HomeMy WebLinkAbout08-18-2015 Item 11 Prepaid Telephone Surcharge Resolution
Meeting Date: 8/18/2015
FROM: Wayne Padilla, Director of Finance and Information Technology
SUBJECT: APPROVE A RESOLUTION AUTHORIZING THE EXAMINATION OF
PREPAID TELEPHONY SERVICE SURCHARGE AND LOCAL CHARGE
RECORDS AND APPROVE AN AGREEMENT FOR THE COLLECTION OF
THE MOBILE TELEPHONY SURCHARGE
RECOMMENDATION
1. Approve an agreement between the City and the State Board of Equalization for the
collection and distribution of Mobile Telephony Surcharge assessed on prepaid wireless
service fees and authorize the City Manager to execute the agreement; and
2. Adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis
Obispo, California, authorizing the examination of prepaid mobile telephony services
surcharge and local charge records”; and
3. Adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis
Obispo, California, authorizing the City Manager and City Attorney to execute
documents required by the Board of Equalization to collect the Mobile Telephony
Surcharge.”
DISCUSSION
Assembly Bill 1717, which was enacted in September 2014, restricts cities and counties from
directly assessing and collecting Utility Users Taxes (UUT) on prepaid telephone services
starting in January 2016. At that time, the State Board of Equalization will begin assessing,
collecting and paying to each city and county their share of the Mobile Telephony Surcharge or
MTS in place of the UUT. This surcharge will be 4.5% instead of the City’s established 4.8%
rate.
Up to now, the UUT has largely not been levied against prepaid phone charges statewide due to
the complexity of identifying those vendors who sell prepaid phone services and enforcing the
collection of the UUT on those services. This bill represents an answer to the question of how the
UUT on prepaid phone charges would be collected uniformly from the various vendors who sell
prepaid services within each city and county. The state’s requirement to have vendors report
their prepaid service sales figures and make tax payments to the state utilizing their already
established reporting protocol for sales tax remittances lessens the burden on the vendors who
would otherwise be required to meet each local jurisdiction’s unique reporting procedures. This
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legislation sunsets on January 1, 2020 at which time the City will begin receiving these revenues
directly.
City Action Required
In order to receive its portion of the MTS from prepaid telephone services sold within the City
starting on January 1, 2016, the Board of Equalization is requiring the City to enter into a
collection agreement before the end of September 2015 (originally this was required to be
approved before September 1st but the Board has extended the deadline to the end of September).
If the agreement is not approved in time, the City has until December 1, 2015 to approve the
agreement but the collection of the MTS would not begin until April 1, 2016, depriving the City
of a quarter of the revenue to which it would otherwise be entitled. The City receives
approximately $700,000 in Utility User Tax from wireless phone charges.
Accompanying this report is a copy of the MTS collection agreement along with a resolution that
identifies the city staff members who will be recognized by the Board of Equalization for the
purpose of requesting and inspecting records related to the collection and distribution of the
MTS. An additional resolution is also provided which designates the City Manager and City
Attorney as the individuals who are authorized to sign the MTS collection agreement and the
Ordinance Certification Form, respectively. A resolution approving the agreement is provided in
the format required by the Board of Equalization.
CONCURRENCES
This report has been reviewed by the City Attorney who concurs with the recommendations
shown.
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FISCAL IMPACT
Approving the agreement ensures that the City receives its share of the Utility Users Tax on
prepaid phone charges at the earliest date possible and in greater amounts than are being reported
today. Prepaid phone services are a rapidly growing revenue source for wireless carriers and over
time it is estimated that the UUT generated from these service charges will grow to an amount in
excess of $100,000 per year. The fees charged by the Board of Equalization for collecting thi s
revenue will be based on their total cost of collecting fees for agencies statewide and will be pro-
rated to each agency based on their share of the total revenues that are collected. The City,
through its agreement with MuniServices, LLC and joining with other cities, has lobbied to keep
these fees as reasonable as possible and through efforts to help the Board consider alternative
collection processes, has succeeded in reducing these fees from the original estimates.
