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ORD 204 ORDINANCE NO. 204 AN ORDINANCE OF THE CITY OF RANCHO PALOS VERDES AMENDING TITLE 3 OF THE RANCHO PALOS VERDES MUNICIPAL CODE BY ADDING THERETO CHAPTER 3.30 ESTABLISHING A UTILITY USERS TAX THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1: Title 3 of the Code of the City of Rancho Palos Verdes, California, is hereby amended by adding thereto Chapter 3.30 which shall read as follows: CHAPTER 3.30 UTILITY USERS TAX 3.30.010 TITLE. This chapter shall be known as the Utility Users Tax Ordinance. 3.30.020 DEFINITIONS. Except where the context otherwise requires, the definitions hereafter set forth shall govern the construction of this chapter; A. "CITY" shall mean the City of Rancho Palos Verdes. B. "MONTH" shall mean a calendar month. C. "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, indi- vidual or municipal corporation. For the purposes of this chapter, "per- son" shall not include any public entity which purchases and uses utility services in the performance of governmental functions. D. "SERVICE SUPPLIER" shall mean a person required to collect and remit a tax imposed by this chapter. E. "SERVICE USER" shall mean a person required to pay a tax im- posed by this chapter. F. "TAX ADMINISTRATOR" shall mean the Finance Director of the City. G. "TELEPHONE COMMUNICATION SERVICES" shall mean that service which provides access to a telephone system and the privilege of telephonic quality communication with substantially all persons having telephone sta- tions which are part of such telephone system. 704CP/ORD8.1 -1- Ordinance No. 204 H. "TELEPHONE CORPORATION", "ELECTRICAL CORPORATION", "GAS COR- PORATION", and "WATER CORPORATION" have the same meaning, except as here- after provided, as defined in Sections 234, 218, 222, and 241 , respective- ly, of the Public Utilities Code of the State of California, as said Sec- tions existed on December 1 , 1985. "Water Corporation" shall be construed to include any organization or municipality, including, but not limited to a mutual water company, engaged in the selling or supplying of water to a service user. 3.30.030. TELEPHONE USERS TAX. A. There is hereby imposed a tax on the amounts paid for any in- trastate telephone communication services by every person in the City, other than a telephone communication service supplier using such services. The tax imposed by this section shall be at the rate of 5% of all charges made for such services and shall be paid by the person paying for such ser- vices. During such period as this chapter is operative and effective, no amendment of this rate shall be adopted which increases said rate beyond a maximum of nine percent (9%) . B. The Telephone Users Tax is intended to, and does , apply to all charges billed to a telephone account having a situs in the City, irrespec- tive of whether a particular communication service originates and/or termi- nates within the City. The situs shall be the service address, if it ex- ists, otherwise the billing address. However, in recognition that carriers or resellers may have to adopt new procedures to determine the service address in every case, carriers and resellers may, if the service address is not known, use the billing address as the situs until the end of calen- dar year 1986. Notwithstanding the above, by January 1 , 1987, the carrier or reseller shall have the responsibility to determine service address, if it exists. C. As used in this section, the term "charges"shall not include charges for telephone communication services paid for by inserting coins in coin-operated telephones; provided, however, that where such coin-operated telephone service is furnished to a person 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; the term "telephone communication services" shall not 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 December 1 , 1985. D. Notwithstanding the provisions of subsection A, the tax impos- ed under this section shall not be imposed upon any person for using intra- state 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 December 1 , 1985. 3.30.040. ELECTRICITY USERS TAX. A. There is hereby imposed a tax upon every person using, in the City, electrical energy. The tax imposed by this section shall be at the rate of 5% of the charges made for such energy and shall be paid by the 704CP/ORD8.2 -2- Ordinance No. 204 person paying for such energy. During such period as this chapter is oper- ative and effective, no amendment of this rate shall be adopted which in- creases said rate beyond a maximum of nine percent (9%). "Charges", as used in this section, shall include charges made for (1) metered energy, and (2) minimum charges for service, including customer charges, demand charges, standby charges , annual and monthly charges , offset charges and other revenue adjustments as from time to time may be set forth in the ser- vice supplier's tariffs as approved by the California Public Utilities Com- mission. B. As used in this section, the term "using electrical energy" shall not be construed to include the storage of such energy by a person in a battery owned or possessed by him for use in an automobile or other ma- chinery or device; provided, however, that the term shall include the re- ceiving of such energy for the purpose of using it in the charging of bat- teries. The term shall not include electricity used in water pumping by water corporations; nor shall the term include the mere receiving of such energy by an electrical corporation at a point within the City for resale, nor electricity used by the service supplier in the conduct of its business as an electric utility. 