Needles Municipal Code Ch. 20A Utility Users Tax

20A-010 Purpose 20A-020 Definitions 20A-030 Electricity Users Tax 20A-040 Collection Of Tax From Service Users Receiving Direct Purchase Of Electricity 20A-050 Water Users Tax 20A-060 Sewer Users Tax 20A-070 Exemptions 20A-080 Duty To Collect--Procedures 20A-090 Filing Return And Payment 20A-100 Collection Penalties 20A-110 Deficiency Determination And Assessment - Tax Application Errors 20A-120 Administrative Remedy - Non-Paying Service Users 20A-130 Actions To Collect 20A-140 Additional Powers And Duties Of Tax Administrator 20A-150 Records 20A-160 Refunds 20A-170 Appeals 20A-180 No Injunction/Writ Of Mandate 20A-190 Remedies Cumulative 20A-200 Notice Of Changes To Ordinance 20A-210 Penalties 20A-220 Future Amendment To Cited Statute 20A-230 Independent Audit Of Tax Collection, Exemption, Remittance And Expenditure HISTORY Adopted by Ord. 545-AC on 12/21/2012 20A-010 Purpose

This Chapter is enacted solely to raise revenue for the general governmental purposes of the City. All of the proceeds from the tax imposed by this Chapter shall be placed in the City’s general fund.

20A-020 Definitions

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

1. “Billing Address” shall mean the mailing address of the Service User where the Service Supplier submits invoices or bills for payment by the customer.
2. “City” means the City of Needles.
3. “City Manager” means the City Manager of the City, or his or her authorized representative.
4. “Cogenerator” shall mean any corporation or Person employing cogeneration (as defined in Section 216.6 of the California Public Utilities Code) for producing power for the generation of electricity for sale to others from a qualified cogeneration facility (as defined in the federal Public Utility Regulatory Policies Act of 1978 and regulations thereunder.)
5. “Month” means a calendar month.

6. “Non-Utility Supplier” shall mean: 1. A Service Supplier, other than a supplier of electric distribution services to all or a significant portion of the City, which generates electricity for sale to others, and shall include, but is not limited to, any publicly-owned electric utility, investor-owned utility, investor-owned utility, Cogenerator, municipal utility district, federal power marketing authority, electric rural cooperative, or other supplier or seller of electricity; 2. An electric service provider (ESP), electricity broker, marketer, aggregator, pool operator, or other electricity supplier other than a supplier of electric distribution services to all or a significant portion of the City, which sells or supplies electricity or supplemental services to electricity users within the City; and
   7. “NPUA” means the Needles Public Utility Authority.
   8. “Person” shall mean, without limitation, any natural individual, firm, trust, common law trust, estate, partnership of any kind, association, syndicate, club, joint stock company, joint venture, limited liability company, corporation (including foreign, domestic, and non-profit), municipal district or municipal corporation (other than the City or NPUA cooperative, receiver, trustee, guardian, or other representative appointed by order of any court.
   9. “Service Address” means the residential street address or the business street address of the Service User.
   10. “Service Supplier” shall mean any Person, including the City, that provides electricity, water or sewer service to a user or such services within the City and remits a tax as imposed by this Chapter, including its billing agent in the case of electric or water.
   11. “Service User” shall mean a Person required to pay a tax imposed under the provisions of this Chapter.
   12. “State” shall mean the State of California.
   13. “Tax Administrator” means the finance director of the City or his or her designee.

20A-030 Electricity Users Tax

1. There is hereby imposed a tax upon every Person using electricity in the City. The tax imposed by this section shall be at the rate as set by resolution of the City Council, not to exceed the rate of two and a half percent (2.5%) of the charges made for such electricity, and for any supplemental services or other associated activities directly related and/or necessary for the provision of electricity to the end-user, which are provided by a Service Supplier or Non-Utility Supplier to a Service User. The tax shall be collected from the Service User by the Service Supplier or Non-Utility Supplier, or its billing agent.
   2. As used in this section, the term “charges” shall apply to all services, components and items that are: i) necessary or common to the receipt, use and enjoyment of electric service; or, ii) currently, or historically have been included in a single or bundled rate for electric service by a local distribution company to a class of retail customers. The term “charges” shall include, but is not limited to, the following charges: 1. energy charges; 2. distribution and transmission charges. 3. metering charges; 4. stand-by, reserves, firming, ramping, voltage support, regulation, emergency, or other similar minimum charges for services; 5. customer charges, service establishment or reestablishment charges demand charges, fuel or other cost adjustments, power exchange charges, independent system operator (ISO) charges, stranded investment or competitive transition charges (CTC), public purpose program charges,

