Lindsay Municipal Code § 3.30 Utility Users Tax

The purpose of this chapter is to impose a general tax, herein referred to as a "utility users tax," as a revenue measure to provide funds to pay the usual and necessary expenses of the city. The proceeds shall be paid into the General Fund of the city to be expended only for expenses of the city chargeable to the general fund. Proceeds of the tax shall be general fund moneys available for any municipal purpose.

(Ord. 458 § 1 (part), 1994)

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

"City" means the city of Lindsay.

"Gas" means natural or manufactured gas or any alternate hydrocarbon fuel which may be supplied by pipeline to a service user by a service supplier.

"Miscellaneous subscriber paid services" means electronically transmitted financial, news, sports, entertainment, educational, information and shopping service furnished to service users for a fee.

"Month" means a calendar month.

"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, or individual.

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

"Sewer service" means the collection of domestic, commercial or industrial liquid waste and disposal thereof by primary, secondary or tertiary treatment, followed by recycling or by land application.

"Subscriber paid television" means television service furnished to subscribers for a fee irrespective of the manner in which service is received, whether by cable or other means.

"Tax administrator" means the person or persons so designated from time to time by the city manager of the city of Lindsay.

"Telephone corporation," "electrical corporation," "gas corporation," "water corporation," "cable television corporation," "sewer system corporation," and "refuse (solid waste) corporation," shall have the same meanings as defined in Sections 215.5, 218, 222, 230.6, 234, and 241 of the California Public Utilities Code, and 40193 of the Public Resources Code respectively, except "electrical corporation," "gas corporation," "water corporation," "sewer system corporation" and "refuse (solid waste) corporation" shall also be construed to include the city itself, any municipality, franchised agency, governmental agency, public agency, broker/marketer or person engaged in the selling or supplying of electrical power or gas or water or refuse service or sewer service to a service user. Cable television corporations shall include all television service received by a service user paid by subscription without reference to the means or manner of the transmission of the signal for which the subscriber is charged.

(Ord. 458 § 1 (part), 1994)

Nothing in this section shall be construed as imposing a tax upon:

1. The county of Tulare, the state or the United States, or upon the Lindsay Unified School District or Lindsay Elementary School District or upon any other person, the imposition of which will be in violation of the laws of the United States or the state or the Constitution of the United States or the state;
2. Any service user using gas or electrical energy for propulsion of farming tools and equipment, fork lifts, operation of stationary mechanical equipment used in the growing of crops, including wind machines and irrigation water wells and return and pressure systems;
3. Bottled gas without regard to the nature of use;
4. Water delivered by a service supplier, other than the city, to a service user for the irrigation of lands devoted to the production of crops for sale;
5. Bottled water service.

(Ord. 458 § 1 (part), 1994)

