Hayward Municipal Code Art. 18 Utility Users Tax

Footnotes:

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Note— Added by Ordinance ME-09-01, adopted May 19, 2009.

This Article shall be known as the "Utility Users Tax Ordinance" of the City of Hayward.

The following words and phrases whenever used in this Article shall be construed as defined in this Section:

(a) "Ancillary Telecommunication Services" means services that are associated with or incidental to the provision, use or enjoyment of telecommunications services, including but not limited to, the following services:

(1) "Conference Bridging Service" means an ancillary service that links two (2) or more participants of an audio or video conference call and may include the provision of a telephone number. Conference bridging service does not include the telecommunications services used to reach the conference bridge.

(2) "Detailed telecommunications billing service" means an ancillary service of separately stating information pertaining to individual calls on a customer's billing statement.

(3) "Directory Assistance" means an ancillary service of providing telephone number information, and/or address information.

(4) "Vertical Service" means an ancillary service that is offered in connection with one (1) or more telecommunications services, which offers advanced calling features that allow customers to identify callers and to manage multiple calls and call connections, including conference bridging services.

(5) "Voice Mail Service" means an ancillary service that enables the customer to store, send or receive recorded messages. Voice mail service does not include any vertical services that the customer may be required to have in order to utilize the voice mail service.

(b) "Ancillary Video Services" means services that are associated with or incidental to the provision or delivery of video services, including but not limited to electronic program guide services, search functions, recording services, interactive services or other communications services that are associated with or incidental to the provision, use or enjoyment of video services.

(c) "Billing Address" shall mean the mailing address of the service user where the service supplier submits invoices or bills for payment by the customer.

(d) "City" shall mean the City of Hayward.

(e) "Gas" shall mean natural or manufactured gas or any alternate fuel which may be substituted therefore currently or in the future.

(f) "Mobile Telecommunications Service" has the meaning and usage as set forth in the Mobile Telecommunications Sourcing Act (4 U.S.C.A. Section 124) and the regulations thereunder.

(g) "Month" shall mean calendar month.

(h) "Non-Utility Service Supplier" means:

(1) A service supplier, other than a supplier of electric distribution service 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, cogenerator, distributed generation provider, exempt wholesale generator, (15 U.S.C.A. Section 79Z-5a), municipal utility district, federal power marketing agency, electric rural cooperative, or other supplier or seller of electricity; or

(2) An electric service provider (ESP), electricity broker, marketer, aggregator, pool operator, or other electricity supplier other than a supplier 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; or

(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.

(i) "Paging Service" means a "telecommunications service" that provides transmission of coded radio signals for the purpose of activating specific pagers or similar reception devices, whether such transmissions include message and/or sounds.

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

(k) "Place of Primary Use" means the street address representative of where the customer's use of the telecommunications service primarily occurs, whether the residential street address or the primary business street address of the customer.

(l) "Post-paid Telecommunication Service" means the telecommunication service obtained by making a payment on a telecommunication-by-telecommunication basis whether through the use of a credit card or any other payment mechanism such as a bank card, travel card, credit card, or debit card, or by charge made to a service number which is not associated with the origination or termination of the telecommunication service.

(m) "Prepaid Telecommunication Service" means the right to access telecommunication services, which must be paid for in advance and which enables the origination of telecommunications services and that is sold in predetermined units or dollars of which the number declines with use.

(n) "Private Telecommunication Service" means a telecommunication service that entitles the customer to exclusive or priority use of a telecommunications channel or limited group of channels between or among termination points, regardless of the manner in which such channel or channels are connected, and includes switching capacity, extension lines, stations, and any other associated services that are provided in connection with the use of such channel or channels.

(o) "Service Address" shall mean the residential street address or the business street address of the service user. For a telecommunication or video service user, "service address" means either:

(1) The location of the service user's telecommunication or video equipment from which the communication originates or terminates, regardless of where the communication is billed or paid; or

(2) If the location in subsection (1) of the definition is unknown or mobile (e.g., mobile telecommunications service or VoIP service), the service address shall mean the location of the service user's place of primary use; or

(3) For prepaid telecommunication service, "service address" shall mean the location associated with the service number.

(p) "Service Supplier" shall mean any person and/or the City, that provides any service subject to any tax hereunder, including, without limitation, telecommunication, video, electric and/or, gas service, to a user of such service within the City.

(q) "Service User" shall mean a person required to pay a tax imposed under the provisions of this Article.

(r) "State" shall mean the State of California.

(s) "Streamlined Sales and Use Tax Agreement" shall mean the multi-state agreement commonly known and referred to as the Streamlined Sales and Use Tax Agreement, as it is amended from time to time.

(t) "Tax Administrator" means the Finance Director of the City or his or her designee.

(u) "Telecommunications Channel" is a physical or virtual path of telecommunications over which signals are transmitted between or among customer channel termination points (i.e., the location where the customer either inputs or receives the telecommunications).

(v) "Telecommunications Services" means the transmission, conveyance, or routing of voice, data, audio, video, or any other information or signals to a point, or between or among points, whatever the technology used. The term "telecommunications services" includes such transmission, conveyance, or routing in which computer processing applications are used to act on the form, code or protocol of the content for purposes of transmission, conveyance or routing, without regard to whether such services are referred to as voice over internet protocol (VoIP) services or are classified by the Federal Communication Commission as enhanced or value added, and includes video and/or data services that are functionally integrated with "telecommunications services". "Telecommunications services" include, but are not limited to, the following services, regardless of the manner or basis on which such services are calculated or billed: ancillary telecommunication services; mobile telecommunication service; prepaid telecommunication services; post-paid telecommunications services; private telecommunication services; paging service; 800 service (or any other toll-free numbers designated by the Federal Communication Commission); 900 service (or any other similar numbers designated by the Federal Communication Commission for services whereby subscribers call in to pre-recorded or live service).

