San Joaquin Municipal Code Ch. 34 Revenue and Finance; Taxation

Section

General Provisions

Specific Taxes

GENERAL PROVISIONS

(A) The duties of assessing the property located within the boundaries of the city shall, until the ordinance codified in this chapter is repealed, be performed by the County Assessor, under and subject to the provisions of and in the manner designated by Act 8464 of the General Laws of the state entitled "Levy and Collection of Municipal Taxes".

(1994 Code, § 3.04.010)

(B) The duties of collecting the city taxes of the city shall, until the ordinance codified in this chapter is repealed, be performed by the County Tax Collector, under and subject to the provisions of and in the manner designated by Act 8464 of the General Laws of the state entitled "Levy and Collection of Municipal Taxes".

(1994 Code, § 2.40.020)

(Ord. 19, passed - -1940)

(A) To comply with the provisions of Cal. Streets and Highways Code Article 5 of Chapter 1 of Division 1, with particular reference to the amendments made thereto by Chapter 642, statutes of 1935, there is created in the City Treasury a special fund to be known as the Special Gas Tax Street Improvement Fund.

(1994 Code, § 3.16.010)

(B) All money received by the city from the state under the provisions of the Cal. Street and Highways Code for the acquisition of real property or interests therein for, or the construction, maintenance or improvement of streets or highways other than state highways shall be paid into the Fund.

(1994 Code, § 3.16.020)

(C) All moneys in the fund shall be expended exclusively for the purposes authorized by, and subject to all of the provisions of Cal. Streets and Highways Code Article 5, Chapter 1, Division I.

(1994 Code, § 3.16.030)

(Ord. 4, passed - -1940)

SPECIFIC TAXES

(A) Title for citation. This section shall be known as the "Real Property Transfer Tax Article of the City of San Joaquin". It is adopted pursuant to the authority contained in Cal. Revenue and Taxation Code Part 6.7 (commencing with § 11901) of Division 2.

(1994 Code, § 3.08.010)

(B) Tax imposed. There is imposed on each deed, instrument or writing by which any lands, tenements or other realty sold within the city shall be granted, assigned, transferred or otherwise conveyed to or vested in, the purchaser or purchasers, or any other person or persons, by his or her or their direction, when the consideration or value of the interest or property conveyed (exclusive of the value of any lien or encumbrances remaining thereon at the time of sale) exceeds $100, a tax at the rate of $0.27-1/2 for each $500 or fractional part thereof.

(1994 Code, § 3.08.020)

(C) Tax not applicable when. Any tax imposed pursuant to this section shall not apply to any instrument in writing given to secure a debt:

(1) Any tax imposed pursuant to this chapter shall not apply to the making, delivering or filing of conveyances to make effective any plan of reorganization or adjustment;

(a) Confirmed under the Federal Bankruptcy Act, as amended;

(b) Approved in an equity receivership proceeding in a court involving a railroad corporation, as defined in 11 U.S.C. § 205(m), as amended;

(c) Approved in an equity receivership; proceeding in a court involving a corporation, as defined in 11 U.S.C. § 506(3), as amended; or

(d) Whereby a mere change in identity, form or place of organization is effected.

(2) Divisions (C)(1)(a) through (d) of this section shall only apply if the making, delivery or filing of instruments of transfer or conveyances occurs within five years from the date of the confirmation, approval or change.

(3) Any tax imposed pursuant to this chapter shall not apply to the making or delivery of conveyances to make effective any order of the Securities and Exchange Commissions, as defined in I.R.C. § 1083(a) of 1954, but only if:

(a) The order of the Securities and Exchange Commission in obedience to which the conveyance is made recites that the conveyance is necessary or appropriate to effectuate the provisions of 15 U.S.C. § 79k, relating to the Public Utility Holding Company Act of 1935;

(b) The order specifics the property which is ordered to be conveyed; and

(c) The conveyance is made in obedience to the order.

(4) In the ease of any realty held by a partnership, no levy shall be imposed pursuant to this section by reason of any transfer of an interest in a partnership or otherwise, if:

(a) The partnership (or another partnership) is considered a continuing a partnership within the meaning of I.R.C. § 708 of 1954; and

(b) The continuing partnership continues to hold the realty concerned.

