La Palma Municipal Code Art. VIII Utility Users Tax

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State Law reference— Public Utilities Act, Public Utilities Code § 201 et seq.; utility user tax, Revenue and Taxation Code § 7284.2; disclosure of utility user's tax records prohibited, Revenue and Taxation Code §§ 7284.6, 7284.7.

(a) This article is enacted solely to raise revenue for the general governmental purposes of the City. The people of La Palma adopt this article in order to maintain the utility users tax that has remained in effect since January 1994. By adopting this article by initiative, the people of La Palma intend to maintain the utility users tax in accordance with Article XIIIC of the California Constitution and Government Code § 53720 et seq.

(b) All of the proceeds from the tax imposed by this article shall be placed in the City's General Fund and used for the general governmental purposes and the usual current expenses of the City. The article is urgently required for the preservation of public peace, health and safety for the following reasons: If the City does not continue to collect the utility users tax, revenues to the City will be insufficient to maintain the present level of services to the citizens. The utility users tax is the only tax that is under the City's exclusive control and cannot be reduced or taken away by the County, State, or federal governments. The utility users tax is equitable to all citizens of La Palma since every user of telephone, electricity, gas and cable television utilities and services will share in the utility users tax.

(Code 1975, § 8-45; Ord. No. 02-01, § 2)

The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

Charges shall not include taxes, fees or other charges imposed by the County, State, or federal government.

City means the City of La Palma.

Cogenerator means any person employing cogeneration technology (as defined in California Public Utilities Code § 218.5) for producing power from other than a conventional power source for the generation of electricity for self use or sale to others.

Gas means natural or manufactured gas or any alternative hydrocarbon fuel, including methanol, but shall not include diesel, gasoline or methanol fuel used in conventional internal combustion engines for the propulsion of vehicles or vessels as such terms are defined in the California Vehicle Code.

Month means a calendar month.

Nonutility supplier means:

(1) An electricity supplier, other than an electrical corporation franchised to serve the City, which generates electrical energy in capacities of at least 50 kilowatts for its own use or for sale to others, including those using cogeneration or fuel cell technologies; or

(2) A gas supplier, other than a gas corporation franchised to serve the City, that sells or supplies gas to other users within the City.

Person means any domestic or foreign corporation, firm, association, syndicate, joint stock company, partnership of any kind, joint venture, club, Massachusetts business or common law trust, society, individuals or groups.

Service means telephone, gas, electric or cable service actually used by the service user.

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

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

Tax Administrator means the Finance Director of the City.

Telephone corporation, electrical corporation, gas corporation andcable television corporation shall have the same meanings as defined in Sections 234, 218, 222, and 215-5, respectively, of the California Public Utilities Code (Public Utilities Code § 216.4, 218, 222, and 234) except, the terms "electrical corporation" and "gas corporation" shall also be construed to include any municipality or public agency engaged in the selling or supplying of electrical power or gas to a service user.

(Code 1975, § 8-46; Ord. No. 02-01, § 2)

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

(1) Entities defined under the term "telephone corporation, electrical corporation, gas corporation and cable television corporation" in section 14-222, and other public authorities, as defined by the Tax Administrator, shall be exempt from this tax.

(2) The City finds that entities which produce more than $25,000.00 per year in sales tax to the City provide a substantial contribution to the revenues needed to provide basic municipal services and accordingly entities which produce more than $25,000.00 a year in sales tax to the City are exempt from the utility taxes.

(3) Entities whose property is exempt from taxation pursuant to California Revenue and Taxation Code § 214.

(b) The Tax Administrator shall prepare a list of the persons exempt from the provisions of this article by virtue of this section and furnish a copy thereof to each service supplier.

(c) The tax imposed by this article shall not apply to charges related to late payments, returned checks and collection charges.

(Code 1975, § 8-47; Ord. No. 02-01, § 2)

(a) Households with combined incomes equal to or less than the limits for "very low family income" set by the U.S. Department of Housing and Urban Development (HUD) shall be exempt from the payment of utility users tax.

