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CC RES 1996-063 Ordinance CC (Utility User Tax)RESOLUTION NO. 96 -63 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, CALLING AND GIVING NOTICE OF A SPECIAL MUNICIPAL ELECTION TO BE CONSOLIDATED WITH THE NOVEMBER 51 1996 STATEWIDE GENERAL ELECTION, AND ORDERING THAT A QUESTION RELATING TO THE ADOPTION OF AN ORDINANCE VALIDATING AND READOPTING A 3% UTILITY USERS TAX BE SUBMITTED TO THE VOTERS AT THE SPECIAL MUNICIPAL ELECTION THE CITY OF COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS. SECTION 1. The validation, re- enactment, and continuation of the City's 3% utility users tax is hereby proposed pursuant to Government Code Section 53724(a). Pursuant to the requirements of the laws of the State of California relating to General Law Cities, there is hereby called and ordered to be held in the City of Rancho Palos Verdes, California, on Tuesday, November 5, 1996, a Special Municipal Election for the purpose submitting the proposal, in the form of a measure, to the voters. SCION 2. Pursuant to Government Code Section 53724(c), and Elections Code Section 1002, the City Council hereby declares its .intent to consolidate the special election on this proposal with the Statewide General Election to be held on November 5, 19960 SECTION 3. This Resolution was approved by a two - thirds vote of all members of the City Council as required by Government Code Section 53724(b). SECTION 4. The City Council, pursuant to its right and authority, does hereby order submitted to the voters at the Special Municipal Election the following question: Shall Ordinance be YES adopted to validate and continue the collection of the existing 3% utility NO users tax? SECTION 5. The text of the proposed ordinance -to be submitted to the voters is attached hereto as Exhibit "A" and incorporated herein by reference. The type of tax, the rate of the tax, and the method of its collection are stated therein. SECTION 6. The ballots to be used at the election shall be in form and content as required by law. SECTION 7. The City Clerk is authorized, instructed and directed to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election. SECTION 8. The polls for the election shall be open at seven o'clock a.m. on the day of the election and shall remain open continuously from that time until eight o'clock p.m. of the same day when the polls shall be closed, except as provided in Section 14401 of the Elections Code of the State of California. SECTION 9. In all particulars not recited in this resolution, the election shall be held and conducted as provided by law for holding municipal elections. SECTION 10. Notice of the time and place of holding the election is hereby given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law. SECTION 11. The City Clerk is directed to transmit a copy of the measure to the City Attorney. The City Attorney shall prepare an impartial analysis of the measure, not to exceed 500 words in length, showing the effect of the measure on the existing law and the operation of the measure. The impartial analysis shall be filed by the date set by the city clerk for the filing of primary arguments. SECTION 12. The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. 1996. ATTEST: PASSED, APPROVED and ADOPTED this 6th day of August, MA R Resol, No. 96 -63 Page 2 State of California County of Los Angeles ) ss City of Rancho Palos Verdes ) I, JO PURCELL! City Clerk of the City of Rancho Palos Verdes, hereby certify that the above Resolution No.96 -63 was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on August 6, 19 9 6 . „ /-I N:\ GROUP \CITYCLRK\ELECTION\9663RESO.WPD CITY CLERK Resol, No. 96 -63 Page 3 EXHIBIT "A" ORDINANCE NO. AN ORDINANCE OF THE CITY OF RANCHO PALOS VERDES VALIDATING AND RE- ENACTING THE CITY'S UTILITY USERS TAX AND AMENDING THE RANCHO PALOS VERDES MUNICIPAL CODE THE PEOPLE OF THE CITY OF RANCHO PALOS VERDES DO ORDAIN AS FOLLOWS: Section 10 Validation of Existing Tax. The adoption of Chapter 3.30 of Title 3 of the Rancho Palos Verdes Municipal Code, which imposes a tax of three per cent (3 %) on utility users in the City is hereby validated and approved to the full extent permitted by law. The provisions of Chapter 3.30 are attached as Exhibit 111" to this Ordinance and are incorporated herein' by this reference. This Section 1 is intended to authorize the continued collection of the tax, to validate the prior adoption of the tax, and to validate taxes previously collected pursuant to Chapter 3.30 of the Rancho Palos Verdes Municipal Code. Section 2_ Legislative Review. Section 3.30.180 of the Rancho Palos Verdes Municipal Code is hereby amended to read as follows: 113.30.180 Legislative Review. Beginning in 1998, and every year thereafter, the city manager shall submit for consideration by the city council, in connection with the preparation of the city's annual budget for the following fiscal year, an analysis of the revenues derived from the taxes imposed by this chapter. Based on the needs of the city, the city council shall determine whether any modification to the rate of the tax is necessary or if the tax imposed by this Chapter is unnecessary. However, in no event shall the rate of the tax exceed 3% without a prior vote of the people in favor of such increase. The review required by this Section shall