Port Hueneme Municipal Code Ch. 4 Utility Users Tax

This Chapter shall be known and referred to as the "Utility Users Tax Ordinance" of the City.

(Ord. 608 § 1 (part), 1996: amended during 4-95 supplement; Ord. 599 (part), 1994)

This Chapter is adopted pursuant to the provisions of applicable law for the purpose of imposing utility users taxes to provide revenue to be used by the City for general municipal purposes.

(Ord. 608 § 1 (part), 1996: Ord. 599 (part), 1994)

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

"Ancillary telecommunication services" means services that are associated with or incidental to the provision, use or enjoyment of telecommunication services, including but not limited to the following services:

(1) "Conference bridging service" means an ancillary service that links two or more participants of an audio or video conference call and may include the provision of a telephone number. Conference bridging service does not include the telecommunication services used to reach the conference bridge.

(2) "Detailed telecommunication billing service" means an ancillary service of separately stating information pertaining to individual calls on a customer's billing statement.

(3) "Directory assistance" means an ancillary service of providing telephone number information, and/or address information.

(4) "Vertical service" means an ancillary service that is offered in connection with one (1) or more telecommunication services, which offers advanced calling features that allow customers to identify callers and to manage multiple calls and call connections, including conference bridging services.

(5) "Voice mail service" means an ancillary service that enables the customer to store, send or receive recorded messages. Voice mail service does not include any vertical services that the customer may be required to have in order to utilize the voice mail service

"Ancillary video services" means services that are associated with or incidental to the provision or delivery of video services, including but not limited to electronic program guide services, search functions, or other interactive services or communications that are associated with or incidental to the provision, use or enjoyment of video programming.

"Billing address" means the mailing address of the service user where the service supplier submits invoices or bills for payment by the customer.

"City" shall mean the City of Port Hueneme.

"City Manager" shall mean the City Manager or his or her designee.

"Communication services" means: "telecommunication services," "ancillary telecommunication services," "video services" and "ancillary video services."

"Congenerator" shall mean any person employing congeneration technology (as defined in Section 218.5 of the California Public Utilities Code) for producing power from other than a conventional power source for the generation of electricity or self use or sale to others.

"Electrical corporation, gas corporation and water corporation" have the same meaning, except as hereinafter provided, as defined in Sections 218, 222, 241, respectively, of the Public Utilities Code of the State of California, or any successor statute. "Water corporation" shall be construed to include any organization or municipality, including but not limited to, a mutual water company, engaged in the selling or supplying of water to a service user.

"Gas" shall mean natural or manufactured gas or any alternative hydrocarbon fuel which may be substituted therefor.

"Mobile telecommunications service" has the same meaning and usage as set forth in the Mobile Telecommunications Sourcing Act (4 U.S.C. Section 124) and the regulations thereunder or any successor statutes or regulations.

"Month" means a calendar month.

"Nonutility supplier" shall mean: (a) an electricity supplier, other than an electrical corporation franchised to serve the City, which generates electrical energy in capacities of at least fifty kilowatts for its own use or for sale to others, including those using congeneration or fuel cell technologies; or (b) a gas supplier, other than a gas corporation franchised to serve the City, that sells or supplies gas to other users within the City.

"Person" means, 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) cooperative, receiver, trustee, guardian, or other representative appointed by order of any court.

"Place of primary use" means the street address representative of where the service user's use of a communication service primarily occurs, which must be the residential street address or the primary business street address of the customer.

"Post-paid telecommunication service" means a telecommunication service obtained by making a payment on a communication-by-communication basis either through the use of a credit card or payment mechanism such as a bank card, travel card, credit card, or debit card, or by charge made to a service number which is not associated with the origination or termination of the telecommunication service.

"Prepaid telecommunication service" means the right to access telecommunication services, which must be paid for in advance and which enables the origination of communications using an access number or authorization code, whether manually or electronically dialed, and that is sold in predetermined units or dollars of which the number declines with use in a known amount.

"Private telecommunication service" means a telecommunication service that entitles the customer to exclusive or priority use of a communications channel or group of channels between or among termination points, regardless of the manner in which such channel or channels are connected, and includes switching capacity, extension lines, stations, and any other associated services that are provided in connection with the use of such channel or channels. A communications channel is a physical or virtual path of communications over which signals are transmitted between or among customer channel termination points (i.e., the location where the customer either inputs or receives the communications).