(5) If there is a termination of any partnership within the meaning of I.R.C. § 708 of 1954 for purposes of this chapter, the partnership shall be treated as having executed an instrument whereby there was conveyed, for fair market value (exclusive of the value of any lien or encumbrance remaining thereon), all realty held by the partnership at the time of the termination; and

(6) Not more than one tax shall be imposed pursuant to this section by reason of a termination described in division (C)(5) of this division, and any transfer pursuant to thereto, with respect to the realty held by the partnership at the time of the termination.

(1994 Code, § 3.16.030)

(D) Payment of tax. Any tax imposed pursuant to division (B) of this section shall be paid by any person who makes, signs or issues any document or instrument subject to the tax, or for whose use or benefit the same is made, signed or issued.

(1994 Code, § 3.16.040)

(E) Liability. The United States or any agency or instrumentality thereof, any state or territory, or political subdivision thereof, or the District of Columbia shall not be liable for any tax imposed pursuant to this chapter with respect to any deed, instrument or writing to which it is a party, but the tax may be collected by assessment from any other party liable therefore.

(1994 Code, § 3.16.050)

(F) Chapter administration. The County Recorder shall administer this chapter in conformity with the provisions of Cal. Revenue and Taxation Code Part 6.7 of Division 2 of the and the provisions of any county ordinance adopted pursuant thereto.

(1994 Code, § 3.16.060)

(G) Provisions for refund of taxes. Claims for refund of taxes imposed pursuant to this chapter shall be governed by the provisions of Cal. Revenue and Taxation Code Chapter 5 (commencing with § 5096) of Part 9 of Division I.

(1994 Code, § 3.16.070)

(A) Title. This section shall be known as the "Uniform Local Sales and Use Tax Law of the City of San Joaquin".

(1994 Code, § 3.12.010)

(B) Purpose. The City Council declares that this section is adopted to achieve the following, among other, purposes and directs that the provisions hereof be interpreted in order to accomplish those purposes: to adopt a sales and use tax article which complies with the requirements and limitations contained in Cal. Revenue and Taxation Code Part 1.5 of Division 2:

(1) To adopt a sales and use tax article which incorporates provisions identical to those of the sales and use tax law insofar as those provisions are not inconsistent with the requirements and limitations contained in Cal. Revenue and Taxation Code Part 1.5 of Division 2;

(2) To adopt a sales and use tax article which imposes a tax and provides a measure therefor that can be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from the existing statutory and administrative procedures followed by the State Board of sales and use taxes;

(3) To adopt a sales and use tax article which can be administered in a manner that will, to the degree possible consistent with the provisions of Cal. Revenue and Taxation Code Part 1.5 of Division 2, minimize the cost of collecting city sales and use taxes and at the same time minimize the burden of record keeping upon persons subject to taxation under the provisions of this chapter.

(1994 Code, § 3.12.020)

(C) Rate. The rate of sales tax and use tax imposed by this section shall be 0.9800%. The rate established by this division shall be operative from and after 7-1-2016.

(1994 Code, § 3.12.030)

(Ord. 08-103, passed 6-19-2008; Ord. 15-101, passed 5-26-2015; Ord. 2016-102, passed 5-10-2016)

(D) Exclusions and exemptions.

(1) The amount subject to tax shall not include any sales or use tax imposed by the state upon a retailer or consumer.

(2) The storage, use or other consumption of tangible personal property, the gross receipts from the sale of which have been subject to tax under a sales and use tax ordinance enacted in accordance with Cal. Revenue and Taxation Code Part 1.5 of Division 2 by any city and county, county or city, in the state shall be exempt from the tax due under this division.

(3) There are exempted from the computation of the amount of the sales tax the gross receipts from the sale of tangible personal property to operators of aircraft to be used or consumed principally outside the city in which the sale is made and directly and exclusively in the use of the aircraft as common carriers of persons or property under the authority of the laws of the state, the United States or any foreign government.

(4) In addition to the exemptions provided in Cal. Revenue and Taxation Code §§ 6366 and 6366.1 of the storage, use or other consumption of tangible personal property purchased by operators of aircraft and used or consumed by the operators directly and exclusively in the use of the aircraft as common carriers of persons of property for hire on compensation under a certificate of public convenience and necessity issued pursuant to the laws of this state, the United States or any foreign government is exempted from the use tax.