be completed by the city council prior to the adoption of each year's annual budget, which shall occur by June 30th. If the city council fails to conduct the periodic review of the tax as required by this Section, the city shall not cause the tax to be collected until the review has been conducted by the city council." This Section 2 is intended to require periodic City Council review of the tax. Section 3. Reimuosition of Tax. Chapter 3.30 of the Rancho Palos Verdes Municipal Code is hereby re- enacted, as amended by Section 2 of this Ordinance. This Section 3 is intended to re- adopt the tax to authorize future collections of the tax, even if 960216 R6876 -00001 cwl I : \data \069 \1201364.002 (2 ) RESOL . NO. 96-63 it is later determined that Section 1 is not sufficient to do so. Section 4. Amendment and Repeal. Notwithstanding Section 9217 of the California Elections Code, the City Council may repeal this ordinance or may modify or reduce the rate of the tax collected pursuant thereto without a vote of the people. However, in no event shall the rate of tax imposed by this ordinance exceed 3% without approval by a majority of the voters voting in an election on the increase. This Section 4 is intended to permit the City Council to repeal the tax or to reduce or modify the rate of tax without a vote of the people, provided that the rate of the tax shall not exceed 3% without voter approval. Section 5. Findings. The people of the City of Rancho Palos Verdes hereby find as follows: (a) The City Council did not previously seek voter approval of the utility users tax because a number of final appellate -court decisions, including the decision in city of Woodlake v. Logan, 230 Ca1.App.3d 1058 (1991), had previously held that Proposition 62's requirement that general taxes be submitted to referendum violated the California Constitution and was therefore unenforceable. On September 28, 1995, the California Supreme Court disapproved Woodlake in Santa Clara County Local Transportation Authority v. Guarding, 11 Cal.4th 220 (1995), and the City Council thereafter proposed this Ordinance to the voters to validate the tax. (b) This Ordinance was proposed by the City Council of the City of Rancho Palos Verdes through the adoption of Resolution No. 96 -63 by the affirmative votes of not less than four of its members as required by Government Code Section 53724 (b) . Section 6. Severability. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held to be invalid or unenforceable by a court of competent jurisdiction, the remaining portions of this Ordinance shall nonetheless remain in full force and effect. The people of the City of Rancho Palos Verdes hereby declare that they would have adopted each section, subsection, sentence, clause, phrase, or portion of this Ordinance, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions of this Ordinance be declared invalid or unenforceable. Section 7. Execution. The Mayor is hereby authorized to attest to the adoption of this Ordinance by signing where indicated below. RESOL. NO. 96 -63 EXHIBIT "A" 960216 R6876 -00001 cwl I: \data \069 \1201364.002(2) — 2 — I hereby certify that PASSED, APPROVED and ADOPTED by Palos Verdes voting on the 5th the foregoing ordinance was the people of the City of Rancho day of November, 1996, MAYOR ATTEST: CITY CLERK RESOL. NO, 96 -63 EXHIBIT "A" 960216 R6876 -00001 cwl I: \data \069 \1201364.002(2) — 3 Chapter 3 .30 UTILITY USER TAX* Sections: 3 .30 .010 Short title. 3 .3 0 .0 2 0 Definitions. 3 .30 .030 Exemptions. 3 .3.0 .040 Telephone user tax. 3 .30.050 Electricity user tax. 3 .30.060 Cogenerated electricity user tax. 3 .30 .070 Gas user tax. 3 .30 .080 Water user tax. 3 .30.090 Purpose. 3 .30.100 Duty to collect and remit. 3 .30.110 Interest and penalties. 3 .30.120 Actions to collect. 3 .30.130 Additional powers and duties of tax administrator. 3 .30.140 Records. 3 .30.150 Refunds. 3 .30.160 Violations--Misdemeanor. 3 .30.170 Effective date. 3 .30 .180 Legislative review. * Prior ordinance history: Ordinances 204 and 225. 47 (Rancho Palos Verdes 11/93) EXHIBIT "1" 1 411 3 .30.010--3 .30. 3 .30.010 Short title. The ordinance codified in this chapter shall be known as the "utility user tax ordinance. " (Ord. 292 §1 (part) , 1993) . 3 .30.020 Definitions. The following words and phras- es, whenever used in this chapter shall be construed as defined in this section, except where the context clearly requires otherwise; A. "City" means the city of Rancho Palos Verdes. B. "Cogeneration electrical energy" means the use for the generation of electricity of exhaust steam, waste steam, heat, or resultant energy from an industrial, com- mercial or manufacturing plant or process, or the use of exhaust steam, waste steam, or heat from a thermal power plant for an industrial, commercial, or manufacturing plant or process. C. "Gas" means natural or manufactured gas or any alternate gaseous hydrocarbon fuel which may be substituted therefor. D. "Month" means a calendar month. E. "Person" means all domestic and foreign corpora- tions, firms, associations, syndicates, joint stock compa- nies, partnerships of every kind, joint ventures, clubs, Massachusetts business or common-law trusts, societies and individuals. For the purposes of this chapter, "person" shall not include any public entity which purchases and uses utility