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HomeMy WebLinkAbout0559ORDINANCE NO. 559 (1972 Series) AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO AMENDING THE MUNICIPAL CODE BY ADDING CHAPTER 6 TO ARTICLE VI, PROVIDING FCR THE IMP061TION AND COLLEC11ON OF A.UTILITY USERS TAX. BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION L. The Municipal Code is hereby amended by adding to Article VI a new chapter as follows: "Cbaptei 6. Utility Users Tax. Section 6600. This Chapter shall be known as the Utility Users Tax Ordinance of the City of San Luis Obispo. Section 6601. Definitions. Except where the context otherwise requires, the definitions given in this section govern the construction of this chapter. (a) Person means any domestic or foreign corporation, firm, association, syndicate, joint stock company, partnership of any kind, joint venture, club, A•iassachusetts business or common law trust, society, individual, or municipal corporation. (b) q!tv shall mean the City of San Luis Obispo. (c) Telephone Corporation, Electrical Corporation, Gas Corporation, Water Corporation and Cable Television Corporation shall have the same meanings as defined in Sections 234, 218, 222, 241, and 215.5, respectively, of the Public Utilities Code of the State of California, as said sections existed on lviarch 4, 1972, and shall include governmental agencies or entities. (d) Tax Administrator shall mean the Director of Finance of the City of San Luis Obispo. (e) Service Supplier shall mean a telephone, electrical, gas, water or cable television corporation required to collect and remit a tax imposed by this article, and shall include the City's Water Department. (f) Service User shall mean a person required to pay a tax imposed by this article. (g) Month shall mean a calendar month. Section 6602. City, Public Entity and Constitutional Exemptions. Nothing in this chapter shall be construed as imposing a tax upon (1) the City, or (2) any person when imposition of such tax upon that person would be in violation of the Constitution of the United States or that of the State of California, or (3) the State, any county, municipal corporation, city-and county, district or any political subdivision of the State of Utility Users Tax Oruaiance Second Draft Page 2 Section 6603. Telephone Users Tax. (a) There is hereby imposed a tax upon every person, other than a telephone corporation, using intrastate telephone communication services in the city. The tax imposed by this section shall be at the rate of five per cent (59D of all charges made for such services and shall be paid by the person paying such charges. (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 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; nor shall the term "telephone- communication services" include landmobile services or maritime - mobile services as defined in Section 2.1 of Title 47 of the Code of Federal Regulations as such section existed on January 1, 1970. (c) Notwithstanding the provisions of subsection (a) the tax imposed under this section shall not be imposed upon any person for using intrastate telephone communication services to the extent that the amounts paid for such services are - exempt from or not subject to the tax imposed by Section 4251 of Title 26 of the United States Code, as such section existed on January 1, 1972, without regard to subsection (b) thereof. Section 6604. Electricity Users Tax. (a) There is hereby imposed a tax upon every person, other than an electrical corporation or a gas corporation, using electrical energy in the city. The tax imposed by this section shall be at the rate of five per cent (59D of the charge made for such energy and shall be paid by the person paying such charges. "Charges ", as used in this section, shall include charges made for (1) metered energy, and (2) minimum charges for service, including customer charges, service charges, demand charges, standby charges, and annual and monthly charges. (b) 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. The term shall not include electricity used in water pumping by water corporations; nor shall the term include the mere receiving of such energy by an electrical corporation or governmental agency at a point within the city for resale. Utility Users Tax OrdiL..,ice Second Draft Page 3 Section 6605. Gas Users Tax. (a) There is hereby imposed a tax upon every person, other than a gas corporation or an electrical corporation, using gas in the city which is delivered through mains or pipes. The tax imposed by this section shall be at the rate of five per cent (5%a of the charges made for such gas and shall be paid by the person paying such charges. (b) There shall be excluded from the base on which the tax imposed in 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 to be used in the generation of electrical energy by an electrical corporation; (3) charges for gas used in water pumping by water corporations; and (4) charges made for gas utilized to propel motor vehicles. Section 6606. Water Users Tax. (a) There is hereby imposed a tax upon every person using water in the city which is delivered through mains or pipes. The tax imposed by this section shall be at the rate of five per cent (5/7� of the charges made for such water and shall lie paid by the person paying such charges. (b) "Charges ", as used in this section, shall include minimum charges for service, including customer charges, service thanes, standby charges, and annual and monthly charges. (c) There shall be excluded from the base on which the tax imposed in this section is computed charges made for water which is to be resold and delivered through