§ 3-11

This chapter shall be known as the "Utility Users' Tax Law of the City."

(§ 1, Ord. 365-C.S., eff. April 27, 1983, taxes operative July 1, 1983)

This chapter is adopted pursuant to the provisions of Section 37100.5 of the Government Code of the State for the purpose of providing general municipal revenues to be used for general municipal purposes.

(§ 1, Ord. 365-C.S., eff. April 27, 1983, taxes operative July 1, 1983)

Effective July 1, 1983, there is established and imposed an annual utility users' tax in the amount set forth in this chapter for the purpose of raising revenues for the general governmental purposes of the City. Such tax shall be levied for each fiscal year by the City unless modified by the Council in accordance with this chapter.

(§ 1, Ord. 365-C.S., eff. April 27, 1983, taxes operative July 1, 1983)

For the purposes of this chapter, unless otherwise apparent from the context, certain words and phrases used in this chapter are defined as follows:

(a)

"Person" means all domestic and foreign corporations, associations, syndicates, joint stock companies, partnerships of every kind, joint ventures, clubs, Massachusetts business or common law trusts, societies, and individuals.

(b)

"Month" means a calendar month.

(c)

"Service user" means a person required to pay a tax imposed under the provisions of this chapter.

(d)

"Service supplier" means a person required to collect and remit a tax imposed under the provisions of this chapter.

(e)

"City" means the City of Pacifica.

(f)

"Tax Administrator" means the Director of Finance and Central Services.

(g)

"Electrical corporation" and "gas corporation" shall have the same meanings as defined in Sections 218 and 222, respectively, of the Public Utilities Code of the State as such sections read as of March 28, 1983.

(h)

"Utility tax year" means the twelve (12) month period commencing July 1 and ending June 30 of the succeeding calendar year. The initial utility tax year shall be July 1, 1983, through June 30, 1984, inclusive.

(i)

"Service address" means the address of the ultimate consumer of the service supplied by the service supplier.

(j)

"Business service use" means a person required to pay a tax imposed under the provisions of this chapter for a service address of a business as defined in Chapter 1 of this title.

(§ 1, Ord. 365-C.S., eff. April 27, 1983, as amended by § 1, Ord. 369-C.S., eff. July 27, 1983, taxes operative July 1, 1983)

(a)

Nothing in this chapter shall be construed as imposing a tax upon the City or upon any person when the imposition of such tax upon such person would be in violation of the Constitution of the United States or the Constitution of the State. All governmental agencies in the City shall be exempt from this chapter.

(b)

Service users who use electrical or gas energy in their residences to power special medical devices or medical equipment directly necessary as a result of a medical condition or physical disability may apply for an exemption to the taxes imposed by this chapter. Service users in such classification shall apply to the Tax Administrator for exemption. Applicants shall furnish adequate documentation that the criteria of this subsection have been satisfied. The Tax Administrator shall determine whether the criteria of this subsection have been satisfied and whether the exemption shall be granted. Upon granting such an exemption, the Tax Administrator shall notify the electrical and gas service suppliers to exempt the appropriate service address from the utility users' tax.

(c)

Residential service users who have reached the age of sixty-two (62) may apply to the Tax Administrator for an exemption to the taxes imposed by this chapter. Applications for such exemptions shall be filed by the

completion of the application form approved by the Tax Administrator for such purpose. The application shall be accompanied by adequate written documentation that the applicant is sixty-two (62) years of age or older, is the service user whose account is listed at the service address for which the exemption is sought, and is personally responsible for the payment of the utility service at the service address. The Tax Administrator shall determine whether the criteria of this subsection have been satisfied and whether the exemption shall be granted. Upon granting such an exemption, the Tax Administrator shall notify the electrical and gas service suppliers to exempt the appropriate service user from the utility users' tax. In the event the applicant no longer resides at the service address for which an exemption has been granted, such exemption shall terminate and be of no further force or effect.

(d)

A person who qualifies as a low income residential service user may be exempted from the tax imposed by this chapter as set forth in this section.

(1)

The tax imposed in this chapter shall not apply to a residential service user where both the following conditions are satisfied:

(i)

The total annual gross income for all residents of the household in which the service user lives meets the criteria for lower or very-low income households as defined by the U. S. Department of Housing and Urban Development for San Mateo County, California.

