount of tax measured by the tax billed in the previous month, or upon the payment pattern of similar customers of the service supplier using similar amounts of gas or electricity, provided that the service user shall submit an adjusted payment or require for credit, as appropriate, within sixty days following each calendar quarter. The credit, if approved by the tax administrator, may be applied against any subsequent tax bill that becomes due.

B. The tax administrator may require the service user to identify its non-utility supplier and provide, subject to audit, invoices, books of account, or other satisfactory evidence documenting the quantity of gas or electricity used, including any related supplemental services, and the cost or price thereof. If the service user is unable to provide such satisfactory evidence, or, if the administrative cost of calculating the tax in the opinion of the tax administrator is excessive, the tax administrator may determine the tax by applying the tax rate to the equivalent charges the service user would have incurred if the gas or electricity used, including any related supplemental services, had been provided by the service supplier that is the primary supplier of gas or electricity within the city. Rate schedules for this purpose shall be available from the city.

(Ord. 2004-411 (part), 2004)

If one or more non-taxable items are bundled or billed together with one or more taxable items (as provided for by this chapter) under a single charge on a customer's bill, the entire single charge shall be deemed taxable unless, upon the written request of the customer, the service supplier can reasonably identify the non-taxable component of a single charge based upon one or more of the following methodologies, as selected by the tax administrator: (i) the average industry charges for the individual non-taxable items included in the entire single charge, (ii) the amount of the entire single charge, or (iii) the service supplier's books and records that are kept in the regular course of business, which must be consistent with generally accepted accounting principles.

(Ord. 2004-411 (part), 2004)

Taxes collected from a service user which are not remitted to the tax administrator on or before the due dates provided in this ordinance 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.

(Ord. 2004-411 (part), 2004)

A. Taxes collected from a service user, or owned by a service user subject to Section 3.40.110 of this chapter, are delinquent if not received by the tax administrator on or before the due date. Should the due date occur on a weekend or legal holiday, the return must be received by the tax administrator on the first regular working day following the weekend or legal holiday. A direct deposit, including electronic fund transfers and other similar methods of electronically exchanging monies between financial accounts, made by a service supplier in satisfaction of its obligations under this subsection shall be considered if the transfer is initiated on or before the due date, and the transfer settled into the city's account on the following business day.

B. If a person required to collect and/or remit the utility users' 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 on or before the due date, or, in the case of a service user that fails to properly self-collect and remit the tax under Section 3.40.110 of this chapter on or before the due date, the tax administrator shall attach a penalty for such delinquencies or deficiencies at the rate of fifteen percent of the total tax that is delinquent or deficient in the remittance.

C. The tax administrator shall have the power to impose additional penalties upon persons required to collect and remit the 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.

D. 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 service or charges on the customer's billing) or fails to remit the tax collected on or before the due date, or in the case of a service user that fails to properly self-collect and remit the tax under Section 3.40.110 of this chapter on or before the due date, shall pay interest at the rate of zero and seventy-five one hundredths 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.

E. Every penalty imposed pursuant to the provision of this section shall become a part of the tax required to be remitted.

(Ord. 2004-411 (part), 2004)

Any tax required to be paid by a service user under the provisions of this chapter shall be deemed a debt owned by the service user to the city. Any such tax withheld from tax administrator 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, including penalties and interest as provided for in this chapter, along with any collection costs incurred by the city as a result of the person's noncompliance with the chapter, including, but limited to, reasonable attorney's fees.

(Ord. 2004-411 (part), 2004)

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

A. The tax shall be collected insofar as practicable at the same time, as and along with, the charges made in accordance with the regular billing practice. If the amount paid by a service user is less than the full amount of the charge and tax which has accrued for the billing period, a proportionate share of both the charge and the tax shall be deemed to have been paid. In those cases where a service user has notified the service supplier of refusal to pay the tax imposed on the charges, Section 3.40.170(B) of this chapter shall apply.

B. The duty of a service supplier to collect the tax from a service user shall commence with the beginning of the first regular billing period applicable to that person which starts on or after the operative date 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 period.

(Ord. 2004-411 (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 may adopt administrative rules and regulations not inconsistent with the provision of this chapter for the purpose of carrying out and enforcing the payment, collection and remittance of taxes herein imposed. A copy of such administrative rules and regulations shall be on file in the tax administrator's office.

C. Upon the proper showing of good cause, the tax administrator may make administrative agreements, with appropriate conditions, to vary from the strict requirements of this chapter and thereby: (i) conform to the billing procedures of a particular service supplier (or service user subject to Section 3.40.070 of this chapter), so long as the agreements result in the collection of the tax in conformance with the general purpose and scope of this chapter, or (ii) to avoid a hardship where the administrative costs of collection and remittance greatly outweigh the tax benefit. A copy of such agreement shall be on file in the tax administrator's office, and are voidable by the tax administrator or city at any time.

D. The tax administrator alone shall be authorized to determine the eligibility of any person who asserts a right to exemption from a refund of, the tax imposed by this chapter.

E. The tax administrator shall provide notice to all service suppliers, 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 LAFCO.