(w) "Video Programming" means those programming services commonly provided to subscribers by a "video service supplier", including, but not limited to, basic services, premium services, audio services, video games, pay-per-view services, video on demand, origination programming, or any other similar services, regardless of the content of such video programming, or the technology used to deliver such services, and regardless of the manner or basis on which such services are calculated or billed.

(x) "Video Services" means "video programming" and any and all services related to the providing, recording, delivering, use or enjoyment of "video programming" (including origination programming and programming using Internet Protocol, e.g., IP-TV and IP-Video) using one (1) or more channels by a "video service supplier", regardless of the technology used to deliver, store or provide such services, and regardless of the manner or basis on which such services are calculated or billed, and includes ancillary video services, data services, "telecommunications services", or interactive communication services that are functionally integrated with "video services".

(y) "Video Service Supplier" means any person, company, or service which provides or sells one (1) or more channels, programs or individual episodes of video programming, or provides or sells the capability to receive one (1) or more channels, programs or individual episodes of video programming, including any telecommunications that are ancillary, necessary or common to the provision, use or enjoyment of the video programming, to or from a business or residential address in the City, where some fee is paid, whether directly or included in dues or rental charges for that service, whether or not public rights-of-way are utilized in the delivery of the video programming or telecommunications. A "video service supplier" includes, but is not limited to, multichannel video programming distributors [as defined in 47 U.S.C.A. Section 522(13)]; open video systems (OVS) suppliers; and suppliers of cable television or video program delivery of any kind, be it through channel or other subscribers or to individual buyers of programs or unique episodes; master antenna television; satellite master antenna television; multichannel multipoint distribution services (MMDS); video services using internet protocol (e.g., IP-TV and IP-Video, which provide, among other things, broadcasting and video on demand), direct broadcast satellite to the extent federal law permits taxation of its video services, now or in the future; and other suppliers of video services (including two-way communications), whatever their technology.

(z) VoIP (voice over internet protocol) means the digital process of making and receiving real-time voice transmissions over any Internet Protocol network.

(aa) "800 Service" means "telecommunications service" that allows a caller to dial a toll-free number without incurring a charge for the call. The service is typically marketed under the name "800", "855", "866", "877", and "888" toll-free calling and includes any subsequent numbers or other designations designated by the Federal Communications Commission for toll free telecommunications services.

(bb) "900 Service" means an inbound toll "telecommunications service" purchased by a subscriber that allows the subscriber's customers to call in to the subscriber's prerecorded announcement or a live service. "900 Service" does not include the charge for: collection services provided by the seller of the "telecommunications services" to the subscriber, or a service or product sold by the subscriber to the subscriber's customer. The service is typically marketed under the name "900" service, and includes any subsequent numbers or other designations designated by the Federal Communications Commission for pay for services calls.

(Amended by Ordinance 26-04, adopted February 24, 2026)

(a) Nothing in this Article shall be construed as imposing a tax upon any person or service when the imposition of such tax upon such person or service would be in violation of a federal or state statute, the Constitution of the United States or the Constitution of the State.

(b) Any service user that is exempt from a tax imposed by this Article pursuant to subsection (a) of this Section shall file an application with the Tax Administrator for an exemption; provided, however, that this requirement shall not apply to a service user that is a state or federal agency or a political subdivision with a commonly recognized name. The application shall be made upon a form approved by the Tax Administrator and shall state those facts, declared under penalty of perjury, which qualify the applicant for an exemption. It shall also include the names of all service suppliers serving that service user. If deemed exempt by the Tax Administrator, the service user shall give the Tax Administrator timely written notice of any subsequent change in service suppliers so that the Tax Administrator can properly notify the new utility service supplier of the service user's tax-exempt status. A service user that fails to comply with this Section shall not be entitled to a refund of utility user's taxes collected and remitted to the Tax Administrator from such service user as a result of such noncompliance.

The decision of the Tax Administrator may be appealed pursuant to Section 8-18.200 of this Article. Filing an application with the Tax Administrator and an appeal to the City Manager pursuant to Section 8-18.200 of this Article is a prerequisite to a suit thereon.

(Amended by Ordinance 26-04, adopted February 24, 2026)

(a) Each household within the City, in respect to which the annual income of such household is less than fifty percent (50%) of the median family income for the County of Alameda, as most recently established by the United States Department of Housing and Urban Development, is and shall be exempt from each and all of the taxes imposed by this Article upon presentation to the Tax Administrator of a written request for such exemption and reasonable proof of qualification for the exemption.

(b) Any service user who is enrolled in the California Public Utilities Commission's Lifeline Telephone Program, also known as Universal Lifeline Telephone Service (ULTS), is and shall be exempt from the tax imposed for telecommunication services under Section 8-18.50 of this Article, upon presentation to the Tax Administrator of written confirmation of enrollment in the Lifeline/ULTS program. The service user seeking the exemption under this subsection must reside at the location receiving the service. The exemption shall not apply to any nonresidential service location.

(c) The Tax Administrator shall, within 60 days of receipt of an application for an exemption, determine whether the exemption is granted, and if so, notify the service supplier. The exemption shall apply from the date of the Tax Administrator's determination that the household qualifies.

(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. Upon a showing of hardship by a service supplier, including the City, the Tax Administrator may, as an alternative, implement this Section 8-18.40 by requiring the exempt person to pay the tax and seek a refund under Section 8-18.190. The Tax Administrator shall provide a refund claim form for this purpose.

(e) The Tax Administrator, in his or her sole discretion, may require annual written verification from the service user of his or her continuing eligibility for any exemption granted under this Section.

(Amended by Ordinance 26-04, adopted February 24, 2026)

(a) There is hereby imposed a tax upon every person in the City using telecommunication services. The tax imposed by this Section shall be at the rate of five and one-half percent (5.5%) of the charges made for such services and shall be collected from the service user by the telecommunication service supplier or its billing agent. There is a rebuttable presumption that telecommunication services which are billed to a billing or service address in the City, are used in whole or in part, within the City's boundaries, and such services are subject to taxation under this Article. If the billing address of the service user is different from the service address, the service address of the service user shall be used for purposes of imposing the tax. 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 telecommunication services.

