San Bernardino Municipal Code Ch. 3.44 Service Users Tax

For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

MONTH. A calendar month.

PERSON. Includes, but is not limited to, any domestic or foreign corporation, firm, association, syndicate, joint stock company, partnerships of any kind, joint venture, club, Massachusetts business or common law trust, society and individuals.

SERVICE USER. A person required to pay a tax imposed under the provisions of this chapter.

(Ord. 2931, passed 8-13-1968; Ord. MC-837, passed 6-3-1992; Ord. MC-899, passed 3-22-1994)

Nothing in this chapter shall be construed as imposing a tax upon any person when imposition of such tax upon that person would be in violation of the U.S. Constitution or that of the state.

(Ord. 2931, passed 8-13-1968)

Due to the status of the San Bernardino Unified School District as an agency established by the City Charter and due to the strong public policy in favor of encouraging and assisting the provision of public education, public schools are exempted from the imposition of the service users tax.

(Ord. MC 814, passed 12-3-1991)

[Reserved]

(Repealed by Ord. MC-1275, passed 7-22-2008)

[Reserved]

(Repealed by Ord. MC-1275, passed 7-22-2008)

(A) A tax is imposed upon every person in the city using electrical energy in the city. The tax imposed by this section shall be at the rate of 7.75% of the charges made for such energy and shall be paid by the person paying for such energy.

(B) As used in this section, the term USING ELECTRICAL ENERGY shall not be construed to mean the storage of such energy by a person in a battery owned or possessed by him or her for use in an 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 the mere receiving of such energy by an electric public utility or governmental agency at a point within the city for resale; or the use of such energy in a production or distribution of water by a public utility or governmental agency; or the use of such energy utility or a governmental agency; or the use of such energy for the production and distribution of water for lawn and landscape irrigation of cemeteries.

(C) The tax imposed in this section shall be collected from the service user by the person supplying such energy. The amount of tax collected in one month shall be remitted to the Director of Finance and Management Services on or before the twentieth day of the following month.

(Ord. 2931, passed 8-13-1968; Ord. 3510, passed 6-27-1975; Ord. 3796, passed 1-9-1979; Ord. MC-297, passed 8-4-1983; Ord. MC-820, passed 2-19-1992; Ord. MC-939, passed 6-6-1995; Ord. MC-1173, passed 5-5-2004; Ord. MC-1230, passed 9-6-2006; Ord. MC-1263, passed 2-11-2008; Ord. MC-1625, passed 2-21-2024)

(A) A tax is imposed upon every person in the city using gas which is delivered through mains or pipes. The tax imposed by this section shall be at the rate of 7.75% of the charges made for such gas and shall be paid by the person paying for such gas.

(B) There shall be excluded from the base on which the tax imposed in this section is computed charges made for gas which is to be resold and delivered through mains or pipes; charges made for gas sold for use in the generation of electrical energy or for the production of water by a public utility or governmental agency; and charges made by a gas public utility for gas used and consumed in the conduct of the business of gas public utilities.

(C) The tax imposed in this section shall be collected from the service user by the person selling the gas. The amount collected in one month shall be remitted to the Director of Finance and Management Services on or before the twentieth day of the following month.

(Ord. 2931, passed 8-13-1968; Ord. 3510, passed 6-27-1975; Ord. 3796, passed 1-9-1979; Ord. MC-297, passed 8-4-1983; Ord. MC-820, passed 2-19-1992; Ord. MC-939, passed 6-6-1995; Ord. MC-1173, passed 5-5-2004; Ord. MC-1230, passed 9-6-2006; Ord. MC-1263, passed 2-11-2008; Ord. MC-1625, passed 2-21-2024)

The 7.75% users tax imposed on telecommunication services pursuant to Chapter 3.46, on electrical service pursuant to § 3.44.050, and on gas service pursuant to § 3.44.060 shall be imposed only upon charges made for consumer services. The 7.75% users tax shall not be levied upon any state or federal tax, fee or surcharge which is separate from the users service charges. This section is intended to clarify existing law; it does not propose any change in the method of calculation of the utility users tax.

