Santa Fe Springs Municipal Code Ch. 35 Taxation

Footnotes:

--- (4) ---

Cross reference— Business regulations, see Title XI

(A) Pursuant to the authority granted by Cal. Gov't Code § 51501, the assessment and tax collection duties performed by the City Assessor and Tax Collector are transferred to the Assessor and Tax Collector of the county.

(B) Pursuant to the authority granted by Cal. Gov't Code § 51507, the duties of the City Assessor, other than the assessing of city property, and the duties of the Tax Collector, other than the collection of taxes, are transferred to and shall be performed by the City Clerk or such officer of the county as may, by contract with the city, be designated and authorized to perform such duties.

(Ord. 54, passed 12-19-57; '64 Code, §§ 21-1—21-2)

This subchapter shall be known as the "Sales and Use Tax Ordinance of the city."

('64 Code, § 21-3)

The purpose of this subchapter is:

(A) To adopt sales and use tax regulations which incorporate provisions identical to those of the Sales and Use Tax Law of the state insofar as those provisions are not inconsistent with the requirements and limitations contained in Cal. Rev. and Tax. Code Part 1.5 of Division 2.

(B) To adopt sales and use tax regulations which impose a one percent tax and provide a measure therefor that can be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practical to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the State Board of Equalization in administering and collecting the state sales and use taxes.

(C) To adopt sales and use tax regulations which can be administered in a manner that will, to the degree possible consistent with the provisions of Cal. Rev. and Tax. 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 subchapter.

(Ord. 16, passed 6-13-57; '64 Code, § 21-4)

(A) (1)

For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the city at the rate of one percent of the gross receipts of the retailer from the sale of all tangible personal property sold at retail in the city on and after the operative date of this subchapter.

(2) For the purposes of this subchapter, 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 agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such 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 at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the Board of Equalization.

(B) (1)

Except as hereinafter provided, and except insofar as they are inconsistent with the provisions of Cal. Rev. and Tax. Code Part 1. 5 of Division 2, all of the provisions of Cal. Rev. and Tax. Code Part 1 of Division 2, as amended and in force and effect on July 1, 1957, applicable to sales taxes are hereby adopted and made a part of this section as though fully set forth herein.

(2) Wherever, and to the extent that, in Cal. Rev. and Tax. Code Part 1 of Division 2, the state is named or referred to as the taxing agency, the city shall be substituted therefor. Nothing in this division shall be deemed to require the substitution of the name of the city for the word "state" when that word is used as part of the title of the State Controller, the State Treasurer, the State Board of Control, the State Board of Equalization or the name of the state treasury or of the Constitution of the state; nor shall the name of the city be substituted for that of the state in any section when the result of that substitution would require action to be taken by or against the city or any agency thereof, rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this subchapter; and neither shall the substitution be deemed to have been made in those sections, including, but not necessarily limited to, sections 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 gross receipts which would not otherwise be exempt from this tax while those gross receipts remain subject to tax by the state under the provisions of Cal. Rev. and Tax. Code Part 1 of Division 2; nor to impose this tax with respect to certain gross receipts which would not be subject to tax by the state under such provisions of that code; and, in addition, the name of the city shall not be substituted for that of the state in Cal. Rev. and Tax. Code §§ 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 and 6828, as adopted.

(3) If a seller's permit has been issued to a retailer under Cal. Rev. and Tax. Code § 6067, an additional seller's permit shall not be required by reason of this section.

(4) There shall be excluded from the gross receipts by which the tax is measured:

(a) The amount of any sales or use tax imposed by the state upon a retailer or consumer.

(b) Receipts from sales to operators of common carriers and water-borne vessels of property to be used or consumed in the operation of such common carriers or waterborne vessels principally outside of the city.

(5) There shall be excluded from the gross receipts by which the tax is measured:

(a) The amount of any sales or use tax imposed by the state upon a retailer or consumer.

(b) The gross receipts from the sale of tangible personal property to operators of waterborne vessels to be used or consumed principally outside the city in which the sale is made and directly and exclusively in the carriage of persons or property in such vessels for commercial purposes.

(c) 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 such aircraft as common carriers of persons or property under the authority of the laws of this state, the United States, or any foreign government.

(Ord. 16, passed 6-13-57; Am. Ord. 188, passed 11-9-61; '64 Code, § 21-6; Ord. 443, passed 10-11-73; Ord. 640, passed 12-8-83)

(A) An excise tax is hereby imposed on the storage, use or other consumption in the city of tangible personal property purchased from any retailer on or after the operative date of this subchapter, for storage, use or other consumption in the city at the rate of one percent of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made.

(B) (1)

Except as hereinafter provided, and except insofar as they are inconsistent with the provisions of Cal. Rev. and Tax. Code Part 1.5 of Division 2, all of the provisions of Cal. Rev. and Tax. Code Part 1 of Division 2, as amended and in force and effect on July 1, 1957, applicable to use taxes are hereby adopted and made a part of this section as though fully set forth herein.

(2) Wherever, and to the extent that, in Cal. Rev. and Tax. Code Part 1 of Division 2, the state is named or referred to as the taxing agency, the name of the city shall be substituted therefor. Nothing in this division shall be deemed to require the substitution of the name of the city for the word "state" when that word is used as part of the title of the State Controller, the State Treasurer, the State Board of Control, the State Board of Equalization or the name of the state treasury or of the Constitution of the state; nor shall the name of the city be substituted for that of the state in any section when the result of that substitution would require action to be taken by or against the city or any agency thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this subchapter; and neither shall the substitution be deemed to have been made in those sections, including but not necessarily limited to, sections 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 storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such storage, use or other consumption remains subject to tax by the state under the provisions of Cal. Rev. and Tax. Code Part 1 of Division 2, or to impose this tax with respect to certain storage, use or other consumption of tangible personal property which would not be subject to tax by the state under such provisions of that code; and, in addition, the name of the city shall not be substituted for that of the state in Cal. Rev. and Tax. Code §§ 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 and 6828, as adopted, and the name of the city shall not be substituted for the word "state" in the phrase "retailer engaged in business in this state" in Cal. Rev. and Tax. Code § 6203 nor in the definition of that phrase in said § 6203.

(3) There shall be exempt from the tax due under this section:

(a) The amount of any sales or use tax imposed by the state upon a retailer or consumer.

(b) The storage, use or other consumption of tangible personal property, the gross receipts from the sale of which has been subject to sales tax under a sales and use tax ordinance enacted in accordance with Cal. Rev. and Tax. Code Part 1.5 of Division 2 by any city and county, county, or city in the state.

(c) The storage or use of tangible personal property in the transportation or transmission of persons, property or communications, or in the generation, transmission or distribution of electricity or in the manufacture, transmission or distribution of gas in intrastate, interstate or foreign commerce by public utilities which are regulated by the Public Utilities Commission of the state.

(d) The use or consumption of property purchased by operators of common carriers and waterborne vessels to be used or consumed in the operation of such common carriers or waterborne vessels principally outside the city.

(4) There shall be exempt from the tax due under this section:

(a) The amount of any sales or use tax imposed by the State of California upon a retailer or consumer.

(b) The storage, use or other consumption of tangible personal property, the gross receipts from the sale of which has been subject to sales tax under a sales and use tax ordinance enacted in accordance with Cal. Rev. and Tax. Code Part 1.5 of Division 2 by any city and county, county, or city in this state.

(c) The storage, use or other consumption of tangible personal property purchased by operators of waterborne vessels and used or consumed by such operators directly and exclusively in the carriage of persons or property in such vessels for commercial purposes.

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

(Ord. 16, passed 6-13-57; Am. Ord. 188, passed 11-9-61; '64 Code, § 21-7; Ord. 443, passed 10-11-73; Ord. 640, passed 12-8-83)

All amendments of the California Revenue and Taxation Code enacted subsequent to the effective date of this subchapter which relate to the sales and use tax and which are not inconsistent with Cal. Rev. and Tax. Code Part 1.5 of Division 2 shall automatically become a part of this subchapter.

(Ord. 16, passed 6-13-57; '64 Code, § 21-8)

(A) Sections 35.012(B)(5) and 35.013(B)(4) of this subchapter shall become operative on January 1 of the year following the year in which the State Board of Equalization adopts an assessment ratio for state-assessed property which is identical to the ratio which is required for local assessments by Cal. Rev. and Tax. Code § 401, at which time §§ 35.012(B)(4) and 35.013(B)(3) of this subchapter shall become inoperative.

(B) In the event that §§ 35.012(B)(5) and 35.013(B)(4) of this subchapter become operative and the State Board of Equalization subsequently adopts an assessment ratio for state-assessed property which is higher than the ratio which is required for local assessments by Cal. Rev. and Tax. Code § 401, §§ 35.012(B)(4) and 35.013(B)(3) of this subchapter shall become operative on the first day of the month following the month in which such higher ratio is adopted, at which time §§ 35.012(B)(5) and 35.013(B)(4) of this subchapter shall become inoperative until the first day of the month following the month in which the Board again adopts an assessment ratio for state-assessed property which is identical to the ratio required for local assessments by Cal. Rev. and Tax. Code § 401, at which time §§ 35.012(B)(5) and 35.013(B)(4) shall again become operative and §§ 35.012(B)(4) and 35.013(B)(3) shall become inoperative.

(C) Sections 35.012(B)(5)(b) and 35.013(B)(4)(c) of this subchapter shall be operative on the operative date of any act of the Legislature of the State of California which amends or repeals and reenacts Cal. Rev. and Tax. Code § 7202 to provide an exemption from city sales and use taxes for operators of waterborne vessels in the same, or substantially the same, language as that existing in Cal. Rev. and Tax. Code § 7202, subdivisions (i)(7) and (i)(8), as those subdivisions read on October 1, 1983.

('64 Code, § 21-8.1; Ord. 443, passed 10-11-73; Ord. 640, passed 12-8-83)

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 subchapter, or Cal. Rev. and Tax. Code Part 1.5 of Division 2, of any tax or any amount of tax required to be collected.

(Ord. 16, passed 6-13-57; '64 Code, § 21-9)

(A) Title. This section shall be known as the "Local Transactions and Use Tax" section of the Santa Fe Springs Municipal Code. For purposes of this section, City of Santa Fe Springs hereinafter shall be referred to as the "City." The provisions of this section shall be applicable in the incorporated territory of the City.

(B) Operative Date.

(1) The transactions and use tax codified under this section was first approved by Santa Fe Springs voters at a municipal election held November 6, 2018, and pursuant to Revenue and Taxation Code Section 7265 became operative on the first day of the calendar quarter commencing 110 days after its adoption, April 1, 2019, at an original rate of one percent.

(2) On November 4, 2025, Santa Fe Springs voters approved a City-initiated ballot measure to increase the transactions and use tax rate to one and one-quarter percent. For purposes of this Section the term "operative date" shall mean April 1, 2026, the date upon which the increased one and one-quarter percent transactions and use tax rate shall take effect.

(C) Purpose. 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:

(1) To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the City to adopt the tax ordinance that codifies this section which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose.

(2) To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code.

(3) To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the California Department of Tax and Fee Administration 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 California Department of Tax and Fee Administration in administering and collecting the California State Sales and Use Taxes.

(4) To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this section.

(D) Contract with state. Prior to the operative date, the City shall contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of this transactions and use tax; provided, that if the City shall not have contracted with the California Department of Tax and Fee Administration prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract.

(E) Transactions and use tax rate. For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of one and one-quarter percent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this section.

(F) Place of sale. For the purposes of this section, 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 agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such 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 California Department of Tax and Fee Administration.

(G) Use tax rate. An excise tax is hereby 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 of this section for storage, use or other consumption in said territory at the rate of one and one-quarter percent of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made.

(H) Adoption of provisions of state law. Except as otherwise provided in this section and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this section as though fully set forth herein.

(I) Limitations on adoption of state law and collection of use taxes. In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:

(1) Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made when:

(a) The word "State" is used as a part of the title of the State Controller, State Treasurer, State Treasury, or the Constitution of the State of California;

(b) The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the California Department of Tax and Fee Administration, in performing the functions incident to the administration or operation of this section;

(c) In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to:

1. 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 such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or

2. 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 said provision of that code.

(d) In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.

(2) The word "City" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203.

(a) "A retailer engaged in business in the District" shall also include any retailer that, in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property in this state or for delivery in the State by the retailer and all persons related to the retailer that exceeds $500,000.00. For purposes of this section, a person is related to another person if both persons are related to each other pursuant to Section 267(b) of Title 26 of the United States Code and the regulations thereunder.

(J) Permit not required. If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by this section.

(K) Exemptions and exclusions.

(1) There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax.

(2) There are exempted from the computation of the amount of transactions tax the gross receipts from:

(a) Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government.

(b) Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the City shall be satisfied:

1. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of-City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and

2. With respect to commercial vehicles, by registration to a place of business out-of-City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.

(c) The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this section.

(d) A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this section .

(e) For the purposes of subparagraphs (K)(2)(b) and (K)(2)(c) of this section, above, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

(3) There are exempted from the use tax imposed by this section, the storage, use or other consumption in this City of tangible personal property:

(a) The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance.

(b) Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California.

(c) If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this section.

(d) If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this section.

(e) For the purposes of subparagraphs (K)(3)(c) and (K)(3)(d) of this section, above, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

(f) Except as provided in subparagraph (K)(3)(g), below, a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer.

(g) "A retailer engaged in business in the City" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City.

(4) Any person subject to use tax under this section may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax.

(L) Amendments. All amendments subsequent to the effective date of this section to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this section, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this section.

(M) 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 section, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected.

(N) Fiscal transparency. Not less than once each year, the City shall complete a study and produce a report reviewing the collection, management and expenditure of revenues from the City's transactions and use tax and on the basis of this annual study shall issue a report explaining and providing an overview of the same. This report shall be a public document available for copying and inspection by interested members of the public. The City Council, by resolution shall prescribe the methodology, means and scope for also conducting an annual independent financial audit of the City's transactions and use tax revenues. The City Council may incorporate such an audit into any broader and/or routine financial audit(s) conducted by the City. The resolution may be amended and modified from time to time by the City Council in its discretion.

(Ord. 1094, passed 7-26-18; Ord. No. 1160, § 1, passed 12-9-25)

This subchapter shall be known as the "Uniform Transient Occupancy Tax Ordinance of the city."

('64 Code, § 21-10; Ord. 251, passed 8-24-64; Am. Ord. 889, passed 6-11-98)

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

Director. The city's director of finance and administrative services.

Hotel. Any public or private hotel, inn, hostelry, tourist home or house, motel, rooming house or other lodging place within the city offering lodging, wherein the owner and operator thereof, for compensation, furnishes lodging to any Transient as defined in this section.

