HomeMy WebLinkAboutOrdinances_2242_CCv0001.pdf ORDINANCE NO. 2242
AN ORDINANCE OF THE CITY OF REDL ADDING CHAPTER 3.64
TO THE REDLANDS MUNICIPAL CODE AND LEVYING A UTILITY USERS TAX
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF REDLANDS AS
FOLLOWS:
Sgg%2p 1, Chapter 3.64 shall be added to the Redlands Municipal Code to read as
follows:
Chapter 3.64
UTILITY USERS TAX
Sections:
3.64.010 Definitions.
3.64.020 Telephone users tax.
3.64.030 CATV users tax.
3.64.040 Electricity users tax.
3.64.050 Gas users tax.
3.64.060 Maximum annual tax.
3.64.070 Constitutional exemption.
3.64.080 Delinquent taxes.
3.64.090 Duty to collect - Procedures.
3.64.100 Powers and duties of the Director with respect to the Utilities Users Tax.
3.64.110 Assessment - Administrative remedy.
3.64,120 Records.
3.64.130 Refunds.
3.64.140 Exemption - Deftned Entities
3.64.150 Exemption for household service users - Very low income families.
3.64.160 Use of tax revenues.
3.64.170 Effective date.
3.64.180 Severability.
3.64.190 Violation - Penalty.
3.64.200 Accountability
3.64.010 DEFINITIONS
The following words and phrases whenever used in this Chapter shaft have the
following meanings:
A. "City" shall mean the City of Redlands.
B. "Cogenerator" shall mean any person employing cogeneration technology (as
defined in Section 218.5 of the California Public Utilities code) for producing
power from other than a conventional power source for the generation of
electricity for self use or We to others.
C. "Director" means the Director of Finance, or his or her designee.
D. "Equivalent charges" shall mean taxing any energy using a value for that energy
equivalent to the value in the published tariffs of the utility(ies) franchised to
serve the governmental unit (or portion thereof) in which the end use customer is
located.
E. *'Gas" shall mean natural or manufactured gas or any alternate hydrocarbon fuel
which may be substituted therein,
F. "Month" means a calendar month.
G. "Non-utility supplier" shall mean a service supplier, other than an electrical
corporation franchise to serve the City, which generates electrical energy in
capacities of at least 50 kilowatts for its own use or for sale to others.
H. "Person" shall mean any domestic or foreign corporation, firm, association,
syndicate, joint stock company, partnership of any kind, joint venture, club,
Massachusetts business or common law trust, society or individual.
I. "Service supplier" means a person required to collect or self-impose and remit a
tax as imposed by this Chapter.
J. "Service user" means a person required to pay a tax imposed by this Chapter.
K. "Telephone corporation," "electrical corporation," "gas corporation," "water
corporation" and "cable television corporation" shall have the same meanings as
defined in Sections 234, 218, 222, 241 and 215-5, respectively of the California
Public Utilities Code except,"electrical corporation," "gas corporation,"and "water
corporation" shall also be construed to include any municipality or public agency
engaged in the selling or supplying of electrical power or gas or water to a service
user.
L "Year" shall mean a calendar year.
3.64.020 TELEPHONE USERS TAX
A. There is hereby imposed a tax on the amounts paid for any intrastate telephone
service by every person in the City using such services. The tax imposed by this
section shall be at the rate of four percent (4%) of the 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' shall not include charges for services
paid for by inserting coins in coin-operated telephones except where such coin-
operated telephone service is furnished fora guaranteed amount,in which caw 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
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shall the term "charges" include charges for any type of service or equipment
furnished by a service supplied subject to Public Utility regulation during any
period in which the same or similar services or equipment are also available for
sale or lease from persons other than a service supplier subject to Public Utility
regulation; nor shall, the words "telephone communication services" include land
mobile services or maritime mobile services as defined in Section 2.1 of Title 47
of the Code of Federal Regulations. The term "telephone communication
services" refers to that service which provides access to a telephone system and
the privilege of telephone quality communication with substantially all persons
having telephone stations which are part of such system. The, Telephone Users
Tax is intended to, and does, apply to all charges billed to a telephone account
having a situs in the City, irrespective of whether a particular communication
service originates and/or terminates within the City.
C. The tax imposed by this section shall be collected from the service user by the
person providing the intrastate telephone communication services, or the person
receiving payment for such services. The amount of tax collected in one month
shall be remitted by the service supplier to the Director on or before the last day
of the following month; or at the option of the person required to collect and remit
the tax, an estimated amount of tax collected, measured by the tax bill in the
previous month, shall be remitted to the Director on or before the last day of the
following month.
