HomeMy WebLinkAbout1964 - Amending Title 4 411
ORDINANCE /R6,41
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF REDDING
AMENDING REDDING MUNICIPAL CODE TITLE 4, REVENUE AND
FINANCE, BY ADDING CHAPTER 4.06: UTILITY USERS' TAX.
The City Council of the City of Redding does hereby ordain
as follows:
Section 1. Title 4, REVENUE AND FINANCE, of the Redding
Municipal Code is hereby amended by adding a new Chapter 4 . 06 as
follows:
Chapter 4.06
UTILITY USERS' TAX
Sections:
4 . 06 .010 Title
4 . 06. 020 Definitions
4 . 06 .030 Constitutional Exemption
4 .06. 035 Governmental Agency Exemption
4 . 06. 040 Telephone Users ' Tax
4 .06.050 Electricity Users' Tax
4 . 06. 060 Gas Users' Tax
4 .06. 065 Service Users Receiving Direct Purchase
of Gas or Electricity
4. 06. 070 Water Users' Tax
4 . 06. 080 Cable Television Users' Tax
4.06 . 090 Penalty
4 . 06. 100 Actions to Collect
4 . 06. 110 Duty to Collect; Procedures
4 . 06.120 Additional Power and Duties of Tax
Administrator
4 . 06. 130 Failure to Pay; Administrative Remedy
4 . 06.140 Records
4 .06.150 Refunds
4 . 06 .160 Taxes: Separate Accounting; Quarterly
Reports; Annual Review
4. 06.170 Exemptions
4 . 06.180 Severability
4. 06.190 Establishment of Fees and Charges.
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4.06.010. Title.
This chapter shall be known as the "Utility Users' Tax. "
4.06.020. Definitions.
For the purposes of this chapter, the following words and
phrases when used in this chapter shall have the meanings
respectively ascribed to them by this section:
A. "City" means the City of Redding.
B. "Month" means a calendar month.
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, or individuals.
D. "Service supplier" means a person required to collect and
remit a tax imposed by this chapter.
E. "Service user" means a person required to pay a tax imposed
by this chapter.
F. "Tax Administrator" means the Director of Finance of the
City of Redding.
G. "Telephone corporation," "electrical corporation," "gas
corporation," "water corporation," and "cable television
corporation" mean the same as they are defined in Sections
234 , 218 , 222 , 241, and 215-5 , respectively, of the Public
Utilities Code of the State of California as said sections
existed on January 1 , 1975.
"Electrical corporation" and "water corporation" shall be
construed to include any municipality or franchised agency
engaged in the selling or supplying of electrical power and
water, respectively, to a service user.
4.06.030. Constitutional Exemption.
Nothing in this chapter shall be construed as imposing a tax
upon any person when the imposition of such tax upon such person
would be in violation of the Constitution of the United States or
State of California.
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4.06.035. Governmental Agency Exemption.
An exemption to the tax imposed by this chapter is hereby
granted to every "governmental agency. " For purposes of this
exemption, "governmental agency" is defined and limited as
follows:
A. The federal government of the United States, the State of
California, and any political subdivision thereof .
B. Any "local agency" of the State for the local performance of
governmental or proprietary functions within limited
boundaries, as defined by Government Code §53090 .
C. Any board, commission, or committee of "A" or "B" above on
which officers of such agency sit in their official capacity
as members, and which is supported in whole by funds
provided by such agency.
4.06.040. Telephone Users' Tax.
A. There is hereby imposed a tax on the amounts paid for any
intrastate and interstate telephone services by every
person, other than a telephone corporation, in the City
using such services. The tax imposed by this section shall
be set by Resolution and shall not exceed the rate of Seven
percent (7%) 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 that where such coin-
operated 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. In addition thereto, the
term "charges" shall not include charges for any type of
service or equipment furnished by a service supplier 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.
C. As used in this section, 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 said section existed on
June 1, 1983 . The term "telephone communication services"
refers to that service which provides access to a telephone
system and the privilege of telephone quality communication
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with substantially all persons having telephone stations
which are part of such telephone system.
D. The telephone users' tax imposed by this section 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. It, however, does not include
charges incurred by City in providing services to its
citizens.
E. Notwithstanding the provisions of subsection A, the tax
imposed under this section shall not be imposed upon any
person for using intrastate and interstate 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.
4.06.050. Electricity Users' Tax.
A. There is hereby imposed a tax upon every person in the City
using electrical energy in the City. The tax imposed by
this section shall be set by Resolution and shall not exceed
the rate of Seven percent (7%) of the charges made for such
services, and shall be paid by the person paying for such
energy.
B. As used in this section, the term "charges" shall include
charges made for:
( 1) Metered energy; and
(2) Minimum charges for service, including, but not limited
to, customer charges, service charges, demand charges,
standby charges, annual and monthly charges, fuel, cost
adjustments, etc.
