Chapter 3.16 - UTILITIES TAX

C. "Person" means any domestic or foreign corporation, firm, association, syndicate, joint stock company, partnership of any kind, joint venture, club, Massachusetts business or common-law trust, society, individual or municipal corporation.

D. "Service supplier" means a person required to collect and remit a tax imposed by this chapter.

F. "Service user" means a person required to pay a tax imposed by this chapter.

G. "Tax administrator" means the city manager.

H. "Telephone corporation," "electrical corporation," "gas corporation," "water corporation" and "cable television corporation," have the same meanings as defined in Sections 234, 218, 222, 241 and 215.5 respectively, of the Public Utilities Code of the state, as said sections existed on January 1, 1977, except that "water corporation" does not mean or include the city.

(Ord. 309 § 1(part), 1977: prior code § 6400).

3.16.020 - Telephone.

A. There is imposed a tax upon every person in the city using intrastate telephone communication services in the city. The tax imposed by this section shall be at the rate of seven and one-half percent of all charges made for such services and shall be paid by the person paying for such services.

B. As used in this section, the term "charges" does not include charges for services paid for by inserting coins in coin-operated telephones except that where such coin-operated telephone service is furnished for a guaranteed amount, the amounts paid under such guarantee plus any fixed monthly or other periodic charge shall be included in the base for computing the amount of tax due; nor shall the term "telephone communication services" include land mobile services or maritime mobile services as defined in Section 2.1 of Title 47 of the Code of Federal Regulations, as such section existed on January 1, 1977.

C. Notwithstanding the provisions of subsection A of this section, the tax imposed under this section shall not be imposed upon any person for using intrastate telephone communication services to the extent that the amounts paid for such services are exempt from or not subject to the tax imposed by Section 4251 of Title 26 of the United States Code, as such section existed on January 1, 1977, without regard to subsection (b) thereof.

(Ord. 451 § 2(part), 1991; Ord. 309 § 1(part), 1977: prior code § 6401).

3.16.030 - Electricity.

A. There is imposed a tax upon every person in the city using electrical energy in the city. The tax imposed by this section shall be at the rate of seven and one-half percent of the charges made for such energy and shall be paid by the person paying for such energy.

B. "Charges," as used in this section, includes charges made for:

1. Metered energy; and

2. Minimum charges for service, including customer charges, service charges, demand charges, standby charges and annual and monthly charges.

C. As used in this section the term "using electrical energy" does not mean the storage of such energy by a person in a battery owned or possessed by him for use in an automobile or other machinery or device apart from the premises upon which the energy was received; provided, how-ever, that the term includes the receiving of such energy for the purpose of using it in the charging of batteries. The term does not include electricity used in water pumping by water corporations, nor does the term include the mere receiving of such energy by an electrical corporation at a point within the city for resale.

(Ord. 451 § 2(part), 1991; Ord. 309 § 1(part), 1977: prior code § 6401.1).

3.16.040 - Gas.

A. There is imposed a tax upon every person in the city using gas in the city which is delivered through mains or pipes. The tax imposed by this section shall be at the rate of seven and one-half percent of the charges made for such gas and shall be paid by the person using such gas.

B.   There shall be excluded from the base on which the tax imposed in this section is computed:
               1.   Charges made for gas which is to be resold and delivered through mains or pipes;
2.   Charges made for gas to be used in the generation of electrical energy by an electrical corporation; and
3.   Charges made by a gas public utility for gas used and consumed in the conduct of the business of gas public utilities.

(Ord. 451 § 2(part), 1991; Ord. 309 § 1 (part), 1977: prior code § 6401.2).

3.16.050 - Water.

There is imposed a tax upon every person in the city using water in the city which is deliv- ered through mains or pipes of a water corporation. The tax imposed by this section shall be at the rate of seven and one-half percent of the charges made for such water and shall be paid by the person paying for such water.

(Ord. 451 § 2(part), 1991; Ord. 309 § 1(part), 1977: prior code § 6401.3).

3.16.051 - Cable television tax.