D. 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 under Division 2, Part
20 of the California Revenue and Taxation Code, or the tax imposed under
Section 4251 of the Internal Revenue Code.
3.64.030 CATV USERS TAX.
A. There is hereby imposed a tax upon every person in the City using cable
television services. The tax imposed by this section shall be at the rate of four
(4%) percent of the charges made for such services; and shall be paid by the
person paying for such services.
B. The tax imposed by this section shall be collected from the service user by the
person furnishing the cable television services. The amount of tax collected in
one month shall be remitted by the service provider to the Director on>or before
the twentieth day of the following month.
3.64.040 ELECTRICITY USERS TAX
A. A tax is imposed upon every person in the City using electrical energy in the City.
The tax imposed by this section shall be at the rate of four (4%) percent of the
charges made for such energy, and shall be paid by the person paying for such
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energy. The tax applicable to electrical energy provided by a non-utility supplier
shall be determined by applying the tax rate to the equivalent charges the service
user would have incurred if the energy used had been provided by the electrical
corporation franchise by the City. Rate schedules for this purpose shall be
available from the City. Non-utility suppliers shall install and maintain an
appropriate utility-type metering system which will enable compliance with this
section. "Charges" as used in this section shall include charges made for (1)
metered energy and (2) services, including customer charges, service charges,
demand charges, standby charges and annual and monthly charges, fuel and cost
adjustments.
B. As used in this section, the•: phrase "using electrical energy" shall not include the
storage of electrical energy by a person in a battery owned or possessed by him
for use in an automobile or other machinery or devise apart from the premises
upon which the energy was received; provided, however, that the phrase shall
include the receiving of such energy for the purpose of using it in the charging of
batteries; nor shall the terms include electricity used and consumed by an electric
utility supplier in the conduct of its business as an electric public utility; nor shall
the term include the mere receiving of such energy by an electrical public utility
or governmental agency at a point within the City for resale-, or the use of such
energy in a production or distribution of water by a public utility or a
governmental agency.
C. The tax imposed by this section shall be collected from the service user by any
energy service supplier of a non-utility supplier. The tax shall be self-imposed by
non-utility suppliers as to their own use. The amount of tax collected or self-
imposed in one (1) month shall be remitted by U.S. mail, to the Director,
postmarked on or before the last day of the following month; or at the option of
the person required to collect and remit the tax, an estimated amount of tax,
measured by the tax billed in the previous month, shall be remitted by U.S. mail,
to the Director, postmarked on or before the last day of each month. Remittance
of tax may be predicted on a formula based upon the payment pattern of the
service suppliers customers.
D. Notwithstanding the provisions of Section 3.64.09, if the amount paid by a service
user is less than the full amount of the energy charge in tax which has accrued for
the billing period, such amount and any subsequent payments by a service user
shall be applied to the energy charge first until such charge has been fully
satisfied. Any remaining balance shall be applied to taxes due.
3.64.050 GAS USERS TAX.
A. There is hereby imposed a tax upon every person in the City using gas in the City.
The tax imposed by this section shall be at the rate of four (4%) percent of the
charges made for such gas, and shall be paid by the person paying for such gas.
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B. There shall be excluded from the to imposed by this sectioncharges for gas
energy used to propel a motor vehicle, as may be defined from time to time in the
Vehicle Code of the State of California, and charges for gas energy used by a
cogenerator.
C. The tax imposed by this section shall be collected from the service user by the
service supplier. A person selling only transportation services to a user for
delivery of gas through mains or pipes shall collect the to from the service user
based on the transportation charges. The person selling or transporting the gas
shall, on or before the 20th of each calendar month,commencing on the 20th day
of the calendar month after the effective date of this Chapter, make a return to the
Director stating the amount of taxes billed during the preceding calendar month,
At the time such returns are filed, the person selling or transporting the gas shall
remit the payments to the Director in accordance with schedules established or
approved by the Director. The amount collected by the service supplier in one
month shall be remitted to the Director on or before the twentieth day of the
following month.