(b) "Mobile Telecommunications Service" shall be sourced in accordance with the sourcing rules set forth in the Mobile Telecommunications Sourcing Act (4 U.S.C.A. Section 124). The Tax Administrator may issue and disseminate to telecommunication service suppliers which are subject to the tax collection requirements of this Article, sourcing rules for the taxation of other telecommunication services, including, but not limited to, post-paid telecommunications services and prepaid telecommunication services consistent with federal and state constitutional provisions. In promulgating any sourcing rules hereunder, the Tax Administrator shall take into account, but shall not be legally bound by, custom and common practice that furthers administrative efficiency and minimizes taxation by more than one (1) state of the same service usage, commonly referred to as multi-jurisdictional taxation. In doing so, the Tax Administrator may refer to and/or rely upon the Streamlined Sales and Use Tax Agreement, and/or any other reasonable precedent or resource.

(c) The Tax Administrator may issue and disseminate to telecommunication service suppliers, which are subject to the tax collection requirements of this Article, an administrative ruling identifying those telecommunication services, or charges therefore, that are subject to the tax of subsection (a) above.

(d) As used in this Section, charges for telecommunication services included in calculation of the tax shall include, but are not limited to, charges for: connection, reconnection, termination, movement, or change of telecommunication services; late payment fees; detailed billing, central office and custom calling features (including, but not limited to, call waiting, call forwarding, caller identification and three-way calling); voice mail and other messaging services; directory assistance; access and line charges; universal service charges; regulatory, administrative and other cost recovery charges; and local number portability charges. "Telecommunications services" shall not include digital downloads that are not "ancillary telecommunications services", such as books, music, ringtones, games and similar digital products.

(e) To prevent actual multi-jurisdictional taxation of the telecommunication 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 local jurisdiction on such telecommunication 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 local jurisdiction; provided, however, the amount of credit shall not exceed the tax owed to the City under this Section.

(f) The tax on telecommunication services imposed by this Section shall be collected from the service user by the service supplier. The amount of tax collected in one (1) month shall be remitted to the Tax Administrator, and must be received by the Tax Administrator on or before the twentieth (20 th ) day of the following month.

(a) There is hereby imposed a tax upon every person in the City using video services. The tax imposed by this Section shall be at the rate of five and one-half percent (5.5%) of the charges made for such services and shall be collected from the service user by the video service supplier or its billing agent. There is a rebuttable presumption that video services which are billed to a billing or service address in the City are used, in whole or in part, within the City's boundaries, and such services are subject to taxation under this Article. If the billing address of the service user is different from the service address, the service address of the service user shall be used for purposes of imposing the tax.

(b) As used in this section, the term "charges" shall include, but is not limited to, charges for the following:

(1) Regulatory fees and surcharges, franchise fees and access fees (PEG);

(2) Initial installation of equipment necessary for provision and receipt of video services;

(3) Late fees, collection fees, bad debt recoveries, and return check fees;

(4) Activation fees, reactivation fees, and reconnection fees;

(5) Video programming and video services;

(6) Ancillary video programming services (e.g., electronic program guide services, search functions, recording functions, or other interactive services or communications that are ancillary, necessary or common to the use or enjoyment of the video services);

(7) Equipment leases (e.g., remote, recording and/or search devises; converters); and

(8) Service calls, service protection plans, name changes, changes of services, and special services.

(c) As used in this Section, the term "charges" shall include the value of any other services, credits, property of every kind or nature, or other consideration provided by the service user in exchange for the video services.

(d) The Tax Administrator may issue and disseminate to video service suppliers, which are subject to the tax collection requirements of this Article, an administrative ruling identifying those video services, or charges therefore, that are subject to or not subject to the tax of subsection (a) above.

(e) The tax imposed by this Section shall be collected from the service user by the video service supplier, its billing agent, or a reseller of such services. In the case of video service, the service user shall be deemed to be the purchaser of the bulk video service (e.g., an apartment owner), unless such service is resold to individual users, in which case the service user shall be the ultimate purchaser of the video service. The amount of tax collected in one (1) month shall be remitted to the Tax Administrator, and must be received by the Tax Administrator on or before the twentieth (20 th ) day of the following month.

(a) There is hereby imposed a tax upon every person using electricity in the City. The tax imposed by this Section shall be at the rate of five and one-half percent (5.5%) 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 for or common to the receipt, use or enjoyment of electric service; or, ii) currently are 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 charges or transmission charges;

(3) Metering charges;

(4) Stand-by, reserves, firming, ramping, voltage support, regulation, emergency, or other similar charges for supplemental services to self-generation service users;

(5) Customer charges, late charges, service establishment or reestablishment charges, demand charges, fuel or other cost 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 or surcharges which are necessary for or common to the receipt, use or 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 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 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 suppliers an administrative ruling identifying those components and items which are: i) necessary for or common to the receipt, use or enjoyment of electric service; or, ii) currently are 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. Charges for such components and items shall be subject to the tax of subsection (a) above.

(e) As used in this Section, the term "using electricity" shall not include the mere receiving of such electricity by an electrical corporation 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 Article shall be collected and remitted in the manner set forth in Section 8-18.90 of this Article. All other taxes on charges for electricity 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 (1) month shall be remitted to the Tax Administrator, and must be received by the Tax Administrator on or before the twentieth (20 th ) 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 (20 th ) day of the following month, provided that such person shall submit an adjusted payment or request for credit, as appropriate, within sixty (60) days following each calendar quarter. The credit, if approved by the Tax Administrator, may be applied against any subsequent remittance that becomes due.