(Ord. 2004-411 (part), 2004)

A. The tax administrator may make an assessment for taxes not paid or remitted by a person required to pay or remit. The tax administrator shall mail a notice of such assessment, which shall refer briefly to the amount of the taxes, penalties and interest imposed and the time and place where the assessment may be contested, to the service supplier and to the service user at least ten days prior to the date of the hearing and shall post such notice for at least five continuous days prior to the date of the hearing. A penalty of twenty-five percent of the amount of the tax set forth in the notice shall be imposed, along with interest at the rate of zero and seventy-five one hundredths 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, but not less than five dollars. Any interested party having any objections may appear and be heard at the hearing provided his or her objection is filed in writing with the tax administrator prior to the time set for the hearing.

B. At the time fixed for considering such assessment, the tax administrator shall hear the same together with any objections filed as provided in this subsection, and thereupon may confirm or modify such assessment.

(Ord. 2004-411 (part), 2004)

A. Whenever the tax administrator determines that a service user has deliberately withheld the amount of the tax owned by him or her from the amounts remitted to a service supplier required to collect the tax, or that a service user has failed to pay the amount of the tax for a period of two or more billing periods, or whenever the tax administrator deems it in the best interest of the city, the tax administrator may relieve such person of the obligation to collect the taxes due under this chapter from certain named service users for specific billing periods. The service supplier shall provide the city with the names and addresses of such service users and the amounts of taxes owed under the provisions of this chapter.

B. The tax administrator shall notify the service user that he or she has assumed the responsibility to collect the taxes due for the stated periods and demand payment of such taxes. The notice shall be served on the service user by handing it to him personally or by depositing the notice in the United States mail, postage prepaid thereon, addressed to the service user at the address to which billing was made by the person required to collect the tax; or, should the service user have changed his or her address, to his or her last known address.

C. If the service user fails to remit the tax to the tax administrator within fifteen days from the date of the service of the notice upon him or her, shall be the date of mailing if service was not accomplished in person, the tax administrator shall assess the delinquent service user for the required tax pursuant to Section 3.40.160 of this chapter.

(Ord. 2004-411 (part), 2004)

A. If any person is aggrieved by any assessment, decision or administrative ruling of the tax administrator, or with the failure of the tax administrator to grant a refund or exemption as provided for under this chapter, he or she may appeal to the city administrator, or his or her duly authorized designee, by filing a notice of appeal with the city clerk within fourteen days of the assessment, decision or administrative ruling of the tax administrator which aggrieved the service user or service supplier. The city clerk shall thereupon fix a time and place for a hearing of such appeal within forty-five (days of the date that the notice of appeal is filed with the city clerk. The city clerk shall give notice to such person of the time and place of hearing as herein provided.

B. The decision of the city administrator, or his or her duly authorized designee, shall be final.

C. Any person violating any of the provisions of this chapter shall be guilty of a misdemeanor and shall be punishable as set forth in Chapter 1.12 of this code.

(Ord. 2004-411 (part), 2004)

It shall be the duty of every person required to collect and/or remit to the city any tax imposed by this chapter to keep and preserve, for a period of three years, all records as may be necessary to determine the amount of such tax as he may have been liable for the remittance to the tax administrator, which records the tax administrator shall have the right to inspect at all reasonable times.

(Ord. 2004-411 (part), 2004)

A. Whenever the amount of any tax has been over paid, or paid more than once, or has been erroneously or illegally collected or received by the tax administrator under this chapter, such amount may be refunded as provided in this section.

B. Notwithstanding the provisions of subsection A of this section, a service supplier may claim a refund; or take as credit against taxes remitted that 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 the 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. Notwithstanding any other provisions of this section, whenever a service supplier, pursuant to an order of the California Public Utilities Commission or a court of competent jurisdiction, makes a refund to service users of charges for past utility services, the taxes paid pursuant to this chapter on the amount of such refunded charges shall also be refunded to service users, 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 the ordinance codified in this chapter is repealed, the amounts of any refundable taxes will be borne by the city.

D. Prior to any refund made pursuant to subsection C of this section, the service supplier shall provide the city manager with the following information as soon as it becomes available:

1. A copy of any order of the Public Utilities Commission of the state mandating a refund of charges;

2. The estimated amount of the service charges to be refunded;

3. The estimated amount of the taxes to be refunded; and

4. The estimated time or billing period during which such refunds shall be made to service users.

(Ord. 2004-411 (part), 2004)

If a tax under this chapter is added, repealed, increased, reduced, or the tax base is changed, the tax administrator shall follow the notice requirements of Public Utilities Code Section 799. Prior to the effective date of the ordinance change, the service supplier shall provide the tax administrator with a copy of any written procedures describing the information that the service supplier needs to implement the ordinance change. If the service supplier fails to provide such written instructions, the tax administrator, or his or her agent, shall send, by first class mail, a copy of the ordinance change to all collectors and remitters of the city's utility users' taxes according to the latest payment records of the tax administrator.

(Ord. 2004-411 (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 be invalid, unlawful or unconstitutional, such decision shall not affect the validity of the remaining portions of this chapter, or any part thereof. The city council hereby declares that it 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 invalid, unlawful or unconstitutional.

(Ord. 2004-411 (part), 2004)

The service supplier shall, upon notification, terminate or suspend any utility user's tax commencing with the first full billing period which occurs after the effect date of such action by the city council.

(Ord. 2004-411 (part), 2004)

The ordinance codified in this chapter shall become effective the first day of January, 2004. The tax imposed under this chapter shall apply to bills rendered on or after January 21, 2004, or as soon thereafter as the respective utilities are physically and mechanically able to get "one line" for the imposition of charges, but not more than sixty days after adoption of this chapter.

(Ord. 2004-411 (part), 2004)