A. There is imposed a tax upon every person in the city using intrastate cable television services in the city. The tax imposed by this section shall be at the rate of seven and one-half percent of all charges made for such services and shall be paid by the person paying for such services.

(Ord. 451 § 3, 1991).

3.16.060 - Exemptions—Limitation on chapter applicability.

Nothing in this chapter shall be construed as im- posing a tax upon any person if imposition of such tax upon that person would be in violation of the Constitution of the United States or the constitution of the state.

(Ord. 309 § 1 (part), 1977: prior code § 6402).

3.16.070 - Exemptions—Individual—Requirement.

The tax imposed by this chapter shall not apply to any billing or to any charge of less than two hundred dollars per month per meter or other connection. Said two-hundred-dollar figure shall be adjusted annually pursuant to the Los Angeles Area Consumer Price Index.

(Ord. 318 § 1(part), l977; Ord. 309 § 1(part), 1977: prior code § 6402.1).

3.16.080 - Exemptions—Individual—Application—Procedure.

A. Any person may apply for and receive an exemption from such utility taxes from the office of the city manager upon presentation of proof, as to any utility or utilities, that for a twelve-month period there has been no billing or charge per meter or connection in excess of the exemption set forth in Section 3.16.070.

B. Any application for such exemption shall be made on forms supplied by the city manager and statements made therein will be made under oath and will be subject to the penalties of perjury.

C. The city manager shall review such application, and if he determines such exemption is allowable, shall transmit notice of such exemption to the applicable utility; upon receipt thereof, the utility company shall refrain from billing such exempt user. If the city manager determines that such application is not justified he shall notify the applicant, who shall within ten days after mailing have the right to appeal such decision to the city council.

(Ord. 318 § 1(part), 1977; Ord. 309 § 1(part), 1977: prior code § 6402.1.1).

3.16.090 - Exemptions—Individual—Application—Time for submission.

A. An application for an exemption for the first full calendar year of 1978 shall be submitted to the city manager during the month of October, 1977, but not later than October 31, 1977. Exemptions so allowed shall commence from the first billing period following December 31, 1977, and shall continue until the close of the billing period following December 31, 1978.

B. An application for any subsequent calendar year shall be submitted during the month of October preceding said calendar year, but not later than October 31st, and shall be effective for the subsequent calendar year in the same manner as set forth in subsection A of this section.

C. Applications for exemptions may be filed for the remaining portion of a calendar year, but such application shall be filed not later than the sixtieth day prior to the commencement date of the billing period for the affected utility companies for which the exemption is to commence and shall be valid through the remainder of that calendar year, as set forth in subsection B of this section.

(Ord. 309 § 1(part), 1977: prior code § 6402.1.2).

3.16.100 - Exemptions—Individual—Waiver upon failure to apply.

In the event no exemption is applied for within the times set forth in Section 3.16.090, all right to claim such exemption or refund for the period prior to the time an exemption is allowed and is to commence shall be considered to be void and extinguished permanently.

(Ord. 309 § 1(part), 1977: prior code § 6402.1.3).

3.16.110 - Exemptions—Notice to utility companies.

A. At least fifty days prior to the beginning of each calendar year, the city manager shall furnish the affected utility companies with a list of persons who are qualified for exemption from the imposition of utility users' tax under Sections 3.16.060 through 3.16.100. The list will indicate:

1. Service users who initially qualify for exemption;

2. Service users continuing to qualify for exemption from the previous year;

3. Persons no longer qualified for exemption who had been exempt in the previous calendar year.

B. This list will be the official determination by which the service supplier will provide exemption from the utility users' tax.

C. The list provided to the service supplier shall include the name, service address, billing address and utility service identification number of the person qualifying for exemption.

D. Additional exemptions during the calendar year shall be forwarded to the affected utility companies forty-five days prior to the billing period for which the exemption is to be effective.

(Ord. 309 § 1(part), 1977: prior code § 6402.1.4).

3.16.120 - Collection—By whom—When.

A. Every person receiving payment of charges from a service user shall collect the amount of tax imposed by this chapter from the service user.