(Ord. MC-556, passed 11-4-1986; Ord. MC-820, passed 2-19-1992; Ord. MC-939, passed 6-6-1995; Ord. MC-1173, passed 5-5-2004; Ord. MC-1230, passed 9-6-2006; Ord. MC-1275, passed 7-22-2008)

(A) Taxes collected from a service user which are not remitted to the Director of Finance and Management Services on or before the due dates provided in this chapter are delinquent.

(B) Penalties for delinquency in remittance of any tax collected or any deficiency determination shall attach and be paid by the person required to collect and remit at the rate of 15% of the total tax collected or imposed in this chapter.

(C) The Director of Finance and Management Services shall have power to impose additional penalties upon persons required to collect and remit taxes under the provisions of this chapter for fraud or negligence in reporting or remitting at the rate of 15% of the amount of the tax collected or as recomputed by the Director of Finance and Management Services.

(D) Every penalty imposed under the provisions of this section shall become a part of the tax required to be remitted.

(Ord. 2931, passed 8-13-1968; Ord. 3796, passed 1-9-1979; Ord. MC-1625, passed 2-21-2024)

(A) Every service user is liable for the taxes imposed by this chapter, and that liability is not extinguished until the tax has been paid to the city, except that proof of payment of the tax to the person providing the service is sufficient to relieve the service user from further liability for the tax to which the receipt refers.

(B) Each service provider shall bill for utility users taxes accrued at the rate established in this code, coincident with the provider’s own bill for service provided, all persons, except those specifically exempted from such tax. Any tax collected by the provider from the service user, together with any amount uncollected due to the failure or neglect of the service provider to bill for or attempt to collect the tax, shall constitute a debt owed by the service provider to the city. If the service user fails or refuses to pay any such tax, the provider shall not be liable for any billed but uncollected tax. Each service provider shall provide to the City Director of Finance and Management Services, at least annually, a list of the names, addresses and amount of tax billed but unpaid, together with such data as may be required by the Director of Finance and Management Services to enable him or her to pursue the matter through court or otherwise. Any amount collected as tax from a service user which has not been remitted to the Director of Finance and Management Services is a debt owed to the city by the person or entity required to collect and remit the tax, unless such amount has been refunded or credited to the service user.

(C) Any person owing money to the city under the provisions of this chapter shall be liable in an action brought in the name of the city for the recovery of the debt, together with costs, interest and penalties.

(Ord. 2931, passed 8-13-1968; Ord. 3796, passed 1-9-1979; Ord. MC-337, passed 1-25-1984; Ord. MC-1625, passed 2-21-2024)

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 the regular billing practice. 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 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. 2931, passed 8-13-1968)

The Director of Finance and Management Services shall have the power and duty and is directed to enforce each and all of the provisions of this chapter.

(Ord. 2931, passed 8-13-1968; Ord. 3796, passed 1-9-1979; Ord. MC-1625, passed 2-21-2024)

(A) The Director of Finance and Management Services may make an assessment for taxes not paid or remitted by a person required to pay or remit. The Director of Finance and Management Services shall prepare a notice of the assessment which shall refer briefly to the amount of the taxes and penalties imposed and the time and place when such assessment shall be submitted to the Mayor and City Council for confirmation or modification. The City Clerk shall mail a copy of such notice to the person selling the service and to the service user at least ten days prior to the date of the hearing and shall post such notice for at least five continuous days prior to the date of the hearing on the chamber door of the Mayor and City Council. Any interested party having any objections may appear and be heard at the hearing; provided his or her objection is filed in writing with the City Clerk prior to the time set for the hearing. At the time fixed for considering the assessment, the Mayor and City Council shall hear the same, together with any objection filed as aforesaid and thereupon may confirm or modify the assessment by motion.