3.64.060 MAXIMUM ANNUAL TAX
A. The maximum tax payable pursuant to this Chapter by any service user for any
one year shall be Thirty Thousand dollars ($30,000). Prior to each year during
which a tax will be imposed under this Chapter, the Director shall determine from
a review of all service users' utility records, and with the assistance of the service
suppliers, whether a service user's utility use will likely result in tax payments in
exceess, of the maximum annual tax. Each service user identified as likely
exceeding the maximum annual tax shall be notified of the same by the Director
by first class mail, postage prepaid. A copy of such notice shall also be mailed
to all service suppliers.
B. Service users identified as likely exceeding the maximum annual tax payment for
any year shall pay Thirty Thousand dollars ($30,000) for such year directly to
City. Such payment shall be made in equal quarterly installments and shall be due
and payable upon receipt of an invoice from the Director.
C. In the event a service user identified as likely exceeding the maximum annual tax
payment for any year fails to actually use sufficient utility services to equal such
payment, City shall reimburse the service user for the amount of overpayment.
164.070 CONSTITUTIONAL EXEMPTION
Nothing in this Chapter shall be constructed as imposing 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. At the request of a service supplier, the Director shall
prepare a fist of the persons exempt from the provisions of this Chapter by virtue of this section
and furnish a copy to the service supplier.
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3.64.084 DELINQUENT TAXES.
A: Takes collected from a service user which are not remitted to the Director on or
before the due dues provided in this Chapter are delinquent. Should the due date
occur on a weekend or legal holiday, the return may be postmarked on the first
regular working day following a Saturday, Sunday or legal holiday.
B. Penalties for delinquency in remittance of any tax collected or any deficiency
determination shall attach and be paid by the person required to collect and remit
at the rate of twenty-five percent per annum of the total tax collected or imposed
in this Chapter and not remitted to the City.
C. Every penalty imposed under the provisions of this section shall become a part. of
the tax required to be remitted.
3.64.090 DUTY TO COLLECT - PROCEDURES.
The duty to collect and merit the taxes unposed by this Chapter shall be performed
as follows:
A. Notwithstanding the provisions of Section 3.644.0601, the tax shall be collected
insofar as practicable at the same time as and alone with the charges made in
accordance with the regular billing: practices of the service supplier. Where the
amount paid by a service user to a service supplier is less;than the full amount
of the energy charge and tax which has accrued for the billing period, such
Hunt and any subsequent payments by a service user shall be applied to the
utility charge fust until such charge has been fully satisfied. Any remaining
balance shall be applied to taxes due. In those cases where a service user has
notified the service supplier of his refusal to pay the tax unposed on said energy
charges, the service supplier shall provide the City with amounts refused and/or
unpaid along with the names and addresses of the service users neglecting to pay
the tax imposed under the provisions of this Chapter and the provisions of Section
3.64.120 shall be applicable.
B. The duty to collect the tax from a service user shall commence with the beginning
of the first full regular billing period applicable to the service user where all
charges normally included in such billing are subject to the provisions of this
Chapter. 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..
3.64.100 POWERS AND DUTIES CSF'THE DIRECTOR OR H RESPECT TO ME;
UTILITY USERS T
A. The Director for shall have the power and duty and is directed to enforce each and
all of the provisions of this Charpter.
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B. The Director may make administrative agreements to vary the strict requirements
of this Chapter so that collection of any tax imposed herein may be made in
conformance with the billing procedures of a particular service supplier so long
as said agreements result in collection of the tax in conformance with the general
purpose and scope of this Chapter. A copy of each such agreement shall be on
file in the Director's office.
3.64.1 10 ASSESSMENT - ADMINISTRATIVE REMEDY.
A. The Director may make an assessment for taxes not remitted by a person required
to remit Whenever the Director 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 that a service user has refused
to pay the amount of tax, or whenever the Director deems it in the best interest
of the City, he may relieve such person of the obligation to collect taxes due
under this Chapter from certain named service users for specified billing periods.
B. The service supplier shall provide the City with amounts refused and/or unpaid
along with the names and addresses of the service users neglecting to pay the tax
imposed under the provisions of this Chapter. Whenever the service user has
failed to pay the amount of tax for a period of two or more billing periods, the
service supplier shall be relieved of the obligation to collect due.
C. The Director shall notify the service user that he assumed responsibility to collect
the taxes due for the stated periods and demand payment for such taxes. The
notice shall be served on a service user by handing it to him personally or by
deposit of the notice in the United States mail, postage prepaid thereon, addressed
to the service user at the address to which billing was made by the person
required to collect the tax; or, should the service user have changed his address,
to his last known address. If a service user fails to remit the tax to the Director
within fifteen (15) 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 (25%) percent of the amount of the tax set forth in the notice shall be
imposed, but not less Om five dollars. The penalty shall become part of the tax
herein to be required to be paid.