B. The tax shall be collected insofar as practicable at the same time as and along with the collection of charges made in accordance with the regular billing practice of the service supplier. If the amount paid by a service user is less than the full amount of the charge and tax which has accrued for the billing period, a proportionate share of both the charge and the tax shall be deemed to have been paid, unless the full amount of the charge is paid or the service user gives notice that he refuses to pay the tax.

C. Where the remittance of taxes collected is based upon an estimated percentage collected of the total amount billed, the service supplier may submit a payment plan to the tax administrator for his approval.

D. The duty to collect tax from a service user shall commence with the beginning of the first regular billing period applicable to that person which starts on or after July 1, 1977. Where a person receives more than one billing, one or more being for different periods than another, the duty to collect shall arise separately for each billing period.

(Ord. 309 § 1(part), 1977: prior code § 6403).

3.16.130 - Collection—Reporting and remitting.

Each service supplier shall, on or before the twentieth of each month, make a return to the tax administrator on forms provided by him stating the amount of taxes billed by the service supplier during the preceding month. At the time the return is filed, the full amount of the tax collected shall be remitted to the tax administrator. The tax administrator is authorized to require such further information as he deems necessary to properly determine if the tax here imposed is being levied and collected in accordance with this chapter. Returns and remittances are due immediately upon cessation of business for any reason.

(Ord. 309 § 1(part), 1977: prior code § 6404).

3.16.140 - Collection—Penalty for delinquency in remittance.

A. Taxes collected from a service user which are not remitted to the tax administrator on or before the due dates provided in this chapter are delinquent.

B. Penalties for delinquency in remittance of any tax collected shall attach and be paid by the person required to collect and remit at the rate of fifteen percent of the total tax collected.

C. The tax administrator shall have power to impose additional penalties upon persons required to collect and remit taxes under the provisions of this chapter for fraud or negligence in reporting or remitting at the rate of fifteen percent of the amount of the tax collected or as computed by the tax administrator.

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

(Ord. 309 § 1(part), 1977: prior code § 6405).

3.16.150 - Collection—Records—Right to inspection.

It shall be the duty of every person required to collect and remit to the city any tax imposed by this chapter to keep and preserve for a period of three years all records as may be necessary to determine the amount of such tax as he 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 all reasonable times.

(Ord. 309 § 1(part), 1977: prior code § 6408).

3.16.160 - Refunds—Claimed when—Written records required.

A. Whenever the amount of any tax has been overpaid or paid more than once or has been erroneously or illegally collected or received by the tax administrator under this chapter, it may be refunded as provided in this section.

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

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

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

(Ord. 390 § 1, 1985; Ord. 309 § 1(part), 1977: prior code § 6409).

3.16.170 - Deemed a debt to city—Action to collect.

Any tax required to be paid by a service user under the provisions of this chapter shall be deemed a debt owed by the service user to the city. Any such tax collected from a service user which has not been remitted to the tax administrator shall be deemed a debt owed to the city by the person required to collect and remit. Any person owing money to the city under the provisions of this chapter shall be liable to an action brought in the name of the city for the recovery of such amount.

(Ord. 309 § 1(part), 1977: prior code § 6406).

3.16.180 - Penalty for failure of user to pay.

Whenever a service user has failed to pay the amount of the tax for a period of two or more billing periods, or whenever the tax administrator deems it in the best interest of the city, he may relieve the service supplier of the obligation to collect taxes due under this chapter from certain named service users for specified billing periods. The tax administrator shall notify the service user that he has assumed responsibility to collect the taxes due for the stated periods and demand payment of such taxes. The notice shall be served on the service user by handing it to him personally or by deposit of the notice in the United States mail, postage prepaid thereon, addressed to the service user at the address to which billing was made by the service supplier or, should the service user have changed his address, to his last known address. If a service user fails to remit the tax to the tax administrator within fifteen days from the date of the service of the notice upon him, which shall be the date of mailing if service is not accomplished in person, a penalty of twenty—five percent of the amount of the tax set forth in the notice shall be imposed, but not less than five dollars. The penalty shall become part of the tax required in this chapter to be paid.

(Ord. 309 § 1(part), 1977: prior code § 6407).