Operator. The person who is proprietor of hotel, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee or any other capacity. Where the operator performs his functions through a managing agent of any type or character other than an employee, the managing agent shall also be deemed an operator for the purposes of this subchapter and shall have the same duties and liabilities as his principal. Compliance with the provisions of this subchapter by either the principal or the managing agent shall, however, be considered to be compliance by both.

Permanent Resident. A person who, as of a given date, has occupied or has had the right to occupy a room or rooms in a particular hotel, as defined in this section, for 30 consecutive days next preceding such date.

Person. Any individual, firm, partnership, joint venture, association, social club, fraternal organization, joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate or any other group or combination acting as a unit.

Room Rental. The total charge made by any such hotel for lodging and/or lodging space furnished any such transient. If the charge made by such hotel to such transient includes any charge for services or accommodations in addition to that of lodging, and/or the use of lodging space, then such portion of the total charge as represents only room and/or lodging space rental shall be distinctly set out and billed to the transient by such hotel as a separate item.

Transient. Any person who, for a period of not more than 30 consecutive days, or less, either at his own expense or at the expense of another, obtains lodging or the use of any lodging space in any hotel as defined in division (A) of this section, for which lodging or use of lodging space a charge is made.

('64 Code, § 21-11; Ord. 251, passed 8-24-64; Am. Ord. 889, passed 6-11-98)

For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of ten percent of the rent charged by the operator. The tax constitutes a debt owed by the transient to the city which is extinguished only by payment to the operator or to the city. The transient shall pay the tax to the operator of the hotel at the time the rent is paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon the transients ceasing to occupy space in the hotel. If for any reason the tax due is not paid to the operator of the hotel, the Director of Finance and Administrative Services may require that the tax shall be paid directly to the Director of Finance and Administrative Services.

('64 Code, § 21-12; Ord. 251, passed 8-24-64; Ord. 408, passed 8-12-71; Ord. 692, passed 5-8-86; Ord. 791, passed 5-9-91; Am. Ord. 889, passed 6-11-98)

(A) No tax shall be imposed upon:

(1) Any person as to whom, or any occupancy as to which, it is beyond the power of the city to impose the tax provided in this chapter.

(2) Any officer or employee of the United States Government or the State of California for lodging obtained by that officer or employee in the discharge of official government business.

(3) Any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.

(4) Room rental paid to any hospital, medical clinic, convalescent home or home for aged people.

(B) No exemption shall be granted except upon a claim therefor made at the time rent is collected and under penalty of perjury upon a form prescribed by the Director of Finance and Administrative Services.

('64 Code, § 21-13; Ord. 251, passed 8-24-64; Am. Ord. 889, passed 6-11-98)

Each operator shall collect the tax imposed by this subchapter to the same extent and at the same time as the rent is collected from every transient. The amount of tax shall be separately stated from the amount of the rent charged, and each transient shall receive a receipt for payment from the operator. No operator of a hotel shall advertise or state in any manner, whether directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the operator, or that it will not be added to the rent or that, if added, any part will be refunded except in the manner hereinafter provided in this chapter.

('64 Code, § 21-14; Ord. 251, passed 8-24-64; Am. Ord. 889, passed 6-11-98)

Cross reference— Penalty, see § 10.97

Within 30 days after the effective date of this subchapter, or within 30 days after commencing business, whichever is later, each operator of any hotel renting occupancy to transients shall register such hotel with the Director of Finance and Administrative Services and obtain from the Director a "Transient Occupancy Registration Certificate" to be at all times posted in a conspicuous place on the premises. The certificate shall, among other things, state the following:

(A) The name of the operator.

(B) The address of the hotel.

(C) The date upon which the certificate was issued.

(D) "This Transient Occupancy Registration Certificate signifies that the person named on the face hereof has fulfilled the requirements of the Uniform Transient Occupancy Tax Ordinance by registering with the Director of Finance and Administrative Services for the purpose of collecting from transients the Transient Occupancy Tax and remitting said tax to the Director of Finance and Administrative Services. This certificate does not authorize any person to conduct any unlawful business or to conduct any lawful business in an unlawful manner, nor to operate a hotel without strictly complying with all local applicable laws, including but not limited to those requiring a permit from any board, commission, department or office of this City. This certificate does not constitute a permit."

('64 Code, § 21-15; Ord. 251, passed 8-24-64; Am. Ord. 889, passed 6-11-98)

Cross reference— Penalty, see § 10.97

(A) On and after the effective date of the ordinance codified in this subchapter, every person receiving any payment for room rental with respect to which a tax is levied under this subchapter shall collect the amount of tax imposed from the transient on whom the same is levied or from the person paying for the room rental, at the time payment for the room rental is made.

(B) The taxes required to be collected under this subchapter shall be deemed to be held in trust by the person required to collect the same until remitted as required.

(C) Each operator shall, on or before the last of the month following the close of each calendar quarter, or at the close of any shorter reporting period which may be established by the Director, make a return to the Director, on forms provided by the Director, the total rents charged and received and the amount of tax collected for transient occupancies.

(D) At the time the return is filed, the full amount of the tax collected shall be remitted to the Director.

(E) The Director may establish shorter reporting periods for any Certificate holder if the Director deems it necessary in order to ensure collection of the tax and he may require further information in the return.

(F) Whenever any person required to collect and pay to the city a tax under this subchapter ceases to operate or otherwise disposes of his business, any tax payable under this subchapter to the city shall become immediately due and payable and such person shall immediately make a report and pay the tax due to the city.

(G) If any person liable for any amount under this subchapter sells out his business or quits the business, his successors or assigns shall withhold sufficient of the purchase price to cover such amount until the former owner produces a receipt from the Director showing that all taxes due from the person quitting, selling or assigning his business have been paid or a certificate stating that no amount is due.

(H) If a purchaser of a business fails to withhold purchase price as required in division (G) of this section, he shall be personally liable for the payment of the amount requested to be withheld by him to the extent of the purchase price, valued in money.

(I) Within 60 days after receiving a written request from the purchaser for a Certificate, or within 60 days from the date the former owner's records were made available for audit, whichever period expires later, but in any event not later than 90 days after receiving the request, the Director shall either issue the Certificate or mail notice to the purchaser at his address as it appears in the records of the County Auditor/Controller of the amount that must be paid as a condition of issuing the Certificate.

('64 Code, § 21-16; Ord. 251, passed 8-24-64; Am. Ord. 889, passed 6-11-98)

Cross reference— Penalty, see § 10.97

(A) Registration cards. The operator shall, as each room in a hotel is rented to a transient, fill out and maintain on file a registration card which contains, at a minimum, the following information:

(1) The name of at least one person who will occupy, or who is entitled to occupy, the room;

(2) The total number of people who will occupy, or who are entitled to occupy, the room;

(3) The identification of room by number;

(4) The date the occupancy commences and the expected date of the departure of the transient(s); and

(5) The daily rate charged and amount collected as and for rental of the room.

(B) Voided cards. Voided cards shall also be kept for audit purposes. Registration cards shall bear consecutive numbers which shall be pre-printed on the registration cards by a print shop or manufacturer of the cards.

(C) Daily summary sheets. The operator of each hotel within the city shall maintain a daily summary sheet for each day the hotel is open for business containing, at a minimum, the following information:

(1) The name of at least one person entitled to occupancy of each room which is rented or occupied that day;

(2) The room number;

(3) The daily rate and amount paid for the rental for the room; and

(4) The number of the registrations card applicable to the rental of the room.

(D) Bank accounts. The operator shall maintain in a banking institution one or more accounts which shall be used exclusively for the deposit of rentals and expenditures relating to the hotel. All receipts from the operation of the hotel shall be deposited in such accounts. Bank statements, deposit slips, canceled checks and other withdrawal forms shall be maintained on file by the operator. The Director shall have the discretion to require any operator to maintain a Trust Account in a banking institution, separate from an account used for business operations, for the purpose of holding funds collected as the tax on transient occupants.

(Ord. 889, passed 6-11-98)

(A) Every operator shall keep and preserve, for a period of three years, such records, receipts, invoices, registration cards and other pertinent papers in such form as the Director may require.

(B) The Director or any person authorized in writing by the Director may examine the books, papers, records, registration cards or other pertinent papers of any operator and may investigate the character of the business of the operator in order to verify the accuracy of the return made or, if no return has been made by the operator, to ascertain and determine the amount required to be paid.

(Ord. 889, passed 6-11-98)

(A) Original delinquency. Any operator who fails to remit any tax imposed by this subchapter within the time required shall pay a penalty of ten percent of the amount of the tax in addition to the amount of the tax.

(B) Continued delinquency. Any operator who fails to remit any delinquent remittance on or before a period of 30 days following the date on which the remittance first became delinquent shall pay a second delinquency penalty of ten percent of the amount of the tax in addition to the amount of the tax and the ten-percent penalty first imposed.

(C) Interest. In addition to the penalties imposed, any operator who fails to remit any tax imposed by this subchapter shall pay interest at the rate of 1/2 of one percent per month or fraction thereof on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent until paid.

(D) Fraud. If the Director of Finance and Administrative Services determines that the nonpayment of any remittance due under this subchapter is due to fraud, a penalty of 25 percent of the amount of the tax shall be added thereto in addition to the penalties stated in divisions (A) and (B) of this section.

(E) Penalties merged with tax. Every penalty imposed and such interest as accrues under the provisions of this section shall become a part of the tax required in this subchapter to be paid.

('64 Code, § 21-17; Ord. 251, passed 8-24-64; Am. Ord. 889, passed 6-11-98)

(A) If any operator fails or refuses to collect the tax and to make, within the time provided in this subchapter, any report and remittance of the tax or any portion thereof required by this subchapter, the Director shall proceed in such manner as he deems best to obtain facts and information on which to base his estimate of the tax due. As soon as the Director procures such facts and information as he is able to obtain upon which to base the assessment of any tax imposed by this subchapter and payable by any operator who has failed or refused to collect it and to make the report and remittance, he shall proceed to determine and assess against the operator the tax, interest and penalties provided for by this subchapter.

(B) In case the determination is made, the Director shall give notice of the amount so assessed by serving it personally or by depositing it in the United States mail, postage prepaid, addressed to the operator so assessed at his last known place of address.

(D) The operator may, within ten days after the serving or mailing of the notice, make application in writing to the Director for a hearing on the amount assessed. If application by the operator for a hearing is not made within the time prescribed, the tax, interest and penalties, if any, determined by the Director shall become final and conclusively and immediately due and payable. If the application is made, the Director shall give not less than five days' written notice in the manner prescribed in this section to the operator to show cause at a time and place fixed in the notice why the amount specified therein should not be fixed for the tax, interest and penalties. At the hearing, the operator may appear and offer evidence why the specified tax, interest and penalties should not be so fixed.

(D) After the hearing, the Director shall determine the proper tax to be remitted and shall thereafter give written notice to the person in the manner prescribed in this section of the determination and the amount of the tax, interest and penalties. The amount determined to be due shall be payable after 15 days unless an appeal is taken as provided in § 35.042.

(Ord. 889, passed 6-11-98)

Any tax required to be paid by any transient under the provisions of this subchapter shall be deemed a debt owed by the transient to the city. Any such tax collected by an operator which has not been paid to the city shall be deemed a debt owed by the operator to the city. Any person owing money to the city under the provisions of this subchapter shall be liable in an action brought in the name of the city for recovery of such amount.

(Ord. 889, passed 6-11-98)

(A) Whenever delinquent transient lodging tax fees and appropriate penalties cannot be collected after proper notification to the property/business owner, the total uncollected amount including penalties and administrative fees shall become an assessment, and the Director or his or her duly authorized representative shall compile a list of such assessments together with parcel number designations and addresses upon which the assessments are being fixed.

(B) After notice and hearing, and upon confirmation of the imposition of the liens by resolution of the Mayor and City Council, the Director shall file a certified copy of the approved resolution with the County Auditor/Controller, directing that all unpaid transient lodging tax fees, and penalties be entered as lien charges against said property as it appears on the current assessment rolls. Liens will be collected at the same time and in the same manner, subject to the same penalties and interest upon delinquencies, as the general taxes for the city are collected. The Director shall present for recording appropriate notices of the imposition of these liens with the County Recorder.

(Ord. 889, passed 6-11-98)

(A) Any operator aggrieved by a decision of the Director with respect to the amount of the tax, interest and penalties, if any, may appeal to the City Council by filing a Notice of Appeal with the Director within 15 days of the serving or mailing of the determination of tax due.

(B) The Director shall fix a time and place for hearing the appeal by the City Council, and the Director shall give notice in writing to the operator at his last known place of address. The findings of the Council shall be final and conclusive and shall be served upon the appellant in the manner prescribed for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of notice.

(Ord. 889, passed 6-11-98)

(A) 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 subchapter, it may be refunded as provided in divisions (B) and (C) of this section, provided a claim in writing therefor, stating under penalty of perjury the specific grounds upon which the claim is founded, is filed with the Director within three years of the date of payment. The claim shall be on a form furnished by the Director.

(B) An operator may claim a refund or take as credit against taxed 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 that the person from whom the tax has been collected was not a transient; 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 transient or credited to rent subsequently payable to the operator by the transient.

(C) A transient may obtain a refund of taxes overpaid or paid more than once or erroneously or illegally collected or received by the city by filing a claim in the manner provided in division (A) of this section, but only when the tax was paid by the transient directly to the Director, or when the transient establishes to the satisfaction of the Director that the transient has been unable to obtain a refund from the operator who collected the tax.

(D) No refund shall be paid under the provisions of this section unless the claimant establishes his right thereto by written records showing entitlement thereto.

(Ord. 889, passed 6-11-98)

(A) Any person required to make, render, sign or verify any report who makes any fraudulent return, with intent to defeat or evade the determination of an amount required by law is guilty of a misdemeanor punishable as provided in division (C) of this section.

(B) Any person who willfully aids or assists in, or procures, counsels or advises in, the preparation or presentation, in connection with any matter arising under this subchapter, of a return, affidavit, claim, or document that is fraudulent or false as to any material matter, whether or not the falsity or fraud is with the knowledge or consent of the person authorized or required to present the return, affidavit, claim or document, is guilty of a misdemeanor as provided in division (C) of this section.

(C) A violation of division (A) or (B) of this section is a misdemeanor. Each offense shall be punishable by a fine in the maximum amount permitted pursuant to California law, or imprisonment for the maximum amount of time permitted pursuant to California law, or both the fine and imprisonment, in the discretion of the court.

(D) Any prosecution for violation of any of the penalty provisions of this section shall be instituted within five years after the commission of the offense, or within two years after the discovery of the violation, whichever is later.

(Ord. 889, passed 6-11-98)

(A) 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 city or officer thereof, to prevent or enjoin the collection of taxes sought to be collected pursuant to this subchapter.

(B) No suit or proceeding shall be maintained in any court for the recovery of any amount alleged to have been erroneously or illegally determined or collected unless a claim for refund or credit has been duly filed pursuant to § 35.044.