nuclear decommissioning charges, trust transfer amounts (bond financing charges), franchise fee, franchise surcharge, annual and Monthly charges, and other charges, fees and surcharges which are necessary to or common for the receipt, use and enjoyment of electric service; and 6. charges, fees, or surcharges for electricity services or programs, which are mandated by the California Public Utilities Commission, or the Federal Energy Regulatory Commission, whether or not such charges, fees, or surcharges appear on a bundled or line item basis on the customer billing. 3. As used in this section, the term “charges” shall include the value of any other services, credits, property of every kind or nature, or other consideration provided by the Service User in exchange for the electricity or services related to the provision of such electricity. 4. The Tax Administrator, from time to time, may survey the electricity Service Suppliers to identify the various unbundled billing components of electric retail service that they commonly provide to residential and commercial/industrial customers in the City, and the charges therefor, including those items that are mandated by state or federal regulatory agencies as a condition or providing such electric service. The Tax Administrator, thereafter, may issue and disseminate to such electric Service Suppliers an administrative ruling identifying those components and items which are: i) necessary or common to the receipt, use or enjoyment of electric service; or ii) currently, or historically have been, included in a single or bundled rate for electric service by a local distribution company to a class of retail customers. Charges for such components and items shall be subject to the tax of subsection (a) above. 5. 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 or her for use in a automobile or other machinery or 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 public utility; nor shall the term include electricity used and consumed by an electric public utility or governmental agency at a point within the City for resale; or the use of such energy in the production or distribution of water by a public utility or a governmental agency.

20A-040 Collection Of Tax From Service Users Receiving Direct Purchase Of Electricity

1. Any Service User subject to the tax imposed by Section 20A-030 which receives electricity directly from a Non-Utility Supplier not under the jurisdiction of this ordinance, or which otherwise is not having the full tax due on the use of electricity in the City that is directly billed and collected by the Service Supplier or its billing agent, shall report said fact to the Tax Administrator and shall remit the tax due directly to the Tax Administrator within thirty (30) days of such use. In lieu of paying said actual tax, the Service User may, at its option, remit to the Tax Administrator within thirty (30) days of such use an estimated amount of tax measured by the tax billed in the previous Month, or upon the pattern payment of similar customers of the Service Supplier using similar amounts of electricity, provided that the Service User shall submit an adjusted payment or request for credit, as appropriate, within sixty (60) days following each calendar quarter. The credit, if approved by the Tax Administrator, may be applied against any subsequent tax bill that becomes due.
2. The Tax Administrator may require said Service User to identify its Non-Utility Supplier and provide, subject to audit, invoices, books of account, or other satisfactory evidence documenting the quantity of electricity used and the cost or price thereof. If the Service User is unable to provide such satisfactory evidence, or, if the administrative cost of calculating the tax, in the opinion of the City, is excessive, the

City may determine the tax by applying the tax rate to the equivalent charges the Service User would have incurred if the electricity used had been provided by the Service Supplier, which is the primary supplier of electricity.