The findings made in the accompanying resolution allow the City and its UUT compliance
contractor, MuniServices, to have access to the collection and remittance records associated with
the state’s process of remitting the MTS to the City.
ALTERNATIVES
The City Council may decline to approve the resolution and the agreement. This is not
recommended since staff is bringing these items forward to ensure that the City is complying
with the Other Important Council Objective of Fiscal Sustainability and Responsibility by taking
the steps necessary to protect the City’s revenue streams and maintain effective revenue
collection strategies.
Attachments:
1 - Approve Board Agreement
2 - BOE Agreement
3 - Ordinance Certification
4 - Resolution Designating Authorized Document Reviewers
5 - Reso for Authorized Signers
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RESOLUTION NO. (2015 SERIES)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
APPROVING THE AGREEMENT WITH THE STATE BOARD OF EQUALIZATION FOR
IMPLEMENTATION OF THE LOCAL PREPAID MOBILE TELEPHONY SERVICES
COLLECTION ACT AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE
AGREEMENT ON BEHALF OF THE CITY
WHEREAS, on August 18, 2015 the City of San Luis Obispo (the City) certified that Ordinance 1586
(2012 Series) applies the Utility Users Tax to prepaid mobile telephony services; and
WHEREAS, the Local Prepaid Mobile Telephony Services Collection Act mandates the Board of
Equalization (Board) to administer and collect the local charges for all applicable local jurisdictions
(Rev. & Tax Code Section 42103); and
WHEREAS, the Board will perform all functions incident to administration and collection of the local
charges for the City; and
WHEREAS, the Board requires the City to enter into an “Agreement for State Collection and
Administration of Local Charges” prior to implementation of the Loc al Prepaid Mobile Telephony
Services Collection Act; and
WHEREAS, the Board requires the City to approve the agreement.
NOW, THEREFORE, be it resolved by the Council of the City of San Luis Obispo that:
1. The attached “Agreement for State Collection and Administration of Local Charges” is hereby
approved and the City Manager is hereby authorized to execute the agreement.
On motion of ___________________, seconded by _______________________, and on the
following vote:
AYES:
NOTE:
ABSENT:
the foregoing Resolution was passed and adopted on August 18, 2015.
______________________________
Mayor Jan Marx
ATTEST:
Anthony Mejia, City Clerk
APPROVED:
Christine Dietrick, City Attorney
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Local Jurisdiction ______________
AGREEMENT FOR STATE COLLECTION AND ADMINISTRATION OF
LOCAL CHARGES
This Agreement is for the purpose of implementing the Local Prepaid Mobile Telephony
Services Collection Act (Part 21.1, commencing with Section 42100) of Division 2 of the
Revenue and Taxation Code), hereinafter referred to as the Local Charge Act. The
____________________________ and the State Board of Equalization, hereinafter called
Insert name of local jurisdiction the Board, do agree as follows:
ARTICLE I
DEFINITIONS
Unless the context requires otherwise, wherever the following terms appear in this
Agreement they shall be interpreted to mean the following:
A. “Administrative Expenses” means all expenses incurred by the Board in the
administration and collection of the local charges, including preparation and wind down
costs which are reimbursable to the Board from the revenues collected by the Board on
behalf of the local jurisdiction.
B. “Contingent Fee” includes, but is not limited to, a fee that is based on a
percentage of the tax liability reported on a return, a fee that is based on a percentage of
the taxes owed, or a fee that depends on the specific tax result attained.
C. “Direct Seller” means a prepaid Mobile Telephony Service (MTS) provider or
service supplier, as defined in section 41007, that makes a sale of prepaid mobile
telephony services directly to a prepaid consumer for any purpose other than resale in the
regular course of business. A direct seller includes, but is not limited to, a telephone
corporation, a person that provides an interconnected Voice over Internet Protocol (VoIP)
service, and a retailer as described in section 42004(b)(1).