(1994 Code, § 3.12.040)

(E) Contract with state. Prior to the operative date, the city shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this section: provided that, if the city shall not have contracted with the State Board of Equalization prior to the operative date, it shall nevertheless so contract and in a case the operative date shall be the first day of the first calendar quarter following the execution of the contract rather than the first day of the first calendar quarter following the adoption of this chapter.

(1994 Code, § 3.12.050)

(F) Adoption of provisions of state law. Except as otherwise provided in this chapter and except insofar as they are inconsistent with the provisions of Cal. Revenue and Taxation Code Part 1.5 of Division 2, all of the provisions of Cal. Revenue and Taxation Code Part I of Division 2 are adopted and made a part of this section as though fully set forth herein.

(1994 Code, § 3.12.060)

(G) Limitations on adoption of state law. In adopting the provisions of Cal. Revenue and Taxation Code Part I of Division 2, wherever the state is named or referred to as the taxing agency, the name of the city shall be substituted therefor. The substitution, however, shall not be made when the word "state" is used as part of the title of the State Controller, the State Treasurer, the State Board of Control, the State Board of Equalization, the State Treasury or the Constitution of the state; the substitution shall not be made when the result of that substitution would require action to be taken by or against the city, or any agency whereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this subchapter; the substitution shall not be made in those subsections, including, but not necessarily limited to, subsections referring to the exterior boundaries of the state, where the result of the substitution would be to provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while the sales, storage, use or other consumption remain subject to tax by the state under the provisions of Cal. Revenue and Taxation Code Part 1 of Division 2, or to impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the provisions of that code; the substitution shall not be made in Cal. Revenue and Taxation Code §§ 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828; and the substitution shall not be made for the word "state" in the phrase "retailer engaged in business in this state" in § 6203 or in the definition of that phrase in Cal. Revenue and Taxation Code § 6203.

(1994 Code, § 3.12.070)

(H) Sales tax. For the privilege of selling tangible personal property at retail, a tax is imposed upon all retailers in the city at the rate stated in division (C) of this section of the gross receipts of the retailer from the sale of all tangible personal property sold at retail in this city on and after the operative date.

(1994 Code, § 3.12.080)

(I) Place of sale. For the purposes of this chapter, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his or her agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from the sales shall include delivery charges when the charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the state or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the State Board of Equalization.

(1994 Code, § 3.12.090)

(J) Use tax. An excise tax is imposed on the storage, use or other consumption in the city of tangible personal property purchased from any retailer on and after the operative date for storage, use or other consumption in this city at the rate stated in division (C) of this section of the sales price of the property. The sales price shall include delivery charges when the charges are subject to state sales or use tax regardless of the place to which delivery is made.

(1994 Code, § 3.12.100)

(K) Permit not required when. If a seller's permit has been issued to a retailer under Cal. Revenue and Taxation Code § 6067, an additional seller's permit shall not be required by this section.

(1994 Code, § 3.12.110)

(L) Enjoining collection forbidden. No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the state or the city, or against any officer of the state or the city, to prevent or enjoin the collection under this chapter, or Cal. Revenue and Taxation Code Part 1.5 of Division 2, of any tax or any amount of tax required to be collected.

(1994 Code, § 3.12.120)

(M) Amendments. All subsequent amendments of the Revenue and Taxation Code which relate to the sales and use tax and which are not inconsistent with Cal. Revenue and Taxation Code Part 1.5 of Division 2 shall automatically become a part of this section.

(1994 Code, § 3.12.130) (Ord. 76-107, passed - -1976; Ord. 77-103, passed - -1977; Ord. 83-116, passed - -1983; Ord. 92-103, passed - -1992; Ord. 93-104, passed - -1993; Ord. 14-100, passed 7-8-2014)

(A) Purpose of special tax and use of proceeds. The tax imposed by this section is exclusively for the purpose of raising revenues for the reconstruction, repaving and repair of streets and public ways within the city, and for the reconstruction and repair of public facilities within or related to the public ways, including, but not limited to, the repair or replacement of curbs, gutters, sidewalks, driveway approaches and storm drains or sewers. All of the proceeds from the tax imposed by this section shall be placed in a special fund to be used only for the costs of engineering, administration and construction which are directly related to the reconstruction and repair of the described public facilities.

