Huron Municipal Code Ch. 3.20 Utility Users Tax

This chapter shall be known as the "Utility User Tax Chapter." The city council declares that this chapter is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes.

A. To adopt a utility user tax ordinance which complies with California State law;

B. To adopt a utility user tax ordinance which imposes a tax and provides a measure therefor that can be administered and collected by the respective utilities in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from the existing procedures followed by the utilities in administering and collecting the respective charges from the user;

C. To adopt a utility user tax ordinance which can be administered in a manner that will, to the degree possible, be consistent and minimize the burden of record keeping upon persons subject to taxation under provisions of this chapter;

D. To adopt a utility user tax ordinance to address the urgency of providing adequate police protection to ensure the health and well-being of the citizens of the City of Huron.

(Ord. 272 § 1, 1991)

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

"City" shall mean the City of Huron.

"Month" shall mean a calendar month.

"Person" shall mean any domestic or foreign corporation, firm, association, syndicate, joint stock company, partnership of any kind, joint venture, club, California business or common law trust, society or individuals.

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

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

"Tax administrator" shall mean the city manager of the City of Huron.

"Telephone communication services" shall mean any telephonic type and quality of communication including that which is interconnected to the public switched network, which allows people to talk to each other without the necessity of conversing in person. In determining whether a service constitutes a telephone communication service, all technology used to transmit voice communications from one person to another shall be included irrespective of whether, for example, such technology utilizes computer processing applications on the form, code or protocol of the content of the communication or where the origination and/or termination points of the transmission, conveyance or routing are not fixed. Such means of transmission shall include, without limitation for the purpose of transmitting messages or information (including but not limited to voice, telegraph, teletypewriter, data facsimile, video or test) by electronic, radio or similar means whether such transmission occurs by wire, cable, fiber-optic, light wave, laser, microwave, radio wave [including but not limited to, cellular service, personal communications service (PCAS), specialized mobile radio (SMR), and other type of personal wireless service regardless of radio spectrum used, switching facilities, satellite or any other similar facilities.

"Telephone corporation," "electrical corporation," "gas corporation" shall have the same meanings as defined in Sections 234, 218 and 222, respectively, of the California Public Utilities Code except, "electrical corporation" and "gas corporation" shall also be construed to include any municipality or governmental agency engaged in the selling or supplying of electrical power or gas to a service user.

(Ord. 272 § 2, 1991)

(Ord. No. 357, § I, 9-2-09)

A. Nothing in this chapter 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 California.

B. The city council may, by order or resolution, establish one (1) or more classes of persons or one (1) or more classes of utility service otherwise subject to payment of a tax imposed by this chapter and provide that such classes of persons or service shall be exempt, in whole or in part from such tax.

C. The tax administrator shall prepare a list of the persons exempt from the provisions of this chapter by virtue of this section and furnish a copy thereof to each service supplier.

(Ord. 272 § 3, 1991)

A. There is imposed a tax on the amounts paid for any intrastate, interstate and international telephone communications services by every person in the City other than a telephone corporation using such services.

B. There is imposed a tax upon every person, other than a telephone corporation, using interstate, international, and/or intrastate telephone communication services in the City. The tax shall not be based on network usage-related charges for cellular telephone services and other similar mobile services, for which the service provider cannot, as a practical matter, determine the origination or termination of the telecommunication. The tax collector may adopt administrative rules for assuring a reasonable and consistent allocation of the monthly cellular billing between network usage-related charges and non-usage-related charges. "Charges" shall also 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, including charges to a service user by a hotel or motel for telephone communication services when such charges are incidental to the right of occupancy in such motel or hotel. The motel or hotel shall be responsible for collection of the tax. Charges shall also include charges to a service user in the City by an alternative or nontraditional telephone service provider, a private communication service provider, or a competitive access provider, for providing: (a) telecommunication services used in the City, and/or (b) access to telephone toll services of an interexchange carrier.