D. “Local Charges” means a utility user tax imposed on the consumption of
prepaid mobile telephony services, as described in section 42102, and charges for access
to communication services or to local “911” emergency telephone systems imposed by a
local jurisdiction, as described in section 42102.5.
E. “Local Jurisdiction” or “local agency” means a city, county, or city and
county, which includes a charter city, county, or city and county of this State, which has
adopted an ordinance imposing a local charge of the kind described in Part 21.1 of
Division 2 of the Revenue and Taxation Code and has entered into a contract with the
Board to perform all functions incident to the collection of the local charges.
F. “Ordinance” means an ordinance of a local jurisdiction imposing a local
charge, including any local enactment relating to the filing of a refund or a claim arising
under the ordinance, attached hereto, as amended from time to time.
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G. “Quarterly local charges” means the total amount of local charges
transmitted by the Board to a local jurisdiction for a calendar quarter, as set forth in
section 42106(a)(1).
H. “Refund” means the amount of local charges deducted by the Board from a
local jurisdiction’s quarterly local charges in order to pay that jurisdiction’s share of a
local charge refund due to one taxpayer.
I. “Section” – all section references are to the Revenue and Taxation Code.
J. “Seller” means a person that sells prepaid mobile telephony service to a
person in a retail transaction.
ARTICLE II
BOARD ADMINISTRATION AND COLLECTION OF LOCAL CHARGES
A. Administration. The Board and the local jurisdiction agree that the Board
shall perform functions incident to the collection of the local charges from sellers that are
not direct sellers.
B. Collection. The Board shall collect the local charges in the same manner as it
collects the prepaid MTS Surcharge in the Prepaid Mobile Telephony Services Surcharge
Collection Act, subject to specified limitations in the Local Charge Act for which the
local jurisdiction is responsible, as set forth in Article III of this Agreement.
C. Audits. The Board’s audit duties shall be limited to verification that the seller
that is not a direct seller complied with the Local Charge Act.
D. Other applicable laws. The Board and the local jurisdiction agree that all
provisions of law applicable to the administration and operation of the Local Charge Act,
Prepaid Mobile Telephony Services Surcharge Collection Act, and the Fee Collection
Procedures Law (FCPL) shall be applicable to the collection of local charges. References
in the FCPL to feepayer include a person required to pay the local charge, including the
seller. All future amendments to applicable laws are automatically incorporated into this
Agreement.
E. Deposit of Local Charges. All local charges collected by the Board shall be
deposited in the Local Charges for Prepaid Mobile Telephony Services Fund in the State
Treasury to be held in trust for the local taxing jurisdiction. Local charges shall consist
of all taxes, charges, interest, penalties, and other amounts collected and paid to the
Board, less payments for refunds and reimbursement to the Board for expenses incurred
in the administration and collection of the local charges, including preparation and wind-
down costs.
F. Allocation of Expenses. The Board shall allocate the total combined annual
expenses incurred for administration and collection pursuant to the Prepaid Mobile
Telephony Services Surcharge Collection Act and the Local Charge Act on a pro rata
basis according to revenues collected for: (1) the emergency telephone users surcharge
portion of the prepaid MTS surcharge, (2) the Public Utilities Commission surcharges
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portion of the prepaid MTS surcharge, and (3) local charges. The Board shall charge a
local jurisdiction its pro rata share of the Board’s cost of collection and administration.
G. Transmittal of money. All local charges collected by the Board shall be
transmitted to the local jurisdiction once in each calendar quarter. Transmittals may be
made by mail or by deposit to the account of the local jurisdiction in a bank designated
by that jurisdiction. The Board shall furnish a statement quarterly indicating the amounts
paid and withheld for expenses of the Board.
H. Rules. The Board shall prescribe and adopt such rules and regulations as in its
judgment are necessary or desirable for the administration and collection of local charges
and the distribution of the local charges collected.
I. Security. The Board agrees that any security which it hereafter requires to be
furnished under the FCPL section 55022 will be upon such terms that it also will be
available for the payment of the claims of the local jurisdiction for local taxes owing to it
as its interest appears. The Board shall not be required to change the terms of any security
now held by it, and the local jurisdiction shall not participate in any security now held by
the Board.