3.64.120 RECORDS.
It shall be the duty of every person required to collect and remit to the City, to
keep and preserve, for a period of three years, all records as may be necessary to determine the
amount of such tax he has had a duty to collect and remit to the Director. The Director shall
have the right to inspect such records at all reasonable times.
A non-utility supplier providing services to a gas and/or electric user shall make
available to the Director records of the names and addresses of service users to whom services
are provided. All information provided to the Director pursuant to this section shall be used
solely for the purposes of this Chapter.
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3.64.130 REFUNDS.
A. Whenever the amount of any tax has been overpaid or paid more than once or has
been erroneously or illegally collected or received by the Director under this
Chapter, it may be refunded as provided in this section.
B. Notwithstanding the provisions of subsection A of this section, a service supplier
may claim a refund, or take as credit against taxes remitted the amount overpaid,
paid more than once or erroneously or illegally collected or received when it is
established that the service user from whom the tax has been collected did not
owe the tax; provided, however, that neither a refund or 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. A service supplier that has collected any amount of
tax imposed in excess of the amount of tw. by this Chapter and actually due from
the service user, may refund such amount to the service user and claim credit for
such overpayment against the amount of tax which is due upon any other monthly
returns, provided such credit is claimed in a return dated no later than three (3)
years from the date of overpayment.
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 serve its users of charges for past utility
service, the taxes paid pursuant to this Chapter on the amount of such refunded
charges shall also be refunded to service users, and the service suppliers shall be
entitled to claim a credit for refunded taxes against the amount of tax which is due
upon the next monthly returns. In the event this Chapter is repealed, the amounts
of any refundable taxes will be borne by the City.
E. A service supplier may refund the taxes collected to the service user in accordance
with this; section or by service supplier's customary practice.
3.64.140 EXEMPTION - DEFINED ENTITIES
The entities defined in Section 3.64.010K of this Chapter shall be exempt from
the taxes imposed by this Chapter.
3.64.150 EXEMPTION FOR HOUSEHOLD SERVICE USERS - VERY LOW
INCOME FAMILIES.
A. The tax imposed by this Chapter shall not apply to any individual who uses
telephone, electric, natural gas, water or cable television services in or upon any
premises occupied by such individual if the following conditions are satisfied:
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1. If the individual lives alone, the individual's annual gross income is less
than nine thousand dollars, as shown on the individual's federal or state
personal income tax for the preceding reporting period; or
2. If the individual is married or lives as part of a family unit, the annual
gross income of the individual's household is less than twelve thousand
dollars for all household occupants as shown on the federal or state
personal income tax for the preceding reporting period. Income of the
household means all income of the individual's household from all
members living in such household who are related to the individual as a
spouse or as defined in Sections 17056 and 17057 of the Revenue and
Taxation Code of California; and
3. The individual is the person in whose name the bills for utilities services
were rendered; and
4. The individual makes an application and files a verified claim in writing
with the Director for such exemption upon a form provided by the
Director; and
5. The claim is approved by the Director as being in conformance with this
section.
B. As used in subsection A, "Gross income" means the sum of adjusted gross income
as used for purposes of the California personal income tax law, together with the
net income from all sources of all kinds, including but not limited to alimony,
support money, cash public assistance and relief, pensions, annuities, social
security, interest on securities (including tax free interest on governmental
securities), realized capital gains, worker's compensation (not including medical
benefits), unemployment insurance income, insurance benefits of an kinds (other
than medical), and gifts, except that income shall not include Medicare benefits,
MediCal benefits, gifts between members of the household, the receipt of surplus
food or other relief in kind supplied by a governmental agency.
C. Any person claiming exemption pursuant to this section may file a claim for such
exemption at any time in order to qualify for an exemption for the subsequent
twelve-month period, or until a current exemption is scheduled to expire. An
application for exemption or renewal shall be made upon forms supplied by the
Director and shall declare facts under penalty of pedury which qualify the
applicant for the exemption.
D. The Director shall review all applications for exemption of renewal, certify as
exempt those applicants who qualify, and notify all service suppliers affected that
such exemptions have been approved, stating the name of the exempt applicant,
the account number shown on the utility bill, the address to which exempt service
is being supplied, and any other information necessary for the service provider to
remove the exempt service user from this tax billing procedure.