3.30.050 GAS USERS TAX. A. There is hereby imposed a tax upon every person using, in the City, gas which is delivered through mains or pipes. The tax imposed by this section shall be at the rate of 5% of the charges made for such gas and shall be paid by the person paying for such gas. During such period as this chapter is operative and effective, no amendment of this rate shall be adopted which increases said rate beyond a maximum of nine percent (9%). As used in this section, the term "charges" shall include charges for gas which is delivered through mains and pipes, and minimum charges for such delivery services , including customer charges, service charges , and annual monthly charges. B. There shall be excluded from the base on which the tax imposed by 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 used in the generation of electrical energy by an electrical corporation; (3) charges made for gas used in water pumping by water corporations; (4) charges made by a gas corporation for gas used and consumed in the conduct of its busi- ness; (5) charges made for gas used in the propulsion of a motor vehicle utilizing natural gas; and (6) charges related to late payments and re- turned checks. 3.30.060 WATER USERS TAX. A. There is hereby imposed a tax upon every person using, in the City, water which is delivered through mains or pipes. The tax imposed by this section shall be at the rate of 5% of the charges made for such water and shall be paid by the person paying for such water. During such period as this chapter is operative and effective, no amendment of this rate shall be adopted which increases said rate beyond a maximum of nine percent (9%). "Charges", as used in this section, shall include charges made for (1) me- tered water, and (2) minimum charges for service, including customer char- ges, ready to serve charges, standby charges , and annual monthly charges. 704CP/ORD8.3 -3- Ordinance No. 204 B. There shall be excluded from the base on which the tax imposed by this section is computed (1) charges for water which is to be resold and delivered through mains or pipes; and (2) charges made by a water corpora- tion for water use and consumed by such water corporation in the conduct of its business. 3.30.070 CONSTITUTIONAL EXEMPTIONS. Nothing in this chapter shall be construed as imposing a tax upon any person if the imposition of such tax upon that person would be in violation of the Constitution of the United States or the Constitution of the State of California. The Tax Administra- tor shall prepare and shall deliver to each service supplier a list of all persons , agencies , or public entities which are exempt from the provisions of this chapter by virtue of this section. 3.30.080 EXEMPTION BASED UPON COMBINED GROSS INCOME. A. The taxes imposed by this chapter shall not apply to any indi- vidual who uses telephone, electric, gas, or water services in or upon any residential premises occupied by such individual, if the combined gross income of all members of the household in which such individual resided was less than Eleven Thousand Five Hundred Dollars 011 ,500.00) for the calen- dar year prior to the fiscal year (July 1 through June 30) for which the exemption provided in this section is applied for. The exemption available under this section shall not eliminate the duty of the service supplier to collect taxes from any service user, nor eliminate the duty of any service user to pay such taxes to the service supplier, unless and until an exemption is applied for by the service user and granted in accordance with the provisions of subsection B hereof. B. Any service user who is eligible for an exemption from the taxes imposed by this chapter may file an application with the Tax Admini- strator for an exemption. Such application shall be made upon forms sup- plied by the Tax Administrator and shall, under penalty of perjury, recite facts which qualify the applicant for an exemption. The Tax Administrator shall review all such applications and certify as exempt those applicants determined to qualify therefor under subsection A and shall notify all ser- vice suppliers affected that such exemption has been approved, stating the name of the applicant, the address to which such exempt service is being supplied, the account number, if any, and such other information as may be necessary for the service supplier to remove the exempt service user from its tax billing procedure. Upon receipt of such notice, the service sup- plier shall not be required to continue billing the exempt service user for taxes imposed by this chapter until further notice is given by the Tax Ad- ministrator. The service supplier shall eliminate such exempt service user from its tax billing procedure no later than sixty (60) days after receipt of such notice from the Tax Administrator. All exemptions certified by the Tax Administrator shall be ef- fective for a period of two (2) years and may thereafter be renewed upon application to the Tax Administrator if the prerequisite facts supporting the