(B) Whenever the Director of Finance and Management Services determines that a service user has deliberately withheld the amount of the tax owed by him or her from the amounts remitted to a person required to collect the tax, or that a service user has failed to pay the amount of the tax to such person for a period of two or more billing periods, or whenever the Director of Finance and Management Services deems it in the best interest of the city, he or she may relieve such person of the obligation to collect taxes due under this chapter from certain named service users for specified billing periods. The Director of Finance and Management Services shall notify the service user that he or she 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 or her 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 or her address, to his or her last known address. If a service user fails to remit the tax to the Director of Finance and Management Services within 15 days from the date of the service of the notice upon him or her, which shall be the date of mailing if service is not accomplished in person, a penalty of 25% of the amount of the tax set forth in the notice shall be imposed but not less than $5. The penalty shall become part of the tax herein required to be paid.

(Ord. 2931, passed 8-13-1968; Ord. 3796, passed 1-9-1979; Ord. MC-1625, passed 2-21-2024)

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 years, all records as may be necessary to determine the amount of such tax as he or she may have been liable for the collection of and remittance to the Director of Finance and Management Services, which records the Director of Finance and Management Services shall have the right to inspect at all reasonable times.

(Ord. 2931, passed 8-13-1968; Ord. 3796, passed 1-9-1979; Ord. MC-1625, passed 2-21-2024)

(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 Director of Finance and Management Services under this chapter, it may be refunded as provided in this section.

(B) A person required to collect and remit taxes imposed under this chapter may claim a refund or take as credit against taxes collected and remitted the amount overpaid, paid more than once or erroneously or illegally collected or received when it is established in a manner prescribed by the Director of Finance and Management Services that the service user from whom the tax has been collected did not owe the tax; provided, however, that neither a refund nor a credit shall be allowed unless the amount of the tax so collected has either been refunded to the service user or credited to charges subsequently payable by the service user to the person required to collect and remit.

(C) No refund shall be paid under the provisions of this section unless the claimant has submitted a written claim to the Director of Finance and Management Services within one year of the overpayment of erroneous or illegal collection of said tax. Such claim must clearly establish claimant’s right to the refund by written records showing entitlement thereto. The submission of a written claim, which is acted upon by the City Council, shall be a prerequisite to a suit thereon. (See Cal. Gov’t Code, § 935.) The Mayor and City Council shall act upon the refund claim within the time period set forth in Cal. Gov’t Code, § 912.4; the claim shall be deemed to have been rejected on the last day of the period within which the Mayor and City Council was required to act upon the claim as provided in Cal. Gov’t Code, § 912.4. It is the intent of the Mayor and City Council that the requirement of this division (C) to file a written claim within one year of the overpayment of erroneous or illegal collection of said tax be given retroactive effect to all claims that arose under this Chapter 3.44 at any time period to the effective date of the ordinance incorporated in this chapter; provided, however, that any claims which arose prior to the commencement of the one-year claims period of this division (C), and which are not otherwise barred by a then applicable statute of limitations or claims procedure, must be filed with the Director of Finance and Management Services as provided in this division (C) within 90 days following the effective date of the ordinance incorporated in this chapter.

(Ord. 2931, passed 8-13-1968; Ord. 3796, passed 1-9-1979; Ord. MC-899, passed 3-22-1994; Ord. MC-1625, passed 2-21-2024)

(A) Notwithstanding any other provision of this chapter, in order to attract new businesses that provide significant numbers of higher-wage jobs, the following utility users tax rebate program is established.

(1) Any new business that creates, after January 1, 2000, between five to 49 new, permanent, full-time jobs within the city (50% of such new jobs shall pay at least $25,000 per year in wages and/or commissions, except that the dollar requirement for said jobs shall not apply to manufacturing and distribution businesses) shall be eligible for a rebate on the amount of utility users tax, paid by such business on electrical, gas, video and telephone communication services, imposed by this chapter according to the following schedule:

(a) First year: 75% rebate;

(b) Second year: 50% rebate;

(c) Third year: 25% rebate; and

(d) Fourth and subsequent years: no rebate.