(b) An application for exemption shall be filed with the Tax Administrator or his or her written designee on such forms as said administrator may provide.

(c) An application may be filed at any time.

(d) An application shall be verified by declaration under penalty of perjury and shall contain such information as may be required by the Tax Administrator or his or her written designee.

(e) The Tax Administrator or his or her written designee shall review each application and shall certify the applicant as exempt from the utility users tax if the eligibility requirements of this section are met, except that no exemption shall be granted to an applicant who is receiving service from a service supplier through a master meter, or who is sharing or prorating service with other service users even though such users qualify under the provisions of this section. No exemption shall be granted with respect to any tax imposed by this article which is or has been paid by a public agency or where the applicant receives funds from a public agency for the payment of such tax.

(f) If an applicant is certified as exempt, the Tax Administrator or his or her written designee shall notify applicant's service supplier, stating the name of the applicant, the address to which such service is being supplied, the account number, if any, and such other information as may be necessary for the service supplier to remove the exempt service user from its tax billing procedure. Upon receipt of such notice, the service supplier shall within 60 days discontinue billing applicant for taxes imposed by this article, except as otherwise provided in this article.

(g) Taxes billed by the service supplier to the service user, prior to removing the service user from its billing procedure, shall be collected from the service user and the service user shall pay such taxes to the service supplier. Taxes billed to and paid by the service user between the time that the application for exemption is filed and the service supplier removes the service user from its taxing procedure will not be refunded to the service user.

(h) Exemptions certified by the Tax Administrator or his or her written designee shall continue so long as the facts supporting the qualification for exemption shall exist; provided, however, that the exemption shall automatically terminate with any change in the service address or residence of the exempt individual, or assignment of a different account number by the service supplier because of discontinuance or suspension of service at the request of the service user; and provided further, that such individual may nevertheless apply for a new exemption with each change of address or residence.

(i) Any service user who has been exempted under this section shall notify the Tax Administrator or his or her written designee within ten days of any change in fact or circumstance which might disqualify said individual from receiving such exemption. It shall be a misdemeanor for any person to knowingly receive the benefits of the exemption provided by this section when the basis for such exemption does not exist or ceases to exist.

(j) Any service supplier, who determines by any means that a new or nonexempt service user is receiving service through a meter or connection exempt by virtue of any exemption issued to a previous user or exempt user of the same meter connection shall immediately notify the Tax Administrator or his or her written designee of such fact and the Tax Administrator or his or her written designee shall conduct an investigation to ascertain whether or not the provisions of this section have been complied with and, where appropriate, order the service supplier to commence collecting the tax from the nonexempt service user.

(k) The Tax Administrator or his or her designee shall review all exemptions every 12 months to ascertain compliance with the requirements of this article.

(Code 1975, § 8-48; Ord. No. 02-01, § 2)

(a) There is imposed a tax upon the use of telephone services in the City, other than or by a telephone corporation, on the amounts paid for any intrastate, interstate, international and intercontinental communication services in the City (including telecopier, facsimile or modem services) and using any teletypewriter exchange services in the City or mobile or cellular telephone communications when the owner or lessee of the telephone has a billing address in the City. Interstate calls shall be deemed to include calls to the District of Columbia. The tax imposed by this section shall be at the rate of five percent of the total qualified charges made for such services and shall be paid by the person paying for such services.

(b) As used in this section, the term "charges" shall not include charges for services paid for by inserting coins in coin-operated telephones except that where such coin-operated service is furnished for a guaranteed amount, the amounts paid under such guarantee plus any fixed monthly or other periodic charge shall be included in the base for computing the amount of tax due; nor shall the term "charges" include charges for any type of service or equipment furnished by a service supplied subject to public utility regulations during any period in which the same or similar services or equipment are also available for sale or lease from persons other than a service supplier subject to public utility regulation; nor shall the term "telephone communication services" include land mobile service or maritime mobile services as defined in Section 2.1 of Title 47 of the Code of Federal Regulations ( 47 CFR 2.1). The term "telephone communication services" refers to that service which provides access to a telephone system and the privilege of telephone quality communication with substantially all persons having telephone stations which are part of such telephone system. The tax imposed by this section is intended to, and does, apply to charges billed to a telephone account having a situs in the City, irrespective of whether a particular communication service originates and/or terminates within the City.