(a) There is hereby imposed a tax upon every person using gas in the City, which is transported and delivered through a pipeline or by mobile transport. The tax imposed by this Section shall be at the rate of five and one-half percent (5.5%) 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, and shall apply to all uses of gas, including but not limited to, heating, electricity generation, and the use of gas as a component of a manufactured product.

(b) As used in this Section, the term "charges" shall apply to all services, components and items for gas service that are: i) necessary for or common to the receipt, use or enjoyment of gas service; or, ii) currently are 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, trunkline, 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 for or common to the receipt, use or enjoyment of gas service; and

(5) Charges, fees, or surcharges for gas 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 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 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 therefor, 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 for or common to the receipt, use or enjoyment of gas service; or, ii) currently are 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. Charges for such components and items shall be subject to the tax of subsection (a) above.

(e) There shall be excluded from the calculation of the tax imposed in this Section, 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 Article shall be collected and remitted in the manner set forth in Section 8-18.90 of this Article. All other taxes on charges for gas imposed by this Section shall be collected from the service user by the gas service supplier or its billing agent. The amount of tax collected in one (1) month shall be remitted to the Tax Administrator, and must be received by the Tax Administrator on or before the twentieth (20 th ) 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 (20 th ) day of the following month, provided that such person shall submit an adjusted payment or request for credit, as appropriate, within sixty (60) days following each calendar quarter. The credit, if approved by the Tax Administrator, may be applied against any subsequent remittance that becomes due.

(a) Any service user subject to the tax imposed by Section 8-18.70 or by Section 8-18.80 of this Article, which produces gas or electricity for self-use; which receives gas or electricity, including any related supplemental services, directly from a non-utility service supplier not under the jurisdiction of this Article; or which, for any other 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 said fact to the Tax Administrator and shall remit the tax due directly to the Tax Administrator within thirty (30) days of such use, based on the charges for, or value of, such gas or electricity, or supplemental services, as provided in subsection (b). In lieu of paying said actual tax, the service user may, at its option, remit to the Tax Administrator within thirty (30) 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 request for credit, as appropriate, within sixty (60) days following each calendar quarter. The credit, if approved by the Tax Administrator in writing, may be applied against any subsequent tax bill that becomes due.

(b) The Tax Administrator may require said service user to identify its non-utility service supplier, and otherwise 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.

If any nontaxable charges are combined with and not separately stated from taxable service charges on the customer bill or invoice of a service supplier, the combined charge is subject to tax unless the service supplier identifies, by reasonable and verifiable standards, the portions of the combined charge that are nontaxable and taxable through the service supplier's books and records kept in the regular course of business, and in accordance with generally accepted accounting principles, and not created and maintained for tax purposes. The service supplier has the burden of proving the proper apportionment of taxable and non-taxable charges. If the service supplier offers a combination of taxable and non-taxable services, and the charges are separately stated, then for taxation purposes, the values assigned the taxable and non-taxable services shall be based on its books and records kept in the regular course of business and in accordance with generally accepted accounting principles, and not created and maintained for tax purposes. The service supplier has the burden of proving the proper valuation of the taxable and non-taxable services.

For purposes of imposing a tax or establishing a duty to collected and remit a tax under this Article, "substantial nexus" and "minimum contacts" shall be construed broadly in favor of the imposition, collection and/or remittance of the utility users tax to the fullest extent permitted by state and federal law, and as it may change from time to time by judicial interpretation or by statutory enactment. Any telecommunication service (including VoIP) used by a person with a service address in the City, which service is capable of terminating a call to another person on the general telephone network, shall be subject to a rebuttable presumption that "substantial nexus/minimum contacts" exists for purposes of imposing a tax or establishing a duty to collect and remit a tax, under this Article. A service supplier shall be deemed to have sufficient activity in the City for tax collection and remittance purposes if its activities include, but are not limited to, any of the following: maintains or has within the City, directly or through an agent, affiliate, or subsidiary, a place of business of any nature; solicits business in the City by employees, independent contractors, resellers, agents or other representatives; solicits business in the City on a continuous, regular, seasonal or systematic basis by means of advertising that is broadcast or relayed from a transmitter within the City or distributed from a location within the City; or advertises in newspapers or other periodicals printed and published within the City or through materials distributed in the City by means other than the United States mail; or if there are activities performed in the City on behalf of the service supplier that are significantly associated with the service supplier's ability to establish and maintain a market in the City for the provision of services that are subject to a tax under this Article.

(a) Collection of Tax.

(1) A service supplier shall collect the tax due from a service user either directly or through a billing agent.

(2) A service supplier shall begin collecting the tax due from a service user at the start of the service user's first regular billing period. The duty to collect shall arise separately for each subsequent billing period.

(3) A service supplier shall collect the tax due from a service user by:

(A) Applying the applicable tax rate to all charges made for services subject to taxation; and

(B) Collecting the total amount due from the service user at the same time as, and along with, the charges made, in accordance with the service supplier's regular billing practices.

If a service supplier believes that this method of collecting tax is not practicable, it may ask the Tax Administrator to authorize an alternative method of collection. Any modifications to the method of collection shall be memorialized in an agreement executed under Section 8-18.170(c) of this Article.

(4) If a service supplier properly applies the applicable tax rate to all charges made for services subject to taxation, but the amount paid by the service user is less than the combined amount of the charges made and the tax due, the service supplier shall treat a proportionate share of the total payment as a payment of tax.

(b) Remittance of Tax.

(1) On or before the due date for remitting collected taxes, the service supplier shall remit to the Tax Administrator all taxes that it collected during the month (or other billing period) covered by the remittance. The service supplier shall submit a return with the remittance, using forms approved by the Tax Administrator, that identifies the amount of the remittance and any additional information the Tax Administrator deems necessary to determine if the service supplier is properly collecting and remitting taxes. Returns and remittances are due immediately upon a service supplier's cessation of business. Pursuant to Revenue and Tax Code Section 7284.6, the City and its agents shall treat returns and remittances as confidential records exempt from disclosure under the Public Records Act.