J. Records of the Board.
1. Information obtained by the local jurisdiction from the examination of the
Board’s records shall be used by the local jurisdiction only for purposes related to the
collection of the prepaid mobile telephony services surcharge and local charges by the
Board pursuant to this Agreement.
2. When requested by resolution of the legislative body of a local jurisdiction, the
Board shall permit any duly authorized officer or employee or other person designated by
that resolution to examine any information for its own jurisdiction that is reasonably
available to the Board regarding the proper collection and remittance of a local charge of
the local jurisdiction by a seller, including a direct seller, subject to the confidentiality
requirements of sections 7284.6, 7284.7 and 19542. (sections 42110(b), 42103(e).).
3. The resolution of the local jurisdiction shall certify that any person designated
by the resolution, other than an officer and an employee, meets all of the following
conditions:
a. Has an existing contract with the local jurisdiction that authorizes the person
to examine the prepaid MTS surcharge and local charge records.
b. Is required by that contract with the local jurisdiction to disclose information
contained in or derived from, those records only to an officer or employee of
the local jurisdiction authorized by the resolution to examine the information.
c. Is prohibited by that contract from performing consulting services for a seller
during the term of that contract.
d. Is prohibited by that contract from retaining information contained in, or
derived from, those prepaid MTS surcharge and local charge records, after
that contract has expired.
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4. Any third party contract between the local jurisdiction and an entity or person
authorized by the local jurisdiction to request information from the Board shall be subject
to the following limitations:
a. Any third party shall, to the same extent as the Board, be subject to Section
55381, relating to unlawful disclosures.
b. A third party contract shall not provide, in whole or in part, in any manner a
contingent fee arrangement as payment for services rendered.
5. Information obtained by examination of Board records shall be used only for
purposes related to the collection of the prepaid MTS surcharge and local charges by the
board pursuant to the contract, or for purposes related to other governmental functions of
the local jurisdiction set forth in the resolution.
6. If the Board believes that any information obtained from the Board’s records
related to the collection of the prepaid MTS surcharge and local charges has been
disclosed to any person not authorized or designated by the resolution of the local
jurisdiction, or has been used for purposes not permitted by section 42110(b), the board
may impose conditions on access to its local charge records that the board considers
reasonable, in order to protect the confidentiality of those records. (section 42110 (c).)
7. The costs incurred by the Board in complying with a request for information
shall be deducted by the Board from those revenues collected by the Board on behalf of
the local jurisdiction making the request, as authorized by section 42110(b)(1).
ARTICLE III
LOCAL JURISDICTION
ADMINISTRATION AND RESPONSIBILITIES
A. The local jurisdictions shall be solely responsible for all of the following:
1. Defending any claim regarding the validity of the ordinance in its application
to prepaid mobile telephony service. The claim shall be processed in accordance with the
provisions of the local ordinance that allows the claim to be filed.
2. Interpreting any provision of the ordinance, except to the extent specifically
superseded by section 42105 of the Local Charge Act. The claim shall be processed in
accordance with the provisions of the local enactment that allows the claim to be filed.
3. Responding to specified consumer claims for refund involving: (1) rebutting
the presumed location of the retail transaction; (2) a consumer claim of exemption from
the local charge under the ordinance; or (3) any action or claim challenging the validity
of a local tax ordinance, in whole or part. The claim shall be processed in accordance
with the provisions of the local enactment that allows the claim to be filed.
4. Refunding the taxes in the event a local jurisdiction or local government is
ordered to refund the tax under the local ordinance.
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5. Reallocating local charges as a result of correcting errors relating to the
location of the point of sale of a seller or the known address of a consumer, for up to two
past quarters from the date of knowledge.
6. Collecting local charges on prepaid mobile telephony service and access to
communication services or access to local 911 emergency telephone systems imposed on
direct sellers.
7. Enforcement, including audits, of the collection and remittance of local
charges by direct sellers pursuant to the ordinance.