main_, or pipes and charges made for water used in the generation of electrical energy by an electrical corporation. Section 6607.. Cable Television Users Tax. There is hereby imposed a tax upon every person using cable television service in the city. The tax imposed by this section shall be at the rate of five per cent (55) of the charges made for such service and shall be paid by the person paying such charges. Section 6605. Cperative Date of Tax. The utility users taxes provided for herein shall be operative frorl and after janijaxy 1 1973, or at the beginning of the first regular billing period for each service user after said January 1 1973, whichever is later. Section 6609. Collection of Tax. (a) Every service supplier receiving payment of charges from a service user shall collect the amount of: tax imposed by this chapter from the service user. (b) The tax shall be7 collected insofar as practicable at the same time as and along with the collection of charges made in accordance with the regular billing practice of the service supplier. If the amount paid by a service user is less than the full amour, of the charge and tax which has accrued fo; the billing period, a proportionate share of bath the charge and the tax shall be deened to have been paid. uututy users'iax tirdi —nce Second Draft Page 4 (e) The duty to collect the tax from service users shall commence upon the operative date of the tax as set forth in Section 6608. Section 6609.1. Reporting and Remitting. Each service supplier shall, on or before the last day of each month, make a return to the Tax Administrator, on forms provided by him, stating the amount of taxes billed by the service supplier during the preceding month. At the time the return is filed, the full amount of the tax collected shall be remitted to the Tax Administrator. The Tax Administrator is authorized to require such further information as he reasonably deems necessary to determine if the tax here imposed is being levied and collected in accordance with this chapter. Returns and remittances are due immediately upon cessation of business for any reason. Section 6609.2. Administrative Agreements. The Tax Administrator may make administrative agreements to vary the strict requirements of this chapter so that collection and remittance of any tax imposed herein may be made in conformance with the billing procedures of a particular service supplier so long as the overall result of said agreements result in collection of the tax in conformance with the general purpose and scope of this chapter. A copy of each such agreement shall be on file and available for public examination in the Tax Administrator's office. Section 6609.3. Interest and Penalty. (a) Taxes collected front a service user by a service supplier which are not remitted to the Tax Administrator on or before the due date are delinquent. (b) Interest and penalties for delinquency in remittance of any tax collected shall be assessed as follows; (1) Any service supplier who fails to remit any tax imposed by this chapter within ten (10) days after receipt of written notice from the city of such failure shall pay a penalty of ten per cent (10;o of the amount of the tat:. (2) If the Tax Administrator determines that the non - payment of any remittance due is due to fraud, wilfulness or inexcusable neglect, a penalty of twenty-five per cent (259a of the amount of the tax shall be added thereto in addition to the penalty stated in subparagraph (1) of this subsection (b). (3) In addition to the penalties imposed in this subsection (b), any service supplier who fails to timely remit any tax imposed by this chapter, shall pay interest at the rate of one-half of one per cent (1/29D per month, or fraction thereof, on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent until paid. Utility Users Tax Ord"nee Second Draft Pad 5 (4) Evexy penalty imposed upon a service supplier, and such interest as accrues, under the provisions of this subsection (b) shall become a part of the tax required to be remitted. Section 6610. 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 person owing money to the city under the provisions of this chapter shall be liable to an action brought in the nane of the city for the recovery of such amount. Section 6611. Refusal of Service Supplier to Collect and Report Tax - Determination of Tax by Tax Administrator. If any service supplier shall refuse to make within the time provided in this chapter any report and remittance of said tax or any portion thereof required by this chapter, the Tax Administrator shall proceed in such manner as he may deem best to obtain facts and information on which to base his estimate of the tax due. As soon as he procures such facts and information he shall estimate said tax and shall assess against such service supplier the tax, interest and penalties provided for by this chapter. The Tax Adn?in-5trator shall give a notice of the amount so assessed by serving it personally or by depositing it in the United States mail, postage prepaid, addressed to the service supplier so assessed at his last Immvn place of address. Such service supplier may within ten (10) days after the serving or mailing of such notice, make application in writing to the Tax Administrator for a hearing on the amount assessed. If application by the service supplier for a hearing is not made within the time prescribed, the tax, interest and penalties, if any, determined by the Tax Administrator shall become final and conclusive and f mediately due and payable. If such application is made, the Tax Administrator shall give not less than five (5) days written notice in the manner prescribed