(Ord. 889, passed 6-11-98)

This subchapter shall be known as the "Real Property Transfer Tax Ordinance of the city." It is adopted pursuant to the authority contained in Cal. Rev. and Tax. Code Part 6.7 (commencing with § 11901) of Division 2.

('64 Code, § 21-24; Ord. 322, passed 11-9-67)

There is hereby 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 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 $0.275 for each $500 or fractional part thereof.

('64 Code, § 21-25; Ord. 322, passed 11-9-67)

Any tax imposed pursuant to § 35.056 hereof 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.

('64 Code, § 21-26; Ord. 322, passed 11-9-67)

(A) Any tax imposed pursuant to this subchapter shall not apply to any instrument in writing given to secure a debt.

(B) Any deed, instrument or writing to which the United States or any agency or instrumentality thereof, any state or territory, or political subdivision thereof, is a party shall be exempt from any tax imposed pursuant to this subchapter when the exempt agency is acquiring title.

(C) (1)

Any tax imposed pursuant to this subchapter 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 subdivision (m) of § 205 of Title II of the United States Code, as amended;

(c) Approved in an equity receivership proceeding in a court involving a corporation, as defined in subdivision (3) of § 506 of Title II of the United States Code, as amended; or

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

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

(D) Any tax imposed pursuant to this subchapter shall not apply to the making or delivery of conveyances to make effective any order of the Securities and Exchange Commission, as defined in subdivision (a) of § 1083 of the Internal Revenue Code of 1954; but only if:

(1) The order of the Securities and Exchange Commission in obedience to which such conveyance is made recites that such conveyance is necessary or appropriate to effectuate the provisions of § 79k of Title 15 of the United States Code, relating to the Public Utility Holding Company Act of 1935;

(2) Such order specifies the property which is ordered to be conveyed;

(3) Such conveyance is made in obedience to such order.

(E) (1)

In the case of any realty held by a partnership, no levy shall be imposed pursuant to this subchapter by reason of any transfer to an interest in a partnership or otherwise, if:

(a) Such partnership (or another partnership) is considered a continuing partnership within the meaning of § 708 of the Internal Revenue Code of 1954; and

(b) Such continuing partnership continues to hold the reality concerned.

(2) If there is a termination of any partnership within the meaning of § 708 of the Internal Revenue Code of 1954, for purposes of this subchapter, such 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 such partnership at the time of such termination.

(3) Not more than one tax shall be imposed pursuant to this subchapter by reason of a termination described in subdivision (2) of this division, and any transfer pursuant thereto, with respect to the realty held by such partnership at the time of such termination.

('64 Code, §§ 21-27—21-31; Ord. 322, passed 11-9-67; Ord. 370, passed 1-8-70)

The County Recorder shall administer this subchapter in conformity with the provisions of Cal. Rev. and Tax. Code Part 6.7 of Division 2 and the provisions of any county ordinance adopted pursuant thereto.

('64 Code, § 21-32; Ord. 322, passed 11-9-67)

Claims for refund of taxes imposed pursuant to this subchapter shall be governed by the provisions of Cal. Rev. and Tax. Code Chapter 5 (commencing with § 5096) of Part 9 of Division 1.

('64 Code, § 21-33; Ord. 322, passed 11-9-67)

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

Business. Professions, trades, occupations and every kind of calling whether or not carried on for profit.

Business Operation Tax. The tax paid as required by any or all provisions of this subchapter and shall herein be referred to as "business tax," or "tax," except as otherwise specified.

Business Operation Tax Certificate. The receipt for taxes paid as required by any or all provisions of this subchapter and shall herein be referred to as "tax certificate" or "certificate," except as otherwise specified.

Employee. All individuals engaged in the operation or conduct of any business in the city, whether as owner, any member of the owner's family, partner, agent, officer, manager, solicitor and any other persons employed or working in such business.

Established Place of Business. Any permanent warehouse, building or structure owned in fee or leased, located within the city at which the owner or lessee carries on a legitimate permanent business in good faith and at which stocks of the goods sold or distributed, if any, are produced, stored or kept in quantities usually carried and reasonably adequate to meet the requirements of the business, and, in the case of a service, shall also mean a place where such owner or lessee or an employee thereof may regularly be found. It does not mean tents, temporary stands or other temporary structures or permanent structures occupied pursuant to temporary arrangements.

Person. All domestic and foreign corporations, associations, syndicates, joint stock corporations, partnerships of every kind, clubs, Massachusetts business or common law trusts, societies and individuals transacting and carrying on any business in the city other than as an employee.

Solicitor. One who travels from house to house or place to place taking orders for sale of goods for future delivery or for services to be performed in the future. He may or may not take a deposit. It includes one who occupies premises for the sole purpose of exhibiting samples and taking orders for future delivery.

Tax Collector. The officer or person appointed by the City Council by resolution or ordinance to perform the duties of Tax Collector as set forth in this subchapter.

Wheeled Vehicle. Any automobile, truck, tank truck, trailer, wagon, cart and all other contrivances used or capable of being used as a means of transportation of persons or property that move or roll on one or more wheels.

(Ord. 50, passed 11-27-57; '64 Code, § 13-1; Ord. 397, passed 3-22-71)

The purpose of this subchapter is solely to raise revenue for municipal purposes and is not for regulation.

(Ord. 50, passed 11-27-57; '64 Code, § 13-2; Ord. 397, passed 3-22-71)

Persons required to pay a tax for transacting and carrying on any business under this subchapter shall not be relieved from the payment of any license fee or tax for the privilege of doing such business required under any other law of the city and shall remain subject to the regulatory provisions of other laws.

(Ord. 50, passed 11-27-57; '64 Code, § 13-3; Ord. 397, passed 3-22-71)

(A) There shall be imposed upon the businesses and persons specified in this subchapter taxes in the amounts prescribed in this subchapter. It shall be unlawful for any person to transact and carry on any business in the city without first having procured a tax certificate from the city to do so and without complying with all applicable provisions of this subchapter.

(B) Division (A) of this section shall not be construed to require any person to obtain a certificate prior to doing business within the city if such requirement conflicts with applicable statutes of the United States or of the state. Persons not required to obtain a certificate prior to doing business within the city because of conflict with applicable statutes of the United States or of the state shall be not liable for payment of the tax imposed by this subchapter.

(Ord. 50, passed 11-27-57; '64 Code, §§ 13-4—13-5; Ord. 397, passed 3-22-71)

Cross reference— Additional business permits, see §§ 110.50 et seq.; Penalty, see § 10.97

A separate certificate shall be obtained for each branch establishment or location of the business transacted and carried on; provided, that warehouses and distributing plants used in connection with and incidental to a business taxed under the provisions of this subchapter shall not be deemed to be separate places of business or branch establishments.

(Ord. 50, passed 11-27-57; '64 Code, § 13-6; Ord. 397, passed 3-22-71)

Cross reference— Penalty, see § 10.97

Every person required to have a certificate under the provisions of this subchapter shall make an application for such certificate to the Tax Collector.

(Ord. 50, passed 11-27-57; '64 Code, § 13-7; Ord. 397, passed 3-22-71)

(A) (1)

Upon a person making application for the first certificate to be issued pursuant to this subchapter or for a newly established business, such person shall furnish to the Tax Collector for his guidance in ascertaining the amount of tax to be paid by the applicant, a written statement upon a form provided by the Tax Collector written under penalty of perjury setting forth such information as may be therein required and as may be necessary to determine the amount of the tax to be paid by the applicant.

(2) The Tax Collector shall not issue to any such person another certificate for the same or any other business until such person shall have furnished to him the written statement and paid the tax as required by this division.

(B) In all cases, the applicant for the renewal of a certificate shall submit to the Tax Collector for his guidance in ascertaining the amount of the tax to be paid by the applicant a written statement upon a form to be provided by the Tax Collector written under penalty of perjury setting forth such information concerning the applicant's business during the preceding year as may be required by the Tax Collector to enable him to ascertain the amount of the tax to be paid by such applicant pursuant to the provisions of this subchapter.

(C) No statements made pursuant to divisions (A) and (B) of this section shall be conclusive as to the matters set forth therein, nor shall the filing of the same preclude the city from collecting by appropriate action such sum as is actually due and payable under this subchapter. Such statement and each of the several items therein contained shall be subject to audit and verification by the Tax Collector, his deputies or authorized employees of the city who are authorized to examine, audit and inspect such books and records of any person to whom a certificate has been granted or applicant for a certificate as may be necessary in their judgment to verify or ascertain the amount of tax due.

(Ord. 50, passed 11-27-57; '64 Code, § 13-8—13-10; Ord. 397, passed 3-22-71)

(A) Within a reasonable time after payment of the prescribed tax, the Tax Collector shall issue the certificate for which application was made.

(B) Certificates issued under this subchapter shall contain:

(1) The name of the person to whom the certificate is issued.

(2) The place where business is to be transacted and carried on.

(3) The date of the expiration of such certificate.

(4) Such other information as may be necessary for the enforcement of the provisions of this subchapter.

(Ord. 50, passed 11-27-57; '64 Code, §§ 13-11—13-12; Ord. 397, passed 3-22-71)

(A) Annual basis. Unless otherwise specifically provided, all annual taxes, under the provisions of this subchapter, shall be due and payable in advance of July 1 of each year; provided, that taxes covering new operations commenced after July 1 may be prorated for the balance of the tax period on a quarterly basis.

(B) Daily basis. Except as otherwise provided in this subchapter, daily flat-rate taxes shall be due and payable each day in advance.

(Ord. 50, passed 11-27-57; '64 Code, §§ 13-13—13-14; Ord. 397, passed 3-22-71)

In determining the number of employees for the purpose of fixing the tax due under this subchapter, the employer shall take the number of employees employed within the city earning wages during pay periods nearest the 15th day of each month, as reported to the State Department of Employment Development on forms which are used for reporting payments due under the Unemployment Insurance Act, for each month of the previous calendar year, adding the same and dividing by 12. If the employer has been in business less than one year, he may use the average number of employees who shall be employed by him during the remainder of the calendar year.

(Ord. 50, passed 11-27-57; '64 Code, § 13-15; Ord. 397, passed 3-22-71)

(A) (1)

Nothing in this subchapter shall be deemed or construed to apply to any person transacting and carrying on any business exempt by virtue of the Constitution or applicable statutes of the United States or of the state from the payment of such taxes as are prescribed in this subchapter.

(2) Any person claiming an exemption pursuant to this division shall file a verified statement with the Tax Collector stating the facts upon which such exemption is claimed.

(3) The Tax Collector shall, upon a proper showing contained in the verified statement, issue a certificate to such person claiming exemption under this division without payment to the city of the tax required by this subchapter.

(4) The Tax Collector, after giving notice and a reasonable opportunity for hearing to a person to whom a certificate has been granted, may revoke any certificate granted pursuant to the provisions of this division upon information that the person to whom the certificate has been granted is not entitled to the exemption as provided in this division.

(B) (1)

The provisions of this subchapter shall not be deemed or construed to require the payment of a tax to conduct, manage or carry on any business, occupation or activity from any institution or organization which is conducted, managed or carried on wholly for the benefit of charitable purposes or from which profit is not derived, either directly or indirectly, by any individual; nor shall any tax be required for the conducting of any entertainment, concert, exhibition or lecture on scientific, historical, literary, religious or moral subjects within the city whenever the receipts of any such entertainment, concert, exhibition or lecture are to be appropriated to any church or school or to any religious or benevolent purpose; nor shall any tax be required for the conducting of any entertainment, dance, concert, exhibition or lecture by any religious, charitable, fraternal, educational, military, state, county or municipal organization or association whenever the receipts of any such entertainment, dance, concert, exhibition or leisure are to be appropriated for the purposes and objects for which such organization or association was formed and from which profit is not derived either directly or indirectly by any individual; provided, however, that nothing in this division shall be deemed to exempt any such organization or association from complying with any of the provisions of this subchapter requiring a permit from the City Council or any commission or officer to conduct, manage or carry on any profession, trade, calling or occupation.

(2) Notwithstanding anything to the contrary contained in this division, no organization whose name contains within it the name of any candidate for elective office shall be exempt from the requirement of the payment of a tax under this subchapter.

(C) (1)

None of the taxes provided for by this subchapter shall be so applied as to occasion an undue burden upon interstate commerce.

(2) In any case where a tax is believed by a person to whom a certificate has been granted or applicant for a certificate to place an undue burden upon such commerce, he may apply to the Tax Collector for an adjustment of the tax so that it shall not be discriminatory or unreasonable as to such commerce. Such application shall be made within six months after payment of the prescribed tax. The applicant shall by affidavit and supporting testimony show his method of business and the gross volume or estimated gross volume of business and such other information as the Tax Collector may deem necessary in order to determine the extent, if any, of such undue burden on such commerce.

(3) The Tax Collector shall then conduct an investigation and, after first having obtained the written approval of the City Attorney, shall fix as the tax for the applicant an amount that is reasonable and nondiscriminatory, or, if the tax has already been paid, shall order a refund of the amount over and above the tax so fixed.

(4) In fixing the tax to be charged, the Tax Collector shall have the power to base the tax upon a percentage of gross receipts or any other measure which will assure that the tax assessed shall be uniform with that assessed on businesses of like nature so long as the amount assessed does not exceed the tax as prescribed by this subchapter. Should the Tax Collector determine the gross receipts measure of tax to be the proper basis, he shall require the applicant to submit either at the time of termination of the applicants business in the city or at the end of each three-month period a sworn statement of the gross receipts and pay the amount of tax therefor; provided, that no additional tax during any one calendar year shall be required after the person to whom a certificate has been granted shall have paid an amount equal to the annual tax as prescribed in this subchapter.

(D) No tax payable under this subchapter shall be payable by any honorably discharged or honorably relieved soldier, sailor or marine of the United States who is a voter of the state and who is physically unable to obtain a livelihood by manual labor for the business of distributing circulars or for the business of hawking, peddling or vending any goods, wares or merchandise owned by him, except spirituous, malt, vinous or other intoxicating liquor. Unless a person shall meet the requirements of this division and unless he is in the specific business exempted by this division, then he shall pay the tax as set forth in this subchapter.

(E) Any person who has had an established place of business within the city for a period of at least 12 consecutive calendar months who is required to pay a tax pursuant to the provisions of § 35.095(B)(27) of this subchapter and who has a gross business income of less than $2,500 shall be exempt from the payment of the tax set forth in said § 35.095(B)(27).

(Ord. 50, passed 11-27-57; Ord. 61, passed 1-23-58; '64 Code, §§ 13-16—13-20; Ord. 397, passed 3-22-71)

Any public utility regulated by the Public Utilities Commission of the state operating in the city under a franchise granted by the city by ordinance and paying to the city a percentage of its gross receipts from the use of the franchise shall be subject to the provisions of this subchapter only to the extent that it engages in retail merchandising within the city not covered by franchise.