services in the performance of governmental functions. F. "Service supplier" means any person required to collect and remit a tax imposed by this chapter. G. "Service user" means a person required to pay a tax imposed under the provisions of this chapter. H. "Tax administrator" shall mean the director of finance of the city or other person designated by the city manager to administer the provisions of this chapter. I. "Telephone communication services" means services which provide access to a telephone system and the privi- lege of telephone communication with substantially all persons having telephone stations which are part of such telephone system. "Telephone communication services" in- cludes cellular telephone service and other telephone ser- vices that gain access to the public sw)tched network by means of various technologies, but does not include other forms of land mobile service or maritime mobile services as defined in Section 2 .1 of Title 47 of the Code of Federal Regulations which do not gain access to the public switched network. J. "Telephone corporation, " "electrical corporation, " "gas corporation" and "water corporation" shall have the same meanings as defined in Sections 234, 218, 222, and 241, respectively, of the California Public Utilities Code, or any successor statute. (Ord. 292 §1 (part) , 1993) . (Rancho Palos Verdes 48 11/93) 3 .30.030 3.30.030 Exemptions. A. Nothing in this chapter shall be construed as imposing a tax upon any person when 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, or any federal or California statute. B. The city council may, by resolution, establish one or more classes of persons or one or more classes of utili- ty services otherwise subject to payment of the tax imposed by this chapter and to provide that such classes of persons shall be exempt, in whole or in part from the payment of the tax imposed by this chapter. C. Charges made for energy used in the propulsion of a low emission motor vehicle, as defined in the Vehicle Code of the State of California, shall be exempt, provided that the owner of such vehicle installs and maintains a separate metering system for the energy provided to the vehicle. D. Notwithstanding the foregoing, the exemptions provided by subsections (B) and (C) of this section shall not be applicable unless and until applied for by the ser- vice user and granted in accordance with the provisions of subsections (E) and (F) of this section. E. Any service user who becomes eligible for an ex- emption from the taxes imposed by this chapter because of the provisions of subsections (B) and (C) of this section, may file an application with the tax administrator for an exemption. Such application shall be made upon forms sup- plied by the tax administrator and shall recite facts under penalty of perjury which qualify the applicant for an ex- emption. The tax administrator shall review all such ap- plications and shall certify as exempt those applicants determined to qualify therefor and shall notify all service suppliers 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 ser- vice supplier shall not be required to continue to bill any further tax imposed by this chapter from such exempt ser- vice user until further notice is given by the tax adminis- trator. The service supplier shall eliminate such exempt service user from its tax billing procedure not later than sixty days after receipt of such notice from the tax admin- istrator. F. All exemptions certified by the tax administrator • shall be effective for a period of two years and may there- after be renewed by the tax administrator upon application to the tax administrator showing that the prerequisite facts supporting the initial qualification for exemption (Rancho Palos Verdes 48-1 11/93) . r 3 .30 .040 !II 111 still continue; provided, however, that the exemption shall automatically terminate with any change in the service address or residence of the exempt individual. If the new address or residence is still within the city, such indi- vidual may apply for a new exemption with each change of address or residence. Any individual exempt from the tax shall notify the tax administrator within ten days of any change in fact or circumstance which might disqualify said individual from receiving such exemption. It shall be a misdemeanor for any person to knowingly receive the bene- fits of the exemption provided by this section when the basis for such exemption either does not exist or ceases to exist. G. 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 service user's name has been changed (excluding changes attributable to spelling errors or other clerical errors) until such time as the service supplier receives notification from the tax administrator that an exemption has been granted pursuant to this sec- tion. H. Notwithstanding any of the provisions of this section, any service supplier who determines by any means that a new or nonexempt service user is receiving service through a meter or connection exempt by virtue of an exemp- tion issued to a previous user or exempt user of the same meter or connection shall immediately notify the tax admin- istrator of such fact and the tax administrator shall con- duct an investigation to ascertain whether or not the pro- visions of this section have been complied with and, where appropriate, order the service supplier to commence col- lecting the tax from the nonexempt service user. I. Corporations defined under Section 3 .30 .020 (J) shall be exempt from this tax. (Ord. 292 §1 (part) , 1993) . 