(2) Any new business that creates, after January 1, 2000, 50 or more new, permanent, full-time jobs within the city (50% of such new jobs shall pay at least $25,000 per year in wages and/or commissions, except that the dollar requirement for said jobs shall not apply to manufacturing and distribution businesses) shall be eligible for a rebate on the amount of utility users tax, paid by such business on electrical, gas, video and telephone communication services, imposed by this chapter according to the following schedule:

(a) First year: 80% rebate;

(b) Second year: 60% rebate;

(c) Third year: 40% rebate; and

(d) Fourth and subsequent years: no rebate.

(3) Any new business not included under divisions (A)(1) or (A)(2) above, which provides, after January 1, 2000, at least a 25% increase in assessed valuation of the business’ real property over the previous tax year as shown by the County Tax Assessor’s records, or which generates at least $40,000 in sales tax revenues per year remitted to the city, shall be eligible for a rebate on the amount of utility users tax, paid by such business on electrical, gas, video and telephone communication services, imposed by this chapter according to the following schedule:

(a) First year: 75% rebate;

(b) Second year: 50% rebate;

(c) Third year: 25% rebate; and

(d) Fourth and subsequent years: no rebate.

(4) A new business qualified under divisions (A)(1) or (A)(2) above shall also be eligible for an additional rebate of 1% on the amount of utility users tax paid, for each city resident that is hired to fill the new, permanent, full-time jobs created within the city. Eligibility for any such additional rebates shall be established by determining the residency of the new employees at the end of each year of rebate eligibility. This determination shall be verified by the Economic Development Agency with such supporting documentation as may be required by the Economic Development Agency. In no case shall the total rebate paid to any claimant exceed the total amount of utility users tax paid on the period claimed, nor rebates be paid for any term other than the schedule established in divisions (A)(1) or (A)(2) above.

(5) To claim a rebate under this section, the claimant shall submit a completed verified claim form to the Economic Development Agency with such supporting documentation as may be required by the Economic Development Agency to determine claimant’s eligibility and to establish the amount of utility users tax paid by claimant on the period claimed, and the commencement date of the “first year,” as that term is used herein. A claim for a rebate shall be submitted annually to the Economic Development Agency not later than three months after the close of the year for which such refund is sought. The verified claim must be signed by an authorized officer of the claimant. The rebate shall be paid at the recommendation of the Economic Development Agency and subject to approval of the Department of Finance and Management Services.

(6) No rebates shall be paid if the subject business is no longer in operation in the city.

(7) FIRST YEAR, as used in this section, shall mean, for a new business, the 12-month period immediately following the date of commencement of business at the location for which a claim for rebate is filed.

(B) Not withstanding any other provision of this chapter, in order to encourage the physical expansion and/or creation of significant numbers of higher-wage jobs by existing city businesses, the following utility users tax rebate program is established to complement the program recently adopted for new businesses.

(1) Any business currently operating in the city shall be eligible for a utility users tax rebate if, after January 1, 2000, it meets the criteria of at least two of the categories below:

(a) Category A: Expansion Criteria:

1. The business expands by completing a permitted expansion at its current location, resulting in an increase of at least 25% of the current construction valuation of the existing building; or

2. The business relocates within the city, and the relocation is to a facility with at least 25% more square feet than the previous location.

(b) Category B: Job Criteria: the business creates and maintains at least five new, permanent, full-time jobs (50% of such new jobs shall pay at least $25,000 per year in wages and/or commissions, except that the dollar requirement for said jobs shall not apply to manufacturing and distribution businesses) in addition to the jobs already existing at the current location(s) within the city, and sustains that job increase over the previous 12 month period prior to the application for the rebate.

(c) Category C: Sales Tax Criteria: the business generates at least $10,000 more in sales or use tax revenues to the city than was generated in the previous 12-month period prior to application for the rebate.

(d) If qualified under this section, the business shall be eligible for a rebate on the amount of paid utility users tax paid by such business on electrical, gas, video and telephone communication services, imposed by this chapter according to the following schedule:

• 1. First year: 75% rebate;
• 2. Second year: 50% rebate;
• 3. Third year: 25% rebate; and
• 4. Fourth and subsequent years: no rebate.