(B) Definitions. For the purpose of this section, the following definitions apply unless the context clearly indicates or requires a different meaning.

CITY. The City of San Joaquin.

GAS. Natural or manufactured gas or any alternate hydrocarbon fuel which may be substituted therefor.

MONTH. A calendar month.

NON-UTILITY SUPPLIER.

(a) A service supplier, other than an electrical corporation serving within the city, which generates electrical energy in capacities of at least 50 kilowatts for its own use or for sale to others; or

(b) A gas supplier other than a gas corporation, that sells or supplies gas to users within the city.

PERSON. Any domestic or foreign corporation, firm, association, syndicate, joint stock company, partnership of any kind, joint venture, club, Massachusetts business or common law trust, society or individuals.

SERVICE SUPPLIER. Any entity required to collect or self-impose and remit a tax as imposed by this section.

SERVICE USER. A person required to pay a tax imposed by this section.

TAX ADMINISTRATOR. The person in charge of the Finance Department of the city.

TELEPHONE CORPORATION, ELECTRICAL CORPORATION, GAS CORPORATION, WATER CORPORATION, CABLE TELEVISION CORPORATION. The same meanings as defined in Cal. Public Utilities §§ 234, 218, 222, 241 and 215.5, respectively, except, "electrical corporation", "gas corporation" and "water corporation" shall also be construed to include any municipality, public agency or person engaged in the selling or supplying of electrical power or gas or water to a service user.

(C) Exemptions.

(1) Nothing in this section shall be construed as imposing a tax upon any person when imposition of the tax upon that person would be in violation of the Constitution of the United States or that of the state.

(2) The City Council may, by order or resolution, establish one or more classes of persons or one or more classes of utility service otherwise subject to payment of a tax imposed by this section and provide that the classes of persons or service shall be exempt, in whole or in part from the tax.

(3) The Tax Administrator shall prepare a list of the persons exempt from the provisions of this section by virtue of this division and furnish a copy thereof to each service supplier.

(D) Telephone user's tax.

(1) There is hereby imposed a tax on the amounts paid for any intrastate telephone services by every person in the city using the services. The tax imposed by this division shall be at the rate of 10% of the charges made for the services and shall be paid by the person paying for the services.

(2) As used in this division, the term CHARGES shall not include charges for services paid for by inserting coins in coin-operated telephones except that where the coin-operated service is furnished for a guaranteed amount, the amounts paid under the 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 supplied subject to public utility regulations 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 service or maritime mobile services as defined in 47 C.F.R. § 2.1, as the subsection existed on 1-1-1970. The term "telephone communication services" refers to that service which provides access to a telephone system and the privilege of telephone quality communication with substantially all persons having telephone stations which are part of the 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.

(3) The tax imposed by this division shall be collected from the service user by the person providing the intrastate telephone communication services, or the person receiving payment for the 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 bill in the previous month, shall be remitted to the Tax Administrator on or before the last day of each month.

(4) Notwithstanding the provisions of division (D)(1) above, the tax imposed under this division shall not be imposed upon any person for using intrastate telephone communication services to the extent that the amounts paid for the services are exempt from or not subject to the tax imposed under Cal. Revenue and Taxation Code Division 2, Part 20, or the tax imposed under I.R.C. § 4251.

(E) Electricity user's tax.

(1) There is hereby imposed a tax upon every person other than an electric or gas corporation using electrical energy in the city. The tax imposed by this subsection shall be at the rate of 10% of the charges made for the energy by an electrical corporation providing service in the city and shall be billed to and paid by the person using the energy. The tax applicable to electrical energy provided by a non-utility supplier shall be determined by applying the tax rate to the equivalent charge 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. Non-utility suppliers shall install, maintain and use an appropriate utility-type metering system which will enable compliance with this section. CHARGES, as used in this division, shall include charges made for metered energy and minimum charges for service, including customer charges, service charges, demand charges, standby charges and all other annual and monthly charges, fuel or other cost adjustments, authorized by the State Public Utilities Commission or the Federal Energy Regulatory Commission.