3 .30.040 Telephone user tax. A. There is imposed a tax upon the amounts paid for intrastate, interstate, in- cluding the District of Columbia, or international tele- phone communication services, including cellular telephone services and other telephone services that gain access to the public switched network by means of various technolo- gies, by every person using such services in the city. The tax imposed by this section shall be at the rate of three percent of the charges made for such services and shall be paid by the person paying for such telephone services. Said tax shall apply to all such charges billed to a tele- phone account having a situs in the city, irrespective of whether a particular telephone service originates or termi- nates within the city. The situs shall be the service address, if known, otherwise the situs shall be the billing address. (Rancho Palos Verdes 11/93) 48-2 411 3 .30.050 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 that where such coin-operated telephone service is furnished for a guaran- teed 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 which is due. 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, inter- state, or international telephone communications services to the extent that the amounts paid for such services are exempt from or are not subject to the tax imposed under Section 4251 of Title 26 of the United States Code. (Ord. 292 §1 (part) , 1993) . 3 .30.050 Electricity user tax. A. There is imposed a tax upon every person using electrical energy in the city. The tax imposed by this section shall be at the rate of three percent of the charges made for such energy and shall be paid by the person paying for such energy. The tax applicable to electrical energy provided by a nonutility 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 an elec- trical corporation franchised by the city. Nonutility suppliers shall install and maintain an appropriate utili- ty-type metering system which will enable compliance with this section. B. "Charges, " as used in this section, shall include charges made for (1) metered energy; and (2) minimum charg- es for service, including customer charges, service charg- es, standby charges, charges for temporary services, demand charges and annual and monthly charges and any other charg- es or cost adjustments authorized by the California Public Utilities Commission or the Federal Energy Regulatory Com- mission. C. As used in this section, the term "using electri- cal energy" is not intended to, and does not, mean: (1) 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 apart from the premises upon which the energy was received, provided, however, that the term shall include the receiving of such energy for the purpose of using it in the charging of batteries; (2) the mere receiv- ing of such energy by an electrical public utility or gov- ernmental agency at a point within the city for resale; or (3) the use of such energy in the production or distribu- tion of water by a public utility or a governmental agency. (Ord. 292 §1 (part) , 1993) . (Rancho Palos Verdes 48-3 11/93) 3 .30.060--3 .30. 3 .30.060 Co9enerated electricity user tax. A. There is imposed a tax upon every person using cogenerated elec- trical energy in the city at the rate specified in Section 3 .30.050. The tax applicable to cogenerated electrical energy used on site shall be determined by applying the tax 11/ rate to the equivalent charges the cogenerator would have incurred if the energy used had been provided to the ser- vice user by an electrical corporation franchised by the city. B. The cogenerator shall install and maintain an appropriate metering system which will enable compliance with this section. C. If the cogenerator sells the energy for consump- tion in the city, the tax will be imposed by applying the tax rate to the equivalent charges for such service the service user would have incurred if the energy used had been provided by the electrical corporation franchised by the city and shall be collected from the service user by the service supplier. (Ord. 292 §1 (part) , 1993) . 3 .30.070 Gas user tax. A. There is imposed a tax upon every person using gas energy in the city, which is delivered through mains or pipes or by mobile transport. The tax imposed by this section shall be at the rate of three percent of the charges made for such gas and shall be paid by the person paying for such gas. B. "Charges, " as used in this section, shall include: (1) charges made for metered gas or mobile transport; (2) gas transportation charges; and (3) charges for service, including customer charges, service charges, minimum charg- es, demand charges, and annual and monthly charges and any other charge authorized by the California Public Utilities Commission or the Federal Energy Regulatory Commission. C. As used in this section, the term "using gas ener- gy" is not intended to, and does not, mean: (1) charges made for gas which is to be resold and which is delivered through a gas pipeline distribution system or mobile trans- port; (2) charges made for gas used by a cogenerator or as the primary fuel in a fuel cell to generate electricity; or (3) the use of gas energy in the production or distribution of water by a public utility or governmental agency. (Ord. 292 §1 (part) , 1993) . 