Fontana Municipal Code Art. X Utility Users Tax

Footnotes:

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Editor's note— Ord. No. 1289, § 1, adopted June 1, 1999, repealed §§ 10-336—10-399 in their entirety. Formerly said sections pertained to sales and use tax and derived from Code 1968. Subsequently, Ord. No. 1289, § 1, adopted June 1, 1999, added §§ 10-336—10-359. See the Code Comparative Table.

This article shall be known as the Utility Users Tax Ordinance of the City of Fontana.

(Ord. No. 1289, § 1, 6-1-99)

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

Person shall mean any domestic or foreign corporation, firm, associate, syndicate, joint stock company, partnership of any kind, joint venture, club, trust, society or individual, but person shall not mean any federal, state or county governmental agency.

City shall mean the City of Fontana.

Telephone corporation, electrical corporation, gas corporation, water corporation and cable television corporation shall have the same meanings as defined in sections 234, 218, 222, 241 and 215.5, 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 or gas or water to a service user and "cable television corporation" shall be construed to include every subscription television provider regardless of the technology used to deliver the service.

Non-utility service supplier shall mean a service supplier, other than an electrical corporation operating within the city, which generates electrical energy in capacities of at least 50 kilowatts for its own use or for sale to others; or a gas supplier other than a gas corporation, that sells, transports or supplies gas to users within the city.

Tax administrator shall mean the Management Services Director of the City of Fontana or his or her designee.

Service supplier shall mean any entity required to collect or self-impose, and remit, a tax imposed by this article.

Service user shall mean a person required to pay a tax imposed by this article.

Cogenerator shall mean any corporation or person employing cogeneration 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 shall mean natural or manufactured gas or any alternate hydrocarbon fuel which may be substituted therefor. It shall not include fuel intended for use in motor vehicles and subject to taxation under the State of California's motor vehicles fuels tax.

Fuel cell shall mean a power-production system using an electrochemical process to produce electricity and heat for its own use or sale to others.

Month shall mean a calendar month.

Nonprofit organization shall mean an organization classified as exempt from taxation under chapter 501(c) of the Internal Revenue Code and which relies primarily on donations, grants and similar funding for its revenue. For the purposes of this definition, a nonprofit organization shall not include such an organization which has the authority to impose fees or collect compensation for services rendered and which relies on such fees or compensation as its primary source of revenue.

Non-utility supplier shall mean (a) a service supplier, other than an electrical corporation franchised to serve the city, which generates electrical energy in capacities of at least 50 kilowatts for its own use or for sale to others, including those using cogeneration or fuel call technologies; or (b) a gas supplier other than a gas corporation, that sells or supplies gas to other users within the city.

Residential utility user shall mean each service user who contracts with a service supplier to provide service to a residential dwelling unit(s).

Non-residential utility user shall mean each utility user who contracts with a service supplier to provide service to a commercial, industrial, or other non-residential facility or unit.

Utility shall be defined to include telephone, electrical, gas, water, and cable television service and any same or substantially similar service.

(Ord. No. 1289, § 1, 6-1-99; Ord. No. 1366, § 1, 11-20-01)

(a) Residential utility users tax. The utility users tax rate shall be five percent for all residential utility users. The residential utility users tax shall only be collected until and shall be discontinued at the end of fiscal year 2003-2004, that is, on July 1, 2004.

(b) Non-residential utility users tax. The utility users tax rate shall be five percent for all non-residential utility users. The non-residential utility users tax shall only be collected until and shall be discontinued at the end of fiscal year 2008-2009, that is, on July 1, 2009.

(c) The tax shall be reviewed on an annual basis as a part of the budget process where revenue growth, identification of possible new revenue sources and expenditure containment will be evaluated.

(Ord. No. 1289, § 1, 6-1-99)

Nothing in this article shall be construed as imposing a tax upon any person when imposition of such tax upon that person would be in violation of the Constitution of the United States or that of the State of California or in violation of any applicable state or federal law.

(Ord. No. 1289, § 1, 6-1-99)

The tax imposed by this article shall not apply to utilities supplied to the separately metered or billed residence of a service user at least 62 years of age provided the service user applies for the exemption and provides sufficient proof of age and proof that the utilities are in the applicant's name to the tax administrator pursuant to section 10-341.

(Ord. No. 1289, § 1, 6-1-99)

(a) Any service user meeting the exemption qualifications of section 10-340 and seeking an exemption must 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 90 days after receipt of such notice from the tax administrator.