1. The maximum annual tax levied by this chapter to be paid by any single service user for one location under this chapter, shall be one thousand dollars per year, per utility. The phrase "one location" as used in this subsection means one or more contiguous sites not divided by a public street for which the service user receives one or more utility billings.
2. A utility service user, to qualify for the payment of a maximum tax pursuant to this chapter, must qualify for such right in the manner hereinafter provided and must comply with each and all of the following provisions:
3. The utility service user shall make written application on forms supplied by the tax administrator on or before June 1st of the year immediately preceding the fiscal year in which the maximum tax would be applicable or within thirty days after the commencement of the receipt of such utility service within the city. In the event of a new utility service, in such application the utility service user shall request, in writing, to pay the maximum tax to which the utility service tax will apply in lieu of tax payments billed by the utility service supplier.
4. The tax year to which the maximum limitations shall apply shall be from July 1st of each year until the next succeeding June 30th. For the period of time from December 1, 1994, to June 30, 1995, the maximum tax shall be prorated on a calendar month basis.
5. Said application shall include the utility user's name, applicable service location to which the maximum tax is to be applied, and the specific utility or utilities to which the maximum tax will be paid, together with such other information as may be required by the tax administrator.
6. The service user shall obtain the written approval of the tax administrator to pay the maximum tax.
7. The service user shall make payment of the maximum tax, for each applicable utility service, directly to the tax administrator, on or before July 1st of the fiscal year for which the maximum tax is to be paid. In the event of a new utility service, within thirty days after commencement of the receipt of such utility service at such location or within thirty days after the commencement of the levy of the tax.
8. The tax administrator shall provide to each applicable utility service provider a copy of the approved application to pay maximum tax and a copy of proof of payment of said maximum tax.
9. Commencing on July 1, 1996, and annually on July 1st of each year thereafter, the maximum tax payable pursuant to this chapter shall be adjusted by reference to the Consumer Price Index issued by the Bureau of Labor Statistics of the United States Department of Labor for Urban Consumers in the State of California or such other consumer price index issued by the Bureau of Labor Statistics in replacement thereof as follows:
10. The applicable consumer price index in effect on December 1, 1994, shall be deemed to be the base for determining any increase in the maximum tax.
11. The consumer price index for June 1st of each succeeding year commencing on June 1, 1996, shall be determined.
12. If the consumer price index established under subsection (C)(2) of this section is greater than the consumer price index determined under subsection (C)(1) of this section, the difference shall be determined.
13. The percentage increase in the consumer price index over and above that established under subsection (C)(1) of this section shall be the percentage increase in the maximum tax.
14. For computing the increase in the maximum tax each year, the base shall be the amount used to determine the increase for the previous period under subsection (C)(2) of this section.
15. To make the computation each year, the difference between the price index figure determined under subsection (C)(1) of this section and the price index figure determined under subsection (C)(2) of this section, shall be ascertained by subtracting the lesser from the greater. If the resulting figure is a negative figure, no increase in the maximum tax shall result. If a positive figure results, said change will be applied to establish a revised maximum annual tax.
16. For the purpose of making the computation of the maximum tax pursuant to this subsection, the tax administrator shall make the computation required by this subsection as of June 1st of each year. After making such computation, the tax administrator shall notify all persons known to him that are contemplating the exercise of a service user's right to pay the maximum tax. The annual computation of the maximum tax made by the tax administrator shall be binding upon all persons subject to the maximum tax. The computation of the maximum tax made by the tax administrator shall be binding upon all persons, bodies, or agencies subject to the tax or seeking to review or modify the same.
17. Any utility service user who is qualified for the payment of a maximum tax pursuant to the provisions set forth hereinabove shall thereafter not be taxed by the utility service provider for the fiscal year within which the utility service user has qualified for the payment of the maximum tax and paid the tax. The utility service provider shall not be responsible for the collection of the applicable utility tax for any party that has qualified for payment of the maximum tax as set forth hereinabove.
18. No utility service user shall be entitled to pay only the maximum tax, or to any refund for any payments made in excess of the maximum tax, unless he/she has satisfied the terms and conditions of subsection B of this section.

(Ord. 458 § 1 (part), 1994)

1. There is imposed a tax on the amounts paid for all intrastate, interstate and international telephone services, except cellular telephone service, by every person in the city using such services. The tax imposed by this section shall be at the rate of six percent of the charges made for such services and shall be paid by the person paying for such services.
2. 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 supplier 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 words "telephone communication services" include cellular land and noncellular mobile service or maritime mobile services as defined in Section 2.1 of Title 47 of the Code of Federal Regulations, as said section existed on January 1, 1970. The term "telephone communication services" 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 to the extent not prohibited by federal and/or state law, now or in the future. The tax imposed by this section applies to all telephone communication service however charge or billed, including, but not limited to prepaid services, post-paid services, 800 services (or any other toll-free numbers), or 900 services.
3. . The telephone users tax is intended to, and does, apply to all qualified 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. The tax imposed by this section shall in no instance exceed tax rates allowed under state or federal tax laws.
4. The tax imposed by this section shall be collected from the service user by the person providing the telephone communication services, or the person receiving payment for such services. The amount of the tax collected in one month shall be remitted to the tax administrator on or before the last day of the following month or as agreed to under the provisions of Section 3.30.170(C).
5. Notwithstanding the provisions of subsection A of this section, the tax imposed under this section shall not be imposed upon any person for using 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, or the tax imposed under Section 4251 of the Internal Revenue Code.

(Ord. 458 § 1 (part), 1994)

1. There is imposed a tax upon every person using electrical energy in the city. The tax imposed by this section shall be at the rate of six percent of the charges made for such energy and shall be paid by the person paying for such electrical energy. The tax applicable to electrical energy provided by self-production or a nonutility supplier shall be determined by applying the tax rate to the equivalent charges the service user would have incurred if the energy used had been provided by the electrical corporation franchised by the city. Rate schedules for this purpose shall be available from the 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 acceptable to the tax administrator. "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.
2. The tax imposed in this section shall be collected from the service user by the energy service supplier or nonutility supplier. An energy supplier providing wheeling services only 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 energy provided by self-production or by a nonutility supplier shall be collected and remitted in the manner set forth in Section 3.30.080. The amount of the tax collected in one month shall be remitted to the tax administrator on or before the last day of the following month or as agreed to under the provisions of Section 3.30.170(C).