8. The local jurisdiction shall be the sole necessary party defendant on whose
behalf the local charge is collected in any action seeking to enjoin collection of a local
charge by a seller, in any action seeking declaratory relief concerning a local charge, in
any action seeking a refund of a local charge, or in any action seeking to otherwise
invalidate a local charge. There shall be no recovery from the State for the imposition of
any unconstitutional or otherwise invalid local charge that is collected under the Local
Act.
9. Entering into an agreement with the Board to perform the functions incident to
the collection of the local charges imposed on sellers that are not direct sellers.
10. Submitting an executed Certification to the Board, certifying that:
(a) the local jurisdiction’s ordinance applies the local charge to prepaid mobile
telephony services;
(b) the amount of the rate charged for access to local 911 emergency telephone
systems or access to communications services complies with the requirements of section
42102.5; and/or applies the tiered rate for the utility user tax, as identified in section
42102.
(c) The local jurisdiction shall further certify that it agrees to indemnify and to
hold harmless the Board, its officers, agents, and employees for any and all liability for
damages that may result from the Board’s collection pursuant to this Agreement.
11. Submitting signed documents to the Board to include agreement(s),
certification, copy of ordinance(s), and resolution(s).
12. Providing payment to the Board of the local jurisdiction’s pro rata share of the
Board’s cost of collection and administration as established pursuant to subdivision (e) of
section 42020.
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ARTICLE IV
LOCAL CHARGES
A. Local Charges – Timeliness – This part shall remain in effect until
proposed California Code of Regulations, title 18, section 2460 is adopted by the
Board and approved by the Office of Administrative Law.
1. Ordinances in effect as of September 1, 2015.
On or after January 1, 2016, a local charge imposed by a local jurisdiction on prepaid
mobile telephony services shall be collected from the prepaid consumer by a seller at the
same time and in the same manner as the prepaid MTS surcharge is collected under Part
21 (commencing with section 42001) provided that, on or before September 1, 2015, the
local jurisdiction enters into a contract with the Board pursuant to section 42101.5.
Thereafter, all subsequently enacted local charges, increases to local charges, or other
changes thereto, shall become operative pursuant to paragraphs (2), (3), and (4).
2. New charges. When a local jurisdiction adopts a new local charge after
September 1, 2015, the local jurisdiction shall enter into a contract with the Board,
pursuant to section 42101.5, on or before December 1st, with collection of the local
charge to commence April 1st of the next calendar year.
3. Increases in local charges. When a local jurisdiction increases an existing
local charge after September 1, 2015, the local jurisdiction shall provide the Board
written notice of the increase, on or before December 1st, with collection of the local
charge to commence April 1st of the next calendar year.
4. Inaccurate rate posted on the Board’s website. When a local jurisdiction
notifies the Board in writing that the rate posted on the Board’s Internet Web site (posted
rate) for a local charge imposed by that local jurisdiction is inaccurate, including
scenarios where the local charge was reduced or eliminated, the recalculated rate
applicable to the local jurisdiction shall become operative on the first day of the calendar
quarter commencing more than 60 days from the date the Board receives the local
jurisdiction’s written notification that the posted rate is inaccurate.
A. Local Charges – Timeliness – This part shall take effect and supersede
the above “Local Charges – Timeliness section when California Code of
Regulations, title 18, section 2460 is adopted by the Board and approved by the
Office of Administrative Law.
1. Ordinances in effect as of September 1, 2015. On or after January 1, 2016,
a local charge imposed by a local jurisdiction on prepaid mobile telephony services shall
be collected from the prepaid consumer by a seller at the same time and in the same
manner as the prepaid MTS surcharge is collected under Part 21 (commencing with
section 42001) provided that, on or before September 1, 2015, the local jurisdiction enters
into a contract with the Board pursuant to section 42101.5.