(2) As used in this section, the term USING ELECTRICAL ENERGY shall not be construed to mean the storage of the energy by a person in a battery owned or possessed by him or her for use in an automobile or other machinery device apart from the premises upon which the energy was received; provided, however, that, the term shall include the receiving of the energy for the purpose of using it in the charging of batteries; nor shall the term include electricity used and consumed by an electric utility supplier or governmental agency in the conduct of its business; nor shall the term include electricity used and consumed by an electric utility corporation or governmental agency at a point within the city for resale; nor shall the term include the use of the energy in the production or distribution of water by a water utility or a governmental agency.

(3) The tax imposed in this section shall be collected from the service user by the service supplier or non-utility supplier. The tax imposed in this section on use supplied by self-generation or from a non-utility supplier not subject to the jurisdiction of this section, shall be collected and remitted to the Tax Administrator in the manner set forth in division (G) below. The amount of tax collected by a service supplier or a non-utility supplier in one month shall be remitted by United States 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 and remit the tax, an estimated amount of tax measured by the tax billed in the previous month, shall be remitted by U.S. mail, to the Tax Administrator, postmarked on or before the last day of each month.

(F) Gas user's tax.

(1) There is hereby imposed a tax upon every person in the city other than a gas corporation or electrical corporation, using, in the city, gas which is transported through mains or pipes or by mobile transport. The tax imposed by this section shall be at the rate of 10% of the charges made for the gas and shall be billed to and paid by the person using the gas. The tax applicable to gas or gas transportation provided by non-utility 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 has been provided by the gas corporation. If franchised by the city. CHARGES, as used in this division, shall include that billed for gas which is delivered through mains or pipes; gas transportation charges; and demand charges, service charges, customer charges, minimum charges, annual and monthly charges and any other charge authorized by the State Public Utilities Commission or the Federal Energy Regulatory Commission.

(2) The tax otherwise imposed by this division is not applicable to charges made for gas which is to be resold and delivered through mains and pipes, charges made for gas used and consumed by a public utility or governmental agency in the conduct of its business or, charges made by a gas public utility or gas used and consumed in the course of its public utility business, and charges made for gas used in the propulsion of a motor vehicle, as authorized in the Vehicle Code of the state.

(3) The tax imposed in this division shall be collected from the service user by the person selling or transporting the gas. A person selling only transportation services to use for delivery of gas through mains or pipes shall collect the tax from the service user based on the transportation charges. The person selling or transporting the gas shall, on or before the twentieth of each calendar month, commencing on the twentieth day of the calendar month after the effective date of this section, make a return to the Tax Administrator stating the amount of taxes billed during the preceding calendar month. At the time the returns are filed, the person selling or transporting the gas shall remit tax payments to the Tax Administrator in accordance with schedules established or approved by the Tax Administrator. The tax imposed in this division on use supplied by self-production or a non-utility supplier not subject to the jurisdiction of this section, shall be collected and remitted to the Tax Administrator in the manner set forth in division (G) below.

(G) Service users receiving direct purchase of gas or electricity.

(1) Notwithstanding any other provision of this section, a service user receiving gas or electricity directly from a non-utility supplier not under the jurisdiction of this section, 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 the fact to the Tax Administrator within 30 days of use and shall directly remit to the city the amount of tax due.

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

(H) Water user's tax.

(1) 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 division shall be at the rate of 10% of the charges made for the water and shall be paid by the person paying for the water.

(2) There shall be excluded from the base on which the tax imposed in this division is computed charges made for water which is to be resold and delivered through mains or pipes; and charges made by a municipal water department, public utility or a city or municipal water district for water used and consumed by the department, utility or district.

(3) The tax imposed in this division shall be collected from the service user by the person supplying the water. The amount collected in one month shall be remitted to the Tax Administrator on or before the last day of the following month.

(I) Cable television user's tax.

(1) There is hereby imposed a tax upon every person in the city using cable television service. The tax imposed by this division shall be at the rate of 10% of the charges made for the cable television service and shall be paid by the person paying for the service.

(2) The tax imposed in this division shall be collected from the service user by the person furnishing the cable television service. The amount collected in one month shall be remitted to the Tax Administrator on or before the last day of the following month.

(J) Remittance of tax; delinquency. Taxes collected from a service user which are not remitted to the Tax Administrator on or before the due dates provided in this section are delinquent. Should be 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.

(K) Actions to collect. Any tax required to be paid by a service user under the provisions of this section shall be deemed a debt owed by the service user to the city. Any 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 section shall be liable to an action brought in the name of the city for the recovery of the amount.