"Service address" means either:

(1) The location of the service user's communication equipment from which the communication originates or terminates, regardless of where the communication is billed or paid; or,

(2) If the location in subsection (1) of this definition is unknown (e.g., mobile telecommunications service or VoIP service), the service address means the location of the service user's place of primary use.

(3) For prepaid telecommunication service, "service address" means the location associated with the service number.

"Service supplier" means any entity or person, including the City, providing communication, electric, gas or water service to a user of such services within the City.

"Service user" (as a beneficiary of service) means a person required to pay a tax imposed under the provisions of this Chapter.

"Tax Administrator" means the Finance Director of the City or his or her designee.

"Telecommunication services" means:

(1) The transmission, conveyance, or routing of voice, data, audio, video, or any other information or signals to a point, or between or among points, whatever the technology used, and includes broadband services [e.g., T-1, digital subscriber line (eDSL), fiber optic, coaxial cable, and wireless broadband, including Wi-Fi, WiMAX, and Wireless MESH] to the extent federal and/or state law permits taxation of such broadband services, now or in the future. The term telecommunication services includes such transmission, conveyance, or routing in which computer processing applications are used to act on the form, code or protocol of the content for purposes of transmission, conveyance or routing without regard to whether such services are referred to as voice over internet protocol (VoIP) services or are classified by the Federal Communications Commission as enhanced or value added, and includes video and/or data services that are functionally integrated with telecommunication services.

(2) Telecommunication services include, without limitation the following services, regardless of the manner or basis on which such services are calculated or billed: Ancillary telecommunication services; broadband service (to the extent federal and/or state law permits taxation of such service); mobile telecommunication service; prepaid telecommunication service (to the extent that it is practicable for the service supplier to collect the correct tax imposed under this Article); post-paid telecommunication service; private telecommunication service; paging service; 800 service (or any other toll-free numbers designated by the Federal Communications Commission); and 900 service (or any other similar numbers designated by the Federal Communications Commission for services whereby subscribers who call in to pre-recorded or live service).

(3) Telecommunication services shall also include without limitation, charges for: Connection, reconnection, termination, movement, or change of telecommunication services; late payment fees; detailed billing; central office and custom calling features (including without limitation call waiting, call forwarding, caller identification and three-way calling); voice mail and other messaging services; directory assistance; access and line charges; universal service charges; regulatory, administrative and other cost recovery charges; local number portability charges; and text messaging. Telecommunication services shall not include digital downloads that are not ancillary telecommunication services, such as video programming, music, ringtones, games, and similar digital products.

"Telephone corporation," "electrical corporation," "gas corporation," "water corporation," and "cable television corporation" shall have the same meaning as defined in Sections 234, 218, 222, 241 and 215-5, respectively, of the California Public Utilities Code except, "electrical corporation" and "water corporation" shall also be construed to include any municipality or public agency engaged in the selling or supplying of electrical power or gas or water to a service user.

"Video programming" means those programming services commonly provided to subscribers by a "video service supplier" including but not limited to basic services, premium services, audio services, video games, pay-per-view services, video on-demand, origination programming, or any other similar services, regardless of the content of such video programming, or the technology used to deliver such services, and regardless of the manner or basis on which such services are calculated or billed.

"Video services" means any and all services related to the providing or delivering of "video programming" (including origination programming and programming using Internet Protocol, e.g., IP-TV and IP-Video) using one or more channels by a "video service supplier," regardless of the technology used to deliver or provide such services, and regardless of the manner or basis on which such services are calculated or billed, and includes data services, "telecommunication services," or interactive communication services that are functionally integrated with "video services."

"Video service supplier" means any person, company, or service which provides or sells one (1) or more channels of video programming, or provides or sells the capability to receive one (1) or more channels of video programming, including any communications that are ancillary, necessary or common to the provision, use or enjoyment of the video programming, to or from a business or residential address in the City, where some fee is paid, whether directly or included in dues or rental charges for that service, whether or not public rights-of-way are utilized in the delivery of the video programming or communications. A "video service supplier" includes, but is not limited to, multichannel video programming distributors (as defined in 47 U.S.C.A. Section 522(13) or any successor statute or regulation); open video systems (OVS) suppliers; and suppliers of cable television; master antenna television; satellite master antenna television; multichannel multipoint distribution services (MMDS); video services using internet protocol (e.g., IP-TV and IP-Video, which provide, among other things, broadcasting and video on-demand), direct broadcast satellite (to the extent federal law permits taxation of its video services, now or in the future); and other suppliers of video programming or communications (including two-way communications), whatever their technology.