(e) In no case shall any qualified business receive a rebate that exceeds the amount of additional sales or use tax revenues received by the city during the previous 12-month period prior to application for the rebate. Additionally, if the business is receiving assistance from the Economic Development Agency under an owner participation agreement (“OPA”) or disposition and development agreement (“DDA”), and the combined annual value of Agency assistance provided together with proposed utility tax rebate exceeds the amount of additional annual sales tax revenue to the city, then the business shall not be eligible for the rebate.

(2) Any business currently operating in the city, and not qualified under division (B)(1) above or division (B)(3) below, shall be eligible for a utility users tax rebate if it creates, after January 1, 2000 and maintains at least 50 new, permanent, full-time jobs (50% of such new jobs shall pay at least $25,000 per year in wages and/or commissions, except that the dollar requirement for said jobs shall not apply to manufacturing and distribution businesses) in addition to the jobs already existing at the current location(s) within the city, and sustains that job increase over the previous 12-month period prior to application for the rebate. If qualified, the business shall be eligible for a rebate of utility users tax paid on the following scale:

(a) First year: 75% rebate;

(b) Second year: 50% rebate;

(c) Third year: 25% rebate; and

(d) Fourth and subsequent years: no rebate.

(3) Any business currently operating in the city shall be eligible for a utility users tax rebate if, after January 1, 2000, it adds a new additional location within the city, and continues to operate the previously existing location or locations within the city for the previous 12-month period prior to application for the rebate. For purposes of this program, the additional location shall be considered “new business” and shall be eligible for rebates in accordance with the program already established for new businesses (division (A) above).

(4) Any business currently operating in the city and qualified under divisions (B)(1) or (B)(2) above shall also be eligible for an additional rebate of 1% on the amount of utility users tax paid for each city resident that is hired to fill the new, permanent full-time jobs created within the city that meet the wage criteria. Eligibility for any such additional rebates shall be established by determining the residency of the new employees at the end of each year of rebate eligibility. This determination shall be verified by the Economic Development Agency with such supporting documentation as may be required by the Economic Development Agency. In no case shall the total rebate paid to any claimant exceed the total amount of utility users tax paid for the period claimed, nor shall rebates be paid for any term other than the schedule established by this section.

(5) To claim a rebate under this section, the claimant shall submit a completed verified claim form to the Economic Development Agency with such supporting documentation as may be required by the Economic Development Agency to determine claimant’s eligibility and to establish the amount of utility users tax paid by claimant on the period claimed, and the commencement date of the “first year,” as that term is used herein. A claim for a rebate shall be submitted annually to the Economic Development Agency not later than three months after the close of the year for which such refund is sought. The verified claim must be signed by an authorized officer of the claimant. The rebate shall be paid at the recommendation of the Economic Development Agency and subject to approval of the Department of Finance and Management Services.

(6) No rebates shall be paid if the subject business is no longer in operation in the city.

(7) FIRST YEAR, as used in this section, shall mean, for an existing business, the 12-month period immediately proceeding following the date the claim for rebate is filed.

(Ord. MC-1065, passed 3-7-2000; Ord. MC-1078, passed 8-8-2000; Ord. MC-1117, passed 3-5-2002; Ord. MC-1625, passed 2-21-2024)

(A) Notwithstanding any other provision of this chapter, whenever a service supplier, pursuant to an order of the State 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 refund 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 prior to the time that the service supplier has received credit for such refunded taxes, then the city shall pay the amount of refunded taxes due.

(B) Prior to making any refund pursuant to division (A) above, the service supplier shall provide, in the time and manner prescribed by the City Administrator, a copy of the order of the State Public Utilities Commission (or judgment of a court of competent jurisdiction) mandating the refund and any other relevant material or information.