20A-050 Water Users Tax

1. There is imposed a tax upon every Person using water in the City which is transported and delivered through a pipeline distribution system. The tax imposed by this section shall be at the rate as set by resolution of the City Council, not to exceed the rate of two and a half percent (2.5%) of the charges made for such water and shall be collected from the Service User by the water Service Supplier, or its billing agent.
   2. As used in this section, the term “charges” shall apply to all services, components and items that are: i) necessary for or common to the receipt, use or enjoyment of water service; or, ii) currently are or historically have been included in a single or bundled rate for water service by a local distribution company to a class of retail customers. The term “charges” shall include, but is not limited to, the following charges: 1. water commodity charges (potable and non-potable); 2. distribution or transmission charges; 3. metering charges; 4. customer charges, late charges, service establishment or reestablishment charges, franchise fees, franchise surcharges, annual and Monthly charges, and other charges, fees and surcharges which are necessary for or common to the receipt, use or enjoyment of water service; and, 5. charges, fees, or surcharges for water services or programs, which are mandated by a water district or a state or federal agency, whether or not such charges, fees, or surcharges appear on a bundled or line item basis on the customer billing.
   3. As used in this section, the term “charges” shall include the value of any other services, credits, property of every kind or nature, or other consideration provided by the Service User is exchange for the water services.
   4. The Tax Administrator, from time to time, may survey the water Service Suppliers in the City to identify the various unbundled billing components of water retail service that they commonly provide to residential and commercial/industrial customers in the City, and the charges therefor, including those items that are mandated by a water district or a state or federal agency as a condition of providing such water service. The Tax Administrator, thereafter, may issue and disseminate to such water Service Suppliers and administrative rules identifying those components and items which are: i) necessary for or common to the receipt, use or enjoyment of water service; or ii) currently are or historically have been included in a single or bundled rater for water service by a local distribution company to a class of retail customers. Charges for such components and items shall be subject to the tax of subsection (a) above.
   5. 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 a pipeline distribution system; and charges made by a municipal water department, public utility or a county or municipal water district for water used and consumed by such department, utility or district in the conduct of the business of such department, utility or district.
   6. The tax on water service imposed by this section shall be collected from the Service User by the water Service Supplier or its billing agent. The amount of tax collected in one (1) Month shall be remitted to the Tax Administrator, and must be received by the Tax Administrator on or before the twentieth (20th) day of the following Month.

20A-060 Sewer Users Tax

1. There is hereby imposed a tax upon every Person in the City using sewer services provided by the City. The tax imposed by this section shall be at the rate as set by resolutions of the City Council, not to exceed the rate of two and a half percent (2.5%) of the charges made for such sewer services at one location and shall be paid by the Person paying for such sewer services.
2. The tax imposed in this section shall be collected from the Service User by the City. If applicable, the amount of tax collected in one (1) Month shall be remitted to the Tax Administrator, and must be receive by the Tax Administrator on or before the twentieth (20th) day of the following Month.
3. The phrase “one location” as used in subsection (a) shall mean one or more contiguous sites for which the Service User receives one of more utility billings.

20A-070 Exemptions

The taxes imposed by this Chapter shall not apply to:

1. Constitutional and Statutory Exemptions. 1. Any Person or Service User if imposition of such tax upon the Person or Service User would be in violation of a federal or state statute or the Constitution of the United States or the Constitution of the State of California, or otherwise exempted by this Chapter.
   2. The City; and
   3. NPUA.

20A-080 Duty To Collect--Procedures

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

1. The tax shall be collected insofar as practicable at the time 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 charge and tax which has accrued for the billing period, such amount and any subsequent payments by a Service User any be applied to the utility service charge first until such charge has been fully satisfied. Any remaining balance shall be applied to the taxes due, except in those cases where a Service User pays the full amount of the charges but notifies the Service Supplier of his or her refusal to pay the tax imposed on the charges.
   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.
   3. Bundling Rule. If any nontaxable charges are bundled within and not separately stated from taxable service charges on the customer bill or invoice of a Service Supplier, the combined charge is subject to tax unless the Service Supplier identifies, by a reasonable and verifiable standards, the portions of the combined charge that are nontaxable and taxable through the Service Supplier’s books and records kept in the regular course of business, and in accordance with generally accepted accounting principles, and not created and maintained for tax purposes. The Service Supplier has the burden of proving the proper apportionment of taxable and non-taxable charges. If the Service Supplier offers a combination of taxable and non-taxable services, and the charges are separately stated, then for taxation purposes, the values assigned the taxable and non-taxable services shall be based on its books and records kept in the

regular course of business and in accordance with generally accepted accounting principles, and not created and maintained for tax purposes. The Service Supplier has the burden of proving the proper valuation of the taxable and non-taxable services.

20A-090 Filing Return And Payment

Each Person required by this Chapter to remit a tax shall file a return to the Tax Administrator, on forms approved by the Tax Administrator on or before the due date. The full amount of the tax collected shall be included with the return and filed with the Tax Administrator. The Tax Administrator is authorized to require such additional information as he/she deems necessary to determine if the tax is being levied, collected, and remitted in accordance with this Chapter. Returns are due immediately upon cessation of business for any reason. Pursuant to Revenue and Tax Code Section 7284.6, the Tax Administrator, and its agents, shall maintain such filing returns as confidential information exempt from disclosure provisions of the Public Records Act.