(2) Taxes required to be remitted by a service supplier are delinquent if not received by the Tax Administrator on or before the due date for the remittance. If the due date occurs on a weekend or a legal holiday, the remittance must be received on or before the first regular working day after the weekend or legal holiday. An electronic fund transfer, including a direct deposit or other method of electronically exchanging monies between financial accounts, shall be considered timely if it is initiated on or before the due date and it settles into the City's account on the following business day.

(3) The Tax Administrator may, in his or her discretion, modify the due dates established by this Article to make them consistent with a service supplier's regular billing practices. Any such modifications shall be memorialized in an agreement executed under Section 8-18.170(c) of this Article.

(Amended by Ordinance 26-04, adopted February 24, 2026)

(a) If a service supplier, in violation of the requirements of this Article, fails to collect the full amount of tax due from a service user by failing to properly apply the applicable tax rate to one (1) or more charges made for services subject to taxation, the service supplier shall be liable to the City for an amount equal to the tax it failed to collect. The Tax Administrator may issue a deficiency determination to the service supplier pursuant to Section 8-18.150 to recover the amount owed, plus interest and penalties as set forth in this Section. A service supplier that is liable or has paid money to the City pursuant to this subsection is not prohibited by this subsection from recovering the amount owed or paid to the City, excluding interest and penalties, from the service user who was responsible in the first instance for paying the tax that the service supplier failed to collect.

(b) If a service supplier, in violation of the requirements of this Article, fails to remit, on or before the due date for the remittance, the tax that it has collected from a service user during a particular month (or other billing period), the service supplier shall be liable to the City for an amount equal to the tax it failed to remit. The Tax Administrator may issue a deficiency determination to the service supplier pursuant to Section 8-18.150 to recover the amount owed, plus interest and penalties as set forth in this Section.

(c) A service supplier liable to the City under subsection (a) or (b) of this Section shall, in addition to paying the amount owed under subsection (a) or (b), pay interest on the amount owed and a penalty, as follows:

(1) Interest shall apply at the rate of 75/100ths percent (.75%) per month, or any fraction thereof, of the tax the service supplier failed to collect or remit, exclusive of penalties. Interest shall begin accruing on the date after the uncollected or unremitted tax was due to the City and cease accruing on the date before the service supplier has paid, in full, the amount owed under subsection (a) or (b).

(2) The penalty shall apply at the rate of fifteen percent (15%) of the tax the service supplier failed to collect or remit. The Tax Administrator may increase the penalty to thirty percent (30%) if the failure to collect or remit was the result of fraud or gross negligence on the part of the service supplier.

(Amended by Ordinance 26-04, adopted February 24, 2026)

(a) Any tax owed by a service user under any of the provisions of this Article is deemed a debt owed by the service user to the City. Any tax that a service supplier collects from a service user is deemed a debt owed by the service supplier to the City, and once that tax has been collected, it shall no longer be deemed a debt owed by the service user to the City. Any tax that a service supplier is required, but fails, to collect from a service user is deemed a debt owed by the service supplier to the City - provided, however, that satisfaction of this debt by the service supplier does not prevent the service supplier from recovering the amount paid to the City from the service user who was responsible in the first instance for paying for paying the tax that the service supplier failed to collect.

(b) Any person owing money to the City under any of the provisions of this Article, including any person who has received a final assessment issued by the Tax Administrator pursuant to Section 8-18.150, shall be liable to the City in an action brought in the name of the City for the recovery of the amount owed, plus interest and penalties. In such an action, the City shall be entitled to recover any collection costs and reasonable attorneys' fees incurred as a result of the person's noncompliance with the requirements of this Article.

(c) Taxes owed by a service user and taxes that a service supplier collects or is required, but fails, to collect shall be treated as unsecured priority excise tax obligations under 11 U.S.C.A. Section 507(a)(8)(C).

(Amended by Ordinance 26-04, adopted February 24, 2026)

(a) The Tax Administrator may issue a deficiency determination to a service user if he or she determines that the service user has failed to pay the full amount of tax owed. The Tax Administrator may issue a deficiency determination to a service supplier if he or she determines that the service supplier has failed to either: (i) collect the full amount of tax due from a service user by failing to properly apply the applicable tax rate to one (1) or more charges made for services subject to taxation; or (ii) remit, on or before the due date for the remittance, the tax that it has collected from a service user during a particular month (or other billing period).

(b) The Tax Administrator shall mail a notice of deficiency determination to the service user or service supplier. The notice shall identify the amount claimed to be owed, plus any applicable interest and penalties.

(c) Within fourteen (14) calendar days of the date of receipt of the notice of deficiency determination, the service user or service supplier may submit, to the Tax Administrator, a written request for a hearing on the deficiency determination. If the service user or service supplier fails to request a hearing within fourteen (14) calendar days, the deficiency determination shall become a final assessment, the notice of deficiency determination shall be treated as a notice of final assessment, and the service user or service supplier will be deemed to have waived the right to an appeal under Section 8-12.200 of this Article.

(d) If the service user or service supplier requests a hearing, the Tax Administrator shall hold a hearing on the matter no later than sixty (60) calendar days after receipt of the request. The Tax Administrator shall mail notice of the time and place of the hearing to the service user or service supplier at least ten (10) calendar days prior to the hearing. The notice may direct that specified records be produced at the hearing.

(e) At the hearing, the Tax Administrator shall consider all relevant evidence offered by the service user or the service supplier, including the testimony of witnesses. At the discretion of the Tax Administrator, the hearing may be continued from time to time to allow for the presentation of additional evidence. Within a reasonable time following the conclusion of the hearing, the Tax Administrator shall issue: (i) a final assessment confirming or modifying the deficiency determination; or (ii) a non-assessment withdrawing the deficiency determination. The Tax Administrator shall mail a notice of the final assessment or non-assessment to the service user or service supplier.