(Ord. 608 § 1 (part), 1996: Ord. 599 (part), 1994)

(Ord. No. 704, § 1, 11-2-10)

(a) Constitutional. Statutory. Nothing in this section shall be construed as imposing a tax upon any person when the imposition of such tax upon such person would be in violation of the Constitution of the United States, the Constitution of the State, or any valid applicable statute or regulation of either the United States or the State. The Tax Administrator, upon the advice of the City Attorney, shall review each application for exemption from the payment of a tax, pursuant to this subsection, and shall allow such exemptions only when authorized pursuant hereto.

(b) Service Supplier Exemption. A service supplier shall not be obligated to pay any tax levied pursuant to the provisions of this section.

(Ord. 608 § 1 (part), 1996: Ord. 599 (part), 1994)

(a) There is hereby imposed a tax upon every person in the City using communication services. The maximum tax imposed by this section shall be at the rate of three and three-quarters percent (3.75%) of the charges made for such services and shall be collected from the service user by the communication services supplier or its billing agent. There is a rebuttable presumption that communication services, which are billed to a billing or service address in the City, are used, in whole or in part, within the City's boundaries, and such services are subject to taxation under this Chapter. If the billing address of the service user is different from the service address, the service address of the service user shall be used for purposes of imposing the tax. 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 communication services.

(b) Mobile telecommunications service shall be sourced in accordance with the sourcing rules set forth in the Mobile Telecommunications Sourcing Act (4 U.S.C. Section 124) or any successor statute or regulation. The Tax Administrator may issue and disseminate to communication service suppliers, which are subject to the tax collection requirements of this Chapter, sourcing rules for the taxation of other communication services, including but not limited to post-paid communication services, prepaid communication services, and private communication services, provided that such rules are based upon industry custom and common practice that further administrative efficiency and minimize multi-jurisdictional taxation.

(c) The Tax Administrator may issue and disseminate to communication service suppliers, which are subject to the tax collection requirements of this Chapter, an administrative ruling identifying those communication services, or charges therefore, that are subject to or not subject to the tax of subsection (a) above.

(d) Charges for video services and ancillary video services shall include, but are not limited to, charges for the following:

(1) Franchise fees and access fees (PEG);

(2) Initial installation of equipment necessary for provision and receipt of communication services;

(3) Late fees, collection fees, bad debt recoveries, and return check fees;

(4) Activation fees, reactivation fees, and reconnection fees;

(5) All video programming services (e.g., basic services, premium services, audio services, video games, pay-per-view services, or on-demand programming);

(6) Ancillary programming services (e.g., electronic program guide services, search functions, or other interactive services or communications that are ancillary, necessary or common to the use or enjoyment of the video programming);

(7) Equipment leases (e.g., converters, remote devices); and

(8) Service calls, service protection plans, name changes, changes of services, and special services.

(e) To prevent actual multi-jurisdictional taxation of communication services subject to tax under this section, any service user, upon proof to the Tax Administrator that the service user has previously paid the same tax in another state or city on such communication services, shall be allowed a credit against the tax imposed to the extent of the amount of such tax legally imposed in such other state or city; provided, however, the amount of credit shall not exceed the tax owed to the City under this section.

(f) The tax on communication services imposed by this section shall be collected from the service user by the service supplier or person receiving payment for the services. The amount of the 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 last day of the following month.

(g) Except as otherwise provided by applicable federal or state law, if any nontaxable charges are combined with 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 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.