(c) The tax imposed by this section shall be collected from the service user by the person providing the services, or the person receiving payment for such services. The amount of the tax collected in one month shall be remitted by U.S. Mail to the Tax Administrator on or before the last day of the following month; or at the option of the person required to collect and remit the tax, an estimated amount of tax collected, measured by the tax bill in the previous month, shall be remitted to the Tax Administrator on or before the last day of each month.

(d) To the extent permitted by law, notwithstanding the provisions of subsection (a) of this section, the tax imposed under this section shall not be imposed upon any person for using intrastate telephone communication services to the extent that the amounts paid for such services are exempt from or not subject to the tax imposed under Division 2, Part 20 of the California Revenue and Taxation Code (Revenue and Taxation Code § 41001 et seq.), or the tax imposed under Section 4251 of the Internal Revenue Code, as interpreted and applied by the Internal Revenue Service of the United States in IRS Revenue Ruling 79-404.

(Code 1975, § 8-49; Ord. No. 02-01, § 2; Ord. No. 2007-01, § 1)

State Law reference— Information required from taxing authority when imposing utility user tax on telephone services, Public Utilities Code § 495.6.

(a) There is imposed a tax upon the use of electrical energy in the City. The tax imposed by this section shall be at the rate of five percent of the total qualified charges made for such energy by an electrical corporation franchised to serve the City and shall be paid by the person using the electricity. The tax applicable to electrical energy 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 electricity used had been provided by the electrical corporation franchised by the City. Rate schedules for this purpose shall be available from the City. Nonutility suppliers shall install and maintain an appropriate utility-type metering system which will enable compliance with this section, or may arrange another methodology for applying the tax provided such methodology is acceptable to the Tax Administrator. The term "charges," as used in this section, shall include charges made for:

(1) Metered electrical 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.

(b) As used in this section, the term "using electrical energy" shall not mean energy manufactured or generated in or on a boat, automobile, airplane, train or other device used for the purpose of transporting people and goods when used in the boat, automobile, airplane, train or device used for transporting people or goods in which the electricity was manufactured or generated.

(c) The tax imposed in this section shall be collected from the service user by any electrical energy service supplier. An electrical energy supplier providing wheeling services for delivery of electricity through its distribution system shall collect the tax from the service user based upon the cost of wheeling the electricity. The tax on electricity provided by self-production or by a nonutility supplier shall be collected and remitted in the manner set forth in section 14-229. The amount of tax collected 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 or remit the tax, an estimated amount of tax measured by the tax billed in the previous month or upon the payment pattern of the customers of the service supplier, shall be remitted.

(Code 1975, § 8-50; Ord. No. 02-01, § 2)

(a) The tax imposed on every person using cogenerated electrical energy in the City shall be at the rate specified in section 14-239. The tax applicable to cogenerated electrical energy used on site shall be determined by applying the tax rate to the equivalent charges the cogenerator would have incurred if the energy used had been provided by the electrical corporation franchised by the City.

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

(c) The tax shall be collected and paid by the cogenerator under section 14-229 if the cogenerator consumes the energy. If the cogenerator sells the energy for consumption in the City, the tax will be imposed by applying the tax rate to the equivalent charges for such service the service user would have incurred if the energy used had been provided by the electrical corporation franchised by the City, and shall be collected from the service user by the electrical energy supplier.

(d) The amount of the tax collected in one month shall be remitted to the Tax Administrator by U.S. Mail on or before the last day of the following month.