C. As used in this section, the term "using electrical energy"
shall not be construed to 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,
however, that the term shall include the receiving of such
energy for the purpose of using it in the charging of
batteries. In addition, the term "using electrical energy"
shall not include (1) electricity used and consumed by an
electric utility supplier in the conduct of its business as
an electric public utility; ( 2) the mere receiving of such
energy by an electric public utility or governmental agency
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at a point within the City for resale; or ( 3) the use of
such energy in the production or distribution of water by a
public utility or a governmental agency.
4.06.060. Gas Users' Tax.
A. There is hereby imposed a tax upon every person in the City,
other than a gas corporation or electrical corporation using
in the City gas which is delivered through mains or pipes.
The tax imposed by this section shall be set by Resolution
and shall not exceed the rate of Seven percent (7%) of the
charges made for such services, and shall be paid by the
person paying for such gas.
B. As used in this section, the term "charges" shall include:
( 1) Gas which is delivered through mains or pipes; and
( 2) Minimum charges for such services, including, but not
limited to, customer charges, service charges, and
annual and monthly charges.
C. 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 sold for use in the generation of
electrical energy or for the production or distribution
of water by a public utility or governmental agency;
( 3) Charges made by a gas public utility for gas used and
consumed in the conduct of the business of gas public
utilities; and
( 4) Charges made for gas used in the propulsion of a motor
vehicle, as the same is defined in the California
Vehicle Code, utilizing natural gas.
4.06.065. Service Users Receiving Direct Purchase
of Gas or Electricity.
A. Notwithstanding any other provision of this Ordinance, a
service user receiving gas or electricity directly from the
producer, or otherwise not having the full tax due, billed,
and collected by the service supplier, shall report said
fact to the Tax Administrator within thirty ( 30) days of
said use; and shall remit directly to the City the amount of
tax due.
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B. The Tax Administrator may require from said service user the
filing of tax returns or other satisfactory evidence
documenting the sales price, or fair market value in the
absence of a sales price, and the quantity of gas or
electricity used.
4.06.070. Water Users' Tax.
A. There is hereby imposed a tax upon every person in the City
using water which is delivered through mains or pipes. The
tax imposed by this section shall be set by Resolution and
shall not exceed the rate of Seven percent (7%) of the
charges made for such services, and shall be paid by the
person paying for such service.
B. There shall be excluded from the base on which the tax
imposed under this section is computed:
( 1) Charges made for water which is to be resold and
delivered through mains or pipes; and
( 2) Charges made by a municipal water department, public
utility, or a county or municipal water district for
water used and consumed by such department, utility, or
district.
4.06.080. Cable Television Users' Tax.
There is hereby imposed a tax upon every person in the City
using cable television service. The tax imposed by this section
shall be set by Resolution and shall not exceed the rate of Seven
percent (7%) of the charges made for such services, and shall be
paid by the person paying for such service.
4.06.090. Penalty.
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 shall be delinquent.
B. Penalties for delinquency in remittance of any tax collected
or any deficiency determination pursuant to this chapter
shall attach to and be paid by the person required to
collect and remit at the rate of 15 percent ( 15%) of the
total tax collected or imposed by this chapter .
C. The Tax Administrator is hereby empowered to impose
additional penalties upon persons required to collect and
remit taxes under the provisions of this chapter for fraud
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or negligence in reporting or remitting at the rate of 15
percent (15%) of the amount of tax collected or as
recomputed 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.
4.06.100. Actions to Collect.
Any such tax received from a service user which has
willfully been withheld from the Tax Administrator shall be
deemed a debt owed to the City by the person required to collect
and remit. Any person holding such money contrary to the
provisions of this chapter shall be liable to an action brought
in the name of the City for the recovery of such amount.
4.06.110. Duty to Collect; Procedures.
The duty to collect and remit the taxes imposed by this
chapter shall be performed as follows:
A. The tax shall be collected insofar as practicable at the
same time as and along with the charges made in accordance
with the regular billing practices 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, such amount and any subsequent payments by a
service user shall be first applied to the utility charge
until such charge has been fully satisfied. Any remaining
balance shall be applied to the taxes due.
B. Where a person receives more than one billing, one or more
being for different periods, the duty to collect shall arise
separately for each billing period.
C. The amount of tax collected in one month shall be remitted
to the Tax Administrator on or before the last day of the
following month. At the option of the person required to
collect and remit the tax, an estimated amount of tax
collected measured by the tax billed in the previous month
shall be remitted to the Tax Administrator on or before the
last day of each month.
4.06.120. Additional Power and Duties of Tax Administrator.
A. It shall be the duty of the Tax Administrator to enforce
each and all of the provisions of this chapter.
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B. The Tax Administrator may adopt administrative rules and
regulations not inconsistent with the provisions of this
chapter for the purpose of implementing and enforcing the
payment, collection, and remittance of the taxes herein
imposed.
C. The Tax Administrator 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 the
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 office of the Tax
Administrator.