(f) A final assessment issued by the Tax Administrator may be appealed to the City Manager pursuant to Section 8-18.200 of this Article. Requesting a hearing before the Tax Administrator and appealing a final assessment to the City Manager are prerequisites to the filing of any action challenging a final assessment.

(g) Payment of a final assessment shall be delinquent if not received by the Tax Administrator on or before the thirtieth (30th) day after receipt of the notice of final assessment. If payment is not made by this date:

(1) Interest shall continue to accrue on the amount owed at the rate of 75/100ths percent (0.75%) per month, or any fraction thereof, through the date before the final assessment is paid in full; and

(2) An additional penalty equal to fifteen percent (15%) of the total amount of the final assessment shall be imposed - provided, however, that this penalty shall not be imposed if the service user or service supplier makes a timely appeal of the final assessment to the City Manager and pays the full amount of the final assessment, as modified on appeal, within 30 days of the conclusion of the appeal.

(h) All notices required to be sent under this Section shall be sent by regular mail, postage prepaid, or, with the consent of the service user or service supplier, by electronic mail. Notices that are mailed shall be deemed to be received on the third (3rd) calendar day following the date of mailing, as established by a proof of mailing. Notices sent by electronic mail shall be deemed to be received on the date the notice is sent.

(i) If, in the opinion of the Tax Administrator, the cost of issuing or enforcing a final assessment against a service user or service supplier outweighs the likely benefit to the City, the Tax Administrator is not required to issue a deficiency determination or a final assessment to that service user or service supplier.

(Amended by Ordinance 26-04, adopted February 24, 2026)

(a) If a service user refuses to pay tax assessed by a service supplier and notifies the service supplier of that refusal, the service supplier may notify the Tax Administrator. The notice shall identify the name and address of the service user and the amount of tax owed. Upon receiving the notice, the Tax Administrator shall relieve the service supplier of the obligation to collect tax from the service user for a specified period of time, notify the service user that he or she has assumed responsibility for collecting the tax, and demand payment of the tax due. The notice to the service user shall be served by personal delivery or sent by regular mail, postage prepaid, to the address provided by the service supplier, or to any other known address. Notices that are mailed shall be deemed to be received on the third calendar day following the date of mailing, as established by a proof of mailing. Notices that are personally served are received on the date of service.

(b) Any service user that receives a notice from the Tax Administrator shall be required to pay, to the Tax Administrator, the full amount of tax due through the date of the notice, as well as a penalty at the rate of fifteen percent (15%) of the total tax that is owed and interest at the rate of 75/100ths percent (.75%) per month, or any fraction thereof, on the amount of the tax, exclusive of penalties. Interest shall accrue from the date after the unpaid tax was required to be remitted by the service supplier through the date before the tax is paid. The Tax Administrator shall identify the amount of the penalty and interest in the notice.

(c) If the service user, within thirty (30) days of the date of receipt of the notice, fails to pay the tax, penalty, and interest identified in the notice, the Tax Administrator may issue a deficiency determination to the service user pursuant to Section 8-15.150. The Tax Administrator may also increase the penalty from fifteen percent (15%) of the total tax that is owed to thirty percent (30%) of the total tax that is owed.

(d) If a service user required to pay tax directly to the City under Section 8-18.90 fails to pay the full amount of tax due within the time prescribed by that Section, the Tax Administrator may issue a deficiency determination to the service user pursuant to Section 8-15.150 to recover the amount owed, plus interest and penalties. The interest and penalties shall apply at the rates set forth in subsection (b) of this Section.

(e) The Tax Administrator is not required to issue a notice to a service user under this Section or issue a deficiency determination to a service user under Section 8-18.150 if, in the opinion of the Tax Administrator, the cost of collecting the unpaid tax, interest, and penalties outweighs the likely benefit to the City.

(Amended by Ordinance 26-04, adopted February 24, 2026)

(a) The Tax Administrator shall have the power and duty to enforce each and all of the provisions of this Article.

(b) The Tax Administrator may adopt administrative rules and regulations consistent with provisions of this Article for the purpose of interpreting, clarifying, carrying out and enforcing the payment, collection and remittance of the taxes herein imposed. A copy of such administrative rules and regulations shall be on file in the Tax Administrator's office. To the extent that the Tax Administrator determines that the tax imposed under this Article shall not be collected in full for any period of time from any particular service supplier or service user, that determination shall be considered an exercise of the Tax Administrator's discretion to settle disputes and shall not constitute a change in taxing methodology for purposes of Government Code Section 53750 or otherwise. The Tax Administrator is not authorized to amend the City's methodology for purposes of Government Code Section 53570, and the City does not waive or abrogate its ability to impose the utility users tax in full as a result of promulgating administrative rulings or entering into agreements.

(c) Upon a proper showing of good cause, the Tax Administrator may make administrative agreements, with appropriate conditions, to vary from the strict requirements of this Article and thereby: (1) conform to the billing procedures of a particular service supplier so long as said agreements result in the collection of the tax in conformance with the general purposes and scope of this Article; or, (2) to avoid a hardship where the administrative costs of collection and remittance greatly outweigh the tax benefit. A copy of each such agreement shall be on file in the Tax Administrator's office and are voidable by the Tax Administrator or the City at any time.

(d) The Tax Administrator may audit any service user required to pay a tax imposed under this Article or any service supplier required to collect and remit a tax imposed under this Article. The Tax Administrator shall notify the service user or service supplier of the initiation of an audit in writing. In the absence of fraud or other intentional misconduct, the period of audit review shall be limited to the three (3) years preceding the date of receipt of the audit notice. After completing the audit, the Tax Administrator may, pursuant to Section 8-18.150 of this Article, issue a deficiency determination to the service user or service supplier for all amounts owed and not paid, including penalties and interest, as evidenced by information provided during the audit. If the service user or service supplier is unable or unwilling to provide sufficient records to enable the Tax Administrator to verify compliance with this Article, the Tax Administrator may make a reasonable estimate of the deficiency, and that estimate shall be entitled to a rebuttable presumption of correctness.