(Ord. 61, passed 1-23-58; '64 Code, § 13-21; Ord. 397, passed 3-22-71)

If two or more businesses are conducted on the same premises, each shall obtain a certificate, and each shall pay a tax in accordance with the provisions of this chapter.

(Ord. 50, passed 11-27-57; '64 Code, § 13-22; Ord. 397, passed 3-22-71; Am. Ord. 934, passed 3-25-03)

A person to whom a certificate has been granted shall have the right to transfer his certificate to another person or to another location; provided he shall:

(A) Make written application to the Tax Collector for a consent to such transfer.

(B) Execute the transfer in the form and under the conditions prescribed by the Tax Collector.

(C) Promptly report the completed act of transfer to the Tax Collector.

(D) Promptly surrender any certificate.

(Ord. 50, passed 11-27-57; '64 Code, § 13-25; Ord. 299, passed 8-25-66; Ord. 397, passed 3-22-71)

Upon the completion of a transfer of a certificate in compliance with § 35.083 the Tax Collector shall issue a new certificate to the transferee or for the new location for the unexpired term of the old certificate.

(A) A new certificate issued hereunder to a transferee shall authorize such transferee to engage in the same business at the same location or at such other place as shall be approved by the Tax Collector and named than the new certificate.

(B) A new certificate issued hereunder for a new location shall authorize the person to whom a certificate has been granted to engage in the same business at the new location as named in the revised certificate.

(C) The Tax Collector shall collect a transfer fee of $5 from the transfer applicant prior to the issuance of any new certificate under this section.

('64 Code, § 13-26; Ord. 299, passed 8-25-66; Ord. 397, passed 3-22-71)

A duplicate certificate may be issued by the Tax Collector to replace any certificate previously issued which has been lost or destroyed upon the filing by the person to whom the certificate has been granted a statement of such fact and at the time of filing such statement paying to the Tax Collector a duplicate certificate fee of $5.

(Ord. 50, passed 11-27-57; '64 Code, § 13-27; Ord. 397, passed 3-22-71)

All certificates shall be kept and posted in the following manner:

(A) Any person to whom a certificate has been granted transacting and carrying on business at a fixed place of business in the city shall keep the certificate posted in a conspicuous place upon the premises where such business is carried on.

(B) Any person to whom a certificate has been granted transacting and carrying on business but not operating at a fixed place of business in the city shall keep the certificate upon his person at all times while transacting and carrying on such business.

(Ord. 50, passed 11-27-57; '64 Code, § 13-28; Ord. 397, passed 3-22-71)

Cross reference— Penalty, see § 10.97

Any information furnished or secured pursuant to § 35.076(A) and (B) or § 35.092(E) shall be confidential.

(Ord. 50, passed 11-27-57; '64 Code, § 13-29; Ord. 397, passed 3-22-71)

Cross reference— Penalty, see § 10.97

In addition to all other powers conferred upon him by this subchapter, the Tax Collector shall have the power, for good cause shown, to extend the time for filing any required sworn statement for a period not exceeding 30 days and in such case, to waive any penalty that would otherwise have accrued; and shall have the further power, with the consent of the City Council, to compromise any claim as to amount of tax due.

(Ord. 50, passed 11-27-57; '64 Code, § 13-30; Ord. 397, passed 3-22-71)

The amount of any tax and penalty imposed by the provisions of this subchapter shall be deemed a debt to the city. An action may be commenced in the name of the city in any court of competent jurisdiction for the amount of any delinquent tax and penalties. In any such action, the prevailing party shall be entitled to an award of attorneys' fees in an amount to be fixed by the court.

(Ord. 50, passed 11-27-57; '64 Code, § 13-31; Ord. 397, passed 3-22-71)

For failure to pay a tax when due, the Tax Collector shall add a penalty of ten percent of such tax on the last day of each month after the due date thereof; provided, that the amount of such penalty to be added shall in no event exceed 50 percent of the amount of the tax due.

(Ord. 50, passed 11-27-57; '64 Code, § 13-32; Ord. 397, passed 3-22-71)

(A) If any person fails to file any statement required by this subchapter within the time prescribed or if after demand therefor made by the Tax Collector he fails to file a corrected statement, the Tax Collector may determine the amount of tax due from such person by means of such information as he may be able to obtain.

(B) If a determination is made pursuant to division (A) of this section, the Tax Collector shall give a notice of the amount so assessed by serving it personally or by depositing it in the United States Post Office at Santa Fe Springs, California, postage prepaid, addressed to the person so assessed at his last known address. Such person may, within 15 days after the mailing or serving of such notice, make application in writing to the Tax Collector for a hearing on the amount of the tax. If such application is made, the Tax Collector shall cause the matter to be set for hearing within 15 days before the City Council. The Tax Collector shall give at least ten days' notice to such person of the time and place of hearing in the manner prescribed in this section for serving notices of assessment. The Council shall consider all evidence produced and shall make findings thereon which shall be final. Notice of such findings shall be served upon the applicant in the manner prescribed in this division for serving notices of assessment.

(Ord. 50, passed 11-27-57; '64 Code, §§ 13-33—13-34; Ord. 397, passed 3-22-71)

(A) The City Council shall have the right, by resolution, to adopt such administrative rules and regulations as may be necessary to carry out the purposes and policies of the city as are set forth in this subchapter.

(B) It shall be the duty of the Tax Collector to enforce all of the provisions of this subchapter, and the Chief of Police shall render such assistance in such enforcement as may be required by the Tax Collector or the City Council.

(C) The Tax Collector and each of his assistants and any police officer shall have the power and authority to enter, free of charge and at any reasonable time, any place of business required to be taxed and demand an exhibition of its tax certificate. Any person having such certificate theretofore issued in his possession or under his control who willfully fails to exhibit the same on demand shall be guilty of a misdemeanor and subject to the penalties provided for by the provisions of this code.

(D) The Tax Collector in the exercise of the duties imposed upon him by this subchapter and acting through his deputies or duly authorized assistants shall examine or cause to be examined all places of business in the city to ascertain whether the provisions of this subchapter have been complied with.

(E) All persons to whom a certificate has been granted, applicants for certificates and persons engaged in business in the city are required to permit an examination of any books and records for the purposes of auditing and examining to determine the validity of any statements.

(Ord. 50, passed 11-27-57; '64 Code, §§ 13-35—13-39; Ord. 397, passed 3-22-71)

Cross reference— Penalty, see § 10.97

It shall be the duty of the Tax Collector and each of his assistants to cause a complaint to be filed against all persons found to be violating any of the provisions of this subchapter.

(Ord. 50, passed 11-27-57; '64 Code, § 13-40; Ord. 397, passed 3-22-71)

Any person aggrieved by any decision of the Tax Collector with respect to the issuance or refusal to issue a certificate may appeal to the City Council by filing a notice of appeal with the City Clerk. The City Council shall thereupon fix a time and place for hearing such appeal. The clerk of the Council shall give notice to such person of the time and place of hearing by serving it personally or by depositing it in the United States Post Office at Santa Fe Springs, California, postage prepaid, addressed to such person at his last known address. The Council shall have authority to determine all questions raised on such appeal. No such determination shall conflict with any substantive provisions of this subchapter.

(Ord. 50, passed 11-27-57; '64 Code, § 13-41; Ord. 397, passed 3-22-71)

(A) The amount of taxes to be paid to the city by any person engaged in or carrying on any profession, trade, calling, occupation or business designated by this subchapter shall be in such amounts as may be established by City Council resolution.

(B) Such taxes shall be paid by every person engaged in, carrying on or maintaining any such profession, trade, occupation, calling or business in the city.

(1) Advertising. Every person engaged in the business of constructing, erecting, installing, maintaining or operating outdoor advertising, advertising structures, billboards or similar devices, shall pay an annual tax, plus an annual tax for each additional advertising structure, billboard, advertising sign, painted sign or a structure, signboard or other similar device; provided, that the provisions of this subdivision shall not be deemed to apply to signs affixed to the property on which a taxed business is being operated, which signs refer only to such business, nor to "for sale" or "for rent" signs on real estate, nor to benches placed pursuant to the provisions of § 96.004 of this code.

(2) Bankrupt, fire damaged, and the like, sales. Every person engaged in the business of owning, opening, establishing, managing, operating, maintaining or having charge of any temporary location or place of business of any kind for the selling of any insolvent, bankrupt, fire damaged or other similar goods, wares or merchandise, and every itinerant or transient merchant having a temporary place of business but not having any continuous or permanent place of business in the city who sells or offers for sale any insolvent, bankrupt, fire damaged or other goods, wares or merchandise, shall pay a tax.

(3) Bowling alleys. For conducting, managing or carrying on any public bowling court or building, the tax shall be as set by City Council resolution per annum for each alley.

(4) Contractors.

(a) Generally. Every person not having an established place of business in the city and conducting, carrying on or engaging in the business of contractor shall pay an annual tax. Such certificates shall be valid for one year from the date of issuance.

(b) Subcontractors. Every person not having an established place of business in the city and conducting, carrying on or engaging in the business of a subcontractor shall pay an annual tax. Such certificate shall be valid for one year from the date of issuance.

(5) Delivery services. Every person, not having an established place of business in the city, carrying on the business of operating any wheeled vehicle for the sale or soliciting of orders for the sale or delivery of any goods, wares or merchandise of any nature, kind or description, including services to businesses or professional firms in the city or for the purpose of carrying on a bakery route, vegetable route, ice route, water route (distilled, spring, mineral, aerated), dairy route, fuel oil route, laundry route, dry cleaning route or other routes of a like or similar nature shall pay an annual tax for each wheeled vehicle.

(6) Drive-in theaters. Every person conducting the business of a drive-in theater shall pay an annual tax.

(7) Entertainment; application fee. Every person engaged in any of the businesses described below shall pay, in addition to the annual fee, an application fee as set by City Council resolution for the activities as set forth:

(a) Burlesque (as defined in the zoning code), or any entertainment involving any dancing by performers.

(b) All other amusement or entertainment (as defined in the zoning code), in connection with a commercial enterprise.

(c) All other amusement or entertainment (as defined in the zoning code), not in connection with a commercial enterprise.

(8) Golf courses, driving ranges, archery ranges, and the like. For operating a golf course, miniature golf course, bicycle course, golf practice driving course or archery range, the annual tax shall be as set by City Council resolution.

(9) Hotels, motels, apartments, and the like. Every person carrying on the business of operating a motel, hotel, apartment and rooming house, auto court or motor court shall pay an annual tax as set by City Council resolution.

(10) Manufacturing.

(a) For carrying on a business consisting mainly of manufacturing, packing, processing, canning or fabricating any goods, wares, merchandise or produce, including the production of oil, natural gas and other hydrocarbons, the annual tax shall be as set by City Council resolution.

(b) Every person not having an established place of business in the city and carrying on a business consisting of selling at retail or wholesale any goods, wares, merchandise or commodities or for conducting, maintaining or carrying on any business not otherwise specifically taxed by this subchapter shall pay an annual tax. Such certificate shall be valid for one year from the date of issuance.

(11) Mobile home parks or courts. Every person engaged in the business of managing or operating a mobile home park or court shall pay an annual tax as set by City Council resolution.

(12) Photographers, solicitors, book agents, and the like. Every person not having an established place of business in the city and engaged in the business of solicitor, photographer, book agent or similar business shall pay an annual tax or daily tax, as set by City Council resolution.

(13) Professional or semiprofessional businesses.

(a) For every person, having an established place of business in the city, and managing, carrying on or engaging in any professional or semiprofessional business or occupation not otherwise specifically taxed by this subchapter, the tax shall be as set by City Council resolution.

(b) Every person, not having an established place of business in the city, and managing, carrying on or engaging in any professional or semiprofessional business or occupation not otherwise specifically taxed by this subchapter, shall pay an annual tax. Such certificate shall be valid for one year from the date of issuance.

(14) Retail and wholesale selling, and the like.

(a) For every person, having an established place of business consisting of selling at retail or wholesale any goods, wares, merchandise or commodities or for conducting, maintaining or carrying on any business not otherwise specifically taxed by this subchapter, the annual tax shall be as set by City Council resolution.

(b) Every person, not having an established place of business in the city, and carrying on a business consisting of selling at retail or wholesale any goods, wares, merchandise or commodities or for conducting, maintaining or carrying on any business not otherwise specifically taxed by this subchapter, shall pay an annual tax. Such certificate shall be valid for one year from the date of issuance.

(15) Riding academies, livery stables, and the like. For a riding academy where instructions in horseback riding are given or where horses or other animals are maintained for hire, and for a feed and livery stable, the tax shall be as set by City Council resolution.

(16) Skating rinks, and the like. For conducting, managing or carrying on any ice or roller skating rink, enclosure or park, the tax shall be as set by City Council resolution.

(17) Swap meets.

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

Swap Meet. Any event at which the place or location at which the event is held has been advertised by any means whatsoever as a place or location to which members of the public, during a specified period of time, may bring identifiable, tangible property and exhibit the same for sale or exchange; and a fee is charged, either in the form of a charge for general admission to the place or location where the event is held or a charge for the privilege of exhibiting identifiable, tangible property at such event.

Swap Meet Exhibitor. Any person exhibiting, displaying, selling, exchanging, offering for sale or exchanging any property at a swap meet.

Swap Meet Operator. Any person conducting or operating the business of a swap meet on any premises in the city, excluding, however, swap meet exhibitors.

(b) Every person engaged in the business of swap meet operator shall pay a tax as set by City Council resolution.

(c) 1.

For the privilege of participating in a swap meet, each swap meet exhibitor shall pay a tax as set by City Council resolution per swap meet stall. Where two or more swap meet exhibitors share a single stall, each such exhibitor shall pay a separate daily stall tax. Such tax shall constitute a debt owed by the swap meet exhibitor to the city and shall be extinguished only by payment to the swap meet operator. The swap meet exhibitor shall pay the tax to the swap meet operator at the time and on each day the swap meet exhibitor participates in the swap meet. Any unpaid tax shall be paid upon the termination of the swap meet exhibitor's participation in the specific swap meet. Each swap meet operator shall collect the tax imposed by the provisions of this subdivision to the same extent and at the same time as any other fees are collected from every swap meet exhibitor. The amount of the tax shall be separately stated from any other money collected by the swap meet operator. The operator shall not advertise or state in any manner that the tax, or any part thereof, will be assumed or absorbed by the operator or that the tax will not be added to any other charges, or that any part of the tax will be refunded except in a manner provided in this code.

2. Every swap meet operator liable for the collection and payment to the city of any tax imposed by the provisions of this subdivision shall keep and preserve for not less than three years all records necessary to determine the amount of such tax. The operator shall make such records available for inspection on demand by the Tax Collector so long as such request is made during normal business hours.

