Portola Valley Municipal Code Ch. 3.32 Telephone, Gas, Water and Electricity Users' Tax

Except where the context otherwise requires, the definitions contained in this section shall govern the construction of this chapter:

A. "City" means the town of Portola Valley.

B. "Electrical corporation," "gas corporation," "telephone corporation" and "water corporation" shall have the same meanings as deemed in Sections 218, 222, 234 and 241, respectively, of the Public Utilities Code of the State of California. "Electrical corporation" shall be construed to include any municipality or governmental agency engaged in the selling or supplying of electrical power to a service user.

C. "Month" means a calendar month.

D. "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.

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

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

G. "Tax administrator" means the town clerk of the city.

(Ord. 1985-208 § 1, 1985; Ord. 1985-207 § 1, 1985)

Nothing contained in this chapter is intended to conflict with applicable rules, regulations and tariffs of any service supplier subject to the jurisdiction of the California Public Utilities Commission. In the event of any conflict, the provisions of said rules, regulations and tariffs shall control.

(Ord. 1985-207 § 13, 1985)

Nothing in this chapter shall be construed as imposing a tax upon the city or any person when imposition of such tax upon that person would be in violation of the Constitutions of the United States or California. The tax administrator shall prepare a list of the persons exempt from the provisions of this chapter by virtue of this section and furnish a copy thereof to each service supplier.

(Ord. 1985-207 § 2, 1985)

A. There are two taxes imposed on the amounts paid for any intrastate telephone services by every person in the town other than a telephone corporation using such services. The first tax imposed by this section shall be at the rate of five and one-half percent of the charges made for such services, and shall be paid by the person using such services. The amount collected from the five and one-half percent tax shall be placed in the town's general account. The second tax imposed by this section shall be at the rate of two percent of the charges made for such services, and shall be paid by the person using such services. The amount collected from the two percent tax shall be placed in the town's open space account.

B. As used in this section, the term "charges" shall not include charges for services paid for by inserting coins in coin-operated telephones, except that where such coin-operated service is furnished for a guaranteed amount, the amounts paid under such guarantee plus any fixed monthly or other periodic charge shall be included in the base for computing the amount of tax due; nor shall the term "charges" include charges for any type of service or equipment furnished by a service supplier subject to Public Utility regulation during any period in which the same or similar services or equipment are also available for sale or lease from persons other than a service supplier subject to Public Utility regulation; nor shall the words "telephone communication services" include land mobile services or maritime mobile services as deemed in Section 2.1 of Title 47 of the Code of Federal Regulations, as said section existed on January 1, 1970. The term "telephone communication services" refers to that service which provides access to a telephone system and the privilege of telephonic quality communication with substantially all persons having telephone stations which are part of such telephone system. The telephone users' tax is intended to, and does, apply to all charges billed to a telephone account having a situs in the city, irrespective of whether a particular communication service originates and/or terminates within the city.

C. The tax imposed by this section shall be collected from the service user by the person providing the intrastate telephone communication services, or the person receiving payment for such services. The amount of the tax collected in one month shall be remitted to the tax administrator on or before the last day of the following month; or at the option of the person required to collect and remit the tax, an estimated amount of tax collected, measured by the tax billed in the previous month, shall be remitted to the tax administrator on or before the last day of each month.

D. Notwithstanding the provisions of subsection A, the tax imposed under this section shall not be imposed upon any person for using intrastate telephone communication services to the extent that the amounts paid for such services are exempt from or not subject to the tax imposed under Division 2, Part 20 of the California Revenue and Taxation Code, or the tax imposed under Section 4251 of the Internal Revenue Code.

(Ord. 1998-311 § 1, 1998; Ord. 1985-208 § 2, 1985; Ord. 1985-207 § 3, 1985)

A. There are two taxes imposed on every person in the town, other than an electrical or gas corporation, using electrical energy in the town. The first tax imposed by this section shall be at the rate of five and one-half percent of the charges made for such services, and shall be paid by the person using such services. The amount collected from the five and one-half percent tax shall be placed in the town's general account. The second tax imposed by this section shall be at the rate of two percent of the charges made for such services, and shall be paid by the person using such services. The amount collected from the two percent tax shall be placed in the town's open space account.

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, that 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 in 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.

(Ord. 1998-311 § 2, 1998; Ord. 1985-207 § 4, 1985)

A. There are two taxes imposed upon every person in the town, other than a gas corporation or an electrical corporation, using gas in the town which is delivered through mains or pipes. The first tax imposed by this section shall be at the rate of five and one-half percent of the charges made for such services, and shall be paid by the person using such services. The amount collected from the five and one-half percent tax shall be placed in the town's general account. The second tax imposed by this section shall be at the rate of two percent of the charges made for such services, and shall be paid by the person using such services. The amount collected from the two percent tax shall be placed in the town's open space account.

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 in 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.

(Ord. 1998-311 § 3, 1998; Ord. 1985-207 § 5, 1985)

A. There are two taxes imposed upon every person in the town, other than a water corporation, using water in the town which is delivered through mains or pipes. The first tax imposed by this section shall be at the rate of five and one-half percent of the charges made for such services, and shall be paid by the person using such services. The amount collected from the five and one-half percent tax shall be placed in the town's general account. The second tax imposed by this section shall be at the rate of two percent of the charges made for such services, and shall be paid by the person using such services. The amount collected from the two percent tax shall be placed in the town's open space account.