(c) The exemption granted by this section shall not eliminate the duty of the service supplier to collect and remit utility users taxes for exempt persons, or the duty of exempt persons to pay such taxes, unless and until an exemption is applied for, granted in accordance with this section and implemented by the service supplier.

(d) Approved exemptions under this section shall not apply retroactively.

(e) Exemptions shall be renewed by the tax administrator on an annual basis provided the tax administrator receives sufficient proof by July 1 of each year that the utilities remain in the name of the person receiving the exemption. 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.

(f) 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.

(g) 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 an infraction.

(h) 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; and, the tax administrator shall ascertain whether or not the provisions of this section have been complied with and, where appropriate, order the service supplier to commence collecting the tax from the nonexempt service user.

(i) Service suppliers shall remove the exempt status automatically for all name and/or ownership changes made on service accounts.

(Ord. No. 1289, § 1, 6-1-99)

(a) The city council may, by ordinance, establish one or more additional classes of persons or one or more classes of utility service otherwise subject to payment of a tax imposed by this article and provide that such classes of persons or service shall be exempt, in whole or in part, from such tax. Any exemption granted by such ordinance shall not eliminate the duty of the service supplier from collecting fees from such exempt individuals or the duty of such exempt individuals from paying such fees to the services supplier unless an exemption is applied for by the service user and granted in accordance with the provisions of this article.

(b) The tax imposed by this article shall not apply to any utility franchised by the city or to any school district.

(c) The tax imposed by this article shall not apply to utilities supplied to a nonprofit organizations, as defined in section 10-337, provided that a nonprofit organization applies for the exemption and provides the tax administrator with sufficient proof that it meets the criteria set forth in section 10-337. A nonprofit organization shall also be required to comply with the application requirements set forth in section 10-341 in order to qualify for this exemption.

(Ord. No. 1289, § 1, 6-1-99; Ord. No. 1366, § 2, 11-20-01)

(a) There is hereby imposed a tax upon every person in the city using telephone communication services including services for intrastate, interstate (to include the District of Columbia), or international calls, and using any teletypewriter exchange services in the city on the amount paid for such services. The tax imposed by this section shall be at the rate set forth in section 10-338 of this article, applied to the charges made for such services, and shall be paid by the person paying for such services.

(b) 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 service is furnished for a guaranteed amount, the amounts paid under such guarantee plus any fixed monthly or other periodic charge shall be included in the base for computing the amount of tax due; nor shall the term "charges" include; (1) charges for any type of service or equipment furnished by a service supplied subject to public utility regulations during any period in which the same or similar services or equipment are also available for sale or use from persons other than a service supplier subject to public utility regulations; (2) charges related to late payments and returned checks; and (3) charges related to state or federal taxes separately billed to and payable by the service user; nor shall the words "telephone communication services" include land mobile service or maritime mobile services as defined in Section 2.1 of Title 47 of the Code of Federal Regulations, as said section existed on January 1, 1970. The term "telephone communication services" as used in this article refers to that service which provides access to any type of telephone system (including the public switched network) and the privilege of telephone quality communication with substantially all persons having telephone stations which are part of such telephone system. The telephone users tax is intended to, and does, apply to all charges billed to a telephone account having a situs in the city including, but not limited to, cellular phones and digital or specialized mobile radio systems, irrespective of whether a particular communication service originates and/or terminates within the city.

(c) The tax imposed by this section shall be collected from the service user by the person providing such telephone communication services referred to above in subsection (a), or the person receiving payment for such services. The amount of the tax collected in one month shall be remitted to the tax administrator on or before the last day of the following month, or at the option of the person required to collect and remit the tax, an estimated amount of tax collected, measured by the tax bill in the previous month, shall be remitted to the tax administrator on or before the last day of each month.

(d) Notwithstanding the provisions of subsection (a), the tax imposed under this section shall not be imposed upon any of the following:

(1) News services. Except with respect to local telephone service, payment received from any person for services used in the collection of news for the public press or a news ticker service furnishing a general news service similar to that of the public press or radio broadcasting or in the dissemination of news through the public press if the charge for such service is billed in writing to such person.

(2) International organizations and the Red Cross. Payment received for services furnished to an international organization or to the American National Red Cross.

(3) Servicemen in combat zones. Payment received for any toll telephone service which originates within a combat zone from a member of the Armed Forces of the United States performing service in such combat zone, provided a certificate setting forth such facts as the Secretary of the Treasury may by regulations prescribe is furnished to the person receiving such payment.