20A-100 Collection Penalties

1. Taxes collected from a Service User, or self-collected by a Service User subject to Section 20A-080, are delinquent if not received by the Tax Administrator on or before the due date. Should the due date occur on a weekend or legal holiday, the return must be received by the Tax Administrator on or before the first regular working day following the weened or legal holiday. A direct deposit, including electronic fund transfers and other similar methods of electronically exchanging monies between financial accounts, made by a Service Supplier in satisfaction of its obligations under this subsection shall be considered timely if the transfer is initiated on or before the due date, and the transfer settles into the City’s account on or before the following business day.
2. If a Service Supplier, or Service User subject to Section 20A-080, fails to remit any tax collected, on or before the due date, said Person shall pay a penalty for such delinquencies at the rate as set forth by resolution of the City Council of the total tax that is delinquent in the remittance, and shall pay interest at the rate as set forth by resolution of the City Council, on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent, until paid.
3. The Tax Administrator shall have the power to impose additional penalties upon Persons required to collect and/or remit taxes pursuant to the provisions of this Chapter for fraud or gross negligence in reporting or remitting at the rate as set forth by resolution of the City Council of the amount of the tax collected and/or required to be remitted, or as recomputed by the Tax Administrator.
4. For collection purposes only, every penalty imposed and such interest that is accrued under the provisions of this section shall become a part of the tax herein required to be paid.
5. Notwithstanding the foregoing, the Tax Administrator may, in his or her discretion, modify the due dates of this Chapter to be consistent with any uniform standards or procedures that are mutually agreed upon by UUT public agencies, or otherwise legally established, to create a UUT central payment location or mechanism.

20A-110 Deficiency Determination And Assessment - Tax Application Errors

1. The Tax Administrator shall make a deficiency determination if he or she determines that any Person required to collect or self-collect taxes pursuant to the provisions of this Chapter has failed to collect and remit the proper amount of tax by improperly or failing to apply the tax to one or more taxable services or charges.

2. The Tax Administrator shall mail a notice of such deficiency determination to the Person required to pay or remit the tax, which notice shall refer briefly to the amount of the taxes owed, plus interest at the rate as set forth by resolution of the City Council, on the amount of the tax from the date on which the t tax should have been received by the City. Within fourteen (14) calendar days after the date of service of such notice, the Person may request in writing to the Tax Administrator for a hearing on the matter. If the Person fails to request a hearing within the prescribed time period, the amount of the deficiency determination shall become a final assessment, and shall immediately be due and owing to the City.

   3. If the Person requests a hearing, the Tax Administrator shall cause the matter to be set for hearing, which shall be held within thirty (30) days after receipt of the written request for hearing. Notice of the time and place of the hearing shall be mailed by the Tax Administrator to such Person at least (10) calendar days prior to the hearing, and, if the Tax Administrator desires said Person to produce specific records at such hearing, such notice may designate the records requested to be produced.
   4. At the time fixed for the hearing, the Tax Administrator shall hear all relevant testimony and evidence, including that of any other interested parties. At the discretion of the Tax Administrator, the hearing may be continued from time to time for the purpose of allowing the presentation of additional evidence. Within a reasonable time following the conclusion of the hearing, the Tax Administrator shall issue a final assessment (or non-assessment), thereafter, by confirming, modifying or rejecting the original deficiency determination, and shall mail a copy of such final assessment to Person owning the tax. The decision of the Tax Administrator may be appealed pursuant to Section 20A-170. Filing an application pursuant to Section 20A-110B and appeal to the City Manager pursuant to Section 20A-170 is a prerequisite to suit thereon.
   5. Payment of the final assessment shall become delinquent if not received by the Tax Administrator on or before the thirtieth (30th) day following the date of receipt of the notice of final assessment. The penalty for delinquency shall be at the rate as set forth by resolution of the City Council on the total amount of the assessment, along with interest at the rate as set forth by resolution of the City Council, on the amount of the tax, exclusive of penalties, from the date of delinquency, until paid. The applicable statute of limitations, regarding a claim by the City seeking payment of a tax assessed under Section 20A-110 shall commence from the date of delinquency as provided in this subsection (e).
   6. All notices under this section may be sent by regular mail, postage prepaid, and shall be deemed received on the third calendar day following the date of mailing, as established by a proof of mailing.