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

(Ord. 1998-311 § 4, 1998; Ord. 1985-207 § 6, 1985)

A. The five and one-half percent general taxes imposed on telephone users set forth in Section 3.32.040, electricity users set forth in Section 3.32.050, gas users set forth in Section 3.32.060, and water users set forth in Section 3.32.070 are each reduced to four and one-half percent for a period of five years from July 1, 2018 through June 30, 2023. On July 1, 2023, the tax rate shall automatically revert back to five and one-half percent without voter approval or town council action.

B. Beginning on July 1, 2020, the town council may in its absolute discretion, by resolution and upon a majority vote of the council, temporarily further reduce the tax percentage in Sections 3.32.040 through 3.32.070 for a period not to exceed twelve months. The tax administrator shall implement the temporary tax reduction by giving sixty-day written notice to all affected service suppliers as required by Public Utilities Code Section 799. At the end of the temporary tax percentage reduction period, the four and one-half percent rate specified in Section 3.32.075 shall be automatically reinstated without further notice or action by the city council. No further temporary reduction period authorized under this section shall apply past June 30, 2023.

C. Nothing herein shall prohibit the town council from adopting consecutive temporary tax percentage reductions, as provided herein, or from rescinding previously approved temporary tax percentage reductions.

D. As stated in Government Code Section 9611, the enactment of a temporary tax percentage reduction by the town council shall not constitute a repeal of one or more of the original provisions of this chapter. Upon the expiration of the time of the temporary tax percentage reduction, the original provisions of this chapter shall have the same force and effect as if the temporary tax percentage reduction had not been enacted. Nothing herein is intended to constitute a decrease in a tax, or an increase in a tax requiring election approval under California Constitution Article XIIIC; and to the extent that any aspect of a temporary tax percentage reduction is found to invoke such a requirement, the entire temporary tax percentage reduction shall be deemed null and void ab initio, and there shall be no entitlement to such tax reduction for any service user.

(Ord. No. 2018-425A § 1, 2018; Ord. No. 2013-399, § 1, 2013; Ord. 2009-382 § 1, 2009; Ord. 2006-365 § 1, 2006)

Editor's note— Ord. No. 2018-425A § 1, adopted Aug. 8, 2018, changed the title of § 3.32.075 from "Reduction in general tax" to read as herein set out.

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

A. The tax shall be collected insofar as practicable at the same time as and along with the charges made in accordance with regular billing practice of the service supplier. Except in those cases where a service user pays the full amount of said charges, but does not pay any portion of a tax imposed by this chapter, 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 billing period applicable to that person which starts on or after the operative date of the ordinance codified in this chapter. 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.

(Ord. 1985-207 § 8, 1985)

Any tax and/or penalty 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. 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. 1985-207 § 7, 1985)

It shall be the duty of every service supplier required to collect and remit to the city any tax imposed by this chapter to keep and preserve, for a period of three years, all records as may be necessary to determine the amount of such tax such service supplier may have been required to collect and remit to the city, which records the tax administrator shall have the right to inspect at all reasonable times.

(Ord. 1985-207 § 14, 1985)

A. The tax administrator shall have the power and duty and is directed to enforce each and all of the provisions of this chapter.

B. The tax administrator shall have power to adopt rules and regulations not inconsistent with provisions of this chapter for the purpose of carrying out and enforcing the payment, collection and remittance of the taxes herein imposed. A copy of such rules and regulations shall be on file in the tax administrator's office.

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 such agreements result in collection of the tax in conformance with the general purpose and scope of this chapter. A copy of each agreement shall be on file in the tax administrator's office.

(Ord. 1985-207 § 9, 1985)

A. Whenever the tax administrator determines that a service user has deliberately withheld the amount of the tax owed by him from the amounts remitted to a person required to collect the tax for a period of four or more billing periods, or that a service user has refused to pay the amount of the tax to such person, or whenever the tax administrator deems it in the best interest of the city, he may relieve such person of the obligation to collect taxes due under this chapter from certain named service users for specific billing periods.

B. The service supplier shall provide the city with a report of the amounts refused along with the names and addresses of the service users refusing to pay the tax.

C. The tax administrator shall notify the service user that he 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 handing it to him personally or by deposit of the notice in the United States mail, postage prepaid thereon, addressed to the service user at the address to which billing was made by the person required to collect the tax; or, should the service user have changed his address, to his last known address. If a service user fails to pay the tax to the tax administrator within fifteen days from the date of the service of the notice upon him, which shall be the date of mailing if service is not accomplished in person, a penalty of twenty-five percent of the amount of the tax set forth in the notice shall be imposed, but not less than five dollars. The penalty shall become part of the tax required to be paid.

(Ord. 1985-207 § 10, 1985)

A. A service supplier who has collected any amount of tax illegally, erroneously, or more than once 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, providing such credit is claimed in a return dated no later than three years from the date of overpayment.

B. Whenever the amount of any tax, interest or penalty has been overpaid or paid more than once, or has been erroneously or illegally collected or received by the city under this chapter, it may be refunded to a service supplier or service user by the city, provided a claim in writing therefor, stating under penalty of perjury the specified grounds upon which the claim is founded, is filed with the tax administrator within three years of the date of payment. The claim shall be on forms furnished by the tax administrator. No refund shall be paid under the provisions of this section unless the claimant establishes his right thereto by written records, and, in the case of a service user, that the service user has been unable to obtain a refund or adjustment from the service supplier who collected the tax.

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

(Ord. 1985-207 § 11, 1985)

The five and one-half percent tax imposed under this chapter shall be applied to bills issued for billing periods beginning on or after the 1st day of July 1994.

The two percent tax imposed under this chapter shall be applied to bills issued for billing periods beginning on or after the 1st day of July 1998.

(Ord. 1998-311 § 5, 1998)