Maywood Municipal Code Art. 5 Utility User Tax

This article shall be known as the "utility user tax ordinance" of the City of Maywood.

(§ 1, Measure P, eff. May 29, 2004)

This article is enacted solely to raise revenue for the general governmental purposes of the City of Maywood. All of the proceeds from the tax imposed by this article shall be placed in the City's general fund and used for the usual and current expenses of the City.

(§ 1, Measure P, eff. May 29, 2004)

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

(a) "Person" shall mean 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 individuals.

(b) "City" shall mean the City of Maywood.

(c) "Telephone corporation," "electrical corporation," "gas corporation," and "water corporation" shall have the same meanings as defined in Sections 234, 218, 222, and 241 respectively, of the California Public Utilities Code except, "electrical corporation," "gas corporation" and "water corporation" shall also be construed to include any municipality, public agency or person engaged in the selling or supplying of electrical power or gas or water to a service user. "Waste hauler" shall mean any person who provides waste collection and hauling services in the City. "Waste hauler" shall not include a contract agent of the City, as defined in Section 6-2.101 of this Code, which is required to pay a franchise fee to the City.

(d) "Tax Administrator" shall mean the Chief Administrative Officer of the City of Maywood.

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

(f) "Service user" shall mean a person required to pay a tax imposed by this article.

(g) "Month" shall mean a calendar month.

(h) "Nonutility supplier" shall mean: (1) a service supplier, other than an electrical corporation providing service within the City, which generates electrical energy in capacities of at least fifty (50) kilowatts for its own use or for sale to others; or (2) a gas supplier other than a gas corporation, that sells or supplies gas to users within the City.

(§ 1, Measure P, eff. May 29, 2004)

(a) There is imposed a tax upon every person in the City, other than a telephone corporation, using intrastate, interstate and international telephone communication services in the City. The tax imposed by this section shall be at the rate of seven (7%) percent of the charges made for such services for persons or businesses using such services for industrial, commercial or any use other than service to the person's residence and at the rate of four (4%) percent for persons using such services for service to the person's residence and shall be paid by the person paying for such services. Any person who provides proof that the taxpayer has properly paid a telephone communication services tax to a local jurisdiction other than the City of Maywood based upon the same transmission as is taxed by the City shall be entitled to a refund, credit or adjustment for any duplicate tax that the taxpayer has paid to the City.

(b) As used in this section, the following terms are defined as follows:

(1) "Intrastate, interstate and international telephone communication services" are those services which originate or terminate within the State of California and are charged to a Maywood service address.

(2) "Telephone communication services" means the transmission of any communications, messages, or information, whether by fixed or any other form through electronic or other means, between or among points by wire, cable, fiber optics, laser, microwave, radio, satellite or other methods.

(3) "Service address" is the address where the telephone equipment is located and to which the telephone number is assigned.

(c) 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 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 land mobile service or maritime mobile services as defined in Section 2.1 of Title 47 of the Code of Federal Regulations, as said section existed on January 1, 1970.

(d) 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 tax collected in one (1) month shall be remitted to the Tax Administrator on or before the last day of the following month.

(e) 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.

(§ 1, Measure P, eff. May 29, 2004)

(a) There is imposed a tax upon every person in the City using electrical energy. The tax imposed by this section shall be at the rate of seven (7%) percent for persons or businesses using electrical energy for industrial, commercial or any use other than service to the person's residence, and at the rate of four (4%) percent for persons using electrical energy for service to the person's residence, and shall be billed to and paid by the person using the energy furnished by an electrical corporation franchised to serve the City. 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. Rate schedules for this purpose shall be available from 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 electricity used and consumed by an electric utility supplier in the conduct of its business; 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 Maywood for resale.

(c) The tax imposed in this section shall be collected from the service user by the service supplier. The amount of tax collected by a service supplier in one (1) month shall be remitted to the Tax Administrator before the last day of the following month.

(§ 1, Measure P, eff. May 29, 2004)

(a) There is imposed a tax upon every person in the City using gas which is delivered through mains, pipes or mobile transport. The tax applicable to gas or gas transportation 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. Rate schedules for this purpose shall be available from the City. Nonutility suppliers shall install, maintain and use an appropriate utility-type metering system which will enable compliance with this section. The tax imposed by this section shall be at the rate of seven (7%) percent for persons or businesses using utility for industrial, commercial or any use other than service to the person's residence and at the rate of four (4%) percent for persons using such services for service to the person's residence and shall be paid by the person paying for such services. "Charges," as used in this section, shall include: (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 Utility 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 sold for use in the generation of electrical energy or for the production or distribution of water by a public utility or governmental agency; (3) charges made for gas used in the propulsion of a motor vehicle, as authorized in the Vehicle Code of the State of California; and (4) charges made for gas used by a nonutility supplier to generate electrical energy for its own use or for sale to others provided the electricity so generated is subject to tax under Section 3-5.505 of this article.

(c) The tax imposed in this section shall be collected from the service user by the person selling the gas. The amount collected in one (1) month shall be remitted to the Tax Administrator on or before the last day of the following month.

(§ 1, Measure P, eff. May 29, 2004)

(a) There is imposed a tax upon every person using in the City the services of a waste hauler for the removal of trash or refuse. The tax imposed by this section shall be at the rate of seven (7%) percent for persons or businesses using such services for industrial, commercial or any use other than service to the person's residence and at the rate of four (4%) percent for persons using such services for service to the person's residence and shall be paid by the person paying for such services.