(Code 1975, § 8-51; Ord. No. 02-01, § 2)

(a) There is imposed a tax upon the use of gas in the City, including gas which is transported through a pipeline distribution system or by mobile transport. The tax imposed by this section shall be at the rate of five percent of the total qualified charges made for such gas and shall be paid by the person using the gas. The tax applicable to gas provided by nonutility suppliers 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. The term "charges," as used in this section, shall include:

(1) The charge for gas which is delivered through a gas pipeline distribution system or by mobile transport;

(2) Gas transportation charges; and

(3) Demand charges, service charges, customer charges, minimum charges, annual and monthly charges and any other charges authorized by the California Public Utilities Commission or Federal Energy Regulatory Commission.

(b) There shall be excluded from the tax imposed in this section:

(1) Charges made for gas which is to be resold and delivered through a gas pipeline distribution system or mobile transport;

(2) Charges made for gas used by a cogenerator or as the primary fuel in a fuel cell to generate electricity; and

(3) Charges made for natural gas used in the propulsion of a motor vehicle, as that phrase is defined in the Vehicle Code of the State of California, utilizing natural gas.

(c) Tax imposed in this section shall be collected from the service user by the energy service supplier. A gas supplier providing transportation services for delivery of gas through a pipeline distribution system shall collect the tax from the service user based upon the cost of transporting the gas. The tax on gas provided by self-production or by a non-utility supplier shall be collected and remitted in the manner set forth in section 14-229. The amount of tax collected 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 or remit the tax, an estimated amount of tax measured by the tax billed in the previous month or upon the payment pattern of the customers of the service supplier, shall be remitted.

(Code 1975, § 8-52; Ord. No. 02-01, § 2)

(a) Any service user subject to the tax imposed by sections 14-225, 14-226, 14-227 and 14-228 hereof, who produces electricity or gas for self-use or who receives electricity or gas directly from a nonutility supplier not under the jurisdiction of this article 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 and remit the tax due directly to the City within 30 days of such use.

(b) The Tax Administrator may require said service user to identify its nonutility supplier and provide, subject to audit, filed tax returns or other satisfactory evidence documenting the quantity of electricity or gas used and the price thereof.

(Code 1975, § 8-53; Ord. No. 02-01, § 2)

(a) There is imposed a tax upon the use of cable television service and all other cable and related services provided by any person furnishing cable television services in the City. The tax imposed by this section shall be at the rate of five percent of the total charges made for such services and shall be paid by the person paying for such service.

(b) The tax imposed in this section shall be collected from the service user by the person furnishing the cable television service. The amount collected shall be remitted to the Tax Administrator by U.S. Mail on a quarterly basis and shall be remitted with the franchise payment.

(Code 1975, § 8-54; Ord. No. 02-01, § 2)

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

(b) Penalties and interest on delinquent payments of any tax under this article shall be as set forth in section 14-123.

(Code 1975, § 8-55; Ord. No. 02-01, § 2)

Any tax required to be paid by a service user under the provisions of this article shall be deemed a personal debt owed by the service user to the City. Any such tax collected from a service user which has willfully been withheld from the Tax Administrator shall be deemed a debt owed to the City by the person required to collect and remit. The person required to collect the tax under this article shall be deemed a public official for the purpose of collecting the tax. Any person owing money to the City under the provisions of this article shall be liable in a civil or criminal action brought in the name of the City or the people for the recovery of such amount, or the failure to pay such amount.

(Code 1975, § 8-56; Ord. No. 02-01, § 2)

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

(1) Subject to section 14-229, the tax shall be collected insofar as practicable at the same time as and along with the charges made in accordance with the regular billing practices of the service supplier. Where the amount paid by a service user to a service supplier is less than the full amount of the utility charge and tax which has accrued for the billing period, such amount and any subsequent payments by a service user shall be applied to the utility charge first until such charge has been fully satisfied. Any remaining balance shall be applied to taxes due. In those cases where a service user has notified the service supplier of refusal to pay the tax imposed on said utility charges, section 14-235(c) will apply.

(2) The duty to collect the tax from a service user shall commence with the beginning of the first full regular billing period applicable to the service user where all charges normally included in such regular billing are subject to the provisions of this article. Where a person receives more than one billing, one or more being for different periods than another, the duty to collect shall arise separately for each billing.