(ii)

The application for exemption is accompanied by adequate written documentation that the applicant is the service user whose account is listed at the service address for which the exemption is being sought, that the applicant is personally responsible for the payment of the utility service at the service address, and that the total household income meets the eligibility criteria set forth in this subsection.

(2)

Any person claiming exemption pursuant to this subsection may file a claim for exemption at any time during which they meet the eligibility requirements imposed by this subsection. An application for the exemption shall be made on forms supplied by the Tax Administrator, shall declare facts under oath which qualify the applicant for the exemption, and shall provide adequate documentation that the criteria of this subsection have been met.

(3)

The Tax Administrator or his or her designee shall review all applications for exemption, determine whether the criteria of this subsection have been met and whether the exemption shall be granted, certify as exempt those applicants which qualify, and notify all service suppliers affected that such exemptions have been approved. Such notice shall state the name of the exempt applicant, the account number shown on the utility bill, the address to which exempt service is being supplied, and any other information necessary for

the service supplier to remove the exempt service user from the tax billing procedure. Upon receipt of the written notification from the Tax Administrator, the service supplier shall not be required to collect any further tax from such exempt service user until further notice from the Tax Administrator.

(4)

All exemptions for persons who qualify as low income residential service users shall expire on May 31st of each year, unless application for renewal is made and approved beforehand. The Tax Administrator shall notify each service supplier to resume taxing those service users who have not applied for renewal of their exempt status or whose applications for renewal have been denied. Upon receipt of written notice these service suppliers shall resume taxing those accounts affected commencing with the first billing period following notification by the Tax Administrator.

(e)

Any exempted service user shall notify the Tax Administrator within ten (10) days of any change of address or any change in fact or circumstance which might disqualify that service user from receiving an exemption from tax. If it is determined that the service user is no longer qualified, the Tax Administrator shall give notice to the service suppliers that they shall resume collection of the tax commencing with the next billing period. If the user is entitled to exemption at a new address, the Tax Administrator shall notify the service suppliers of that fact.

(f)

It shall be a misdemeanor for any person to knowingly receive the benefits of the exemption provided for in this chapter when the basis for exemption does not exist or ceases to exist.

(g)

The Tax Administrator may at any time require evidence of eligibility or continued eligibility of a service user for any exemption. Such evidence may include, without limitation, copies of business records, pay stubs, letters or statements from the Social Security Administration, copies of income tax returns, and other evidence concerning the service user or members of his or her household which may tend to prove or disprove eligibility. Failure to provide sufficient evidence to establish eligibility when requested by the Tax Administrator shall be grounds for denial or discontinuance of the service user's exemption.

(h)

No person shall be exempt from the tax except as provided in this section. The provisions of this chapter shall not apply retroactively, and no refund shall be made for any taxes paid prior to the issuance and effective date of any exemption granted by the Tax Administrator, nor shall any refund be made for any taxes collected during any period in which an exemption from the Tax Administrator was not in effect or had lapsed by failure to apply for renewal.

(§ 1, Ord. 365-C.S., eff. April 27, 1983, taxes operative July 1, 1983, as amended by § 1, Ord. 455-85, eff. December 25, 1985, § 1, Ord. 496-C.S., eff. December 9, 1987, § 1, Ord. 571-C.S., eff. July 10, 1991, and §§ 1—5, Ord. 713-C.S., eff. December 24, 2003)

(a)

There is imposed a tax upon every person in the City, other than an electrical corporation or a gas corporation, using electrical energy in the City. The tax imposed by this section shall be at the rate of six and one-half (6.5%) percent on the charges made for such energy for each service user and shall be paid by the person paying for such energy, subject to the limitations set forth in Section 3-11.08 of this chapter.

(b)

As used in this section, the words "using electrical energy" shall not be construed to mean the use of such energy from a storage battery; provided, however, the term shall include the receiving of such energy for the purpose of using it in the charging of storage batteries.

(c)

As used in this section, the words "using electrical energy" shall not be construed to mean the receiving of such energy by an electrical corporation or a governmental agency at a point within the City for resale.

(d)

The tax imposed by this section shall be collected from the service user by the person selling such electrical energy. The amount of tax collected in one month shall be remitted to the Tax Administrator on or before the last day of the following month.