(e) Upon receipt of a written request of a taxpayer, and for good cause, the Tax Administrator may extend the time for filing any statement required pursuant to this Article for a period of not to exceed forty-five (45) days, provided that the time for filing the required statement has not already passed when the request is received. No penalty for delinquent payment shall accrue by reason of such extension. Interest shall accrue during said extension at the rate of 75/100ths percent (.75%) per month, prorated for any portion thereof.

(f) The Tax Administrator shall determine the eligibility of any person who asserts a right to exemption from, or a refund of, the tax imposed by this Article.

(g) Notwithstanding any other provision of this Article, the Tax Administrator may waive any penalty or interest imposed or authorized by this Article if he or she determines that the service user or service supplier has made a good faith and reasonable effort to comply with the requirements of this Article. In making this determination, the Tax Administrator may take into consideration industry practice, prior attempts by the service user or service supplier to seek guidance from the Tax Administrator, attempts by the service user or service supplier to cure any errors in the payment or collection of tax, and any other relevant matters.

(Amended by Ordinance 26-04, adopted February 24, 2026)

(a) It shall be the duty of every person required to collect and/or remit to the City any tax imposed by this Article to keep and preserve, for a period of at least four (4) years, all records as may be necessary to determine the amount of such tax as he/she may have been liable for the collection of and remittance to the Tax Administrator, which records the Tax Administrator shall have the right to inspect at a reasonable time.

(b) The City, through the City Council, may issue an administrative subpoena to compel a person to deliver, to the Tax Administrator, copies of all records deemed necessary by the Tax Administrator to establish compliance with this Article, including the delivery of records in a common electronic format on readily available media if such records are kept electronically by the persons in the usual and ordinary course of business. As an alternative to delivering the subpoenaed records to the Tax Administrator on or before the due date provided in the administrative subpoena, such person may provide access to such records outside the City on or before the due date, provided that such person shall reimburse the City for all reasonable travel expenses incurred by the City to inspect those records, including travel, meals, lodging and similar expenses, but excluding the normal salary or hourly wages of those persons designated by the City to conduct the inspection.

(c) The Tax Administrator is authorized to execute a non-disclosure agreement approved by the City Attorney to protect the confidentiality of customer information pursuant to California Revenue and Tax Code Sections 7284.6 and 7284.7.

(d) If a service supplier uses a billing agent or billing aggregator to bill, collect, and/or remit the tax, the service supplier shall: i) provide to the Tax Administrator the name, address and telephone number of each billing agent and billing aggregator currently authorized by the service supplier to bill, collect, and/or remit the tax to the City; and, ii) upon request of the Tax Administrator, deliver, or effect the delivery of, any information or records in the possession of such billing agent or billing aggregator that, in the opinion of the Tax Administrator, is necessary to verify the proper application, calculation, collection and/or remittance of such tax to the City.

(e) If any person subject to record-keeping under this Section unreasonably denies the Tax Administrator access to such records, or fails to produce the information requested in an administrative subpoena within the time specified, then the Tax Administrator may impose a penalty of five hundred dollars ($500.00) on such person for each day following: i) the initial date that the person refuses to provide such access; or, ii) the due date for production of records as set forth in the administrative subpoena. This penalty shall be in addition to any other penalty imposed under this Article.

(Amended by Ordinance 17-09, adopted June 20, 2017)

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 from a service user or service supplier, it may be refunded as provided in this Section:

(a) The Tax Administrator may refund any tax that has been overpaid or paid more than once or has been erroneously or illegally collected or received by the Tax Administrator under this Article from a service user or service supplier, provided that no refund shall be paid under the provisions of this Section unless the claimant or his or her guardian, conservator, executor, or administrator has submitted a written claim to the Tax Administrator within one (1) year of the overpayment or erroneous or illegal collection of said tax. Such claim must clearly establish claimant's right to the refund by written records showing entitlement thereto. Nothing herein shall permit the filing of a claim on behalf of a class or group of taxpayers unless each member of the class has submitted a written claim under penalty of perjury as provided by this subsection.

(b) The Tax Administrator, where the claim is within his or her settlement authority as established by ordinance or by resolution of the City Council from time to time, or the City Council where the claim is in excess of that amount, shall act upon the refund claim within forty-five (45) calendar days of the initial receipt of the refund claim. Said decision shall be final. If the Tax Administrator/City Council fails or refuses to act on a refund claim within the forty-five (45) calendar day period, the claim shall be deemed to have been rejected by the Tax Administrator/City Council on the forty-fifth (45 th ) day. The Tax Administrator shall give notice of the action in a form which substantially complies with that set forth in Government Code Section 913.

(c) The filing of a written claim pursuant to Government Code Section 935 is a prerequisite to any suit thereon. Any action brought against the City pursuant to this Section shall be subject to the provisions of Government Code Sections 945.6 and 946.

(d) Notwithstanding subsection (a) of this Section, when a service supplier has overpaid tax by collecting and/or remitting tax in excess of the amount of tax due from a service user under this Article, the Tax Administrator may, in his or her discretion, allow the service supplier to claim a credit for the overpayment against the amount of tax which is due to the City in one or more subsequent remittances, provided that:

(1) The credit is claimed in a return dated no more than one (1) year after the date of the overpayment;

(2) The amount of the overpayment is established to the Tax Administrator's satisfaction; and

(3) If the overpayment was caused by the service supplier's collection of excess tax from the service user, the Tax Administrator receives proof, to his or her satisfaction, that the overpayment has been refunded by the service supplier to the service user in an amount equal to the requested credit.