In the event a local jurisdiction does not enter into a contract with the Board by
September 1, 2015, the local jurisdiction may enter into a contract with the Board,
pursuant to section 42101.5, on or before December 1st, with collection of the local
charge to commence April 1st of the next calendar year. Thereafter, all subsequently
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enacted local charges, increases to local charges, or other changes thereto, shall become
operative pursuant to paragraphs (2), (3), (4) and (5) of this subdivision.
2. New charges. When a local jurisdiction adopts a new local charge after
September 1, 2015, the local jurisdiction shall enter into a contract with the Board,
pursuant to section 42101.5, on or before December 1st, with collection of the local
charge to commence April 1st of the next calendar year.
3. Increases in local charges. When a local jurisdiction increases an existing
local charge after September 1, 2015, the local jurisdiction shall provide the Board
written notice of the increase, on or before December 1st, with collection of the local
charge to commence April 1st of the next calendar year.
4. Advance written notification. When a local charge is about to expire or
decrease in rate, the local jurisdiction imposing the local charge shall notify the Board in
writing of the upcoming change, not less than 110 days prior to the date the local charge
is scheduled to expire or decrease. The change shall become operative on the first day of
the calendar quarter commencing after the specified date of expiration or decrease in rate.
If advance written notice is provided less than 110 days prior to the specified date
of expiration or decrease in rate, the change shall become operative on the first day of the
calendar quarter commencing more than 60 days after the specified date of expiration or
decrease.
5. Inaccurate Rate Posted on the Board’s Web site. When a local jurisdiction
notifies the Board in writing that the rate posted on the Board’s Internet Web site (posted
rate) for a local charge imposed by that local jurisdiction is inaccurate, including
scenarios where the local charge was reduced or eliminated and the local jurisdiction
failed to provide advance written notice pursuant to paragraph 4 of this subdivision, the
recalculated rate applicable to the local jurisdiction shall become operative on the first
day of the calendar quarter commencing more than 60 days from the date the Board
receives the local jurisdiction’s written notification that the posted rate is inaccurate. The
local jurisdiction shall promptly notify the Board in writing of any such discrepancies
with the posted rate that are known or discovered by the local jurisdiction.
ARTICLE V
COMPENSATION
The local jurisdiction agrees to pay the Board its pro rata share of the Board’s cost of
collection and administration of the local charges, as established pursuant to section
42020, subdivision (e). Such amounts shall be deducted from the local charges collected
by the Board for the local jurisdiction.
ARTICLE VI
MISCELLANEOUS PROVISIONS
A. Communications. Communications and notices may be sent by first-class
United States Mail. A notification is complete when deposited in the mail.
Communications and notices to be sent to the Board shall be addressed to:
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State Board of Equalization
P.O. Box 942879 MIC: 27
Sacramento, California 94279-0001
Attention: Supervisor,
Local Revenue Allocation Unit
Communications and notices to be sent to the local jurisdiction shall be addressed to:
B. Term. The date of this Agreement is the date on which it is approved by the
Department of General Services. The Agreement shall take effect on the first day of the
calendar quarter next succeeding the date of such approval, but in no case before the
operative date of the local jurisdiction’s ordinance, nor on a day other than the first day of
a calendar quarter. This Agreement shall be renewed automatically from year to year
until January 1, 2020, when the Local Charge Act is repealed, unless a statute enacted
prior to that date extends that date. In such event, this Agreement will continue to renew
automatically from year to year to the date authorized by statute.
STATE BOARD OF EQUALIZATION
By_____________________________
Administrator,
Return Analysis and Allocation Section
LOCAL
JURISDICTION_________________
By_____________________________
(Signature on this line)
_______________________________
(Type name here)
_______________________________
(Type title here)
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CERTIFICATION
I, ________________ am authorized to sign this certification on behalf of _________________.
(Insert name of local jurisdiction)
I certify to the following:
Please check all the following that apply to your jurisdiction:
1.___ 911 Charges/Access to Communication Services - Ordinance No. ____ of the
________________ imposes the local charge set forth in the ordinance to prepaid mobile
(Insert name of local jurisdiction)telephony services for access to communication services or to local 911 emergency
telephone systems. As required by section 42102.5, the percentage reflecting the rate for
access to the local 911 emergency telephone systems or access to communications
services is ________.