(§ 1, Ord. 365-C.S., eff. April 27, 1983, as amended by § 1, Ord. 369-C.S., eff. July 27, 1983, taxes operative July 1, 1983, and § 1, Ord. 509-C.S., eff. August 10, 1988)

(a)

There is hereby imposed a tax upon every person in the City, other than a gas corporation or an electrical corporation, using gas in the City which is delivered through mains or pipes. The tax imposed by this section shall be at the rate of six and one-half (6.5%) percent on the charges made for such gas for each service user and shall be paid by the person paying for such gas, subject to the limitations set forth in Section 3-11.08 of this chapter.

(b)

As used in this section, the word "charges" shall not include charges made for gas used in the generation of electrical energy by a public utility or a governmental agency.

(c)

As used in this section, the words "using gas" shall not be construed to mean the receiving of such gas by a gas corporation or governmental agency at a point within the City for resale.

(d)

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

(§ 1, Ord. 365-C.S., eff. April 27, 1983, as amended by § 1, Ord. 369-C.S., eff. July 27, 1983, taxes operative July 1, 1983, and § 2, Ord. 509-C.S., eff. August 10, 1988)

(a)

The maximum total of the taxes under Sections 3-11.06 and 3-11.07 of this chapter payable by any business service user for any service address shall be Five Hundred and no/100ths ($500.00) Dollars for any utility tax year.

(b)

A residence which is also used as a business shall only be considered a non-business service user under this section.

(c)

A business service user may elect to make a lump sum payment of the maximum tax prior to the commencement of the initial utility tax year and thereafter at least thirty (30) days prior to the commencement of each succeeding utility tax year. If a service user elects to make an advance payment, the Tax Administrator shall notify the electrical and gas corporation to exempt the appropriate service address from the utility users' tax for the respective utility tax year.

(d)

A business service user may apply to the Tax Administrator for a refund of any payment in excess of the Five Hundred and no/100ths ($500.00) Dollars maximum actually paid. An application for such a refund should be made to the Tax Administrator on a prescribed form within ninety (90) days after the end of the utility tax year, and documented evidence shall be provided showing to the satisfaction of the Tax Administrator that the applicant has paid cumulative monthly utility taxes for such utility tax year in excess of the maximum provided in subsection (a) of this section. The Tax Administrator shall thereupon refund to the business service user the sum actually paid in excess of the maximum provided in subsection (a) of this section.

(§ 1, Ord. 365-C.S., eff. April 27, 1983, as amended by § 1, Ord. 369-C.S., eff. July 27, 1983, taxes operative July 1, 1983, § 1, Urgency Ord. 570-C.S., eff. June 10, 1991 and § 1, Ord. 601-C.S., eff. February 22, 1993)

Each year, in conjunction with the City's annual budget hearing, the Council shall conduct a public hearing on the provisions and rate of the utility users' tax. Notice of such hearing shall be posted at the City Hall and published once in a newspaper of general circulation published in the County and circulated in the City. All such information and materials which the Council intends to consider at such hearing and the amount of

the tax to be raised shall be made available to the public by being on file in the office of the City Manager for at least ten (10) days prior to such hearing.

Following the hearing, the Council may modify the provisions and rate of the tax set forth in this chapter. The tax shall continue to be levied for each utility tax year under the provisions of this chapter unless modified by the Council.

(§ 1, Ord. 365-C.S., eff. April 27, 1983, taxes operative July 1, 1983)

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. 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. 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.

(§ 1, Ord. 365-C.S., eff. April 27, 1983, taxes operative July 1, 1983)

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

(a)

The taxes 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. Except in those cases where a service user pays the full amount of such charges but does not pay any portion of the taxes imposed by this chapter, or where a service user has notified a service supplier that he is refusing to pay a tax imposed by this chapter which such service supplier is required to collect, if the amount paid by a service user is less than the full amount of the charge and tax which has accrued for the billing period, a proportionate share of both the charge and the tax shall be deemed to have been paid.

(b)

The duty to collect the tax from a service user shall commence with the beginning of the first regular full billing period applicable to such person which starts on or after July 1, 1983. Where a person receives more than one billing, one or more being for different periods than another, the duty to collect shall arise separately for each billing period.