(b) The tax imposed in this section shall be collected from the service user by the person providing the service. The amount collected in one (1) month shall be remitted to the Tax Administrator on or before the last day of the following month.

(§ 1, Measure P, eff. May 29, 2004)

(a) There is imposed a tax upon every person in the City using water which is delivered through mains or pipes. The tax imposed by this section shall be at the rate of seven (7%) percent for persons or businesses using water for industrial, commercial or any use other than service to the person's residence and at the rate of four (4%) percent for persons using such services for service to the person's residence and shall be paid by the person paying for such services. "Charges," as used in this section, shall include charges made for metered water and charges for service, including customer charges, service charges, and annual and monthly charges and any other charge authorized by law.

(b) There shall be excluded from the base on which the tax imposed in this section is computed, charges made for water which is to be resold and delivered through mains or pipes.

(c) The tax imposed in this section shall be collected from the service user by the person supplying the water. The amount collected in one (1) month shall be remitted to the Tax Administrator on or before the last day of the following month.

(§ 1, Measure P, eff. May 29, 2004)

(a) Notwithstanding any other provision of this article, a service user receiving gas or electricity 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 within thirty (30) days of said use and shall directly remit to the Tax Administrator the amount of tax due.

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

(§ 1, Measure P, eff. May 29, 2004)

(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 and are subject to penalties and interest. When the due date falls on a weekend or legal holiday, the tax shall be remitted on or before the next business day thereafter. Taxes shall be deemed remitted on the date received by the Tax Administrator, or on the date postmarked if remitted by first class United States mail with postage fully prepaid.

(b) In addition to the penalties imposed as provided in Section 3-5.514, any service user who fails to pay any tax imposed by this article shall pay interest at the rate of one (1%) percent per month, from the date on which the tax first became delinquent until paid.

(c) The interest accrued under the provision of this section shall become a part of the tax required to be paid.

(§ 1, Measure P, eff. May 29, 2004)

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

(§ 1, Measure P, eff. May 29, 2004)

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

(a) 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 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 his refusal to pay the tax imposed on said energy charges, Section 3-3.514 will apply.

(b) The duty to collect tax from a service user shall commence with the beginning of the first full regular billing period applicable to the service user where all charges normally included in such regular billing are subject to the provisions of this article. 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.

(§ 1, Measure P, eff. May 29, 2004)

(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. A copy of such rules and regulations shall be provided to each service supplier. Each service supplier shall maintain for public inspection, a copy of the rules and regulations, as provided by the Tax Administrator.

(c) The Tax Administrator may make administrative agreements to vary the strict requirements of this article so that collection of any tax imposed here may be made in conformance with the billing procedures of particular service supplier.

(§ 1, Measure P, eff. May 29, 2004)

(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 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 tax to such person, or whomever the Tax Administrator deems it in the best interest of the City, he may relieve such person of the obligation to collect taxes due under this article from certain named service users for specified billing periods.

(c) The service supplier shall provide the City with amounts refused and/or unpaid along with 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 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.

(d) The Tax Administrator shall notify the service user that he 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 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 remit 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 and No/100ths ($5.00) Dollars. The penalty shall become part of the tax herein required to be paid.

(§ 1, Measure P, eff. May 29, 2004)

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

(§ 1, Measure P, eff. May 29, 2004)

(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 may be refunded as provided in this section.

(b) Notwithstanding the provisions of subsection (a) of this section, a service supplier may claim a refund; or take as credit against taxes remitted the amount overpaid, paid more than once, or erroneously or illegally collected or received, when it is established that the service user from whom the tax has been collected did not owe the tax; provided, however, that neither a refund nor a credit shall be allowed unless the amount of the tax so 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 other monthly returns, provided such credit is claimed in a return dated no later than three (3) years from the date of overpayment.

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

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

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

(§ 1, Measure P, eff. May 29, 2004)

(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 the Constitution or the laws of the United States or of the State of California.

(b) The tax imposed by this article shall not apply to the utility usage by any local, state or federal government entity, including school districts, nor to any service supplier required to collect and remit a tax imposed by this article.

(c) 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 article and provide that such classes or persons or service shall be exempt, in whole or in part from such tax.

(§ 1, Measure P, eff. May 29, 2004)

(a) The taxes imposed by this section shall not apply to any service user who is the head of a household and either:

(1) Sixty-two (62) years old or older; or

(2) A recipient of supplemental social security benefits.

(b) The taxes imposed by this section shall not apply to any "health facility" within the meaning of California Government Code Section 15432, as that section read on January 1, 1990, or to any facility operated by a nonprofit entity which provides outpatient services under the authority granted pursuant to Section 1275 or 1275.6 of the California Health and Safety Code.

(c) To qualify for an exemption set forth in this section, a service user shall file an application in the form, time and manner prescribed by the Tax Administrator.

(d) The Tax Administrator shall, within sixty (60) days of receipt of an application for exemption, determine whether the applicant is entitled to an exemption, and if so, notify the service supplier.

(e) An exemption granted pursuant to this section shall become effective at 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.

(f) The Tax Administrator shall notify the service supplier of the termination of any person's right to exemption hereunder, or the change of any address to which service is supplied to any exempt person.

(§ 1, Measure P, eff. May 29, 2004)

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.

(§ 1, Measure P, eff. May 29, 2004)

The utility users tax shall be reviewed annually by the City Council which may adjust the rate, suspend or repeal the tax as appropriate to the financial condition of the City.

(§ 1, Measure P, eff. May 29, 2004)

Nothing contained in this article 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.

(§ 1, Measure P, eff. May 29, 2004)