3 .30.080 Water user tax. A. There is imposed a tax upon every person using water in the city which is deliv- ered through mains or pipes. The tax imposed by this sec- tion shall be at the rate of three percent of the charges made for such water and shall be paid by the person paying for such water. B. "Charges, " as used in this section, shall include charges made for (1) metered water; and (2) minimum charges (Rancho Palos Verdes 48-4 11/93) 411 4113 .30.090-3 .30.110 for service, including customer charges, ready to serve charges, standby charges, and annual and monthly charges. C. There shall be excluded from the bases on which the tax imposed by this section is computed charges for water which is to be resold and which is delivered through mains or pipes. (Ord. 292 §1 (part) , 1993) . 3 .30 .090 Purpose. The taxes imposed by this chapter are established solely to raise revenue for the general governmental purposes of the city. The revenues generated thereby shall be deposited in the general fund of the city and may be expended for any proper municipal purpose at the discretion of the city council. (Ord. 292 §1(part) , 1993) . 3 .30 .100 Duty to collect and remit. The duty to collect and remit the taxes imposed by this chapter shall be performed as follows: A. The tax imposed by this chapter shall be collected from the service user by the service suppliers. The amount collected in one month shall be remitted to the city and shall be due on or before the twentieth day of the follow- ing month. If remitted by mail, such remittance shall be postmarked on or before the twentieth day of the following month; provided, however, that if the twentieth day falls on a weekend or legal holiday, and the remittance is made by mail, the remittance shall be postmarked as of the first business day following such weekend or legal holiday. B. The tax shall be collected at the same time as, and along with, the charges made in accordance with the service supplier's regular billing practice. 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. C. The- duty to collect the 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 the operative date of this chapter. The operative date of this chapter shall be December 20, 1993 . Where a person receives more than one billing, one or more being for different periods than another, the duty to collect shall commence separately for each billing. (Ord. 292 §1 (part) , 1993) . 3 .30.110 Interest and penalties. A. Taxes collected 11/ from a service user by the service supplier which are not remitted to the tax administrator on or before the due dates provided in this chapter are delinquent and are sub- ject to penalties and interest. B. Penalties for delinquency in remittance of any tax collected or any deficiency determination, shall attach and (Rancho Palos Verdes 48-5 11/93) • 111 411 3 .30.120--3 .30. be paid by the persons required to collect and remit at the rate of fifteen percent of the total delinquent tax col- lected or imposed herein. Whenever fraud or gross negli- gence in reporting and remitting tax collections is dis- covered, the tax administrator shall have the power to impose additional penalties of twenty percent of taxes owed upon persons required to collect and remit taxes under the provisions of this section. C. Every penalty imposed under the provisions of this section shall become a part of the tax owed and required to be remitted. D. Any person required to remit to the tax adminis- trator delinquent taxes as required in this section, shall pay interest at the rate of one and one-half percent per month or portion thereof on the amount of tax owed exclu- sive of penalties from the date on which the tax first became delinquent until paid. E. Notwithstanding the provisions of this section, no penalty or interest shall be applied if delinquencies are the result of natural disasters or other phenomena beyond the control of the person charged with collecting and re- mitting the tax, provided the person required to remit the tax notifies the tax administrator as soon as normal commu- nications permit. (Ord. 292 §1 (part) , 1993) . 3 .30.120 Actions 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 service supplier. Any per- son owing money to the city under the provisions of this chapter shall be liable in an action brought by the city attorney in the name of the city for the recovery of such amount. (Ord. 292 §1 (part) , 1993) . 