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

1. Service paid for by inserting coins in coin-operated telephones with respect to local telephone services, or with respect to toll telephone services if the charges for such toll telephone service is less than twenty-five cents; except that where such coin-operated telephone service is furnished for a guaranteed amount, the amounts paid under such guarantee plus any fixed monthly or periodic charge shall be subject to the tax.

2. 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, or a news ticker service furnishing a general news service similar to that of the public press, or by means of radio broadcasting, if the charge for such service is billed in writing to such person.

3. Payment received for services furnished to an international organization, or to the American National Red Cross.

4. Payment received for any toll telephone call which originates within a combat zone from a member of the Armed Forces of the United States performing service in such combat zone, as determined under such section, provided a certificate setting forth such facts as the secretary may by regulations prescribe is furnished to the person receiving such payment.

5. 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.

6. 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 which is exempt from federal and state income tax under section 501(a) of the Internal Revenue Code.

7. 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. Any amount paid by a nonprofit educational organization for services or facilities furnished to such organization. For the purpose of this subsection, the term "nonprofit educational organization" means an educational organization which 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 which 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.

9. Private mobile radio service. For purposes of this chapter "private mobile radio service" is a radio communication service which is not a commercial mobile service. A "mobile service" means a radio communication service carried on between mobile stations or receivers and land stations, and by mobile stations communicating among themselves, and includes (A) both one-way and/or two-way radio communications services, (B) a mobile service which provides a regularly interacting group base, mobile, portable, and associated control and relay stations (whether licensed on an individual, cooperative, or multiple basis) for private one-way or two-way land mobile radio communications by eligible users over designated areas of operation, and (C) any service for which a license is required in a personal communications service established pursuant to the proceeding entitled "Amendment to the Commission's Rules to Establish New Personal Communications Services" (Gen Docket No. 90-314; ET Docket No. 92-100), or any successor proceeding. A "commercial mobile service is a "mobile service" that is provided for profit and makes interconnected service available (A) to the public or (B) to such classes of eligible users as to be effectively available to a substantial portion of the public.

D. The tax imposed by this section shall be collected from service user by the person providing the telecommunication services, or by the motel or hotel owner in the case of subsection (B) above. The amount of tax collected in one month shall be remitted by U.S. mail, to the tax collector, and must be received by the tax collector on or before the last day of the following month; or, at the option of the person required to collect 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 customer(s) of the service supplier, which must be received by the tax collector on or before the last day of the following month.

E. Notwithstanding the provisions of subsection (A), the tax imposed under this section shall not exceed the sum of two thousand five hundred dollars ($2,500.00) for any twelve (12) month period beginning July 1, and ending June 30 of the next succeeding year.

F. To prevent actual multi-jurisdictional taxation of telecommunication services subject to tax under this section, any service user, upon proof to the tax collector that the service user has previously paid the same tax in another state or city on such telecommunication service, shall be allowed a credit against the tax imposed to the extent of the amount of such tax legally imposed in such other state or city, provided, however, the amount of credit shall not exceed the tax owed to the City under this section.

(Ord. 321 § 3, 1996; Ord. 272 § 4, 1991)

(Ord. No. 357, § II, 9-2-09)

A. There is imposed a tax upon every person in the City, other than an electrical corporation or a gas corporation, using electrical energy in the City. The tax imposed by this section shall be at the rate set from time to time by resolution of the city council and shall be billed to and paid by the person using the energy. The tax applicable to electrical energy provided by a nonutility supplier shall be determined by applying the tax rate to the equivalent charge the service user would have incurred if the energy used had been provided by the electrical corporation franchised by the City. Nonutility suppliers shall install, maintain and use an appropriate utility-type metering system which will enable compliance with this section. "Charges," as used in this section, shall include charges made for: (1) metered energy; and (2) minimum charges for service, including customer charges, service charges, demand charges, standby charges and all other annual and monthly charges, fuel or other cost adjustments, authorized by the California Public Utilities Commission or the Federal Energy Regulatory Commission.