3. On or before the 10th day of the month following the close of the calendar month, or ten days following the close of any other reporting period which may be established by the Tax Collector, each operator shall file a return with the Tax Collector, showing the total amount of the tax collected under this subdivision and such other information as may be required by the Tax Collector. At the time the return is filed, the operator shall remit the full amount of the tax collected to the Tax Collector. The Tax Collector may establish such other reporting periods as he deems necessary or expedient to assure the collection of the tax. Returns and payments shall be due immediately upon cessation of business by the swap meet operator for any reason.

4. Every operator shall hold all taxes collected under this subdivision in trust for the account of the city until payment thereof is made to the Tax Collector. Any operator who fails to remit the tax within the time required shall pay a penalty to the city in the amount of ten percent of the amount of the tax. In addition to any penalties imposed, an operator who fails to remit any tax imposed by the provisions of this subdivision shall pay interest at the rate of 1 1/2 percent per month on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent. If any operator shall fail or refuse to collect the tax or to make within the prescribed time any report or remittance of the tax, or any portion thereof, the Tax Collector shall estimate the amount of tax due and assess against such operator the tax, interest and penalties provided for in this subdivision. The Tax Collector shall give a notice in writing of the amount so assessed by serving such notice personally or by depositing it in the United States mail, postage prepaid and addressed to the swap meet operator at his last known place of business. Any swap meet operator who feels aggrieved by any action of the Tax Collector under this subdivision may appeal such action to the City Council, whose decision shall be final.

(18) Theaters. For conducting, managing or carrying on a motion picture theater, or any other type of theater, the annual tax shall be as set by City Council resolution.

(19) Trained animal shows. For conducting, managing or carrying on a trained animal show, to which an admission fee is charged or collection taken, the tax shall be as set by City Council resolution.

(20) Traveling shows, lectures, and the like. For conducting, managing or carrying on any lecture or traveling theatrical performance such as comedy, spoken drama, opera or concerts, the tax shall be as set by City Council resolution.

(21) U-drive-it vehicle rentals. For the business of renting out motor vehicles for transportation of persons or property on a U-drive basis, the annual tax shall be as set by City Council resolution per year per vehicle used in the conduct of such business.

(22) Vending machines.

(a) Pursuant to the provisions of Cal. Bus. and Prof. Code § 16002.5, every person engaged in the business of renting, leasing or operating coin-operated vending machines shall pay an annual tax for such business based upon the entire gross receipts which are directly attributable to the business activities conducted within the city. Such tax shall be as set by City Council resolution.

(b) Every person subject to the tax imposed by this subdivision shall report to the city the gross receipts from such machines, in order to enable the city to establish the proper amount of the tax. The city may demand an audit of any such person and require such person to submit a copy of the state sales and use tax returns filed relative to such machines.

(Ord. 50, passed 11-27-57; Ord. 118, passed 6-11-59; Ord. 149, passed 6-23-60; '64 Code, §§ 13-42—13-77; Am. Ord. 245, passed 5-28-64; Am. Ord. 304, passed 11-10-66; Ord. 333, passed 5-23-68; Ord. 397, passed 3-22-71; Ord. 405, passed 7-8-71; Ord. 420, passed 5-11-72; Ord. 433, passed 3-8-73; Am. Ord. 497, passed 5-13-75; Ord. 522, passed 5-26-77; Ord. 545, passed 6-22-78; Am. Ord. 791, passed 5-9-91; Ord. 793, passed 5-23-91; Ord. 822, passed 3-11-93; Am. Ord. 855, passed 7-13-95)

Cross reference— Business regulations generally, see Title XI

This subchapter shall be known as the "Utility Users' Tax Law of the City of Santa Fe Springs."

('64 Code, § 13A-1; Ord. 648, passed 6-28-84; Am. Ord. 1015, passed 11-2-10)

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

Ancillary Telecommunication Services. Services that are associated with or incidental to the provision, use or enjoyment of telecommunications services, including but not limited to the following services:

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

(2) Detailed Telecommunications Billing Service. An ancillary service of separately stating information pertaining to individual calls on a customer's billing statement.

(3) Directory Assistance. An ancillary service of providing telephone number information, and/or address information.

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

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

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

City. The City of Santa Fe Springs.

Communication Services. See Telecommunications Services and Ancillary Telecommunication Services.

Gas. Natural or manufactured gas or any alternate hydrocarbon fuel which may be substituted therefore.

Mobile Telecommunications Service. The meaning and usage as set forth in the Mobile Telecommunications Sourcing Act (4 U.S.C. § 124) and the regulations thereunder.

Month. A calendar month.

Non-Utility Service Supplier.

(1) A service supplier, other than a supplier of electric distribution services to all or a significant portion of the city, which generates electricity for sale to others, and shall include but is not limited to any publicly-owned electric utility, investor-owned utility, cogenerator, distributed generation provider, exempt wholesale generator (15 U.S.C. § 79z-5a), municipal utility district, federal power marketing agency, electric rural cooperative, or other supplier or seller of electricity;

(2) An electric service provider (ESP), electricity broker, marketer, aggregator, pool operator, or other electricity supplier other than a supplier of electric distribution services to all or a significant portion of the city, which sells or supplies electricity or supplemental services to electricity users within the city; or

(3) A gas service supplier, aggregator, marketer or broker, other than a supplier of gas distribution services to all or a significant portion of the city, which sells or supplies gas or supplemental services to gas users within the city.

Paging Service. A telecommunications service that provides transmission of coded radio signals for the purpose of activating specific pagers; such transmissions may include messages and/or sounds.

Person. Without limitation, any natural individual, firm, trust, common law trust, estate, partnership of any kind, association, syndicate, club, joint stock company, joint venture, limited liability company, corporation (including foreign, domestic, and non-profit), municipal district or municipal corporation (other than the city) cooperative, receiver, trustee, guardian, or other representative appointed by order of any court.

Place of Primary Use. The street address representative of where the customer's use of the communications service primarily occurs, which must be the residential street address or the primary business street address of the customer.

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

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

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

Service Address. The residential street address or the business street address of the service user. For a telecommunication service user, Service Address means either:

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

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

(3) For prepaid telecommunication service, Service Address means the location associated with the service number or, if not known, the point of sale of the services.

Service Supplier. Any entity or person, including the city, that provides utility service to a user of such service within the city.

Service User. A person required to pay a tax imposed under the provisions of this subchapter.

State. The State of California.

Streamlined Sales and Use Tax Agreement. The multi-state agreement commonly known and referred to as the Streamlined Sales and Use Tax Agreement, as it is amended from time to time.

Tax Administrator. The city's Director of Finance and Administrative Services, or his or her designee.

Telecommunications Service. The transmission, conveyance, or routing of voice, data, audio, video, or any other information or signals to a point, or between or among points, whatever the technology used. The term Telecommunications Services includes such transmission, conveyance, or routing in which computer processing applications are used to act on the form, code or protocol of the content for purposes of transmission, conveyance or routing without regard to whether such services are referred to as voice over internet protocol (VoIP) services or are classified by the Federal Communications Commission as enhanced or value added, and includes video and/or data services that is functionally integrated with telecommunication services. Telecommunications Services include, but are not limited to the following services, regardless of the manner or basis on which such services are calculated or billed: ancillary telecommunication services; intrastate, interstate, and international telecommunication services; mobile telecommunications service; prepaid telecommunication service; post-paid telecommunication service; private telecommunication service; paging service; 800 service (or any other toll-free numbers designated by the Federal Communications Commission); 900 service (or any other similar numbers designated by the Federal Communications Commission for services whereby subscribers who call in to pre-recorded or live service).

VoIP (Voice Over Internet Protocol). The digital process of making and receiving real-time voice transmissions over any Internet Protocol network.

800 Service. A telecommunications service that allows a caller to dial a toll-free number without incurring a charge for the call. The service is typically marketed under the name "800," "855,""866," "877," and "888" toll-free calling, and any subsequent numbers designated by the Federal Communications Commission.

900 Service. An inbound toll telecommunications service purchased by a subscriber that allows the subscriber's customers to call in to the subscriber's prerecorded announcement or live service. 900 Service does not include the charge for: collection services provided by the seller of the telecommunications services to the subscriber, or service or product sold by the subscriber to the subscriber's customer. The service is typically marketed under the name "900" service, and any subsequent numbers designated by the Federal Communications Commission.

('64 Code, § 13A-2; Ord. 648, passed 6-28-84; Am. Ord. 1015, passed 11-2-10)

(A) Nothing in this subhapter shall be construed as imposing a tax upon:

(1) Any person or service when the imposition of such tax upon such person or service would be in violation of a federal or state statute, the Constitution of the United States or the Constitution of the State;

(2) The city; or

(3) Any federal or state government entity, including any public school district.

(B) (1)

Any service user that is exempt from the tax imposed by this subchapter, pursuant to division (A) of this section, shall file an application with the Tax Administrator for an exemption; provided, however, this requirement shall not apply to a service user that is a state or federal agency or subdivision with a commonly recognized name for such service. Said application shall be made upon a form approved by the Tax Administrator and shall state those facts, declared under penalty of perjury, which qualify the applicant for an exemption, and shall include the names of all service suppliers serving that service user. If deemed exempt by the Tax Administrator, such service user shall give the Tax Administrator timely written notice of any change in service suppliers so that the Tax Administrator can properly notify the new service supplier of the service user's tax-exempt status. A service user that fails to comply with this section shall not be entitled to a refund of a users' tax collected and remitted to the Tax Administrator from such service user as a result of such noncompliance.

(2) The decision of the Tax Administrator may be appealed pursuant to § 35.122. Filing an application with the Tax Administrator and appeal to the City Manager, or designee, pursuant to § 35.122 is a prerequisite to a suit thereon.

(C) Any service user who is enrolled in the CARE ("California Alternate Rates for Energy") Program administered by any service supplier shall be exempt from the tax imposed by this subchapter with respect to the charges imposed by such service supplier. The Tax Administrator shall request that each service supplier that operates a CARE Program refrain from assessing and collecting the tax imposed by this subchapter from such enrolled service users.

(D) The maximum annual tax per fiscal year (July 1 through June 30) for any service user using gas services shall be $20,000; for electricity services shall be $20,000; and, for communication services shall be $20,000. The Tax Administrator is hereby empowered and directed to prorate such maximum annual tax amounts for Fiscal Year 2010-11, based upon the number of months that such taxes are paid during that fiscal year. On July 1 of each fiscal year, beginning on July 1, 2012, such maximum annual tax amounts shall be increased by a percentage equivalent to any increase in the Consumer Price Index for All Urban Consumers for the Los Angeles/Orange/ Riverside County area, from March of the prior year to March of the current year, as published by the Bureau of Labor Statistics. For purposes of calculating the maximum annual tax for electric service, a service user with multiple electric meters or invoices at a single or at multiple locations within the city may combine all billings for such locations. For purposes of calculating the maximum annual tax for gas service, a service user with multiple gas meters or invoices at a single or at multiple locations within thecity may combine all billings for such locations. The Tax Administrator shall adopt forms, rules, and regulations for implementing the maximum tax in a manner that is administratively efficient.

(E) The City Council may, by 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 subchapter and provide that such classes of persons or service shall be exempt, in whole or in part from such tax for a specified period of time.

(Ord. 1015, passed 11-2-10)

(A) There is hereby imposed a tax upon every person in the city using communication services. The tax imposed by this section shall be at the rate of five percent of the charges made for such services and shall be collected from the service user by the communication services supplier or its billing agent. There is a rebuttable presumption that communication services, which are billed to a billing or service address in the city, are used, in whole or in part, within the city's boundaries and such services are subject to taxation under this section. There is also a rebuttable presumption that prepaid telecommunication services sold within the city are used, in whole or in part, within the city and are therefore subject to taxation under this section. If the billing address of the service user is different from the service address, the service address of the service user shall be used for purposes of imposing the tax. As used in this section, the term Charges shall include the value of any other services, credits, property of every kind or nature, or other consideration provided by the service user in exchange for the communication services.

(B) Mobile Telecommunications Service shall be sourced in accordance with the sourcing rules set forth in the Mobile Telecommunications Sourcing Act (4 U.S.C. § 124). The Tax Administrator may issue and disseminate to communication service suppliers, which are subject to the tax collection requirements of this subchapter, sourcing rules for the taxation of other communication services, including but not limited to postpaid communication services, prepaid communication services, VoIP, and private communication services, provided that such rules are based upon custom and common practice that further administrative efficiency and minimize multi-jurisdictional taxation (e.g., Streamlined Sales and Use Tax Agreement).

(C) The Tax Administrator may issue and disseminate to communication service suppliers, which are subject to the tax collection requirements of this subchapter, an administrative ruling identifying those communication services, or charges therefore, that are subject to or not subject to the tax of division (A) of this section.

(D) As used in this section, the term Telecommunication Services shall include, but is not limited to, charges for: connection, reconnection, termination, movement, or change of telecommunication services; late payment fees; detailed billing; central office and custom calling features (including but not limited to call waiting, call forwarding, caller identification and three-way calling); voice mail and other messaging services; directory assistance; access and line charges; universal service charges; regulatory, administrative and other cost recovery charges; local number portability charges; and text and instant messaging. Telecommunication Services shall not include digital downloads that are not "ancillary telecommunication services," such as music, ringtones, games, and similar digital products.

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

(F) The tax on communication services imposed by this section shall be collected from the service user by the service supplier. The amount of tax collected in one month shall be remitted to the Tax Administrator, and must be received by the Tax Administrator on or before the 20th day of the following month.

(Ord. 1015, passed 11-2-10)

(A) There is hereby imposed a tax upon every person using electricity in the city. The tax imposed by this section shall be at the rate of five percent of the charges made for such electricity, and for any supplemental services or other associated activities directly related to and/or necessary for the provision of electricity to the service user, which are provided by a service supplier or non-utility service supplier to a service user. The tax shall be collected from the service user by the service supplier or non-utility service supplier, or its billing agent.

(B) As used in this section, the term Charges shall apply to all services, components and items that are: necessary for or common to the receipt, use or enjoyment of electric service; or, currently are or historically have been included in a single or bundled rate for electric service by a local distribution company to a class of retail customers. The term Charges shall include, but is not limited to, the following charges:

(1) Energy charges;

(2) Distribution or transmission charges;

(3) Metering charges;

(4) Stand-by, reserves, firming, ramping, voltage support, regulation, emergency, or other similar charges for supplemental services to self-generation service users;

(5) Customer charges, late charges, service establishment or reestablishment charges, demand charges, fuel or other cost adjustments, power exchange charges, independent system operator (ISO) charges, stranded investment or competitive transition charges (CTC), public purpose program charges, nuclear decommissioning charges, trust transfer amounts (bond financing charges), franchise fees, franchise surcharges, annual and monthly charges, and other charges, fees or surcharges which are necessary for or common to the receipt, use or enjoyment of electric service; and,

(6) Charges, fees, or surcharges for electricity services or programs which are mandated by the California Public Utilities Commission or the Federal Energy Regulatory Commission, whether or not such charges, fees, or surcharges appear on a bundled or line item basis on the customer billing.