3 .30 .130 Additional powers and duties of tax adminis- trator. A. The tax administrator shall have the power and duty, and is directed, to enforce each and all of the pro- visions of this chapter. B. The tax administrator shall have the power to adopt rules and regulations not inconsistent with the pro- visions of this chapter for the purpose of carrying out and enforcing the payment, collection, and remittance of the taxes imposed herein. A copy of such rules and regulations shall be maintained on file in the office of the tax admin- istrator. C. The tax administrator may enter into administra- tive agreements to vary the strict requirements of this chapter so that collection of any tax billing imposed here- by may be made in conformance with the billing procedures (Rancho Palos Verdes 48-6 11/93) !II 411 3 .30.130 of a particular service supplier, so long as said agree- ments result in collection of the taxes imposed herein in conformance with the general purpose and scope of this chapter. A copy of each such agreement shall be maintained on file in the office of the tax administrator. D. The tax administrator may make a special assess- ment for taxes not paid or remitted by a person required to pay or remit. A notice of the assessment shall include the amount of the taxes owned, penalties imposed and the time and place when such an assessment shall be heard by the city council for confirmation or modification. The tax administrator shall mail a copy of such notice to the ser- vice supplier and to the service user at least ten days prior to the date of the hearing and shall post such notice for at least five days continuously prior to the date of the hearing at those places in the city normally designated for the posting of such notices. Any interested party having any objections may appear and be heard at the hear- ing, provided the objection is filed in writing with the tax administrator prior to the time set for the hearing. At the time fixed for considering said assessment, the city council shall hear the same together with any objection timely filed and thereupon may confirm or modify said as- sessment by resolution. E. 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 that a service user has failed to pay the amount of the tax to a service sup- plier for a period of two or more billing periods, or when- ever the tax administrator deems it in the best interest of the city, the tax administrator 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 the tax administrator has assumed respon- sibility to collect the taxes due for the stated periods and shall demand payment of such taxes. The notice shall be served on the service user by handing it to him or her personally or by deposit of the notice in the United States Mail, postage prepaid thereon, addressed to the service user at the address to which billing was made by the person required to collect the tax; or, should the service user have changed his address, to his or her last known address. If a service user fails to remit the tax to the tax admin- istrator within fifteen days from the date of the service of the notice upon him or her, which shall be the date of mailing if service is not accomplished in person, a penalty of 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 owed. 48-7 (Rancho Palos Verdes 11/93) 111 111 3 .30.140--3 .30. F. The tax administrator may waive any of the penal- ties and interest established by this chapter when the tax administrator determines that such a waiver is appropriate and in accordance with the intent of this chapter. (Ord. 292 §1 (part) , 1993) . 3 .30.140 Records. 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 deter- mine 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 or his/her designee shall have the right to inspect at all reasonable times. (Ord. 292 §1 (part) , 1993) . 3 .30.150 Refunds. A. Whenever the amount of any tax has been overpaid, paid more than once, or has been errone- ously or illegally collected or received by the city under this chapter, it may be refunded as provided in this sec- tion. B. A person required to collect and remit taxes im- posed under this chapter may claim a refund or take a cred- it against taxes collected and not yet remitted in 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 ser- vice 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. 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 compe- tent jurisdiction, makes any 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 month- ly returns. In the event this chapter is repealed, the amount of any refundable taxes will be borne by the city. (Ord. 292 §1 (part) , 1993) . 3 .30.160 Violations--Misdemeanor. Any person who violates any of the foregoing provisions of this chapter is (Rancho Palos Verdes 48-8 11/93) 41/3 .30.170--3 .32.010 • guilty of a misdemeanor and shall be punished therefor in conformance with Section 1.08.010 of this Code. (Ord. 292 §1 (part) , 1993) . 3 .30.170 Effective date. This chapter, inasmuch as it provides for a tax levy for the usual and current ex- penses of the city, shall take effect immediately upon passage, except that the tax imposed by this article shall become operative and be imposed at the beginning of the first regular billing period on or after the effective date, as provided in Section 3 .30.100, and shall not apply prior to said date. (Ord. 292 §1 (part) , 1993) . 3 .30.180 Legislative review. Beginning in January, 1996, and every four years thereafter, the city manager shall submit for consideration by the city council an anal- ysis of the revenues derived from thetaxes imposed by this chapter. Based on the needs of the city, the city council shall determine if any modifications to the rate is neces- sary or if the tax imposed by this chapter should be re- pealed. Said review shall be completed by the city council prior to the adoption of the budget being prepared for the next fiscal year. This chapter shall be repealed if the city council does not conduct the review required by this this section. (Ord. 292 §1(part) , 1993) . 48-8a (Rancho Palos Verdes • 11/93)