B. 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 term include the mere receiving of such energy by an electric corporation or governmental agency at a point within the City of Huron for resale; nor shall the term include the use of such energy in the production or distribution of water by a water utility or a governmental agency.

C. The tax imposed in this section shall be collected from the service user by the service supplier or nonutility supplier. The tax imposed in this section on use supplied by self-generation or from a nonutility supplier not subject to the jurisdiction of this chapter, shall be collected and remitted to the tax administrator in the manner set forth in Section 3.20.070. The amount of tax collected by a service supplier or a nonutility supplier in one month shall be remitted by U.S. mail to the tax administrator, postmarked 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 measured by the tax billed in the previous month, shall be remitted by U.S. mail, to the tax administrator, postmarked on or before the last day of each month.

D. Notwithstanding the provisions of subsection A of this section, the tax imposed by this section shall not exceed a maximum of five hundred dollars ($500.00) annually.

(Ord. 321 § 4, 1996; Ord. 272 § 5, 1991)

A. There is imposed a tax upon every person in the City, other than a gas corporation or an electrical corporation, using in the City gas which is delivered through mains or pipes. The tax imposed by this section shall be at the rate set from time to time by resolution of the city council and shall be billed to and paid by the person using the gas. The tax applicable to gas or gas transportation provided by a nonutility supplier shall be determined by applying the tax rate to the equivalent charges the service user would have incurred if the gas or gas transportation had been provided by the gas corporation franchised by the City. "Charges," as used in this section, shall include charges made for: (1) that billed for gas which is delivered through mains or pipes; (2) gas transportation charges; and (3) demand charges, service charges, customer charges, minimum charges, annual and monthly charges, and any other charge authorized by the California Public Utilities Commission or the Federal Energy Regulatory Commission.

B. The tax otherwise imposed by this section is not applicable to: (1) charges made for gas which is to be resold and delivered through mains and pipes; (2) charges made for gas used and consumed by a public utility or governmental agency in the conduct of its business; or (3) charges made by a gas public utility or gas used and consumed in the course of its public utility business; and (4) charges made for gas used in the propulsion of a motor vehicle, as authorized in the Vehicle Code of the State of California.

C. The tax imposed in this section shall be collected from the service user by the person selling or transporting the gas. A person selling only transportation services to a user for delivery of gas through mains or pipes shall collect the tax from the service user based on the transportation charges. The person selling or transporting the gas shall, on or before the twentieth of each calendar month, commencing on the twentieth day of the calendar month after the effective date of the ordinance codified in this chapter, make a return to the tax administrator stating the amount of taxes billed during the preceding calendar month. At the time such returns are filed, the person selling or transporting the gas shall remit tax payments to the tax administrator in accordance with schedules established or approved by the tax administrator. The tax imposed in this section on use supplied by self-production or a nonutility supplier not subject to the jurisdiction of this chapter, shall be collected and remitted to the tax administrator in the manner set forth in Section 3.20.070.

D. Notwithstanding the provisions of subsection A of this section, the tax imposed by this section shall not exceed a maximum of five hundred dollars ($500.00) annually.

(Ord. 321 § 5, 1996; Ord. 272 § 6, 1991)

A. Notwithstanding any other provision of this chapter, a service user receiving gas or electricity directly from a nonutility supplier not under the jurisdiction of this chapter, or otherwise not having the full tax due on the use of gas or electricity in the City directly billed and collected by the service supplier shall report said fact to the tax administrator within thirty (30) days of said use and shall directly remit to the City the amount of tax due.

B. The tax administrator may require from said service user the filed tax returns or other satisfactory evidence documenting the quantity of gas or electricity used.

(Ord. 272 § 7, 1991)

Taxes collected from a service user which are not remitted to the tax administrator on or before the due dates provided in this chapter are delinquent. Should the due date occur on a weekend or legal holiday, the return may be postmarked on the first regular working day following a Saturday/ Sunday, or legal holiday.