(Ord. 458 § 1 (part), 1994)

1. There is imposed a tax upon every person using gas in the city, which is transported through a pipeline distribution system. The tax imposed by this section shall be at the rate of six percent of the charges made for such gas and shall be paid by the person paying for the gas. The tax applicable to gas 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 a gas corporation franchised by the city. "Charges" as used in this section shall include: (1) the charge for gas which is delivered through a gas pipeline distribution system; (2) gas transportation charges; and (3) demand charges, service charges, customer charges, minimum charges, annual and monthly charges.
2. The tax imposed in this section shall be collected from the service user by the energy service supplier or nonutility supplier. An energy supplier providing transportation services only 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 energy provided by self-production or by a nonutility supplier shall be collected and remitted in the manner set forth in Section 3.30.080. The amount of the tax collected in one month shall be remitted to the tax administrator on or before the last day of the following month or as agreed to under the provisions of Section 3.30.170(C).

(Ord. 458 § 1 (part), 1994)

1. Any service user subject to the tax imposed by Section 3.30.050, 3.30.060 or 3.30.070 hereof, who produces electricity or gas for self-use or who receives electricity or gas directly from a nonutility supplier, shall report said fact to the tax administrator and remit the tax due directly to the city within thirty days of such use.
2. 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.

(Ord. 458 § 1 (part), 1994)

1. There is imposed a tax upon every person in the city using water which is delivered by the city by mains or pipes. The tax imposed by this section shall be at the rate of six percent of the charges made for such water and shall be paid by the person paying for such water.
2. The tax imposed in this section shall be collected from the service user by the person supplying the water. The amount collected in one month shall be remitted to the tax administrator on or before the last day of the following month or as agreed to under the provisions of Section 3.30.170(C).

(Ord. 458 § 1 (part), 1994)

1. There is imposed a tax upon every person in the city using subscriber-paid television service. The tax imposed by this section shall be at the rate of six percent of the charges made for such service and shall be paid by the person paying for such service.
2. The tax imposed in this section shall be collected from the service user by the person furnishing the subscriber-paid television service. The amount of the tax collected in one month shall be remitted to the tax administrator on or before the last day of the following month or as agreed to under the provisions of Section 3.30.170(C).
3. Notwithstanding any other provision of this section, a service user receiving subscriber-paid television services directly from a nonutility supplier, or otherwise not having the full tax due, billed and collected by the service supplier, shall report said fact to the tax administrator within thirty days of said use; and shall remit the amount of tax due directly to the city.

(Ord. 458 § 1 (part), 1994)

1. There is imposed a tax upon every person in the city using refuse service. The tax imposed by this section shall be at the rate of six percent of the charges made for such service and shall be paid by the person paying for such services.
2. The tax imposed in this section shall be collected from the service user by the person furnishing the refuse service. The amount of the tax collected in one month shall be remitted to the tax administrator on or before the last day of the following month or as agreed to under the provisions of Section 3.30.170(C).

(Ord. 458 § 1 (part), 1994)

1. There is imposed a tax upon every person in the city using sewer service. The tax imposed by this section shall be at the rate of six percent of the charges made for such service and shall be paid by the person paying for such services.
2. The tax imposed in this section shall be collected from the service user by the person furnishing the sewer service. The amount of the tax collected in one month shall be remitted to the tax administrator on or before the last day of the following month or as agreed to under the provisions of Section 3.30.170(C).

(Ord. 458 § 1 (part), 1994)

1. There is imposed a tax upon every person in the city using miscellaneous subscriber-paid services, other than a subscriber-paid television service. The tax imposed by this section shall be at the rate of six percent of the charges made for such service and shall be paid by the person paying for such service.
2. The tax imposed in this section shall be collected from the service user by the person furnishing the miscellaneous subscriber-paid television service. The amount of the tax collected in one month shall be remitted to the tax administrator on or before the last day of the following month or as agreed to under the provisions of Section 3.30.170(C).
3. Notwithstanding any other provision of this ordinance, a service user receiving miscellaneous subscriber-paid television services directly from a nonutility supplier, or otherwise not having the full tax due, billed and collected by the service supplier, shall report said fact to the tax administrator within thirty days of said use; and shall remit the amount of tax due directly to the city.

(Ord. 458 § 1 (part), 1994)

1. 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.
2. Interest for delinquency in remittance of any tax collected or any deficiency determination shall attach and be paid by the person required to collect and remit at the rate of one and one-half percent per month of the total tax collected or imposed herein.
3. The tax administrator shall have the power to impose additional penalties upon persons required to collect and remit taxes under the provisions of this chapter for fraud or negligence in reporting or remitting at the rate of fifteen percent of the amount of the tax collected or as recomputed by the tax administrator.