(C) As used in this section, the term Charges shall include the value of any other services, credits, property of every kind or nature, or other consideration provided by the service user in exchange for the electricity or services related to the provision of such electricity.

(D) The Tax Administrator, from time to time, may survey the electric service suppliers to identify the various unbundled billing components of electric retail service that they commonly provide to residential and commercial/industrial customers in the city, and the charges therefore, including those items that are mandated by state or federal regulatory agencies as a condition of providing such electric service. The Tax Administrator, thereafter, may issue and disseminate to such electric service suppliers an administrative ruling identifying those components and items which are: necessary for or common to the receipt, use or enjoyment of electric service; or, currently are or historically have been included in a single or bundled rate for electric service by a local distribution company to a class of retail customers. Charges for such components and items shall be subject to the tax of division (A) above.

(E) As used in this section, the term Using Electricity shall not include the mere receiving of such electricity by an electrical corporation or governmental agency at a point within the city for resale.

(F) The tax on electricity provided by self-production or by a non-utility service supplier not under the jurisdiction of this section shall be collected and remitted in the manner set forth in § 35.111. All other taxes on charges for electricity imposed by this section shall be collected from the service user by the electric service supplier or its billing agent. The amount of tax collected in one month shall be remitted to the Tax Administrator, and must be received by the Tax Administrator on or before the 20th day of the following month; or, at the option of the person required to collect and/or remit the tax, such person shall remit an estimated amount of tax measured by the tax billed in the previous month or upon the payment pattern of the service user, which must be received by the Tax Administrator on or before the 20th day of the following month, provided that such person shall submit an adjusted payment or request for credit, as appropriate, within 60 days following each calendar quarter. The credit, if approved by the Tax Administrator, may be applied against any subsequent remittance that becomes due.

('64 Code, § 13A-4; Ord. 648, passed 6-28-84; Am. Ord. 679, passed 9-26-85; Am. Ord. 1015, passed 11-2-10)

(A) There is hereby imposed a tax upon every person using gas in the city, which is transported and delivered through a pipeline or by mobile transport. The tax imposed by this section shall be at the rate of five percent of the charges made for such gas, including all services related to the storage, transportation and delivery of such gas. The tax shall be collected from the service user by the service supplier or non-utility service supplier, or its billing agent, and shall apply to all uses of gas, including but not limited to, heating, electricity generation, and the use of gas as a component of a manufactured product.

(B) As used in this section, the term Charges shall apply to all services, components and items for gas service that are: necessary for or common to the receipt, use or enjoyment of gas service; or, currently are or historically have been included in a single or bundled rate for gas service by a local distribution company to a class of retail customers. The term Charges shall include, but is not limited to, the following charges:

(1) The commodity charges for purchased gas, or the cost of gas owned by the service user (including the actual costs attributed to drilling, production, lifting, storage, gathering, trunkline, pipeline, and other operating costs associated with the production and delivery of such gas), which is delivered through a gas pipeline distribution system;

(2) Gas transportation charges (including interstate charges to the extent not included in commodity charges);

(3) Storage charges; provided, however, that the service supplier shall not be required to apply the tax to any charges for gas storage services when the service supplier cannot, as a practical matter, determine the jurisdiction where such stored gas is ultimately used; but it shall be the obligation of the service user to self-collect the amount of tax not applied to any charge for gas storage by the service supplier and to remit the tax to the appropriate jurisdiction;

(4) Capacity or demand charges, late charges, service establishment or reestablishment charges, transition charges, customer charges, minimum charges, annual and monthly charges, and any other charges which are necessary for or common to the receipt, use or enjoyment of gas service; and,

(5) Charges, fees, or surcharges for gas services or programs which are mandated by the California Public Utilities Commission or the Federal Energy Regulatory Commission, whether or not such charges, fees, or surcharges appear on a bundled or line item basis on the customer billing.

(C) As used in this section, the term Charges shall include the value of any other services, credits, property of every kind or nature, or other consideration provided by the service user in exchange for the gas or services related to the delivery of such gas.

(D) The Tax Administrator, from time to time, may survey the gas service suppliers to identify the various unbundled billing components of gas retail service that they commonly provide to residential and commercial/industrial customers in the city, and the charges therefore, including those items that are mandated by state or federal regulatory agencies as a condition of providing such gas service. The Tax Administrator, thereafter, may issue and disseminate to such gas service suppliers an administrative rulingidentifying those components and items which are: necessary for or common to the receipt, use or enjoyment of gas service; or, currently are or historically have been included in a single or bundled rate for gas service by a local distribution company to a class of retail customers. Charges for such components and items shall be subject to the tax of division (A) above.

(E) There shall be excluded from the calculation of the tax imposed in this section, charges made for gas which is to be resold and delivered through a pipeline distribution system.

(F) The tax on gas provided by self-production or by a non-utility service supplier not under the jurisdiction of this section shall be collected and remitted in the manner set forth in § 35.111. All other taxes on charges for gas imposed by this section shall be collected from the service user by the gas service supplier or its billing agent. The amount of tax collected in one month shall be remitted to the Tax Administrator, and must be received by the Tax Administrator, on or before the 20th day of the following month; or, at the option of the person required to collect and/or remit the tax, such person shall remit an estimated amount of tax measured by the tax billed in the previous month or upon the payment pattern of the service user, which must be received by the Tax Administrator on or before the 20th day of the following month, provided that such person shall submit an adjusted payment or request for credit, as appropriate, within 60 days following each calendar quarter. The credit, if approved by the Tax Administrator, may be applied against any subsequent remittance that becomes due.

('64 Code, § 13A-5; Ord. 648, passed 6-28-84; Am. Ord. 679, passed 9-26-85; Am. Ord. 1015, passed 11-2-10)

(A) Any service user subject to the tax imposed by § 35.109 or by § 35.110, which produces gas or electricity for self-use; which receives gas or electricity, including any related supplemental services, directly from a non-utility service supplier not under the jurisdiction of this section; or which, for any other reason, is not having the full tax collected and remitted by its service supplier, a non-utility service supplier, or its billing agent on the use of gas or electricity in the city, including any related supplemental services, shall report said fact to the Tax Administrator and shall remit the tax due directly to the Tax Administrator within 30 days of such use, based on the charges for, or value of, such gas or electricity, or supplemental services, as provided in division (B) of this section. In lieu of paying said actual tax, the service user may, at its option, remit to the Tax Administrator within 30 days of such use an estimated amount of tax measured by the tax billed in the previous month, or upon the payment pattern of similar customers of the service supplier using similar amounts of gas or electricity, provided that the service user shall submit an adjusted payment or request for credit, as appropriate, within 60 days following each calendar quarter. The credit, if approved by the Tax Administrator in writing, may be applied against any subsequent tax bill that becomes due.

(B) The Tax Administrator may require said service user to identify its non-utility service supplier, and otherwise provide, subject to audit: invoices; books of account; or other satisfactory evidence documenting the quantity of gas or electricity used, including any related supplemental services, and the cost or price thereof. If the service user is unable to provide such satisfactory evidence, or if the administrative cost of calculating the tax in the opinion of the Tax Administrator is excessive, the Tax Administrator may determine the tax by applying the tax rate to the equivalent charges the service user would have incurred if the gas or electricity used, including any related supplemental services, had been provided by the service supplier that is the primary supplier of gas or electricity within the city. Rate schedules for this purpose shall be available from the city.

('64 Code, § 13A-7; Ord. 648, passed 6-28-84; Am. Ord. 1015, passed 11-2-10)

If any nontaxable charges are combined with and not separately stated from taxable service charges on the customer bill or invoice of a service supplier, thecombined charge is subject to tax unless the service supplier identifies, by reasonable and verifiable standards, the portions of the combined charge that are nontaxable and taxable through the service supplier's books and records kept in the regular course of business, and in accordance with generally accepted accounting principles, and not created and maintained for tax purposes. If the service supplier offers a combination of taxable and non-taxable services, and the charges are separately stated, then for taxation purposes, the values assigned the taxable and non-taxable services shall be based on its books and records kept in the regular course of business and in accordance with generally accepted accounting principles, and not created and maintained for tax purposes. The service supplier has the burden of proving the proper valuation and apportionment of taxable and non-taxable charges.

(Ord. 1015, passed 11-2-10)

For purposes of imposing a tax or establishing a duty to collect and remit a tax under this subchapter, Substantial Nexus and Minimum Contacts shall be construed broadly in favor of the imposition, collection and/or remittance of the utility users' tax to the fullest extent permitted by state and federal law, and as it may change from time to time by judicial interpretation or by statutory enactment. Any communication service (including VoIP) used by a person with a service address in the city, which service is capable of terminating a call to another person on the general telephone network, shall be subject to a rebuttable presumption that substantial nexus/minimum contacts exist for purposes of imposing a tax, or establishing a duty to collect and remit a tax, under this subchapter. A service supplier shall be deemed to have sufficient activity in the city for tax collection and remittance purposes if its activities include, but are not limited to, any of the following: maintains or has within the city, directly or through an agent or subsidiary, a place of business of any nature; solicits business in the city by employees, independent contractors, resellers, agents or other representatives; solicits business in the city on a continuous, regular, seasonal or systematic basis by means of advertising that is broadcast or relayed from a transmitter with the city or distributed from a location with the city; or advertises in newspapers or other periodicals printed and published within the city or through materials distributed in the city by means other than the United States mail; or if there are activities performed in the city on behalf of the service supplier that are significantly associated with the service supplier's ability to establish and maintain a market in the city for the provision of utility services that are subject to a tax under this subchapter.

(Ord. 1015, passed 11-2-10)

(A) Collection by service suppliers. The duty of service suppliers to collect and remit the taxes imposed by the provisions of this subchapter shall be performed as follows:

(1) The tax shall be collected by service suppliers insofar as practicable at the same time as, and along with, the collection of the charges made in accordance with the regular billing practice of the service supplier. Where the amount paid by a service user to a service supplier is less than the full amount of the charge and tax which was accrued for the billing period, a proportionate share of both the charge and the tax shall be deemed to have been paid. In those cases where a service user has notified the service supplier of refusal to pay the tax imposed on said charges, § 35.118 shall apply.

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

(B) Filing return and payment. Each person required by this subchapter to remit a tax shall file a return to the Tax Administrator, on forms approved by the Tax Administrator, on or before the due date. The full amount of the tax collected shall be included with the return and filed with the Tax Administrator. The Tax Administrator is authorized to require such additional information as he or she deems necessary to determine if the tax is being levied, collected, and remitted in accordance with this section. Returns are due immediately upon cessation of business for any reason. Pursuant to Cal. Rev. and Tax. Code § 7284.6, the Tax Administrator, and its agents, shall maintain such filing returns as confidential information that is exempt from the disclosure provisions of the Public Records Act.

(Ord. 1015, passed 11-2-10)

(A) Taxes collected from a service user are delinquent if not received by the Tax Administrator on or before the due date. Should the due date occur on a weekend or legal holiday, the return must be received by the Tax Administrator on the first regular working day following the weekend or legal holiday. A direct deposit, including electronic fund transfers and other similar methods of electronically exchanging monies between financial accounts, made by a service supplier in satisfaction of its obligations under this subchapter shall be considered timely if the transfer is initiated on or before the due date, and the transfer settles into the city's account on the following business day.

(B) If the person required to collect and/or remit the utility users' tax fails to collect the tax (by failing to properly assess the tax on one or more services or charges on the customer's billing) or fails to remit the tax collected on or before the due date, the Tax Administrator shall attach a penalty for such delinquencies or deficiencies at the rate of 15 percent of the total tax that is delinquent or deficient in the remittance, and shall pay interest at the rate of 0.75 percent per month, or any fraction thereof, on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent, until paid.

(C) The Tax Administrator shall have the power to impose additional penalties upon persons required to collect and remit taxes pursuant to the provisions of this subchapter for fraud or gross negligence in reporting or remitting at the rate of 15 percent of the amount of the tax collected and/or required to be remitted, or as recomputed by the Tax Administrator.

(D) For collection purposes only, every penalty imposed and such interest that is accrued under the provisions of this section shall become a part of the tax herein required to be paid.

(E) Notwithstanding the foregoing, the Tax Administrator may, in his or her discretion, modify the due dates of this subchapter to be consistent with any uniform standards or procedures that are mutually agreed upon by other public agencies imposing a utility users' tax, or otherwise legally established, to create a central payment location or mechanism.

(Ord. 1015, passed 11-2-10)

Any tax required to be paid by a service user under the provisions of this subchapter 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 and shall no longer be a debt of the service user. Any person owing money to the city under the provisions of this subchapter shall be liable to an action brought in the name of the city for the recovery of such amount, including penalties and interest as provided for in this subchapter, along with any collection costs incurred by the city as a result of the person's noncompliance with this subchapter, including, but not limited to, reasonable attorney's fees. Any tax required to be collected by a service supplier or owed by a service user is an unsecured priority excise tax obligation under 11 U.S.C. § 507(a)(8)(C). Service suppliers who seek to collect charges for service in bankruptcy proceedings shall also include in any such claim the amount of taxes due the city for those services, unless the Tax Administrator determines that such duty is in conflict with any federal or state law, rule, or regulation or that such action would be administratively impractical.

('64 Code, § 13A-9; Ord. 648, passed 6-28-84; Am. Ord. 1015, passed 11-2-10)

(A) The Tax Administrator shall make a deficiency determination if he or she determines that any person required to pay or collect taxes pursuant to the provisions of this subchapter has failed to pay, collect, and/or remit the proper amount of tax by improperly or failing to apply the tax to one or more taxable services or charges. Nothing herein shall require that the Tax Administrator institute proceedings under this section if, in the opinion of the Tax Administrator, the cost of collection or enforcement likely outweighs the tax benefit.

(B) The Tax Administrator shall mail a notice of such deficiency determination to the person required to pay or remit the tax, which notice shall refer briefly to the amount of the taxes owed, plus interest at the rate of 0.75 percent per month, or any fraction thereof, on the amount of the tax from the date on which the tax should have been received by the city. Within 14 calendar days after the date of service of such notice, the person may request in writing to the Tax Administrator for a hearing on the matter.

(C) If the person fails to request a hearing within the prescribed time period, the amount of the deficiency determination shall become a final assessment, and shall immediately be due and owing to the city. If the person requests a hearing, the Tax Administrator shall cause the matter to be set for hearing, which shall be scheduled within 30 days after receipt of the written request for hearing. Notice of the time and place of the hearing shall be mailed by the Tax Administrator to such person at least ten calendar days prior to the hearing, and, if the Tax Administrator desires said person to produce specific records at such hearing, such notice may designate the records requested to be produced.