(e) Notwithstanding subsections (a) and (d) of this Section, when a service supplier has overpaid tax by collecting and/or remitting tax in excess of the amount of tax due from a service user under this Article, the service supplier may take the overpayment as a credit against a final assessment issued by the Tax Administrator to the service supplier under Section 8-18.150 of this Article, provided that:

(1) The credit is claimed against a deficiency determination or final assessment that is issued to the service supplier no later than three (3) years after the date of the overpayment;

(2) The amount of the overpayment has been established to the Tax Administrator's satisfaction; and

(3) If the overpayment was caused by the service supplier's collection of excess tax from the service user, the Tax Administrator receives proof, to his or her satisfaction, that the overpayment has been refunded by the service supplier to the service user in an amount equal to the requested credit.

No credit claimed by the service supplier pursuant to this subsection shall entitle the service supplier to receive a refund to which it would not otherwise be entitled under the one-year claim presentation requirement of subsection (a) of this Section and Title 1, Division 3.6, Part 3 of the Government Code.

(Amended by Ordinance 26-04, adopted February 24, 2026)

(a) If a service user or service supplier is aggrieved by a final assessment, administrative ruling, or other decision issued by the Tax Administrator, other than a decision relating to a refund made under Section 8-18.190(a) of this Article, the service user or service supplier may appeal the final assessment, administrative ruling, or other decision to the City Manager by submitting a notice of appeal to the City Clerk within fourteen (14) calendar days of the date of receipt of the final assessment, administrative ruling, or decision. An appeal is a prerequisite to any action challenging the final assessment, administrative ruling, or decision.

(b) The City Manager shall appoint an independent hearing officer to hear all appeals brought under this Section. Appointments shall last five (5) years and, once the appointment has expired, the person appointed shall not serve as a hearing officer for the City in any matter for a period of at least five (5) years.

(c) The hearing shall take place within sixty (60) calendar days of receipt of the appeal, or within a longer period, if a longer period is agreed to in writing by the appealing party, the Tax Administrator, and the hearing officer. The hearing officer shall mail notice of the time and place of the hearing to the appealing party and the Tax Administrator at least ten (10) calendar days prior to the date of the hearing.

(d) A record of the prior proceedings on the final assessment, administrative ruling, or other decision shall be submitted at the hearing. The appealing party and the Tax Administrator may also present other relevant evidence, including testimony. The hearing officer may continue the hearing from time to time for the presentation of additional evidence. The appealing party bears the burden of proof as to all factual issues.

(e) Within thirty (30) calendar days of the conclusion of the hearing, the hearing officer shall issue a written notice of decision upholding, modifying, or reversing the final assessment, administrative ruling, or other decision. The notice of decision shall state the reasons for the hearing officer's decision. The notice shall also specify that the decision is final and that any petition for judicial review must be filed within ninety (90) calendar days of the date of the notice, in accordance with Code of Civil Procedure Section 1094.6.

(f) If the appeal challenges a final assessment and the hearing officer's decision modifies the final assessment in a manner that reduces the amount found to be owed by the service user or service supplier, any penalties and interest included in the final assessment shall be recalculated based on the reduced amount.

(g) All notices required to be sent under this Section shall be sent by regular mail, postage prepaid, or, with the consent of the appealing party and the Tax Administrator, by electronic mail. Notices that are mailed shall be deemed to be received on the third (3rd) calendar day following the date of mailing, as established by a proof of mailing. Notices sent by electronic mail shall be deemed to be received on the date they are sent.

(Amended by Ordinance 26-04, adopted February 24, 2026)

No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action, or proceeding in any court against this City or against any officer of the City to prevent or enjoin the collection under this Article of any tax or any amount of tax required to be collected and/or remitted.

If a tax under this Article is added repealed, increased, reduced, or the tax base is changed, the Tax Administrator shall follow the notice requirements of California Public Utilities Code Section 799.

Unless specifically provided otherwise, any reference to a state or federal statute in this Article shall mean such statute as is may be amended from time to time, provided that such reference to a statute herein shall not include any subsequent amendment thereto, repeal thereof, or to any subsequent change of interpretation thereto by a state or federal agency or court of law with the duty to interpret such law, to the extent that such amendment or change of interpretation would require voter approval under California law, or to the extent that such change would result in a tax decrease (as a result of excluding all or a part of a utility service, or charge therefor, from taxation). Only to the extent voter approval would otherwise be required or a tax decrease would result, the prior version of the statute (or interpretation) shall remain applicable; for any application or situation that would not require voter approval or result in a decrease of a tax, the provisions of the amended statute (or new interpretation) shall be applicable to the maximum possible extent.

To the extent that the City's authorization to collect or impose any tax imposed under this Article is expanded or limited as a result of changes in state or federal law, no amendment or modification of this Article shall be required to conform the tax to those changes, and the tax shall be imposed and collected to the full extent of the authorization up to the full amount of the tax imposed under this Article.

The City shall annually verify that the taxes owed under this Article have been properly applied, exempted, collected, and remitted in accordance with the Article, and properly expended according to applicable municipal law. The annual verification shall be performed by a qualified independent third party and the review shall employ reasonable, cost-effective steps to assure compliance, including the use of sampling audits. The verification shall not be required of tax remitters where the cost of the verification may exceed the tax revenues to be reviewed.

All remedies and penalties prescribed by this Article or which are available under any other provision of law or equity, including but not limited to the California False Claims Act (Government Code Section 12650 et seq.) and the California Unfair Practices Act (Business and Professions Code Section 17070 et seq.), are cumulative. The use of one (1) or more remedies by the City shall not bar the use of any other remedy for the purpose of enforcing the provisions of this Article.

The levy of taxes as provided in this Article shall expire on June 30, 2039, unless re-enacted by a separate ordinance of the City Council following a majority vote of the electorate. The termination of the levy of taxes as provided herein shall not terminate the obligation to pay taxes levied on services used prior to such date. Taxes levied prior to June 30, 2039, shall remain a debt payable to the City. All provisions of this Article, except those related to the levy of taxes, shall continue in full force and effect after such date.

(Amended by Ordinance 16-20, adopted September 20, 2016)