previous qualification for exemption shall continue; provided, however, that the exemption shall automatically terminate with any change in the service address or residence of the exempt individual. Such exempt indi- vidual may, however, apply for a new exemption with each change of service 704CP/ORD8.4 -4- Ordinance No. 204 address or residence. Any service user exempt from the tax shall notify the Tax Administrator within ten (10) days of any change in fact or circum- stance which might disqualify said service user from receiving such exemp- tion. It shall be a misdemeanor for any person to knowingly receive the benefits of any exemption provided by this section when the basis for such exemption either does not exist or ceases to exist. Every service supplier is authorized to bill the tax imposed by this chapter to any new service user or to any account on which the ser- vice user's name has been changed (excluding changes attributable to spel- ling errors or other clerical errors) until such time as the service sup- plier receives notification from the Tax Administrator that an exemption has been granted pursuant to this section. Following receipt of such noti- fication, the service supplier shall eliminate such exempt service use from its tax billing procedure no later than sixty (60) days thereafter. 3.30.090 COLLECTION OF TAX. A. Every service supplier who receives , or is entitled to re- ceive, the payment of charges from a service user shall collect the amount of tax imposed by this chapter from each such service user. B. The tax shall be collected at the same time, and in the same manner, as the collection charges made in accordance with the regular bil- ling practice of the service supplier. C. The duty to collect tax from a service user shall commence with the beginning of the first regular billing period applicable to that service user which starts on or after the effective date of this chapter. 3.30.100 REPORTING AND REMITTING. Unless the Tax Administrator auth- orizes a different reporting schedule to accommodate the payment pattern of a service supplier's customers, each service supplier 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 Tax Administrator, on forms provided by him or on the service supplier's stan- dard form, stating the amount of taxes billed by the service supplier dur- ing the preceding calendar month. At the time the return is filed, the full amount of the tax collected shall be remitted to the Tax Administra- tor. The Tax Administrator is authorized to require such further informa- tion 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 from a service supplier immediately upon cessation, for any reason, of such supplier's business. 3.30.110 PENALTIES. A. Taxes collected by a service supplier which are not remitted to the Tax Administrator on or before the due dates provided in this chap- ter are delinquent and shall be subject to the imposition of penalties as herein provided. B. Penalties for delinquency in remittance of any tax collected or any deficiency determination, shall attach and be paid by the person re- 704CP/ORD8.5 -5- Ordinance No. 204 quired to collect and remit the same, in an amount equal to fifteen percent (15%) of the total tax collected or imposed herein. C. The Tax Administrator shall have power to impose additional penalties upon persons required to collect and remit taxes under the provi- sions of this chapter for fraud or negligence in reporting or remitting in the sum of fifteen percent (15%) of the amount of the tax collected or as recomputed by the Tax Administrator. D. Every penalty imposed under the provisions of this section shall be deemed, for all purposes, a part of the tax required to be remit- ted and paid. E. Notwithstanding the provisions of this section, the Tax Admin- istrator shall have discretion to waive the penalties provided for herein upon a satisfactory showing by the service supplier that a delinquency or deficiency is attributable to extenuating circumstances beyond the reason- able control of the service supplier. 3.30.120 ACTIONS TO COLLECT. Any tax required to be paid by a service user pursuant to the provisions of this chapter shall be deemed a civil 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 civil debt owed to the City by the person required to collect and remit the same. Any service supplier or service user who has failed to remit or pay taxes to the City pursuant to the provisions of this chapter shall be liable therefor in an action brought in the name of the City for the recovery of such amount. 