(Ord. 458 § 1 (part), 1994)

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, together with attorney's fees and costs.

(Ord. 458 § 1 (part), 1994)

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

1. Notwithstanding the provisions of any other section of this chapter, 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 tea service supplier is less than the full amount of the energy 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 under this chapter, Section 3.30.170 will apply.
2. The duty to collect tax from a service user shall commence with the beginning of the first full regular billing period applicable to the service user where all charges normally included in such regular billing are subject to the provisions of this chapter. Where a person received more than one billing, one or more being for different periods than another, the duty to collect shall arise separately for each billing.

(Ord. 458 § 1 (part), 1994)

1. The tax administrator shall have the power and duty, and is hereby directed, to enforce each and all of the provisions of this chapter.
2. 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.
3. 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 such agreement shall be on file in the tax administrator's office.
4. 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 whom 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.
5. The tax administrator shall provide written notice to all service suppliers of any change in the city's boundaries within thirty days after the effective date of such change. Said notice shall set forth the revised boundaries by street and address along with a copy of the final annexation order from the Local Agency Formation Commission. The tax imposed shall apply to charges appearing on bills rendered as soon thereafter as the service supplier is able to arrange for bookkeeping and accounting functions so that the tax imposed can be billed to and/or collected from the service user, but in no case more than ninety days after said effective date.

(Ord. 458 § 1 (part), 1994)

1. The tax administrator may make an assessment for taxes not remitted by a person required to remit.
2. 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 to such person, or whenever the tax administrator deems it in the best interest of the city, the tax administrator may relieve such person of the obligation to collect taxes due under this chapter from certain named service users for specified billing periods.
3. The service supplier shall provide the city with amounts refused and/or unpaid with the names and addresses of the service users neglecting to pay the tax imposed under provisions of this chapter.
4. 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 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 addresses, to the last known address. If a service user fails to remit the tax to the tax administrator within fifteen 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 twenty-five percent of the amount of the tax set forth in the notice shall be imposed, but not less than five dollars. The penalty shall become a part of the tax herein required to be paid. Interest shall accrue from the date due at the rate of one and one-half percent per month.
5. In the event suit is instituted for any taxes becoming due to the city under this chapter, the court shall award a reasonable attorney's fee to the city.

(Ord. 458 § 1 (part), 1994)

1. It shall be the duty of every person required to collect and remit to the city any tax imposed by this chapter to keep and preserve, for a period of three years, all records as may be necessary to determine liability for the remittance to the tax administrator, which records the tax administrator shall have the right to inspect at all reasonable times.
2. A person providing transportation services of any utility to a user for delivery through any distribution system shall make available to the tax administrator records of the 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 chapter.

(Ord. 458 § 1 (part), 1994)

1. 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 chapter, it may be refunded by the tax administrator. No utility service user shall be entitled to a refund, nor may a utility service supplier apply for a refund, for the payment of a utility user's tax in excess of the maximum tax established by the council. It is the intent of this chapter that the only means for limiting payment of the utility user's taxes to any maximum amount established by the city council is for the utility service user to avail itself of the provisions of Section 3.30.040 of this chapter.
2. Any service user who is qualified under this section shall be entitled to a refund. The refund referred to in this subsection shall be one-third of the total utility taxes paid under this chapter by such person for utility services supplied to his/her primary residence for each full fiscal year after he/she has reached the age of sixty-two years. To be entitled to the refund referred to in this subsection, the service user shall make a claim for refund directly to the city, only during the months of July and August in the fiscal year following the year for which refund is claimed. Should the service user fail to make application for such refund during the time referred to in this subsection, the service user's right to such refund shall lapse and terminate.
3. In making an application for a refund, the service user shall file an application with the tax administrator on the forms supplied by the tax administrator which will be accompanied by a copy of each bill issued by the service supplier showing the tax paid, together with a receipt for payment or the canceled check for the amount of the utility bill.
4. Upon being satisfied that the applicant is entitled to a refund under the provisions of this chapter, the tax administrator shall be and is authorized, instructed and directed to make the refund applied for.
5. No refund shall be paid under the provisions of this section unless the claimant establishes the right thereto by written records showing entitlement thereto.
6. 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 chapter on the amount of such refunded charges shall also be refunded to service users, and the service supplier shall be entitled to claim a credit for such refunded taxes against the amount of tax which is due upon the next monthly returns. In the event this chapter is repealed, the amounts of any refundable taxes will be borne by the city.

(Ord. 458 § 1 (part), 1994)