herein to the service supplier to shrnv cause at a time and place fixed in said notice why said amount specified therein should not be fixed for such tax, interest and penalties. At such hearing, the service supplier may appear and offer evidence why such specified tax, interest and penalties should not. be so fixed. After such hearing, the Tax Administrator shah.l.determine the proper tax to be remitted and shall thereafter give written notice to the service supplier in the manner prescribed above of such determination and the amount of such tax, interest and penalties. The amount determined to be due shall be payable after fifteen (15) days unless an appeal is taken as provided in Section 6613. Utility Users Tax Orn.,iance Second Draft Page 6 Section 6612. Nonpayment of Tax by Service User. Assessment Administrative Reme Whenever the Tax Administrator believes that a service user has deliberately failed to pay the amount of any users tax imposed herein, he may relieve the service supplier of the obligation to collect said tax from said service user for specified billing periods; provided that if a service user has failed to pay the amount of the tax to a service supplier for a period of four consecutive billing periods, the Tax Administrator shall relieve such service supplier of the obligation to collect said tax from said service user for said billing periods. The Tax Administrator shall notify the service user that he has assumed responsibility to collect the taxes due for the stated periods and demand payment of such taxes. The notice shall be served on the service user by handing it to him personally or by deposit of the notice in the United States mail, postage prepaid thereon, addressed to the service user at the address to which billing was made by the service supplier, or, should the service user have changed his address, to his last known address. If a service user fails to remit the tax to the Tax Administrator within fifteen (15) days from the date of the service of the notice upon him, which shall be the date of mailing if service is not accomplished in person, a penalty of ten per cent (109D of the amount of the tax set forth in the notice shall be imposed, but not less than $10, and shall become part of the tax herein required to be paid. Section 6613. Appeal. Any person aggrieved by any decision of the Tax Administrator may appeal to the City Council by filing a notice of appeal with the City Clerk and the Tax Administrator within fifteen (15) days of the serving or mailing of the decision. The Council shall fix a time and place for hearing such appeal, and the City Clerk shall give notice in writing to such person at his last known place of address. Any amount found by the Council to be owed by the service user shall be due and payable in full at once. Section 6614. Records. It shall be the duty of every service supplier required to collect and remit to the city any tax imposed by this chapter to keep and preserve, for a period of three (3) years, all records as may be necessary to determine the amount of such tax as such service supplier may have been required to collect and remit to tie City, which records the Tax Administrator shall have the right to inspect at all reasonable times. Utility Users Tax Ordinance Second Draft Page 7 Section 6615. Refunds - Overpayment. (a) Filing Claim. Whenever the amount of any tax, interest or penalty 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 (3) years of the date of payment. The claim shall be on forms furnished by the Tax Administrator. (b) Refund to Service Supplier. 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 is established that the service user from whom the tax has been collected did not owe the tax; provided, however, that no such refund or a credit shall be allowed unless the amount of the tax so collected has either been refunded to the service user or credited to charges subsequently payable by him. (c) Refund to Service User. 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 th e service supplier who collected the tax. (d) Proof Required. No refund shall be paid under the provisions of this section unless the claimant establishes his right thereto by written records showing entitlement thereto. Section 6616. Refunds - Low Income Households. (a) A refund of not to exceed ten dollars of all taxes due and paid under the provisions of this chapter for utility services rendered on and after July 1, 1972 , and through June 30, 1973 or for any such succeeding twelve - month period, shall be made whenever all of the following occur: (1) The annual gross income of the household in which claimant lives is less than five thousand dollars for the claimant's last preceding federal or state personal income tax reporting period; (2) Claimant makes application and files a verified claim in writing at the department of finance at city hall for such refund upon a claim form provided by the Tax Administrator; Utility Users Tax Ord nce Second Draft Page 8 (3) The claim is approved by the Tax Administrator as being in conformance with this subsection. Only one member of each household may file a claim, and only one claim may be filed for each individual household. (b) The claimant shall be the person in whose name the bills for utilities services were rendered. Income of the household means all income of the claimant's household while members of such household and related to the claimant as a spousd or as defined in Sections 17056 and 17057 of the Revenue and Taxation Code of California. (c) "Gross income" means the sum of adjusted gross income as used for purposes of the California Personal Income Tax Law, together