20A-120 Administrative Remedy - Non-Paying Service Users

1. 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 whenever the Tax Administrator deems it in the best interest of the City, he or she may relieve such Person of the obligation to collect the taxes due under this Chapter from certain named Service Users for specific billing periods. Whenever the Service User has failed to pay the amount of tax owed for a period of two (2) or more billing periods, the Service Supplier shall be relieved of the obligation to collect taxes due. The Service Supplier shall provide the City with the names and Service Addresses of such Service Users and the amounts of taxes owed under the provisions of this Chapter.
2. In addition to the tax owed, the Service User shall pay a delinquency penalty at the rate as set forth by resolution of the City Council of the total tax that is owed, and shall pay interest at the rate as set forth by resolution of the City Council, on the amount of the tax, exclusive of penalties, from the due date, until paid.

3. The Tax Administrator shall notify the non-paying Service User that the Tax Administrator has assumed the responsibility to collect the taxes due for the stated periods and demand payment of such taxes, including penalties and interest. 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, addressed to the Service User at the Billing Address; or, should the Service User have a change of address, to his or her last known address.
   4. If the Service User fails to remit the tax to the Tax Administrator within thirty (30) days from the date of the service of the notice upon him or her, the Tax Administrator may impose an additional penalty of fifteen percent (15%) of the amount of the total tax that is owed.

20A-130 Actions To Collect

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 not been remitted to the Tax Administrator shall be deemed a debt owed to the City by the Person required to collect and remit and shall no longer be a debt of the Service User. 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, including penalties and interest as provided for in this Chapter, along with any collect costs incurred by the City as a result of the Person’s noncompliance with this Chapter, including, but not limited to, reasonable attorneys fees and court costs.

20A-140 Additional Powers And Duties Of Tax Administrator

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 may adopt administrative rules and regulations not inconsistent with provisions of this Chapter for the purpose of interpreting, clarifying, carrying out and enforcing the payment, collection and remittance of the taxes herein imposed. A copy of such administrative rules and regulations shall be on file in the Tax Administrator’s office.
   3. Upon a proper showing of good cause, the Tax Administrator may make administrative agreements, with appropriate conditions, to vary from the strict requirements of this Chapter and thereby: (a) conform to the billing procedures of a particular Service Supplier (or Service User subject to Chapter) so long as said agreements result in the collection of the tax in conformance with the general purpose and scope of this Chapter, or, (b) to avoid a hardship where the administrative costs of collection and remittance greatly outweigh the tax benefit. A copy of each such agreement shall be on file in the Tax Administrator’s office, and are voidable by the Tax Administrator or the City at any time.
   4. The Tax Administrator may conduct an audit, to ensure proper compliance with the requirements of this Chapter, of any Person required to collect and/or remit a tax pursuant to this Chapter. The Tax Administrator shall notify said Person of the initiation of an audit in writing. In the absence of fraud or other intentional misconduct, the audit period of review shall not exceed a period of three (3) years next preceding the date of receipt of the written notice by said Person from the Tax Administrator. Upon completion of the audit, the Tax Administrator may make a deficiency determination pursuant to Section 20A-110 for all taxes, penalties and interest owed and not paid, as evidence by information provided by such Person to the Tax Administrator. If said Person is unable or unwilling to provide sufficient records to enable the Tax Administrator to verify compliance with this Chapter, the Tax Administrator is authorized to make a reasonable estimate of the deficiency. Said reasonable estimate shall be entitled to a rebuttable presumption of correctness.

2. Upon receipt of a written request of a taxpayer, and for good cause, the Tax Administrator may extend the time for filing any statement required pursuant to this Chapter for a period of not to exceed forty- five (45) days, provided that the time for filing the required statement has not already passed when the request is received. No penalty for delinquent payment shall accrue by reason of such extension. Interest shall accrue during said extension at the rate as set forth by resolution of the City Council.

   6. The Tax Administrator shall determine the eligibility for any Person who asserts a right to exemption from, or a refund of, the tax imposed by this Chapter.
   7. Notwithstanding any provision in this Chapter to the contrary, the Tax Administrator may waive any penalty or interest imposed upon a Person required to collect and/or remit for failure to collect the tax imposed by this Chapter if the non-collection occurred in good faith. In determining whether the non- collection was in good faith, the Tax Administrator shall take into consideration industry practice or other precedence.