(Ord. MC-510, passed 4-22-1986)

(A) A refund of all taxes due and paid under the provisions of this chapter for utility services rendered on and after January 1, 1984 to residents of mobile-home parks whose utility services were charged through a master meter shall be made whenever all of the following occur:

(1) The annual gross income of the household in which one person lives is less than an amount set by the Mayor and City Council by resolution;

(2) The annual gross income of the household in which a married couple or family lives is less than an amount set by the Mayor and City Council by resolution;

(3) The claimant makes application and files a verified claim in writing with the Director of Finance and Management Services at City Hall for such refund upon a claim form provided by said Director; and/or

(4) The claim is approved by said Director as being in conformance with this division (A). Only one member of each household may file a claim and only one claim may be filed for each individual household.

(B) The claimant shall be the person in whose name the bills for utilities service were rendered. INCOME OF THE HOUSEHOLD means an income of the claimant’s household from all members living in such household who are related to the claimant as a spouse or as defined in the Cal. Revenue and Taxation Code, §§ 17056 and 17057.

(C) GROSS INCOME means the sum of adjusted gross income as used for purposes of the State Personal Income Tax Law, together with the net income from all sources of all kinds, including, but not limited to, alimony, support money, cash public assistance and relief, pensions, annuities, social security, interest on securities (including tax free interest on governmental securities), realized capital gains, workers’ compensation (not including medical benefits), unemployment insurance income, insurance benefits of all kinds (other than medical) and gifts, except that income shall not include Medicare benefits, MediCal benefits, gifts of food and gifts between members of the household, the receipt of surplus food or other relief in kind supplied by a governmental agency.

(D) The claim for such refund for the preceding 12-month period may be made at any time during the year, and must be accompanied by proof that the utility taxes have been paid by the claimant or some member of the household.

(E) No refund shall be made to any person for taxes levied on a utility account for which any utility tax is due and outstanding for the period for which refund is claimed or for any prior period. No refund shall be made for any tax which was paid with public assistance or relief funds which included an allowance to pay the tax.

(F) Nothing in this section shall be construed to require that any utility company has any obligation to make or furnish, for the purpose of the refund provisions hereof, proof of utility taxes due or utility taxes paid.

(Ord. 2931, passed 8-13-1968; Ord. 3505, passed 6-17-1975; Ord. 3861, passed 9-12-1979; Ord. MC-297, passed 8-4-1983; Ord. MC-330, passed 12-20-1983; Ord. MC-515, passed 4-22-1986; Ord. MC-712, passed 3-19-1990; Ord. MC-1625, passed 2-21-2024)

(A) Effective January 1, 1984, the tax imposed by this chapter shall not apply to any individual who uses telephone, electric, gas or cable television services in or upon any premises occupied by such individual provided that the following conditions are satisfied:

(1) The annual gross income of the household in which one person lives is less than an amount set by the Mayor and City Council by resolution;

(2) The annual gross income of the household in which a married couple or family lives is less than an amount set by the Mayor and City Council by resolution; and/or

(3) The conditions of § 3.44.140(A)(3), (A)(4), (B), (C) and (F) are satisfied, with the word “claimant” therein referring to the individual applying for exemption.

(B) Any person claiming exemption pursuant to this section may file a claim for such exemption at any time in order to qualify for an exemption for the subsequent 12-month period, or until a current exemption is scheduled to expire.

(1) Between October 31, 1985 and the effective date of this division (B), applications for renewal of exemptions may be made to the Director of Finance and Management Services, without prejudice, by persons whose exemptions were scheduled to expire on December 31, 1985. Exemptions granted under this provision shall not be retroactive.

(2) An application for exemption or renewal shall be made upon forms supplied by the Director of Finance and Management Services and shall declare facts under penalty of perjury which qualify the applicant for the exemption.