2.___ Utility User Tax - Ordinance No. ____ of the ________________ imposes the local
(Insert name of local jurisdiction)charge set forth in the ordinance to the consumption of prepaid mobile telephony
services. The tiered rate for the utility user tax, as identified in section 42102 is
___________.
3.The _________________ agrees to indemnify and to hold harmless the Board of
Equalization (Board), its officers, agents, and employees for any and all liability for
damages that may result from the Board’s collection pursuant to this agreement.
Executed in the _________________________________ on ___________________.
(Insert name of local jurisdiction) (Add date)
Printed name ___________________________________
Title of person _____________________________
(Insert name of local jurisdiction)
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RESOLUTION NO. _____ (2015 Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA AUTHORIZING THE EXAMINATION OF
PREPAID MOBILE TELEPHONY SERVICES SURCHARGE AND
LOCAL CHARGE RECORDS
WHEREAS, pursuant to Ordinance No. 1586 (2012 Series) of the City of San Luis
Obispo and the Local Prepaid Mobile Telephony Services Collection Act, the City of San Luis
Obispo, hereinafter called Local Jurisdiction, is authorized to into a contract with the State Board
of Equalization, hereafter referred to as the Board, to perform all functions incident to the
administration and collection of the prepaid mobile telephony services surcharge and local
charges (Rev. & Tax. Code, § 42101.5); and
WHEREAS, the Local Jurisdiction deems it desirable and necessary for authorized
representatives of the Local Jurisdiction to examine confidential prepaid mobile telephony
services surcharge and local charge records pertaining to the prepaid mobile telephony services
surcharge and local charges collected by the Board for the Local Jurisdiction pursuant to that
contract;
WHEREAS, the Board will make available to the Local Jurisdiction any information that
is reasonably available to the Board regarding the proper collection and remittance of a local
charge of the Local Jurisdiction by a seller, including a direct seller, subject to the confidentiality
requirements of Sections 7284.6, 7284.7 and 19542 of the Revenue and Taxation Code; and
WHEREAS, Sections 42110 and 42103 of the Revenue and Taxation Code sets forth
certain requirements and conditions for the disclosure of Board of Equalization records and
establishes criminal penalties for the unlawful disclosure of information contained in or derived
from the prepaid mobile telephony services surcharge and local charge records of the Board.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. That the Director of Finance and Information Technology, Finance
Operations Manager, City Attorney or other officer or employee of the Local Jurisdiction
designated in writing by the City Manager is hereby appointed to represent the Local Jurisdiction
with authority to examine prepaid mobile telephony services surcharge and local charge records
of the Board pertaining to prepaid mobile telephony services surcharge and local charges
collected for the Local Jurisdiction by the Board pursuant to the contract between the Local
Jurisdiction and the Board. The information obtained by examination of Board records shall be
used only for purposes related to the collection of the Local Jurisdiction’s prepaid mobile
telephony services surcharge and local charges by the Board pursuant to the contract.
SECTION 2. That the Director of Finance and Information Technology, Finance
Operations Manager, City Attorney or other officer or employee of the Local Jurisdiction
designated in writing by the City Manager is hereby appointed to represent the Local Jurisdiction
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Resolution No. _____ (2015 Series) Page 2
R ______
with authority to examine those prepaid mobile telephony services surcharge and local charge
records of the Board for purposes related to the following governmental functions of the Local
Jurisdiction:
a) compliance and enforcement of the utility users tax (local charge)
b) administrative functions set out in City’s utility users tax ordinance
c) legal interpretation and enforcement of utility users tax ordinance, including but not limited to
refunds and defense of claims against ordinance
SECTION 3. That MuniServices, LLC is hereby designated to examine the prepaid mobile
telephony services surcharge and local charges records of the Board of Equalization pertaining to
prepaid mobile telephony services surcharge and local charges collected for the Local
Jurisdiction by the Board. The person or entity designated by this section meets all of the
following conditions (Rev. & Tax. Code, § 42110, subd. (b)(2)):
a) has an existing contract with the Local Jurisdiction that authorizes the person to examine
the prepaid mobile telephony services surcharge and local charge records;
b) is required by that contract with the Local Jurisdiction to disclose information contained
in, or derived from, those records only to an officer or employee of the Local Jurisdiction
authorized by resolution to examine the information;
c) is prohibited by that contract from performing consulting services for a seller during the
term of that contract;
d) is prohibited by that contract from retaining information contained in, or derived from,
those prepaid mobile telephony services surcharge and local charge records, after that
contract has expired.