(D) At the time fixed for the hearing, the Tax Administrator shall hear all relevant testimony and evidence, including that of any other interested parties. At the discretion of the Tax Administrator, the hearing may be continued from time to time for the purpose of allowing the presentation of additional evidence. Within a reasonable time following the conclusion of the hearing, the Tax Administrator shall issue a final assessment (or non-assessment), thereafter, by confirming, modifying or rejecting the original deficiency determination, and shall mail a copy of such final assessment to person owing the tax. The decision of the Tax Administrator may be appealed pursuant to § 35.122. Filing an application with the Tax Administrator and appeal to the City Administrator, or designee, pursuant to § 35.122 is a prerequisite to a suit thereon.

(E) Payment of the final assessment shall become delinquent if not received by the Tax Administrator on or before the thirtieth day following the date of receipt of the notice of final assessment. The penalty for delinquency shall be 15 percent on the total amount of the assessment, along with interest at the rate of 0.75 percent per month, or any fraction thereof, on the amount of the tax, exclusive of penalties, from the date of delinquency, until paid. The applicable statute of limitations regarding a claim by the city seeking payment of a tax assessed under this subchapter shall commence from the date of delinquency as provided in this division (E).

(F) All notices under this section may be sent by regular mail, postage prepaid, and shall be deemed received on the third calendar day following the date of mailing, as established by a proof of mailing.

(Ord. 1015, passed 11-2-10)

(A) Whenever the Tax Administrator determines that a service user has deliberately withheld the amount of the tax owed by the service user from the amounts remitted to a person required to collect the tax, or whenever the Tax Administrator deems it in the best interest of the city, he or she may relieve such person of the obligation to collect the taxes due under this subchapter from certain named service users for specific billing periods. To the extent the service user has failed to pay the amount of tax owed for a period of two or more billing periods, the service supplier shall be relieved of the obligation to collect taxes due. The service supplier shall provide the city with the names and addresses of such service users and the amounts of taxes owed under the provisions of this subchapter. Nothing herein shall require that the Tax Administrator institute proceedings under this section if, in the opinion of the Tax Administrator, the cost of collection or enforcement likely outweighs the tax benefit.

(B) In addition to the tax owed, the service user shall pay a delinquency penalty at the rate of 15 percent of the total tax that is owed, and shall pay interest at the rate of 0.75 percent per month, or any fraction thereof, on the amount of the tax, exclusive of penalties, from the due date, until paid.

(C) The Tax Administrator shall notify the non-paying service user that the Tax Administrator has assumed the responsibility to collect the taxes due for the stated periods and demand payment of such taxes, including penalties and interest. The notice shall be served on the service user by personal delivery or by deposit of the notice in the United States mail, postage prepaid, 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 a change of address, to his or her last known address.

(D) If the service user fails to remit the tax to the Tax Administrator within 30 days from the date of the service of the notice upon him or her, the Tax Administrator may impose an additional penalty of 15 percent of the amount of the total tax that is owed.

(Ord. 1015, passed 11-2-10)

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

(B) The Tax Administrator may adopt administrative rules and regulations consistent with provisions of this subchapter for the purpose of interpreting, clarifying, carrying out and enforcing the payment, collection and remittance of the taxes herein imposed. The administrative ruling shall not impose a new tax, revise an existing tax methodology as stated in this subchapter, or increase an existing tax, except as allowed by Cal. Gov't Code § 53750(h)(2). A copy of such administrative rules and regulations shall be on file in the Tax Administrator's office. To the extent that the Tax Administrator determines that the tax imposed under this subchapter shall not be collected in full for any period of time from any particular service supplier or service user, that determination shall be considered an exercise of the Tax Administrator's discretion to settle disputes and shall not constitute a change in taxing methodology for purposes of Cal. Gov't Code § 53750 or otherwise. The Tax Administrator is not authorized to amend the city's methodology for purposes of Cal. Gov't Code § 53750 and the city does not waive or abrogate its ability to impose the utility users' tax in full as a result of promulgating administrative rulings or entering into agreements.

(C) Upon a proper showing of good cause, the Tax Administrator may make administrative agreements, with appropriate conditions, to vary from the strict requirements of this subchapter and thereby: conform to the billing procedures of a particular service supplier so long as said agreements result in the collection of the tax in conformance with the general purpose and scope of this subchapter; or, to avoid a hardship where the administrative costs of collection and remittance greatly outweigh the tax benefit. A copy of each such agreement shall be on file in the Tax Administrator's office, and are voidable by the Tax Administrator or the city at any time.

(D) The Tax Administrator may conduct an audit, to ensure proper compliance with the requirements of this subchapter, of any person required to collect and/or remit a tax pursuant to this subchapter. The Tax Administrator shall notify said person of the initiation of an audit in writing. In the absence of fraud or other intentional misconduct, the audit period of review shall not exceed a period of three years next preceding the date of receipt of the written notice by said person from the Tax Administrator. Upon completion of the audit, the Tax Administrator may make a deficiency determination pursuant to § 35.013 for all taxes (and applicable penalties and interest) owed and not paid, asevidenced by information provided by such person to the Tax Administrator. If said person is unable or unwilling to provide sufficient records to enable the Tax Administrator to verify compliance with this subchapter, the Tax Administrator is authorized to make a reasonable estimate of the deficiency. Said reasonable estimate shall be entitled to a rebuttable presumption of correctness.

(E) Upon receipt of a written request of a taxpayer, and for good cause, the Tax Administrator may extend the time for filing any statement required pursuant to this subchapter for a period of not to exceed 45 days, provided that the time for filing the required statement has not already passed when the request is received. No penalty for delinquent payment shall accrue by reason of such extension. Interest shall accrue during said extension at the rate of 0.75 percent per month, prorated for any portion thereof.

(F) The Tax Administrator shall determine the eligibility of any person who asserts a right to exemption from, or a refund of, the tax imposed by this subchapter.

(G) Notwithstanding any provision in this subchapter to the contrary, the Tax Administrator may waive any penalty or interest imposed upon a person required to collect and/or remit for failure to collect the tax imposed by this subchapter if the non-collection occurred in good faith. In determining whether the non-collection was in good faith, the Tax Administrator shall take into consideration the uniqueness of the product or service, industry practice or other precedence. The Tax Administrator may also participate with other UUT public agencies in conducting coordinated compliance reviews with the goal of achieving administrative efficiency and uniform tax application determinations, where possible. To encourage full disclosure and on-going cooperation on annual compliance reviews, the Tax Administrator, and its agents, may enter into agreements with the tax-collecting service providers and grant prospective only effect on any changes regarding the taxation of services or charges that were previously deemed by the service provider, in good faith and without gross negligence, to be non-taxable. In determining whether the non-collection was in good faith and without gross negligence, the Tax Administrator shall take into consideration the uniqueness of the product or service, industry practice or other precedence.

('64 Code, § 13A-10; Ord. 648, passed 6-28-84; Am. Ord. 1015, passed 11-2-10)

(A) It shall be the duty of every person required to collect and/or remit to the city any tax imposed by this subchapter to keep and preserve, for a period of at least 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 Tax Administrator, which records the Tax Administrator shall have the right to inspect at a reasonable time.

(B) The city may issue an administrative subpoena to compel a person to deliver, to the Tax Administrator, copies of all records deemed necessary by the Tax Administrator to establish compliance with this subchapter, including the delivery of records in a common electronic format on readily available media if such records are kept electronically by the person in the usual and ordinary course of business. As an alternative to delivering the subpoenaed records to the Tax Administrator on or before the due date provided in the administrative subpoena, such person may provide access to such records outside the city on or before the due date, provided that such person shall reimburse the city for all reasonable travel expenses incurred by the city to inspect those records, including travel, lodging, meals, and other similar expenses, but excluding the normal salary or hourly wages of those persons designated by the city to conduct the inspection.

(C) The Tax Administrator is authorized to execute a non-disclosure agreement approved by the City Attorney to protect the confidentiality of customer information pursuant to Cal. Rev. and Tax. Code §§ 7284.6 and 7284.7.

(D) If a service supplier uses a billing agent or billing aggregator to bill, collect, and/or remit the tax, the service supplier shall: provide to the Tax Administrator the name, address and telephone number of each billing agent and billing aggregatorcurrently authorized by the service supplier to bill, collect, and/or remit the tax to the city; and, upon request of the Tax Administrator, deliver, or effect the delivery of, any information or records in the possession of such billing agent or billing aggregator that, in the opinion of the Tax Administrator, is necessary to verify the proper application, calculation, collection and/or remittance of such tax to the city.

(E) If any person subject to record-keeping under this section unreasonably denies the Tax Administrator access to such records, or fails to produce the information requested in an administrative subpoena within the time specified, then the Tax Administrator may impose a penalty of $500 on such person for each day following: the initial date that the person refuses to provide such access; or, the due date for production of records as set forth in the administrative subpoena. This penalty shall be in addition to any other penalty imposed under this subchapter.

('64 Code, § 13A-16; Ord. 648, passed 6-28-84; Am. Ord. 1015, passed 11-2-10)

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 subchapter from a person or service supplier, it may be refunded as provided in this section as follows:

(A) Written claim for refund. The Tax Administrator may refund any tax that has been overpaid or paid more than once or has been erroneously or illegally collected or received by the Tax Administrator under this subchapter from a person or service supplier, provided that no refund shall be paid under the provisions of this subchapter unless the claimant or his or her guardian, conservator, executor, or administrator has submitted a written claim to the Tax Administrator within one year of the overpayment or erroneous or illegal collection of said tax. Such claim must clearly establish claimant's right to the refund by written records showing entitlement thereto. Nothing herein shall permit the filing of a claim on behalf of a class or group of taxpayers unless each member of the class has submitted a written claim under penalty of perjury as provided by this section.

(B) Compliance with Claims Act. The filing of a written claim pursuant to Cal. Gov't Code § 935 is a prerequisite to any suit thereon. Any action brought against the city pursuant to this section shall be subject to the provisions of Cal. Gov't Code §§ 945.6 and 946. The Tax Administrator, or the City Council where the claim is in excess of $5,000, shall act upon the refund claim within the time period set forth in Cal. Gov't Code § 912.4. If the Tax Administrator/City Council fails or refuses to act on a refund claim within the time prescribed by Cal. Gov't Code § 912.4, the claim shall be deemed to have been rejected by the City Council on the last day of the period within which the City Council was required to act upon the claim as provided in Cal. Gov't Code § 912.4. The Tax Administrator shall give notice of the action in a form which substantially complies with that set forth in Cal. Gov't Code § 913.

(C) Refunds to service suppliers. Notwithstanding the notice provisions of division (A) of this section, the Tax Administrator may, at his or her discretion, give written permission to a service supplier, who has collected and remitted any amount of tax in excess of the amount of tax imposed by this subchapter, to claim credit for such overpayment against the amount of tax which is due the city upon a subsequent monthly return(s) to the Tax Administrator, provided that: such credit is claimed in a return dated no later than one year from the date of overpayment or erroneous collection of said tax; the Tax Administrator is satisfied that the underlying basis and amount of such credit has been reasonably established; and, in the case of an overpayment by a service user to the service supplier that has been remitted to the city, the Tax Administrator has received proof, to his or her satisfaction, that the overpayment has been refunded by the service supplier to the service user in an amount equal to the requested credit.

('64 Code, § 13A-17; Ord. 648, passed 6-28-84; Am. Ord. 1015, passed 11-2-10)

(A) The provisions of this section apply to any decision (other than a decision relating to a refund pursuant to § 35.121), deficiency determination, assessment, or administrative ruling of the Tax Administrator. Any person aggrieved by any decision (other than a decision relating to a refund pursuant to § 35.121), deficiency determination, assessment, or administrative ruling of the Tax Administrator, shall be required to comply with the appeals procedure of this section. Compliance with this section shall be a prerequisite to a suit thereon. (See Cal. Gov't Code § 935(b)). Nothing herein shall permit the filing of a claim or action on behalf of a class or group of taxpayers.

(B) If any person is aggrieved by any decision (other than a decision relating to a refund pursuant to § 35.121), deficiency determination, assessment, or administrative ruling of the Tax Administrator; he or she may appeal to the City Manager, or designee, by filing a notice of appeal with the City Clerk within 14 days of the date of the decision, deficiency determination, assessment, or administrative ruling of the Tax Administrator which aggrieved the service user or service supplier.

(C) The matter shall be scheduled for hearing before an independent hearing officer selected by the City Manager, or designee, no more than 30 days from the receipt of the appeal. The appellant shall be served with notice of the time and place of the hearing, as well as any relevant materials, at least five calendar days prior to the hearing. The hearing may be continued from time to time upon mutual consent. At the time of the hearing, the appealing party, the Tax Administrator, and any other interested person may present such relevant evidence as he or she may have relating to the determination from which the appeal is taken.

(D) Based upon the submission of such evidence and the review of the city's files, the hearing officer shall issue a written notice and order upholding, modifying or reversing the determination from which the appeal is taken. The notice shall be given within 14 days after the conclusion of the hearing and shall state the reasons for the decision. The notice shall specify that the decision is final and that any petition for judicial review shall be filed within 90 days from the date of the decision in accordance with Cal. Code of Civil Procedure § 1094.6.

(E) All notices under this section may be sent by regular mail, postage prepaid, and shall be deemed received on the third calendar day following the date of mailing, as established by a proof of mailing.

(Ord. 1015, passed 11-2-10)

No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action, or proceeding in any court against this city or against any officer of the city to prevent or enjoin the collection under this subchapter of any tax or any amount of tax required to be collected and/or remitted.

(Ord. 1015, passed 11-2-10)

If a tax under this subchapter is added, repealed, increased, reduced, or the tax base is changed, the Tax Administrator shall follow the notice requirements of Cal. Public Utilities Code § 799.

(Ord. 1015, passed 11-2-10)

(A) Unless specifically provided otherwise, any reference to a state or federal statute in this subchapter shall mean such statute as it may be amended from time to time, provided that such reference to a statute herein shall not include any subsequent amendment thereto, or to any subsequent change of interpretation thereto by a state or federal agency or court of law with the duty to interpret such law, to the extent that such amendment or change of interpretation wouldrequire voter approval under California law, or to the extent that such change would result in a tax decrease (as a result of excluding all or a part of a utility service, or charge therefor, from taxation). Only to the extent voter approval would otherwise be required or a tax decrease would result, the prior version of the statute (or interpretation) shall remain applicable; for any application or situation that would not require voter approval or result in a decrease of a tax, provisions of the amended statute (or new interpretation) shall be applicable to the maximum possible extent.

(B) To the extent that the city's authorization to collect or impose any tax imposed under this subchapter is expanded or limited as a result of changes in state or federal law, no amendment or modification of this subchapter shall be required to conform the tax to those changes, and the tax shall be imposed and collected to the full extent of the authorization up to the full amount of the tax imposed under this subchapter.