(h) For purposes of imposing a tax or establishing a duty to collect and remit a tax under this section, "substantial nexus" and "minimum contacts" shall be construed broadly in favor of the imposition, collection and/or remittance of the communication users tax to the fullest extent permitted by state and federal law, and as it may change from time to time by judicial interpretation or by statutory enactment. Any communication service (including VoIP) used by a person with a service address in the City, which service is capable of terminating a call to another person on the general telephone network, shall be subject to a rebuttable presumption that "substantial nexus/minimum contacts" exists for purposes of imposing a tax, or establishing a duty to collect and remit a tax, under this Chapter. A service supplier shall be deemed to have sufficient activity in the City for tax collection and remittance purposes if its activities include, but are not limited to, any of the following: maintains or has within the City, directly or through an agent or subsidiary, a place of business of any nature; solicits business in the City by employees, independent contractors, resellers, agents or other representatives; solicits business in the City on a continuous, regular, seasonal or systematic basis by means of advertising that is broadcast or relayed from a transmitter with the City or distributed from a location with the City; or advertises in newspapers or other periodicals printed and published within the City or through materials distributed in the City by means other than the United States mail. The City shall make available, upon request, an accurate description of its jurisdictional boundaries based on street addresses and/or ZIP plus four, in an electronic format. If a service supplier relies upon such information provided by City, it shall not be responsible for any errors in taxation that may result.

(i) Satisfaction of Tax Obligation by Service Users. Any person who pays the tax levied pursuant to this Section with respect to any charge for a communication service shall be deemed to have satisfied his or her obligation to pay the tax levied pursuant to former Section 5404 and Section 5410 as codified immediately prior to adoption of the ordinance codified in this section with respect to that charge. Likewise, prior to April 1, 2011, any person who pays the tax levied pursuant to former Section 5404 and Section 5410 as codified immediately prior to adoption of the ordinance codified in this section shall be deemed to have satisfied his or her obligation to pay the tax levied pursuant to this section with respect to that charge. The intent of this paragraph is to prevent the imposition of multiple taxes upon a single utility charge during the transition period from the prior telephone and cable telephone tax to the new communication services tax (which transition period ends April 1, 2011) and to permit communication service providers, during that transition period to satisfy their collection obligations by collecting either tax.

(j) Collection of Tax by Service Supplier. Service Suppliers shall begin to collect the tax imposed by this Section as soon as feasible after the effective date of the Section, but in no event later than permitted by Section 799 of the California Public Utilities Code.

(Ord. No. 704, § 2, 11-2-10)

Editor's note— Ord. No. 704, § 2, adopted November 2, 2010, in effect repealed the former § 5404, and enacted a new § 5404 as set out herein. The former § 5404 pertained to telephone users tax and derived from Ord. No. 599, 1994 and Ord. No. 608, 1996.

(a) There is hereby imposed a tax upon every person using electrical energy in the City. The tax imposed by this section shall be at the rate of four (4) percent of the charges made of such energy by an electrical corporation franchised to serve the City and shall be paid by the person using the energy. The tax applicable to electrical energy provided by a nonutility supplier shall be determined by applying the tax rate to the equivalent charges the service user would have incurred if the 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 costs adjustments.

(b) As used in this section, the term "using electrical energy" shall not be construed to mean the receiving of such energy by a person for the purpose of using it in the charging of 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.

(c) The tax imposed in this section shall be collected from the service user by any energy service supplier or nonutility supplier. An energy supplier providing wheeling service for delivery or electricity through its distribution system shall collect the tax from the service user base 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 5408. The amount of tax collected in one month shall be remitted by U.S. Mail, to the Tax Administrator, postmarked on or before the last day of the following month; or, at the option of the person required to collect or remit the tax, an estimated amount of tax measured by the tax billed in the previous month upon the payment pattern of the customers of the service supplier, shall be remitted.

(Ord. 608 § 1 (part), 1996: Ord. 599 (part), 1994)

(a) The tax imposed on every person using cogenerated electrical energy in the City shall be at the rate specified in Section 5404. The tax applicable to cogenerated electrical energy used on site shall be determined by applying the tax rate to the equivalent charges the cogenerator would have incurred if the energy used had been provided by the electrical corporation franchised by the City.

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

(c) The tax shall be collected and paid by the cogenerator under Section 5408 if the cogenerator consumes the energy. If the congenerator sells the energy for consumption in the City, the tax will be imposed by applying the tax rate to the equivalent charges for such service the service user would have incurred if the energy used had been provided by the electrical corporation franchised by the City, and shall be collected from the service user by the energy supplier.