The contract between the Local Jurisdiction and MuniServices, LLC designated by the Local
Jurisdiction to request information from the Board shall be subject to the following limitations
(Rev. & Tax. Code, § 42103, subd. (g)):
a) MuniServices, LLC shall, to the same extent as the Board, be subject to Section 55381,
relating to unlawful disclosures.
b) the contract between the Local Jurisdiction and MuniServices, LLC shall not provide, in
whole or in part, in any manner a contingent fee arrangement as payment for services
rendered.
BE IT FURTHER RESOLVED THAT the information obtained by examination of the
Board records shall only be used for purposes related to the collection of the Local Jurisdiction’s
prepaid mobile telephony services surcharge and local charges by the Board pursuant to the
contract between the Local Jurisdiction and Board, or for purposes related to other governmental
functions of the Local Jurisdiction, as identified above in section 2.
Upon motion of _______________________, seconded by _______________________,
and on the following roll call vote:
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Resolution No. _____ (2015 Series) Page 3
R ______
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2015.
____________________________________
Mayor Jan Marx
ATTEST:
____________________________________
Anthony Mejia
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, _________.
______________________________
Anthony J. Mejia
City Clerk
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RESOLUTION NO.__________ 2015 Series
A Resolution of the City Council of the City of San Luis Obispo,
California Authorizing the City Manager and the City Attorney to Execute Certain
Documents Required by the Board of Equalization to Collect the City’s Utility Users
Tax on Prepaid Wireless Service
WHEREAS, pursuant to UUT Ordinance No. 1586 (2012 Series) of the City of San Luis
Obispo and the Local Prepaid Mobile Telephony Services Collection Act, the City of San
Luis Obispo (hereinafter CITY), wishes to enter into a contract with the State Board of
Equalization, hereafter referred to as the BOARD, to perform all functions incident to the
administration and collection of the prepaid mobile telephony services surcharge and
local charges (Rev. & Tax. Code, § 42101.5) effective January 1, 2016; and
WHEREAS, the BOARD requires that CITY: enter into a contract with the BOARD by
September 1, 2015; certify the CITY’S UUT ordinance, its rate and applicability; and
adopt a resolution authorizing certain persons access to confidential information of the
BOARD that is reasonably available to the Board regarding the proper collection and
remittance of a local charge of the CITY,
NOW, THEREFORE IT IS RESOLVED AND ORDERED AS FOLLOWS:
The City Manager is hereby authorized to sign on behalf of the City a contract with the
BOARD, as approved by the City Attorney, including any other related documents
required by the BOARD to perform all functions incident to the administration and
collection of the prepaid mobile telephony services surcharge and local charges (Rev. &
Tax. Code, § 42101.5).
Further, the City Attorney is hereby authorized to sign on behalf of the City a
certification required by the BOARD certifying certain information regarding the CITY’s
utility users tax ordinance, the applicable rate, and that it applies to all wireless
telecommunication services, including prepaid wireless. The City Attorney may also sign
any other documents relate to the implementation of the collection agreement and the
Mobile Telephony Services Collection Act.
************
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On motion of ___________________, seconded by _______________________, and on the following vote:
AYES:
NOTE:
ABSENT:
the foregoing Resolution was passed and adopted on August 18, 2015.
______________________________
Mayor Jan Marx
ATTEST:
Anthony Mejia, City Clerk
APPROVED:
Christine Dietrick, City Attorney
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