20A-150 Records

1. It shall be the duty of every Person required to collect and/or remit to the City any tax imposed by this Chapter to keep and preserve, for a period of at least three (3) years, all records as may be necessary to determine the amount of such tax as he/she may have been liable for the collection of and remittance to the Tax Administrator, which records the Tax Administrator, or the Tax Administrator’s designated representative, shall have the right to inspect at a reasonable time.
   2. The City may issue an administrative subpoena to compel a Person to deliver, to the Tax Administrator, copies of all records deemed necessary by the Tax Administrator to establish compliance with this Chapter, including the delivery of records in a common electronic format on readily available media if such records are kept electronically by the Person in the usual and ordinary course of business. As an alternative to delivering the subpoenaed records to the Tax Administrator on or before the due date provided in the administrative subpoena, such Person may provide access to such records outside the City on or before the due date, provided that such Person shall reimburse the City for all reasonable travel expenses incurred by the City to inspect those records, including travel, lodging, meals, and other similar expenses, but excluding the normal salary or hourly wages of those Persons designated by the City to conduct the inspection.
   3. The Tax Administrator is authorized to execute a non-disclosure agreement approved by the City Attorney to protect the confidentiality of customer information pursuant to California Revenue and Tax Code Section 7284.6 and 7284.7. The Tax Administrator, or the Tax Administrator’s designated representative, may request from a Person providing transportation services of electricity to Service Users within the City a list of the names and Service Addresses, and other pertinent information, of its transportation customers within the City pursuant to Section 6354(e) of the California Public Utilities Code.
   4. If a Service Supplier uses a billing agent or billing aggregator to bill, collect, and/or remit the tax, the Service Supplier shall: i) provide to the Tax Administrator the name, address and telephone number of each billing agent and billing aggregator currently authorized by the Service Supplier to bill, collect, and/or remit the tax to the City; and ii) upon request of the Tax Administrator, deliver, or effect the delivery of, any information or records in the possession of such billing agent or billing aggregator that, in the opinion of the Tax Administrator, is necessary to verify the proper application, calculation, collection and/or remittance of such tax to the City.
   5. If any Person subject to record-keeping under this section unreasonably denies the Tax Administrator, or the Tax Administrator’s designated representative, access to such records, or fails to produce the information request in an administrative subpoena within the time specified, then the Tax

Administrator may impose a penalty of $500 on such Person for each day following: i) the initial date that the Person refuses to provide such access; or, ii) the due date for production of records as set forth in the administrative subpoena. This penalty shall be in addition to any other penalty imposed under this Chapter.

20A-160 Refunds

Whenever the amount of any tax has been overpaid or paid more than once of has been erroneously or illegally collected or received by the Tax Administrator under this Chapter, it may be refunded as provided in this section:

1. The Tax Administrator may refund any tax that has been overpaid, paid more than once, or has been erroneously or illegally collected or received by the Tax Administrator under this Chapter, provided that no refund shall be paid under the provisions of this section unless the claimant or his or her guardian, conservator, executor or administrator has submitted a written claim, under penalty of perjury, to the Tax Collector. The period for filing a claim for refund shall be one year from the time the tax was paid or erroneously or illegally collected; provided however, that in no event shall the period to file such claim expire prior to the shortest period allowable for filing a tax refund claim under Title 1, Division 3.6, Part 3, Section 911.2 of the California Government Code. Such claim must clearly establish claimant’s right to the refund by written records showing entitlement thereto, and must clearly set forth the fact and legal theories under which the claimant believes he or she has right to refund. Nothing herein shall permit the filing of a refund claim on behalf of a class or group of taxpayers. Where the amount of any individual refund claim is in excess of the amount set by separate resolution of the City Council relating to the settlement of general liability claims against the City by the Tax Administrator, City Council approval shall be required.
   2. The filing of a written claim pursuant to Government Code Section 935 is a prerequisite to any suit thereon. Any action brought against the City pursuant to this section shall be subject to the provisions of Government Code Sections 945.6 and 946.
   3. Notwithstanding the notice provisions of subsection (a) of this section, a Service Supplier that has collected any amount of tax in excess of the amount of tax imposed by this Chapter and actually due from a Service User (whether due to overpayment or erroneous or illegal collection of said tax), may refund such amount to the Service User, or credit to charges subsequently payable by the Service User to the Service Supplier, and claim credit for such overpayment against the amount of tax which is due upon any other Monthly returns to the Tax Administrator, provided such credit is claimed in a return dated no later than one year from the date of overpayment or erroneous or illegal collection of said tax. The Tax Administrator shall determine the validity of the Service User’s claim of credit, and the underlying basis for such claim.
   4. Notwithstanding the notice provisions of subsection (a) of this section, in the event that a Service Supplier, or a Person required to self-impose a tax imposed by this Chapter, remits a tax to the City in excess of the amount of tax imposed by this Chapter, said Service Supplier, or a Person required to self- impose a tax imposed by this Chapter, may claim credit for such overpayment against the amount of tax which is due upon any other Monthly returns to the Tax Administrator, provided such credit is claimed in a return dated no later than on year from the date of overpayment of said tax, and provided that the Finance Director shall first determine the validity of the Service User’s claim of credit, and the underlying basis for such claim.