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Upon receipt of notice from the Director, the service provider shall not be required
to collect any further tax imposed by this Chapter from such exempt service user
until further notice form the Director.
E. Each exemption shall expire twelve months after the date it was issued. The
Director shall notify each service supplier to resume collection of utility taxes on
the accounts of those service users who have not applied for renewal of their
exempt status or whose applications for renewal have been denied. Upon receipt
of the written notification, these service providers shall resume such collection on
those accounts affected commencing with the first billing period beginning after
the exemption expires,
Notwithstanding any of the provisions of this section, any service supplier who
determines during any calendar year by any means readily available to it that a
nonexempt service user is receiving services through a meter or connection
exempt by virtue of an exemption issued to a previous user of the same meter or
connection, the service supplier shall forthwith resume the collection of taxes
imposed by this Chapter upon the nonexempt service user.
F. Any individual who has been exempted from the tax shall notify the Director
within ten days of any change of address or any other change in fact or
circumstance which might disqualify that individual from receiving the exemption.
If it is determined by the Director that the individual is no longer qualified, the
Director shall give notice to the service supplier who shall resume collection of
the tax imposed by this Chapter commencing with the next billing period. If the
user is entitled to exemption at a new address, the Director shall notify affected
service suppliers of that fact.
G. Notwithstanding Section 3.64,200 of this Chapter, it shall be a misdemeanor for
any person to knowingly receive the benefits of the exemptions provided by this
section when the basis for the exemption either does not exist or ceases to exist.
The Director may from time to time, demand evidence of continued eligibility of
a service user for exemption under the provisions of this section. Such evidence
may include copies of business records, letters or statements from the Social
Security Administration, copies of income tax returns, and other evidence
concerning the service user or members of his household which may tend to prove
or disprove eligibility. Failure to provide sufficient evidence to establish
eligibility when requested by the Director shall be grounds for denial or
discontinuance of the service users'exemption, but evidence voluntarily provided
to the Director may only be used as grounds for termination of the exemption and
not as evidence of violation of the provisions of this section.
If the Director determines that an application for exemption is faulty or untruthful,
the application shall be denied in writing and the applicant may file an amended
application or appeal the decision of the Director to the City Manger, whose
decision shall be final.
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3.64-160 USE OF TAX REVENUES.
A. The tax revenues collected under this Chapter shall be used for the purpose of
defraying the costs of City services by supplementing the City's general fund.
3.64 170 EFFECTIVE DATE.
This Chapter shall become effective the 1st day of June, 1994 and shall end and
be of no further force or effect four (4) yews thereafter. The tax imposed under this Chapter
shall apply to charges appearing on bills rendered on or after June 1, 1994 or as soon thereafter
as the respective utilities are physically and mechanically able to get "on Zine" for the imposition
of charges (within 60 days but not more than 90 days after the effective date.)
3.64.180 EVE IL
If any section, subsections, subdivisions, paragraph, sentence, clause or phrase of
this Chapter or any part thereof is for any reason held to be unconstitutional, such decision shall
not affect the validity of the remaining portion of this Chapter or any part hereof. The City
Council hereby declares that it would have enacted each section, subsection, subdivision,
paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one section,
subsection, subdivision, paragraph, sentence, clause or phrase be declared unconstitutional,
3.64.00 VIOLATION - PENALTY.
Any person violating any provision of this Chapter is guilty of an infraction,which
upon conviction thereof is punishable in accordance with the provisions of Section 1.20.020 of
this Code.
3.64.2 00 ACCO IL
Each quarter of every year, during the effective dates of this ordinance, the City
shall prepare and make available for public review an accounting of the revenues received by the
City as a result of imposition of the taxes described herein and the amount and purposes of the
expenditures made by City of the proceeds of such taxes.
SaLn 2. This ordinance shall be in force and take effect as provided by law®
&019�n The City Clerk shall certify to the adoption of this ordinance and cause it,
or a summary of it, to be published once in the Redlands Daily Facts, a newspaper of general
circulation printed and published in this City.
Mayor of the of Redlands
ATIMST:
City Cle
1. Lorrie Poyzer, City Clerk of the City of Redlands, hereby certify that the foregoing ordinance
was duly adopted by the City Council at a regular meeting thereof, held on the 19th day of April,
1994, by the following vote:
AYES: Councilmembers, Gilbreath, Gil; Mayor Larson
NOES: Councilmembers Cunningham, Foster
ABSENT None
City Clerk'
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