4.06.130. Failure to Pay; Administrative Remedy.
A. The Tax Administrator may make an assessment for taxes not
paid or remitted by a person required to pay or remit.
B. Whenever the Tax Administrator 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 or more billing periods, or whenever the Tax
Administrator deems it in the best interests 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.
C. The service supplier shall provide the City, as a matter of
routine, with the amounts refused, along with the names,
addresses, and reasons of the service users for refusing to
pay the tax imposed under the provisions of this chapter.
D. 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 depositing 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.
E. If a service user fails to remit the tax to the Tax
Administrator within fifteen ( 15) days from the date of
service of the notice upon him, which shall be the date of
mailing if service is not accomplished in person, a penalty
of 25 percent ( 25%) of the amount of the tax set forth in
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the notice shall be imposed, but not less than $5.00. The
penalty shall become part of the tax herein required to be
paid or remitted.
4.06.140. 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 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.
4.06.150. 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 City under this chapter, it may
be refunded as provided in subsections B and C of this
section, provided a claim in writing therefor, stating under
penalty of perjury the specific grounds upon which the claim
is founded, is filed with the Tax Administrator within three
years of the date of payment. The claim shall be on forms
furnished by the Tax Administrator.
B. A service supplier may claim a refund or take as credit
against taxes collected and remitted an amount overpaid,
paid more than once, or erroneously or illegally collected
or received, when it has been established that the person
from whom the tax has been collected did not owe the tax.
C. Any service user may obtain a refund of taxes overpaid, or
paid more than once, or erroneously or illegally collected
or received by the City, by filing a claim in the manner
provided in subsection A of this section, but only when the
service user having paid the tax to the service supplier
establishes to the satisfaction of the Tax Administrator
that the service user has been unable to obtain a refund
from the service supplier who collected the tax.
4.06.160. Taxes: Separate Accounting; Quarterly Reports;
Annual Review.
A. Utility Users' Tax Account. The Tax Administrator shall
establish a "Utility Users' Tax Account" as a separate
account, and shall place therein any and all of the taxes
collected under this chapter.
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B. Quarterly Reports. Commencing on September 30 , 1991, and
quarterly thereafter, the Tax Administrator shall prepare a
report to be furnished to the City Council and the City
Manager of the amount of all of the taxes collected under
this chapter and the disposition of same, including the
balance, if any, in the Utility Users' Tax Account, for the
previous quarter.
C. Annual Review. Each year, in conjunction with the City' s
annual budget deliberations, the City Council shall
reconsider the provisions and rate of the utility users'
tax, as well as any surplus which may have accumulated in
the Utility Users' Tax Account during the current fiscal
year, after which the City Council may modify the provisions
and rate of the tax and/or may provide no tax on one or more
utilities for the ensuing fiscal year. The tax imposed
shall continue to be levied for each fiscal year under the
provisions of this chapter, unless modified by the City
Council.
4.06.170. Exemptions.
A. Nothing in this chapter shall be construed as imposing a tax
upon the City or any of its departments, agencies, boards,
or commissions.
B. Notwithstanding any 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 chapter on the amount of such refunded charges shall
also be refunded to service users by the service supplier,
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. In the event the
ordinance enacting this chapter is repealed, the amount of
any refundable taxes will be borne by the City; provided,
however, that the same have been remitted to the City by the
service supplier and have been received by the City.
4.06.180. Severability.
If any section, subsection, subdivision, paragraph,
sentence, clause, or phrase of this ordinance, 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 ordinance or any part thereof . The City Council hereby
declares that it would have passed each section, subsection,
subdivision, paragraph, sentence, clause, or phrase thereof,
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irrespective of the fact that any one or more sections,
subsections, subdivisions, paragraphs, sentences, clauses, or
phrases be declared unconstitutional.
4.06.190. Establishment of Fees and Charges.
The City Council may, from time-to-time and at its
discretion, by Resolution, fix, alter, change, amend, or revise
the tax rates provided for by this Chapter.
Section 2. This Ordinance shall become effective as
provided by law.
Section 3. It has been determined that this matter is
categorically exempt from the provisions of the California
Environmental Quality Act.
Section 4. The City Clerk shall certify to the adoption of
this Ordinance, and cause its publication according to law.
I HEREBY CERTIFY that the foregoing Ordinance was introduced
and read at a regular meeting of the City Council of the City of
Redding on the 18th day of June, 1991, and was duly read and
adopted on the 9th day of July , 1991, at a regular meeting of
the City Council by the following vote:
AYES: COUNCIL MEMBERS: Arness, Moss & Dahl
NOES: COUNCIL MEMBERS: Buffum & Fulton
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
/22-1'21 /11 /
MIKE DAHL, Mayor
City of Redding
AT-TEST: BO-`:''PROVED:
.74dz
ETHEL A. NICHOLS, City Clerk R• I,DALL A. HAYS, Cit Attorney
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