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

(Ord. 608 § 1 (part), 1996: Ord. 599 (part), 1994)

(a) There is hereby imposed a tax upon every person using gas in the City, gas which is transported through a pipeline distribution system or by mobile transport. The tax imposed by this section shall be at the rate of four (4) percent of the charges made for such gas and shall be paid by the person using the gas. The tax applicable to gas provided by nonutility suppliers shall be determined by applying the tax rate to the equivalent charges the service user would have incurred if the gas or gas transportation had been provided by the gas corporation franchised by the City. "Charges" as used in this section shall include: (1) the charge for gas which is delivered through a gas pipeline distribution system or by mobile transport, (2) has transportation charges; and (3) demand charges, service charges, customer charges, minimum charges, annual and monthly charges and any other charges authorized by the California Public Utilities Commission or Federal Energy Regulatory Commission.

(b) There shall be excluded from the tax imposed in this section: (1) charges made for gas which is to be resold and delivered through a gas pipeline distribution system or mobile transport; (2) charges made for gas used by cogenerator or as the primary fuel in a fuel cell to generate electricity; and (3) charges made for natural gas used in the propulsion of a motor vehicle, as that phrase is defined in the Vehicle Code of the State of California, utilizing natural gas.

(c) Tax imposed in this section shall be collected from the service user by the energy service supplier. An energy supplier providing transportation services for delivery of gas through a pipeline distribution system shall collect the tax from the service user based upon the cost of transporting the gas. The tax on energy provided by self-production or by a nonutility supplier shall be collected and remitted in the manner set forth in Section 5408. The amount of tax collected in one month shall be remitted by U.S. Mail, to the Tax Administrator, postmarked on or before the last day of the following month; or, at the option of the person required to collect or remit the tax, an estimated amount of tax measured by the tax billed in the previous month or upon the payment pattern of the customers of the service supplier, shall be remitted.

(Ord. 608 § 1 (part), 1996: Ord. 599 (part), 1994)

(a) Any service user subject to the tax imposed by Sections 5404, 5405, 5406 or 5407 hereof, who produces electricity or gas for self-use or who receives electricity or gas directly from a nonutility supplier not under the jurisdiction of this Chapter or otherwise not having the full tax due on the use of gas or electricity in the City directly billed and collected by the service supplier, shall report said fact to the Tax Administrator and remit the tax due directly to the city within thirty (30) days of such use.

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

(Ord. 608 § 1 (part), 1996: Ord. 599 (part), 1994)

(a) There is hereby 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 four (4) percent of the charges made for such water and shall be paid by the person paying for such water.

(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.

(Ord. 608 § 1 (part), 1996: Ord. 599 (part), 1994)

Editor's note— Ord. No. 704, § 3, adopted November 2, 2010, repealed § 3, which pertained to cable television users tax and derived from Ord. No. 599, 1994 and Ord. No. 608, 1996.

(a) 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.

(b) Penalties for delinquency in remittance of any Utility Users Tax collected, shall attach to and be paid by the service supplier, in the amount equal to fifteen (15) percent of the total Utility Users Taxes collected and not remitted on or before the due date provided by this Chapter.

(c) An additional penalty shall be imposed upon any service supplier who fraudulently or negligently fails to timely report or remit Utility Users Taxes collected, in the amount equal to fifteen (15) percent of the amount of Utility Users Tax collected.

(d) Every penalty imposed under the provisions of this section shall be paid, forthwith, by service suppliers, to the City.

(e) In addition to the penalties imposed pursuant to this Chapter, each service supplier who fails for any reason to remit all taxes collected by it or its authorized agents, within thirty (30) calendar days after its collection, shall pay interest on the full amount of taxes due to the City, and upon the full amount of all penalties due thereon. The interest rate shall be the same rate applied by law to judgments rendered by a court of competent jurisdiction.

(Ord. 608 § 1 (part), 1996: Ord. 599 (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 willfully 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.

(Ord. 608 § 1 (part), 1996: Ord. 599 (part), 1994)

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

(a) Notwithstanding the provisions of Section 5408, 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 share has been fully satisfied. Any remaining balance shall be applied to taxes due. In those cases where a service user has notified the service supplier of refusal to pay the tax imposed on said energy charges Section 5415(c) 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 Chapter. 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.

(Ord. 608 § 1 (part), 1996: Ord. 599 (part), 1994)

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

(b) 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, exemption, collection and remittance of the taxes herein imposed. A copy of such rules and regulations shall be on file in the Tax Administrator's office.