(Ord. 272 § 8, 1991)

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

(Ord. 272 § 9, 1991)

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

A. Notwithstanding the provisions of Section 3.20.070, the tax shall be collected insofar as practicable at the same time as and along with the charges made in accordance with regular billing practice of the service supplier. Except in those cases where a service user pays the full amount of said charges but does not pay any portion of a tax imposed by this chapter, if the amount paid by a service user is less than the full amount of the charge and tax which has accrued for the billing period, a proportionate share of both the charge and the tax shall be deemed to have been paid.

B. The duty to collect the tax from a service user shall commence with the beginning of the first regular billing period applicable to that person which starts on or after the operative date of this chapter. Where a person receives more than one (1) billing, one (1) or more being for different periods than another, the duty to collect shall arise separately for each billing period.

(Ord. 272 § 10, 1991)

A. The tax administrator shall have the power and duty and is directed to enforce each and all of the provisions of this chapter.

B. The tax administrator shall have the power to adopt rules and regulations not inconsistent with provisions of this chapter for the purpose of carrying out and enforcing the payment, collection and remittance of the taxes 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 chapter so that collection of any tax imposed herein may be made in conformance with the billing procedures of a particular service supplier so long as said agreements result in collection of the tax in conformance with the general purpose and scope of this chapter. A copy of each agreement shall be on file in the tax administrator's office.

D. The tax administrator shall determine the eligibility of any person who asserts a right to exemption from the tax imposed by this chapter. 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 and account number 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.

E. The tax administrator shall provide notice to all service suppliers, at least ninety (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 LAFCO.

(Ord. 272 § 11, 1991)

A. Whenever the tax administrator determines that a service user has deliberately withheld the amount of the tax owed by him from the amounts remitted to a person required to collect the tax, or that a service user has refused to pay the amount of the tax to such person, such person may be relieved of the obligation to collect taxes due under this chapter from certain named service users for specific billing periods.

B. The service supplier shall provide the City with amounts refused and/or unpaid along with the names and addresses of the service users neglecting to pay the tax imposed under provisions of this chapter. Whenever the service user has failed to pay the amount of tax for a period of two (2) or more billing periods, the service supplier shall be relieved of the obligation to collect taxes due.

C. The tax administrator shall notify the service user that he has assumed the responsibility to collect the taxes due for the stated periods and demand payment of such taxes. The notice shall be served on the service user by handing it to him personally or by 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 his address, to his last known address. If a service user fails to pay the tax to the tax administrator within fifteen (15) days from the date of the service of the notice upon him, which shall be the date of mailing if service is not accomplished in person, a penalty of twenty-five (25) percent of the amount of the tax set forth in the notice shall be imposed, but not less than five dollars ($5.00). The penalty shall become part of the tax herein required to be paid.

(Ord. 272 § 12, 1991)

It shall be the duty of every service supplier required to collect and remit to the City any tax imposed by this chapter to keep and preserve, for a period of three (3) years, all records as may be necessary to determine the amount of such tax such service supplier may have been required to collect and remit to the City, which records the tax administrator shall have the right to inspect at all reasonable times.

(Ord. 272 § 13, 1991)

Any and all refunds claimed for taxes overpaid or paid more than once, or claimed to have been erroneously or illegally collected or received by the tax administrator pursuant to this chapter, as well as any claim of interest or penalty thereon, such claim shall be subject to the provisions of Chapter 2.28 of this code in all respects.

(Ord. 321 § 6, 1996)

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

(Ord. 272 § 16, 1991)

Nothing contained in this chapter is intended to conflict with applicable rules, regulations and tariffs of any service supplier subject to the jurisdiction of the California Public Utilities Commission. In the event of any conflict, the provisions of said rules, regulations and tariffs shall control.

(Ord. 272 § 19, 1991)