(4) Common carriers and communications companies. The amount paid for any toll telephone service to the extent that the amount so paid is for use by a common carrier, telephone or telegraph company or radio broadcasting station or network in the conduct of its business as such.

(5) Installation charges. The amount paid for the installation of any instrument, wire, pole, switchboard, apparatus or equipment as is properly attributable to such installation.

(6) Nonprofit hospitals. The amount paid by a nonprofit hospital for services furnished to such organization. For purposes of this subsection, the term "nonprofit hospital" means a hospital that is exempt from state and federal income tax under section 501(a) of the Internal Revenue Code.

(7) State and local governmental exemption. Any payment received for services or facilities furnished to the government of any state, or any political subdivision thereof, or the District of Columbia.

(8) Nonprofit educational organizations. Any amount paid by a nonprofit educational organization for services or facilities furnished to such organization. For purposes of this subsection, the term "nonprofit educational organization" means an educational organization that is exempt from income tax under section 501(a) of the Internal Revenue Code. The term also includes a school operated as an activity of an organization that is exempt from income tax under section 501(a), if such school normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on.

(Ord. No. 1289, § 1, 6-1-99; Ord. No. 1523, § 2, 7-25-06)

(a) There is hereby imposed a tax upon every person using electrical energy in the city. The maximum amount of this tax as approved by the voters pursuant to Proposition 218 is five percent. The tax imposed by this section shall temporarily be reduced to four percent for residential and nonresidential utility users, applied to the charges made for such energy and shall be paid by the person paying for such energy. The rate shall remain at four percent until the city council adopts an ordinance reinstating the five percent rate or the tax discontinues as provided in section 29-58 of this article. The tax applicable to electrical energy provided by a non-utility supplier shall be determined by applying the tax rate to the equivalent charges the service users 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 service supplier. Non-utility suppliers shall install and maintain an appropriate utility-type metering system which will enable compliance with this section.

(b) As used in this section, the term "charges," shall include charges made for: (1) metered energy and (2) minimum charges for service, including customer charges, transportation charges, service charges, demand charges, standby charges and all other annual and monthly charges, fuel or other cost adjustments, etc. There shall be excluded from the tax imposed in this section: (1) charges related to late payments and returned checks; (2) charges related to state and federal taxes separately billed and payable by the service user; and (3) any local franchise fee separately billed to and payable by the service user and paid to the city by the service supplier, if any.

(c) As used in this section, the term "using electrical energy" shall not be construed to mean the storage of such energy by a person in a battery owned or possessed by him for use in an automobile or other machinery device apart from the premises upon which the energy was received, provided, however, that the term shall include the receiving of such energy for the purpose of using it in the charging of batteries; nor shall the terms include the mere receiving of such energy by an electric public utility or government agency at a point within the city for resale; or the use of such energy in the production or distribution of water by a public utility or a government agency.

(d) The tax imposed in this section shall be collected from the service user by the person providing the electrical energy services and/or the person receiving payment for such services. The tax imposed in this section on use supplied by self-generation or from a non-utility supplier not subject to the jurisdiction of this article, shall be collected and remitted to the tax administrator in the manner set forth in section 10-347. The amount of tax collected by a service supplier or non-utility supplier in one month shall be remitted to the tax administrator on or before the last day of the following month.

(Ord. No. 1289, § 1, 6-1-99; Ord. No. 1345, § 1, 5-1-01)

(a) The tax imposed on every person using cogenerated electrical energy in the city shall be at the rate set forth in section 10-338 of this article, applied to the equivalent charges the cogenerator would have incurred if the electrical energy used had been provided by the electrical corporation franchised by the city. Rate schedules for this purpose shall be available from the service supplier.

(b) As used in this section, the term "charges," shall not include: (1) amounts related to late payments and returned checks; (2) amounts related to state and federal taxes separately billed and payable by the service user; and (3) any local franchise fee separately billed to and payable by the service user and paid to the city by the service supplier, if any.

(c) The cogenerator shall install and maintain an appropriate metering system which will enable compliance with this section.

(d) The tax shall be collected and paid in the manner provided in section 10-344(d). Provided, if the electricity is consumed by the cogenerator itself, the tax shall be collected and paid in the manner provided in section 10-347.