(Ord. 1015, passed 11-2-10)

This subchapter may be repealed or amended by the City Council without a vote of the people. However, as required by Article XIIIC of the California Constitution, voter approval is required for any amendment provision that would increase the rate of any tax levied pursuant to this subchapter. The People of the City of Santa Fe Springs affirm that the following actions shall not constitute an increase of the rate of a tax:

(A) The restoration of the rate of the tax to a rate that is no higher than that set by this subchapter, if the City Council has acted to reduce the rate of the tax;

(B) An action that interprets or clarifies the methodology of the tax, or any definition applicable to the tax, so long as such interpretation or clarification (even if contrary to some prior interpretation or clarification) is not inconsistent with the language of this subchapter;

(C) The establishment of a class of persons that is exempt or excepted from the tax or the discontinuation of any such exemption or exception (other than the discontinuation of an exemption or exception specifically set forth in this subchapter); and

(D) The collection of the tax imposed by this subchapter, even if the city had, for some period of time, failed to collect the tax.

(Ord. 1015, passed 11-2-10)

The city shall annually verify that the taxes owed under this subchapter have been properly applied, exempted, collected, and remitted in accordance with this subchapter, and properly expended according to applicable municipal law. The annual verification shall be performed by a qualified independent third party and the review shall employ reasonable, cost-effective steps to assure compliance, including the use of sampling audits. The verification shall not be required of tax remitters where the cost of the verification may exceed the tax revenues to be reviewed.

(Ord. 1015, passed 11-2-10)

All remedies and penalties prescribed by this subchapter or which are available under any other provision of law or equity, including but not limited to the California False Claims Act (Cal. Gov't Code §§ 12650 et seq.) and the California Unfair Practices Act (Cal. Bus. and Prof. Code §§ 17070 et seq.), are cumulative. The use of one or more remedies by the city shall not bar the use of any other remedy for the purpose of enforcing the provisions of this subchapter.

(Ord. 1015, passed 11-2-10)

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

Senior Citizen. A person 62 years of age or older who is a resident of the city.

The State Act. The "Homeowners and Renters Property Tax Assistance Law" of the State of California, Cal. Rev. and Tax. Code §§ 20501 et seq.

('64 Code, § 21-35; Ord. 538, passed 5-11-78)

A senior citizen qualifying for any assistance as a homeowner under § 20543 of the State Act shall be entitled to a full rebate of the property taxes paid by such senior citizen to the city for the same fiscal year and relating to the same property as are used in determining the senior citizen's eligibility for assistance under the State Act.

('64 Code, § 21-36; Ord. 538, passed 5-11-78)

(A) In order to receive the rebate provided for in the preceding section, the senior citizen shall provide evidence satisfactory to the Director of Finance and Administrative Services of such senior citizen's eligibility under the State Act. Such evidence shall, as a minimum, include the following:

(1) A copy of the senior citizen's application to the state for assistance under the State Act; and

(2) Evidence that the state has accepted the senior citizen as eligible for assistance under the State Act; such evidence may but need not consist of a copy of the check or warrant from the state to the senior citizen in payment of the assistance under the State Act.

(B) The city shall copy for the senior citizen, without charge, such documents as the senior citizen shall submit in accordance with the provisions of this section.

('64 Code, § 21-37; Ord. 538, passed 5-11-78)

This subchapter may be referred to as the City of Santa Fe Springs Roads Dedicated Parcel Tax Ordinance.

(Ord. 1153, passed 11-5-24)

The purpose of this subchapter is solely to raise funds for the specific purpose set forth in this subchapter and not for regulation. The dedicated parcel tax imposed by this subchapter is neither an ad valorem tax on real property nor a transaction or sales tax on the sale of property.

(Ord. 1153, passed 11-5-24)

The net proceeds of the dedicated parcel tax shall be used solely for the purpose of maintaining and repairing the roads in the City of Santa Fe Springs.

(Ord. 1153, passed 11-5-24)

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

Dedicated parcel tax. The roads dedicated parcel tax imposed by Section 35.144 of this subchapter.

Net proceeds. Proceeds of the dedicated parcel tax that are received by the city from the Los Angeles County Tax Collector (or other officer of the County), less (i) any charges imposed by the county or any department of the county for services associated with the collection of the dedicated parcel tax and (ii) the city's costs of administering the dedicated parcel tax.

Parcel. A parcel of property as shown on the records of Los Angeles County Assessor's Office.

Road. Any road, street, avenue, or similar thoroughfare that is owned or maintained by the city.

Special fund. The special fund established pursuant to Section 35.151 of this subchapter.

Tax administrator. The Director of Finance and Administrative Services (or such other official designated by the City Council) or designee.

Tax year. The period running from July 1 of a year to June 30 of the following year.

(Ord. 1153, passed 11-5-24)

There is hereby imposed a special tax, to be referred to as the "Roads Dedicated Parcel Tax," on each parcel in the city. The dedicated parcel tax shall be assessed upon a parcel unless that parcel is exempt from the ad valorem property tax or is state-assessed property owned by a public utility. Where a parcel is exempted from the dedicated parcel tax by the previous sentence, the dedicated parcel tax shall be imposed on any taxable possessory interest in the parcel based on the characteristics of that possessory interest.

(Ord. 1153, passed 11-5-24)

The dedicated parcel tax shall be collected on the Los Angeles County property tax bill in the same manner and subject to the same penalty as the ad valorem property tax collected by the county. The county may deduct its reasonable costs incurred for the services provided to the city under this section before remittal of the balance to the city. The tax administrator shall take such actions as are necessary to obtain the services of the county.

(Ord. 1153, passed 11-5-24)

The annual rate of the dedicated parcel tax shall be:

A. Seven cents per square foot for commercial parcels.

B. Three and one-half cents per square foot for industrial parcels.

C. Three and one-half cents per square foot for vacant parcels.

(Ord. 1153, passed 11-5-24)

The tax rates listed in section 35.146 are the rates that will apply for the 2025-26 tax year. For the 2026-27 tax year, and each subsequent tax year, each tax rate shall automatically adjust upward by two percent from the rates for the previous tax year.

(Ord. 1153, passed 11-5-24)

Parcels solely in residential use shall be exempt from the dedicated parcel tax.

(Ord. 1153, passed 11-5-24)

A. Except as otherwise provided in this section, the taxable square footage of a parcel shall include the entire surface area of the parcel.

B. Where a parcel includes some combination of residential, industrial and commercial improvements, the square footage of the entire surface area of the parcel shall be apportioned proportional to the square footage of the footprints of the different types of improvements of the parcel. Square footage apportioned to "residential" use shall be excluded from the calculation of the tax. If a building is developed for more than one use (as in a mixed-use residential development with ground floor retail space), for purposes of the preceding sentence, the square footage of the footprint of the mixed use structure shall be divided amongst the uses proportionally to the building square footage of such building.

C. A parcel shall be considered a "vacant" parcel only if that parcel is developed with no structures with a footprint larger than 20 square feet.

D. Square footage shall be excluded from the surface area of a parcel if that square footage meets all of the following criteria:

(i) It is at a slope of more than four percent or, by reason of its topography, it is not usable for vehicle parking;

(ii) It is not improved with a structure; and

(iii) It is not paved in any way and is not planted with grass or other landscaping.

(Ord. 1153, passed 11-5-24)

The initial tax year in which the annual dedicated parcel tax shall be levied in the 2025-26 tax year. The final year in which the tax shall be levied is the 2049-50 tax year.

(Ord. 1153, passed 11-5-24)

Proceeds of the dedicated parcel tax shall be deposited into a separate fund. All money in that fund shall be used solely for the purpose set forth in Section 35.142 of this subchapter.

(Ord. 1153, passed 11-5-24)

For purposes of Section 35.141 of this subchapter, "repair" includes, but is not limited to, rehabilitation and improvement of an existing road in order to correct the condition of that road. The repair of a segment of road also includes the associated necessary or useful repair, rehabilitation, replacement or improvement of appurtenances to the road segment, such as such storm drains, curbs, gutters, landscaping, lighting, and sidewalks that are embedded in or adjacent to the road segment.

(Ord. 1153, passed 11-5-24)

As permitted by law, the city may pledge proceeds of the dedicated parcel tax and the balance of the special fund in connection with the issuance of debt or a financing transaction such as a certificate of participation. However, if it does borrow against such proceeds and/or against the special fund, the proceeds of such debt or financing transaction shall be used exclusively to fund (i) the uses set forth in Section 25.142 of this subchapter, (ii) incidental expenses associated with the debt or financing transaction, such as fees or discounts charged by an underwriter, bond counsel, municipal advisor, trustee, fiscal agent, rating agency, credit enhancer, credit insurer, printer, or other professional or entity that provides services to the city in connection with the issuance of such debt or financing transaction, and (iii) the funding of a reserve fund or similar fund backing the bond or other financing and pledged to its repayment. Proceeds of the dedicated parcel tax and balances of the special fund may be used to pay debt service on such a bond or other financing transaction as well as incidental costs to the administration of such bond or other financing transaction.

(Ord. 1153, passed 11-5-24)

The Director of Finance and Administrative Services shall, at least once per year, file an accountability report with the City Council stating (i) the amount of dedicated parcel tax revenues collected and expended by the city, (ii) the status of any project or work authorized to be funded by the proceeds of this tax, and (iii) the balance of the special fund established by this subchapter that carries over to the next reporting period. The Director shall annually arrange for an independent audit of the accounting for, and expenditure of, the proceeds of the dedicated parcel tax. Each accountability report filed pursuant to this section and any report of the independent audit required by this section shall be made available to the public without charge. Any accountability report may be produced as a part of the city's Annual Comprehensive Financial Report any and audit required by this section may be a part of the city's annual independent audit of the city's finances.

(Ord. 1153, passed 11-5-24)

A. The City Council shall establish a citizens' oversight committee in connection with the dedicated parcel tax.

B. The terms, composition, and specific duties of the citizens' oversight committee shall be established by resolution of the city council; however the Citizens' Oversight Committee shall be composed of five members. All members of the Citizens' Oversight Committee shall be appointed by the City Council. Two of the members must be residents of the city. The other three must be owners (or representatives of owners) of property subject to the dedicated parcel tax or owners (or representatives of owners) of businesses located on such parcels. The City Council shall consider the recommendation of the Santa Fe Springs Chamber of Commerce when appointing the three "owner" members, if such recommendations are provided to the City at or prior to the meeting of the City Council at which such appointments are made.

C. The Citizens' Oversight Committee shall meet at least twice per year, and the Chair of the Citizens' Oversight Committee may call additional meetings as the chair finds advisable.

D. The citizens' oversight committee shall review the annual report required by section 35.153 of this subchapter and may make such recommendations to the City Council as it deems necessary or useful.

E. Upon request of the Citizens' Oversight Committee, the Director of Finance and Administrative Services and the Director of Public Works shall make reasonable efforts to meet with the Citizens' Oversight Committee and to discuss prioritization of the work to be funded from proceeds of the dedicated special tax.

F. The Citizens' Oversight Committee may, by a majority vote of its membership, choose to publish a report, in which event such report, if approved by a majority of the members, shall be published on the city's internet page.

G. In the event the City Council, the Citizens' Oversight Committee, the city, any employee of the city, or any member of the City Council or the Citizens' Oversight Committee fails to take an action required by this section, any court of competent jurisdiction may order that the action be taken. However, such failure to act shall not (i) invalidate the levy of any tax or the city's authority to levy any tax, (ii) in any way affect the ongoing collection of any tax, (iii) invalidate any expenditure of funds made pursuant to this subchapter, or (iv) affect any contractual obligation assumed by the city.

(Ord. 1153, passed 11-5-24)

The tax administrator shall have charge of the enforcement and interpretation of this subchapter, and may issue such administrative rules and regulations, not inconsistent with this subchapter or any regulation adopted by resolution of the City Council, as the tax administrator finds useful or necessary.

(Ord. 1153, passed 11-5-24)

A. The tax administrator may rebuttably rely upon parcel data maintained by the Los Angeles County Assessor's Office for the classification and square footage of a parcel that is subject to the dedicated parcel tax. Where parcel data obtained from the County uses a term other than "industrial", "commercial", "residential" or "vacant" to describe a parcel, the tax administrator may assign that parcel to the one of these uses that is most appropriate for the actual use of the parcel,

B. Except with respect to parcels that are entirely exempt from the dedicated parcel tax, the tax administrator shall rebuttably presume that the entire square footage of the surface of the parcel is subject to taxation.

(Ord. 1153, passed 11-5-24)

A. The owner of a parcel of property in the city may apply to the tax administrator for a recalculation of the tax upon that parcel for a tax year.

B. Such application may be submitted before the beginning of the tax year or at any time during the tax year.

C. The tax administrator may create a form for such application, in which case an application shall only be considered if it is submitted on such form.

D. Any application must (i) state the number of square feet that the owner believes should be subject to the dedicated parcel tax, (ii) state which portion of those square feet should be taxable at which tax rate, (iii) explain how this square footage and classification is consistent with the provisions of this subchapter and applicable law, and (iv) provide evidence regarding the square footage, improvement and use of the parcel.

E. In making a determination on the application, the tax administrator shall consider the contents of the application and any other information the tax administrator finds relevant.

F. The tax administrator shall, upon written request of the property owner, provide a written determination to the property owner within 45 days of the receipt of such written request. If the administrator does not then timely provide a written determination, the application shall be deemed denied.

G. The written determination or denial of an application may be appealed in writing to the City Manager within 30 days of the issuance of the determination or of the date on which the application is deemed denied. The City Manager shall, in considering the appeal, consider all information filed with the tax administrator as part of the application, all information provided in the written appeal, and such other information the City Manager finds relevant. If the City Manager does not provide a written response to the appeal, the appeal shall be deemed denied. The decision of the City Manager is final.

H. If, after review of the application by the tax administrator or a review of an appeal by the City Manager, an adjustment of the taxable square footage or classification of such square footage is deemed to be warranted, the tax administrator shall recalculate the tax due and then shall either (i) submit such adjusted tax to the county for collection as part of the usual submission of taxes to the county, (ii) request that the appropriate county official reduce the amount of the tax that has been entered onto the tax roll, or (iii) refund the amount paid by the taxpayer to the county in excess of the adjusted tax.

(Ord. 1153, passed 11-5-24)

No section, clause, part, or provision of this subchapter shall be construed as requiring the payment of any tax that would be in violation of the Constitution or laws of the United States or of the Constitution or laws of the State of California.

(Ord. 1153, passed 11-5-24)

The City Council may, without a vote of the people, amend this subchapter. However, the City Council may not, without a vote of the people, increase the rate of the dedicated parcel tax or extend the duration of the dedicated parcel tax beyond the 2049-2050 tax year.

(Ord. 1153, passed 11-5-24)