3.30.130 FAILURE TO PAY TAX ADMINISTRATOR. Whenever the Tax Admini- strator determines that a service user has deliberately withheld the amount of the tax owed by him from the amounts remitted to a service supplier, or that a service user has failed to pay the amount of the tax for a period of two (2) or more billing periods, or whenever the Tax Administrator shall otherwise deem it in the best interest of the City, he may relieve the af- fected service supplier of the obligation to collect taxes due under this chapter from certain named service users and 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 delivering it to him personally or by deposit of the notice in the United States mail, postage prepaid thereon, addressed to the service user at his last known address. If a service user fails to pay the tax to the Tax Ad- ministrator 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 ac- complished in person, a penalty of twenty-five percent (25%) of the amount of the tax set forth in the notice shall be imposed, but in no event less than Five Dollars ($5.00). The penalty shall become, for all purposes , a part of the tax herein required to be paid. 3.30.140 RECORDS. It shall be the duty of every service supplier who is required to collect and remit to the City any tax imposed by this chap- ter to keep and preserve, for a period of not less than three (3) years, all records as may be necessary to determine the amount of such taxes due 704CP/ORD8.6 -6- Ordinance No. 204 to the City from service users supplied by such service supplier, which records the Tax Administrator shall have the right to inspect at all rea- sonable times. 3.30.150 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 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 or take as credit against taxes collected but not yet remitted to the City, 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 a refund is justified for any reason specified in subsection A hereof; provided, however, that neither a refund nor a credit shall be allowed unless the amount of the tax so collected from a service user 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 show- ing entitlement thereto. D. Notwithstanding the provisions of this section, if a service supplier, pursuant to an order of the California Public Utilities Commis- sion, or pursuant to the order of a court of competent jurisdiction, makes a refund to service users of charges for previous utility services, the taxes paid pursuant to this chapter on the amount of such refunded charges shall also be refunded to the 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 return. A service supplier may re- - fund taxes to the service users in accordance with this subsection or, if approved by the Tax Administrator, in accordance with the service suppli- er's customary practices. In the event this chapter is repealed, the amounts of any refundable taxes shall be the City's obligation. 3.30.160 ANNUAL REVIEW. At the end of each fiscal year following the effective date of this chapter, the City Manager shall, in conjunction with the preparation of the proposed budget for the ensuing fiscal year, submit for consideration by the City Council an analysis of the revenues derived from the taxes imposed by this chapter and recommendations as to any desi- rable modifications of the rates imposed hereunder. 3.30.167 EFFECTIVE DATE. The provisions of this chapter shall become operative and effective as of April 1 , 1986, and shall remain in effect on- ly until April 1 , 1991 , and as of that date this chapter is repealed, un- less a later ordinance, which is enacted before April 1 , 1991 , deletes or extends that date." SECTION 2. That the City Clerk shall certify to the adoption of this Ordinance and shall cause the same to be published in the manner prescribed by law. 704CP/ORD8.7 -7- Ordinance No. 204 PASSED, APPROVED and ADOPTED on April 1 , 1986. ------ +A`A-J ( MA g' ATTEST: 41 y 1 / 1 CLERK S ,TE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF RANCHO PALOS VE RDE S ) I, JO PURCELL, City Clerk of the City of Rancho Palos Verdes do hereby cer- tify that the whole number of members of the City Council of said City is five; that the foregoing ordinance, being Ordinance No. 204, passed first reading on March 18, 1986, was duly and regularly adopted by the City Coun- cil of said City at a regular meeting thereof held on April 1, 1986, and that the same was passed and adopted by the following roll call vote: AYES: HUGHES, BACHARACH, McTAGGART, RYAN & MAYOR HINCHLIFFE NOES: NONE ABSENT: NONE 4 - /i40 1 i AAt � r , C ERK If 704CP/ORD8.8 -8- Ordinance No. 204 ORDINANCE/RESOLUTION NO. 2 0 4 FILES /50/ SUBJECT: AM _L1 ! A ■ _ A Di., _ • ■ - DA • I _ THERETO CHAPTER 3 . 30 ESTABLISHING A UTILITY USERS TAX_ INTRODUCED: ADOPTED: 4/1/86 POSTED/PUBLISHED ORDINANCE DISTRIBUTION: SEE ATTACHED RESOLUTION DISTRIBUTION: LIST City Attorney PUBLIC WORKS DEPARTMENT .._ Richards, Watson, Dreyfuss & Gershon 333 South Hope St., 3 8th Floor __ENVIRONMENTAL SERVICES Los Angeles, CA 90071' __LEISURE SERVICES BOOK PUBLISHING COMPANY 201 Westlake Avenue N. ,COMMUNITY SERVICES DEPT. Seattle, WA 98109 _, CITY MANAGER PACIFIC TELEPHONE 19 310 Gateway Drive, Rm 208 ____STATION COMMANDER Torrance, CA 90502 26123 Narbonne Ave. Lomita, CA 90717 SOUTHERN CALIF. WATER SERVICE P. 0. Box 2490 COUNTY ASSESSOR CA 90274 500 Hall of Administration Los Angeles, CA 90012 REGISTRAR 5557 'Ferguson Drive LEAGUE OF CALIFORNIA CITIES Los Angeles, CA 90022 702 Hilton Center ATTN: Margaret Miller Los Angeles, CA 90017 Election Administration ._ L.A. COUNTY DEPT. of PUBLIC WORKS RECORDER ATTN: City Services 227 N. Broadway 1540 Alcazar Street Los Angeles, CA 90012 Los Angeles, CA 90033 SCHOOL ____SPCA 5026 West Jefferson Blvd. HOMEOWNERS ASSOCIATION Los Angeles, CA 90016 __APPLICANT __SO. CALIFORNIA GAS COMPANY 22741 Hawthorne Blvd. T.M. CABLEVISION Torrance, CA 90501 31244 P.V. Drive West, Suite 207 Rancho Palos Verdes, CA 90274 SO. EDISON CO. . P. 0. Box 2944 4( Posted at the Following: Torrance, CA 90509 City Hall L.A. County Fire Station 4000 Miraleste Plaza RPV U.S. Post Office 28649 S. Western Ave.