(L) Duty to collect; procedures. The duty to collect and remit the taxes imposed by this section shall be performed as follows:

(1) Notwithstanding the provisions of division (G) above, 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 service charge amount, any subsequent payments by a service user shall be applied to the utility charge first until the charge 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 his or her refusal to pay the tax imposed on the energy charges, division (M) below will apply.

(2) The duty to collect tax from a service user shall commence with the beginning of the first full regular billing period applicable to the service user where all charges normally included in the regular billing are subject to the provisions of this section. 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.

(M) Additional powers and duties of Tax Administrator.

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

(2) The Tax Administrator shall have the power to adopt rules and regulations not inconsistent with provisions of this section for the purpose of carrying out and enforcing the payment, collection and remittance of the taxes herein imposed. A copy of the rules and regulations shall be on file in the Tax Administrator's office.

(3) The Tax Administrator may make administrative agreements to vary the strict requirements of this section so that collection of any tax imposed here may be made in conformance with the billing procedures of particular service supplier so long as the agreements result in collection of the tax in conformance with the general purpose and scope of this section. A copy of each agreement shall be on file in the Tax Administrator's office.

(4) The Tax Administrator shall determine the eligibility of any person who asserts a right to exemption from the tax imposed by this section. 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 and account number to which service is supplied to any 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.

(5) The Tax Administrator shall provide notice to all service suppliers, at least 90 days prior to any annexation or other change in the city's boundaries. The notice shall set forth the revised boundaries by street and address, along with a copy of the final annexation order from LAFCO.

(N) Assessment; service user administrative remedy.

(1) Whenever the Tax Administrator 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 refused to pay the amount of tax, the person may be relieved of the obligation to collect taxes due under this section from certain named service users for specified billing periods as set forth below.

(2) The service supplier shall provide the city with amounts refused and/or unpaid along with the names and addresses of the service users neglecting to pay the tax imposed under provisions of this section. Whenever the service user has failed to pay the amount of tax for a period of two or more billing periods, the service supplier shall be relieved of the obligation to collect taxes due.

(3) The Tax Administrator shall notify the service user that the Tax Administrator assumed responsibility to collect the taxes due for the stated periods and demand payment of the 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's address change, to the last known address. If a service user fails to remit the tax to the Tax Administrator within 15 days from the date of the service of the notice upon him or her, which shall be 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.

(O) Records. It shall be the duty of every person required to collect and remit to the city any tax imposed by this section to keep and preserve, for a period of three years, all records as may be necessary to determine the amount of the tax as he or she may have been liable for the remittance to the Tax Administrator, which records the Tax Administrator shall have the right to inspect at all reasonable times.

(P) Refunds.

(1) 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 section, it may be refunded as provided in this division.

(2) Notwithstanding the provisions of division (P)(1) above, 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 section and actually due from a service user, may refund the amount to the service user and claim credit for the overpayment against the amount of tax which is due upon any other monthly returns, provided the credit is claimed in a return dated no later than three years from the date of overpayment.

(3) Notwithstanding other provisions of this division, 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 section on the amount of the refunded charges shall also be refunded to service users, and the service supplier shall be entitled to claim a credit for the refunded taxes against the amount of tax which is due upon the next monthly returns. In the event this section is repealed, the amounts of any refundable taxes will be borne by the city.

(4) A service supplier may refund the taxes collected to the service user in accordance with this division or by the service supplier's customary practice.

(5) Any claims for refunds of taxes imposed by this section must be presented to the city no later than three years after the date of payment for which a refund is claimed to be due.

(Q) Termination or suspension of utility user's tax.

(1) The service supplier shall, upon notification, terminate or suspend collection of any utility user's tax commencing with the first full billing period which occurs after the effective date of the action by the City Council.

(2) Collection of the tax imposed in this section shall terminate on the twentieth anniversary of the date on which the provisions of this chapter became effective.

(R) Operative date. The tax imposed under this ordinance shall apply to bills rendered on the thirtieth day following a declaration by the City Council that not less than two-thirds of the voters voting on the measure voted in favor of the adoption of this section or as soon thereafter as the respective utilities are physically and mechanically able to get "on line" for the imposition of charges (not more than 60 days).

(Ord. 99-101, passed 11-23-1999)

Editor's note:

This section is currently undergoing review and revision by the city