(Ord. No. 1289, § 1, 6-1-99)

(a) There is hereby imposed a tax upon every person using gas in the city which is transported through a pipeline distribution system or by mobile transport. The tax imposed by this section shall be at the rate set forth in section 10-338 of this article, applied to the charges made for such gas, and shall be paid by the person using the gas. The tax applicable to gas provided by non-utility suppliers shall be determined by applying the tax rate to the actual charges the service user incurred.

(b) As used in this section, the term "charges" shall include: (1) the charges 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.

(c) 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 pipeline distribution system or mobile transport; (2) 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, and other natural gas clean-air technologies; (3) charges related to late payments and returned checks; (4) state or federal taxes separately billed to and payable by the service user; (5) any local franchise fee separately billed to and payable by the service user and paid to the city by the service supplier, if any; and (6) charges made for gas which is used for the cogeneration of electricity which is itself subject to taxation under section 10-345 of this article.

(d) The tax imposed in this section shall be collected from the service user by the person selling and/or transporting the gas. A person selling only transportation services to a service user for delivery of gas through a pipeline distribution system shall collect the tax from the service user based on the cost of transporting the fuel. The amount of tax collected shall be remitted to the tax administrator by the person selling and/or transporting the gas, on or before the last day of the following calendar month.

(Ord. No. 1289, § 1, 6-1-99)

(a) Any service user subject to the tax imposed by section 10-344, 10-345 or 10-346 which produces gas or electricity for self-use, or which receives gas or electricity directly from a non-utility supplier not under the jurisdiction of this article, or which otherwise is not having a full tax due on the use of gas or electricity when the city directly billed and collected by the service supplier, shall report said fact to the tax administrator and shall remit the tax due directly to the tax administrator within 30 days of such use. In lieu of paying said actual tax, the service user may, at its option, remit to the tax administrator within 30 days of such use an estimated amount of tax measured by the tax billed in the previous month, or upon the pattern payment 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 request credit, as appropriate, within 60 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 requires service suppliers to identify its customers and 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 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 reasonable 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 had been provided by the service supplier, which is the primary provider of gas or electricity within the city.

(Ord. No. 1289, § 1, 6-1-99)

(a) There is hereby imposed a tax upon every person in the city using water which is delivered through mains or pipes. The tax imposed by this section shall be at the rate set forth in section 10-338 of this article, applied to the charges made for such water, and shall be paid by the person paying for such water.

(b) As used in this section, the term "charges" shall not include: (1) charges made for water which is to be resold and delivered through mains or pipes; (2) charges related to late payments and returned checks; (3) state or federal taxes separately billed to and payable by the service user; and (4) any local franchise fee separately billed to and payable by a service user and paid to the city by the service supplier, if any.

(c) The tax imposed in this section shall be collected from the service user by the person supplying the water. The amount collected in one month shall be remitted to the tax administrator on or before the last day of the following month.

(Ord. No. 1289, § 1, 6-1-99)

(a) There is hereby imposed a tax upon every person in the city using a subscription television service or a video network, whether such service is delivered by cable, master antenna system, satellite master antenna television, direct broadcast satellite, multi point distribution or other technology. The tax imposed by this section shall be at the rates set forth in section 10-338 of this article, applied to the charges made for such service, whether such charges are made on a periodic, pay-per-view, or other basis, including as a package deal, and shall be paid by the person paying for such service.

(b) As used in this section, the term "charges" shall not include: (1) charges related to late payments and returned checks; (2) state or federal taxes separately billed to and payable by the service user; (3) charge for unreturned equipment; and (4) any local franchise fee separately billed to and payable by a service user and paid to the city by the service supplier, if any.

(c) The tax imposed in this section shall be collected from the service user by the person providing subscription television service or any other form of paid subscription television service. The amount collected in one month shall be remitted to the tax administrator on or before the last day of the following month.

(Ord. No. 1289, § 1, 6-1-99)

(a) Taxes collected from a service user which are not remitted to the tax administrator on or before the due dates provided in this article are delinquent. Should the due date occur on a weekend or legal holiday, the return may be postmarked on the next working day.

(b) For failure to pay the tax when due, the tax administrator shall add a penalty of ten percent of such tax amount on the last day of the month following the due date of the tax and an additional ten percent on the last day of each month thereafter provided, that the amount of such penalty to be added shall in no event exceed 100 percent of the amount of tax due.

(Ord. No. 1289, § 1, 6-1-99)

Any tax required to be paid by a service user under the provisions of this article shall be deemed a debt owed by the service user to the city. Any such tax collected from a service user which has willfully been withheld from the 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 article shall be liable to an action brought in the name of the city for the recovery of such amount.