(c) The Tax Administrator may make administrative agreements to vary the strict requirements of this 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.

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

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

(Ord. 608 § 1 (part), 1996: Ord. 599 (part), 1994)

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

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

(c) 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. 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 the Tax Administrator has assumed responsibility to collect the taxes due for the stated periods and demand payment of such taxes. The notice shall be served on the service user by personal delivery or by deposit of the notice in the U.S. Mail, postage prepaid thereon, addressed to the service user at the address to which billing was made by the person required to collect the tax; or, should the service user have changed addresses, to the last known address. If a service user fails to remit the tax to the Tax Administrator within fifteen (15) days from the date of the service of the notice, which shall be the date of mailing if service is not accomplished in person, a penalty of twenty-five (25) percent of the amount of tax set forth in the notice shall be imposed, but not less than five (5) dollars. The penalty shall become part of the tax herein required to be paid.

(Ord. 608 § 1 (part), 1996: Ord. 599 (part), 1994)

(a) 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 (3) years, all records as may be necessary to determine liability for the remittance to the Tax Administrator, which records the Tax Administrator shall have the right to inspect at all reasonable times.

(b) A person providing transportation services of natural gas to a user for delivery through a gas pipeline 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. 608 § 1 (part), 1996: Ord. 599 (part), 1994)

(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 Chapter, it may be refunded by the Tax Administrator.

(b) Notwithstanding the provisions of subsection (a) of this section, a service supplier may claim a refund; or take as credit against taxes remitted the amount overpaid, paid more than once, or erroneously or illegally collected or received when it is established that the service user from whom the tax has been collected did not owe the tax; provided, however, that neither a refund nor a credit shall be allowed unless the amount of the tax erroneously or illegally collected has either been refunded to the service user or credited to charges subsequently payable by the service user to the person required to collect and remit. A service supplier that has collected any amount of tax in excess of the amount of tax imposed by this Chapter 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 the right thereto by written records showing entitlement thereto.

(d) Notwithstanding other provisions of this section, whenever a service supplier, pursuant to an order of the California Public Utilities Commission or a court of competent jurisdiction, makes a refund to service users of shares or 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.

(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.

(Ord. 608 § 1 (part), 1996: Ord. 599 (part), 1994)

If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Chapter or any part thereof is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portion of this Chapter or any part thereof. The City Council hereby declares that it would have been passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the act that any one or more section, subsection, subdivision, paragraph, sentence, clause or phrases be declared unconstitutional.

(Ord. 608 § 1 (part), 1996: Ord. 599 (part), 1994)

The City Council of the City of Port Hueneme shall have the authority to (a) provide by resolution for the suspension of taxes collected under this Chapter, and (b) provide by resolution or a temporary reduction in the tax rates imposed by this Chapter. 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.

(Ord. 608 § 1 (part), 1996: Ord. 599 (part), 1994)

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

(a) The combined total maximum of electricity, cogenerated electricity, gas, telephone, water, and cable user taxes paid by any single service user for one location under this Chapter shall not exceed the sum of nine thousand dollars ($9,000.00) during any twelve (12) month period between July 1 and June 30.

(b) A service user may deposit the maximum tax specified in subsection (a) of this section with the Tax Administrator during the month of July each year as payment in advance of taxes due under this Chapter for the twelve (12) month period commencing on the first day of said month and ending on June 30 thereafter. Any service user making a deposit of maximum tax shall not thereafter be billed for any tax under this Chapter for said twelve (12) month supplier when to cease and when to resume billing the tax to such service users.

(c) The penalty assessment provided in Section 5411 of this Chapter shall not be counted in computing the maximum tax as provided in subsection (a) of this section.

(d) Any service user paying more than a maximum tax provided for in subsection (a) of this section during any twelve (12) month period commencing July 1 and ending June 30, may claim a refund or credit for such overpayment from the Tax Administrator in the manner provided in Section 5417.

(e) The phrase "one location" as used in subsection (a) of this section shall mean one (1) or more contiguous sites for which the service user receives one (1) or more utility billing.

(Ord. 608 § 1 (part), 1996: Ord. 599 (part), 1994)

This Chapter shall become effective the 5th day of November 1996.

(Ord. 608 § 1 (part), 1996: Ord. 599 (part), 1994)