(C) The Director of Finance and Management Services, or his or her designee, shall review all applications for exemption or renewal, certify as exempt those applicants who qualify and notify all service suppliers affected that such exemptions have been approved, stating 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 its tax billing procedure. Upon receipt of notice from the Director of Finance and Management Services, the service supplier shall not be required to collect any further tax imposed by this chapter from such exempt service user until further notice from the Director of Finance and Management Services. Prior to the expiration date of each exemption, the Director of Finance and Management Services shall send notice, by ordinary mail, reminding the holder of the expiration date. At the same time, the Director of Finance and Management Services may also send a renewal application which may be returned by ordinary mail. These reminders shall be sent within such reasonable time as to allow processing of the renewal with no lapse in the exemption status.

(D) Each exemption shall expire 12 months after the date it was issued, or December 31, 1986, whichever date is later. The Director of Finance and Management Services shall notify each service supplier to resume collection of utility taxes on the accounts of those service users who have not applied for renewal of their exempt status or whose applications for renewal have been denied. Upon receipt of the written notification, these service suppliers shall resume such collection on those accounts affected commencing with the first billing period beginning after the exemption expires. Notwithstanding any of the provisions of this section, any service supplier who determines, during any calendar year, by any means readily available to it, that a non-exempt service user is receiving services through a meter or connection exempt by virtue of an exemption issued to a previous user of the same meter or connection, the service supplier shall forthwith resume the collection of taxes imposed by this chapter upon the non-exempt service user.

(E) Any individual who has been exempted from the tax shall notify the Director of Finance and Management Services within ten days of any change of address or any other change in fact or circumstance which might disqualify that individual from receiving the exemption. If it is determined by the Director of Finance and Management Services that the individual is no longer qualified, the Director of Finance and Management Services shall give notice to the service supplier who shall resume collection of the tax imposed by this chapter commencing with the next billing period. If the user is entitled to exemption at a new address, the Director of Finance and Management Services shall notify affected service suppliers of that fact.

(F) It shall be a misdemeanor for any person to knowingly receive the benefits of the exemptions provided by this section when the basis for the exemption either does not exist or ceases to exist. The Director of Finance and Management Services may, from time to time, or at any time, demand evidence of continued eligibility of a service user for exemption under the provisions of this section. Such evidence may include, without limit, copies of business records, 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 Director of Finance and Management Services shall be grounds for denial or discontinuance of the service users’ exemption, but evidence voluntarily provided to the Director of Finance and Management Services may only be used as grounds for termination of the exemption and not as evidence of violation of the provisions of this section. If the Director of Finance and Management Services determines that an application for exemption is faulty or untruthful, the application shall be denied in writing and the applicant may file an amended application or appeal the decision of the Director of Finance and Management Services to the City Administrator, whose decision shall be final.

(G) No individual shall be exempt from the tax imposed by this chapter except in accordance with this section. The provisions of this section shall not apply retroactively, and no refund shall be made for any taxes paid prior to the issuance and effective date of an exemption granted by the Director of Finance and Management Services, nor shall any refund be made for any taxes collected during any period in which an exemption from the Director of Finance and Management Services was not in effect or had lapsed by failure to apply for renewal.

(Ord. MC-297, passed 8-4-1983; Ord. MC-515, passed 4-22-1986; Ord. MC-712, passed 3-19-1990; Ord. MC-1625, passed 2-21-2024)

Any person violating any provision of this chapter is guilty of an infraction, which, upon conviction thereof, is punishable in accordance with the provisions of § 1.12.010.

(Ord. 2931, passed 8-13-1968; Ord. MC-460, passed 5-15-1985)

In the event the beginning undesignated fund balance for the city’s General Fund in the 1984 to 1985 preliminary or final budget as in effect on July 1, 1984 is more than 5% of the proposed expenditures and obligations of the General Fund for that budget, as determined by a written declaration filed by the Director of Finance and Management Services with the City Clerk, the tax imposed in this chapter shall be reduced to 6% for all services effective upon the first billings after July 1, 1984.

(Ord. MC-297, passed 8-4-1983; Ord. MC-1625, passed 2-21-2024)

Whenever the charge for any service upon which a tax is imposed by this chapter is increased, the Mayor and City Council shall review the increased charge and determine whether or not the service users tax shall be modified.

(Ord. MC-331, passed 1-10-1984)