(Ord. No. 1289, § 1, 6-1-99)

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

(a) Notwithstanding the provisions of section 10-347, 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 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 service 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 his refusal to pay the tax imposed on said energy charges and where the service supplier has notified the city of such refusal, section 10-354(d) 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 article. Whenever there is a change in rate, the new rate shall apply as of the beginning of the first full regular billing period applicable to the service user where all charges normally included in such regular billing are for services delivered on or after the effective date of the new rate. 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.

(Ord. No. 1289, § 1, 6-1-99)

(a) The tax administrator shall have the power and duty, and is hereby directed to enforce each and all of the provisions of this article.

(b) The tax administrator shall have the power to adopt rules and regulations not inconsistent with provisions of this article 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 administrator's office.

(c) The tax administrator may make administrative agreements to vary the strict requirements of this article so that collection of any tax imposed here may be made, and/or to be in conformance with the billing procedures of particular service supplier so long as said agreements result in collection of the tax in conformance with the general purpose and scope of, and at the rates set forth in, this article. 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 article. The tax administrator shall provide the service supplier with the name of any person who the tax administrator determines is exempt from the tax imposed hereby, together with the address to which service is supplied to any such exempt person. The tax administrator shall 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. Name and/or ownership changes made in service accounts will result in the automatic elimination of all existing tax exemption status.

(e) The tax administrator shall provide notice to all service suppliers, at least 90 days prior to 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 local agency formation commission.

(Ord. No. 1289, § 1, 6-1-99)

(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 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 to such person, 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 taxes due under this article 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 article on a monthly basis.

(d) The tax administrator shall notify the service user that the tax administrator has assumed 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 personally 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 address, to the last known address. If a service user fails to remit the tax to the tax administrator within 15 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 25 percent of the amount of the tax set forth in the notice shall be imposed, but not less than $35.00. The penalty shall become part of the tax herein required to be paid.

(Ord. No. 1289, § 1, 6-1-99)

(a) It shall be the duty of every person required to collect and remit to the city any tax imposed by this article 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.

(b) The tax administrator, in conjunction with the provisions of subsection (a) of this section, may request from a person providing only transportation services of natural gas or electricity users within the city, the names and addresses of its transportation customers on a quarterly basis.

(Ord. No. 1289, § 1, 6-1-99)

(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 article, it shall be refunded by the service supplier in accordance with this section. The service supplier shall provide the city with the amounts refunded along with the names and addresses receiving the refunds within 90 days of the refund.

(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 article and actually due from a service user, shall 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 one year from the date of overpayment.

(c) No refund shall be paid under the provisions of this section unless the claimant establishes his 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 article 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 article 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. No. 1289, § 1, 6-1-99)

The service supplier shall, upon notification, terminate or suspend any utility users tax on such date as may be set by ordinance by the city council.

(Ord. No. 1289, § 1, 6-1-99)

(a) The combined total maximum of electricity, cogenerated electricity, gas, telephone, water, and subscription television service users taxes paid by any single industrial or commercial service user for one location under this article shall not exceed the sum of $50,000.00 during any twelve month period between July 1 and June 30.

(b) A service user may deposit the maximum tax specified in subsection (a) with the tax administrator by May 31st each year as payment in advance of taxes due the following year under this article for the 12-month period beginning July 1st and ending June 30th. Any service user making a deposit for said maximum tax shall not thereafter be billed for any tax under this article for said 12-month period.

(c) The tax administrator shall notify each service supplier when to cease and when to resume billing the tax to such service users.

(d) The penalty assessment provided in section 10-347 of this article shall not be counted in computing the maximum tax as provided in subsection (a).

(e) Any service user paying more than a maximum tax provided for in subsection (a) during any fiscal year may claim a refund or credit for such overpayment from the tax administrator provided such refund or credit is claimed in a return dated no later than one year from the end of the fiscal year for which such refund or credit is claimed.

(f) The phrase "one location" as used in subsection (a) shall mean one or contiguous sites for which the service user receives one or more utility billings.

(Ord. No. 1289, § 1, 6-1-99)

The city council is authorized to review and amend the utility user tax ordinance as it finds necessary to address changes in technology or other changes; provided, however, no such amendments shall increase the effective tax rates without complying with any and all public voting requirements.

(Ord. No. 1289, § 1, 6-1-99)