20A-170 Appeals

1. The provisions of this section apply to any decision (other than a decision relating to a refund pursuant to Section 20A-160), deficiency determination, assessment, or administrative ruling of the Tax Administrator. Any person aggrieved by any decision (other than a decision relating to a refund pursuant to Section 20A-160), deficiency determination, assessment, or administrative ruling of the Tax Administrator, shall be required to comply with the appeals procedure of this section. Compliance with this section shall be a prerequisite to suit thereon. Nothing herein shall permit the filing of a claim or action on behalf of a class or group of taxpayers.
   2. If any person is aggrieved by any decision (other than a decision relating to a refund pursuant to Section 20A-160), deficiency determination, assessment, or administrative ruling of the Tax Administrator; he or she may appeal to the City Manager by filing a notice of appeal with the City Clerk within fourteen (14) days of the date of the decision, deficiency determination, assessment, or administrative ruling of the Tax Administrator which aggrieved the Service User or Service Supplier.
   3. The matter shall be set for hearing no more than thirty (30) days from the receipt of the appeal. The appellant shall be served with notice of the time and place of the hearing, as well as any relevant materials, at least five (5) calendar days prior to the hearing. The hearing may be continued from time to time upon mutual consent. At the time of the hearing, the appealing party, the Tax Administrator, the City Manager, and any interest Person may present such relevant evidence as he or she may have relating to the determination from which the appeal is taken.
   4. Based upon the submission of such evidence and the review of the City’s files, the City Manager shall issue a written notice and order upholding, modifying or reversing the determination from which the appeal is taken. The notice shall be given within fourteen (14) days after the conclusion of the hearing and shall state the reasons for the decision. The notice shall specify that the decision is final and that any petition for judicial review shall be filed within ninety (90) days from the date of the decision in accordance with Code of Civil Procedure Section 1094.6. If the City Manager fails or refuses to act on a refund claim within the fourteen (14) day period, the claim shall be deemed to have been rejected by the City Manager on the fourteenth (14th) day.
   5. All notices under this section may be sent by regular mail, postage prepaid, and shall be deemed received on the third calendar day following the date of mailing, as established by a proof of mailing.

20A-180 No Injunction/Writ Of Mandate

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

20A-190 Remedies Cumulative

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

20A-200 Notice Of Changes To Ordinance

If a tax under this Chapter is added, repealed, increased, reduced, or the tax base is changed, the Tax Administrator shall follow the notice requirements of California Public Utilities Code Section 799 Prior to the effective date of the ordinance change, the Service Supplier shall provide the Tax Administrator with a copy of any written procedures describing the information that the Service Supplier needs to implement the ordinance

change. If the Service Supplier fails to provide such written instructions, the Tax Administrator, or his or her agent, shall send, by first class mail, a copy of the ordinance change to all collectors and remitters of the City’s utility users and taxes according to the latest payment records of the Tax Administrator.

20A-210 Penalties

Any Person violating any of the provisions of this Chapter shall be deemed guilty of a misdemeanor, or an infraction at the discretion of the City Attorney.

20A-220 Future Amendment To Cited Statute

Unless specifically provided otherwise, any reference to a state or federal statute in this Chapter shall mean such statute as it may be amended from time to time.

20A-230 Independent Audit Of Tax Collection, Exemption, Remittance And Expenditure

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