(Code 1975, § 8-57; Ord. No. 02-01, § 2)

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

(b) The Tax Administrator shall have the power to adopt rules and regulations not inconsistent with provisions of this article for the purpose of carrying out and enforcing the payment, collection and remittance of the taxes herein imposed. A copy of such rules and regulations shall be on file in the Tax Administrator's office.

(c) The Tax Administrator may make administrative agreements to vary the strict requirements of this article so that collection of any tax imposed 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 article. A copy of each such agreement shall be on file in the Tax Administrator's office.

(d) The Tax Administrator shall determine the eligibility of any person who asserts a right to exemption from the tax imposed by this article. The Tax Administrator shall provide the service supplier with the name of any person who the Tax Administrator determines is exempt from the tax imposed hereby, together with the address to which service is supplied to any such exempt person. The Tax Administrator shall notify the service supplier of termination of any person's right to exemption hereunder, or the change of any address to which service is supplied to any exempt person.

(e) The Tax Administrator shall provide written notice to all service suppliers of any change in the City's boundaries at least 90 days prior to any annexation or other change in the City's boundaries. Said notice shall set forth the revised boundaries by street and address along with a copy of the final annexation order from Local Agency Formation Commission.

(Code 1975, § 8-58; Ord. No. 02-01, § 2)

(a) The Tax Administrator may make an assessment for taxes not remitted by a person required to remit.

(b) Whenever the Tax Administrator determines that a service user has deliberately withheld the amount of the tax owed by the service user from the amounts remitted to a person required to collect the tax, or that a service user has refused to pay the amount of tax, the Tax Administrator may relieve the person charged with collection of the tax of the obligation to collect taxes due under this article from certain named service users for specified billing periods.

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

(d) In the event that the person charged with collection of the tax has been relieved of that duty pursuant to subsections (b) and (c) of this section, the Tax Administrator shall notify the service user that the Tax Administrator has assumed responsibility to collect the taxes due for the stated periods and demand payment of such taxes. The notice shall be served on the service user by personal delivery or by deposit of the notice in the U.S. 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 addresses, to the last known address. If a service user fails to remit the tax to the Tax Administrator within 15 days from the date of the service of the notice, which shall be the date of mailing if service is not accomplished in person, a penalty of 25 percent of the amount of the tax set forth in the notice shall be imposed, but not less than $5.00. The penalty shall become part of the tax herein required to be paid.

(Code 1975, § 8-59; Ord. No. 02-01, § 2)

(a) It is the duty of every person required to collect and remit to the City any tax imposed by this article to keep and preserve, for a period of three years, all records as may be necessary to determine liability for the remittance to the Tax Administrator, which records the Tax Administrator shall have the right to inspect at all reasonable times.

(b) A person providing transportation services of natural gas to a service user for delivery through a gas pipeline distribution system shall make available to the Tax Administrator records of names and addresses of service users for whom only transportation services are provided by such persons. All information provided to the Tax Administrator pursuant to this section shall be used solely for the purposes of this article.

(Code 1975, § 8-60; Ord. No. 02-01, § 2)

(a) Whenever the amount of any tax has been overpaid or paid more than once or has been erroneously or illegally collected or received by the Tax Administrator under this article, it shall be refunded by the Tax Administrator.

(b) Notwithstanding the provisions of subsection (a) of this section, a service supplier may claim a refund, or take as credit against taxes to be remitted the amount overpaid, paid more than once, or erroneously or illegally collected or received when it is established that the service user from whom the tax has been collected did not owe the tax; provided however, that neither a refund nor a credit shall be allowed unless the amount of the tax erroneously or illegally collected has either been refunded to the service user or credited to charges subsequently payable by the service user to the person required to collect and remit. A service supplier that has collected any amount of tax in excess of the amount of tax imposed by this article and actually due from a service user, may refund such amount to the service user and claim credit for such overpayment against the amount of tax which is due upon any future monthly returns, provided such credit is claimed in a return properly dated no later than three years from the date of overpayment.