(§ 1, Ord. 365-C.S., eff. April 27, 1983, taxes operative July 1, 1983)

The Tax Administrator shall have the power and duty, and is hereby directed, to enforce each and all of the provisions of this chapter. The Tax Administrator shall have the power to adopt rules and regulations not inconsistent with the provisions of this chapter for the purpose of carrying out and enforcing the payment, collection, and remittance of the taxes imposed by this chapter, and a copy of such rules and regulations shall be on file and available for public examination in the office of the Tax Administrator.

(§ 1, Ord. 365-C.S., eff. April 27, 1983, taxes operative July 1, 1983)

The Tax Administrator may make administrative agreements to vary the strict requirements of this chapter so that the collection and remittance of any tax imposed by this chapter may be made in conformance with the billing procedures of a particular service supplier as long as the overall result of such agreements results in the 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 and available for public examination in the office of the Tax Administrator.

(§ 1, Ord. 365-C.S., eff. April 27, 1983, taxes operative July 1, 1983)

Taxes collected from a service user which are not remitted to the Tax Administrator on or before the due dates provided in this chapter shall be delinquent.

(§ 1, Ord. 365-C.S., eff. April 27, 1983, taxes operative July 1, 1983)

Interest and penalties for delinquencies in the remittance of any tax collected by a service supplier and not remitted shall be assessed as follows:

(a)

Any service supplier who fails to remit any tax imposed by this chapter within ten (10) days after the receipt of written notice from the City of such failure shall pay a penalty of ten (10%) percent of the amount of the tax.

(b)

If the Tax Administrator determines that the nonpayment of any remittance due under this chapter is due to fraud, a penalty of twenty-five (25%) percent of the amount of the tax shall be added thereto in addition to the penalty set forth in subsection (a) of this section.

(c)

In addition to the penalties imposed by this section, any service supplier who fails to remit any tax imposed by this chapter shall pay interest at the rate of one percent per month on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent until paid.

(d)

Every penalty imposed upon a service supplier, and such interest as accrues, under the provisions of this section shall become a part of the tax required to be remitted.

(§ 1, Ord. 365-C.S., eff. April 27, 1983, taxes operative July 1, 1983)

(a)

Any service user who fails to pay any tax imposed by this chapter within ninety (90) days after the date of notification of the amount of the tax due from the service supplier shall pay a penalty of ten (10%) percent of the amount of the tax, or One and no/100ths ($1.00) Dollar whichever is greater, and shall pay interest at the rate of one percent per month, or fraction thereof, on the amount of the tax, exclusive of penalties, from the date on which the payment is ninety (90) days delinquent.

(b)

Whenever the Tax Administrator determines that a service user has deliberately withheld the amount of any tax imposed by the provisions of this chapter from the amounts remitted to a service supplier required to collect the tax, or that a service user has failed to pay the amount of the tax to such service supplier for a period of three (3) or more billing periods, or whenever the Tax Administrator deems it in the best interests of the City, he shall relieve such service supplier of the obligation to collect the taxes due under this chapter from certain named service users for specified billing periods. The Tax Administrator shall notify the service user that he has assumed the responsibility to collect the taxes and penalties due for the stated periods and demand the payment of such taxes. The notice shall be served on the service user by handing it to him personally or by the deposit of the notice in the United States mail, postage prepaid thereon, addressed to the service user at the address to which the billing was made by the service supplier 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 and penalty to the Tax Administrator within fifteen (15) days after the date of service of the notice upon him, which shall be the date of mailing if service is not accomplished in person, an additional penalty of twenty-five (25%) percent of the amount of the tax and penalty set forth in the notice shall be imposed, but not less than Ten and no/100ths ($10.00) Dollars.

(c)

Every penalty imposed upon a service user, and such interest as accrues, under the provisions of subsections (a) and (b) of this section shall become a part of the tax required to be paid.

(§ 1, Ord. 365-C.S., eff. April 27, 1983, taxes operative July 1, 1983)

(a)

If the service user fails to pay the City the tax and penalties set forth in Section 3-11.16 of this chapter, the Tax Administrator may proceed to collect the delinquent account under the procedures and provisions of Section 6-5.12 of Chapter 5 of Title 6 of this Code as a lien against the parcel of land against which the charge is imposed. If such collection procedure is used, the amount for City and County collection costs shall be added to the amount as an additional penalty.

(b)

The Tax Administrator may also proceed to collect the tax and penalties under the provisions of Section 3-