(c) No refund shall be paid under the provisions of this section unless the claimant establishes the right thereto by written records showing entitlement thereto.

(d) Notwithstanding other provisions of this section, whenever a service supplier, pursuant to an order of the California Public Utilities Commission or a court of competent jurisdiction, makes a refund to service users of charges for past utility services, the taxes paid pursuant to this article on the amount of such refunded charges shall also be refunded to service users, and the service supplier shall be entitled to claim a credit for such refunded taxes against the amount of tax which is due upon the next monthly returns. In the event this article is repealed, the amounts of any refundable taxes will be borne by the City.

(e) A service supplier may refund the taxes collected to the service user in accordance with this section or by the service supplier's customary practice.

(Code 1975, § 8-61; Ord. No. 02-01, § 2)

If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this article or any part thereof is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portion of this article or any part thereof. The people declare that they would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, clause or phrases be declared unconstitutional.

(Code 1975, § 8-62; Ord. No. 02-01, § 2)

(a) The utility users tax shall be reviewed by the City Council on an annual basis, in conjunction with the City Council's consideration of the City's General Fund budget for the immediately succeeding fiscal year.

(b) Upon completion of the annual review required by subsection (a) of this section, and after finding that the projected financial condition of the City during the immediately succeeding fiscal year will not be adversely impacted, the City Council shall have the discretion to reduce the rate of the utility users tax imposed by this article from five percent to a lower rate not lower than one-quarter of one percent for such immediately succeeding fiscal year.

(c) In the event that the City Council acts to reduce the rate of the utility users tax in accordance with this subsection (c), then, subject to subsection (d) of this section, such reduction shall only remain in effect for the one fiscal year for which the City Council approves the reduction. Upon the conclusion of such fiscal year, the rate of the utility users tax shall automatically, and without further action of the City Council, revert from the reduced rate to five percent, unless the City Council takes a separate action in accordance with subsection (b) of this section to reduce the rate of the utility users tax to a lower rate not lower than one-quarter of one percent for the next succeeding fiscal year.

(d) In the event that the City Council acts to reduce the rate of the utility users tax in accordance with subsection (b) of this section, and the City Council subsequently determines that the tax rate reduction adversely impacts the City's financial condition, the City Council shall have the discretion to increase the utility users tax for the remainder of the fiscal year to a rate not to exceed five percent.

(e) The service supplier shall, upon notification, modify any utility users tax commencing with the first full billing period which occurs after the effective date of such action by the City Council.

(Code 1975, § 8-63; Ord. No. 02-01, § 2; Init. Ord. No. 10-01, § 1, 3-2-2002; Res. No. 2010-62, 12-7-2010)

The following CAP or maximum amount shall be payable under the provisions of this article:

(1) The combined total maximum of electricity, cogenerated electricity, gas, telephone, water and cable user taxes paid by any single service user for one location under this article shall not exceed the sum of $10,000.00 during any 12-month period between January 1 and December 31.

(2) A service user may deposit the maximum tax specified in subsection (a) of this section with the Tax Administrator during the month of January each year as payment in advance of taxes due under this article for the 12-month period commencing on the first day of said month and ending on December 31 thereafter. Any service user making a deposit of maximum tax shall not thereafter be billed for any tax under this article for said 12-month period. The Tax Administrator shall notify each service supplier when to cease and when to resume billing the tax to such service users.

(3) The penalty assessment provided in section 14-231 shall not be counted in computing the maximum tax as provided in subsection (a) of this section.

(4) Any service user paying more than a maximum tax provided for in subsection (a) of this section during any 12-month period commencing January 1 and ending December 31, may claim a refund or credit for such overpayment from the Tax Administrator in the manner provided in section 14-237.

(5) The phrase "one location" as used in subsection (a) of this section means one or more contiguous sites for which the service user receives one or more utility billings.

(Code 1975, § 8-64; Ord. No. 02-01, § 2)