with the net income from all sources of all hinds, including but not limited to alimony, support money, cash public assistance and relief, pensions, annuities, social security, interest on securities (including tax free interest on governmental securities), realized capital gains, workmen's compensation (not including medical benefits), unemployment insurance income, insurance benefits of all kinds (other than medical), and gifts, except that income shall not include medicare benefits, medicaid benefits, gifts of food and gifts between members of the household, the receipt of surplus food or other relief in kind supplied by a governmental agency. (d) The claim for such refund, for the preceding twelve -month period ending on June 30, shall be made only during the month of September or October of each year, and must be accompanied by a copy of the utility bills, together with proof that the utility taxes have been paid by the claimant or some member of the household. No such refund shall be made on any claim filed or postmarked later than the 31st day of October. (e) No refund shall be made to any person for taxes levied on a utility account for which any utility tax is due and outstanding for the period for which refund is claimed or for any prior period. No refund shall be made of any tax which was paid with public assistance or relief bunds_which included an allowance to pay the tax. (f) Nothing in this section shall be construed to require that any utility company has any obligation to make or furnish, for the purpose of the refund provisions hereof, proof of utility taxes due or utility taxes paid. Utility Users Tax Ordin.. :e Second Draft Page 9 Section 66164. Refunds - Low Income Retirement Homes. If a billing for utility, services includes charges for nvo or more households situated within non - profit retirement facilities (1) which are operated solely for the accommodation of persons with low incomes and (2) which qualify for the welfare exemption set forth in the California Revenue and Taxation Code, and if the charges for such services are paid by the operators of the retirement facilities, said operators shall be entitled to an annual refund of all taxes paid under the provisions of this chapter. The procedure for obtaining such refunds shall be established by the Tax Administrator in substantial conformance with the applicable provisions of Section 6616. The Tax Administrator may require whatever proof he deems necessary to establish an operator's qualifications for a refund, and he shall deny a refund if such qualifications are not established to his satisfaction. Nothing in this section shall be construed to prohibit persons residing in said retirement facilities from obtaining a refund under the provisions of Section 6616 for utility services which are billed through separate billings applicable only to the household in which such person resides, the charges for which are paid by such person. Section 6617. California Public Utilities Commission Jurisdiction. Nothing contained in this ordinance is intended to conflict with applicable rules, .regulations and tariffs of any service supplier subject to the jurisdiction of the California Public Utilities Commission. In the event of any conflict, the provisions of said rules, regulations and tariffs shall control. Section 6618. Purpose, The taxes imposed and levied by the provisions of this chapter are solely fox the purpose of providing revenue for the usual and current expenses of the city. The provisions of this chapter are not enacted for regulatory purposes. Section 6619. Severability. If any section, subsection, sentence, clause, phrase or portion of this chapter is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portion of this chapter. The Council of the City. of San Luis Obispo hereby declares that it would have adopted this chapter and each section, subsection, sentence, clause, phrase or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. " SECrIUN 2. This Ordinance, together with the ayes and noe s, shall be published once in full in the Telegram Tribune, a newspaper published and circulated in the City of San Luis Obispo. Utility Users Tax Ora. once Second Draft Page 10 INTRODUCED AND FINALLY PASSED by the Council of the City of San Luis Obispo at a Regular Meeting field thereof on the 7th day of Au,- ,ust 1972, on motion of Councilman Blake seconded by Councilman Brown , and on the following roll call vote: AYES: Councilmen Blake, Brown and Mayor Schwartz NOES: Councilman Graham ABSENT: Councilman Gurnee yor ATTEST: / ity Clerk 0 559 FINALLY PASSED this 21st day of August 19 72 —, by the following roll call vote: AYES: Councilman Blake, Brown, Graham, Mayor Schwartz NOES: Councilman Gurnee ABSENT: None ATTEST:" 'PAR . ORDINANCE NO. 5(1972 Series) AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO AMENDING THE MIUNICIPAL CODE BY ADDING CHAPTER 6 TO ARTICLE VI, PROVIDING FOR THE IMPOSITION AND COLLEC71 ON OF A.UTILITY USERS TAX. BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. The municipal Code is hereby amended by adding to Article VI a Uew chapter as follows: "Chapter 6. Utilitx Users Tax. Section 6600. This Chapter shall be known as the Utility Users Tax Ordinance of the City of San Luis Obispo. Section 6601, Definitions. Except where the context otherwise requires, the definitions given in this section govern the construction of this chapter. (a) Person means any domestic or foreign corporation, firm, association, syndicate, joint stock company, partnership of any kind, joint venture, club, lAassachusetts business or common law trust, society, individual, or municipal corporation. (b) q!ty shall mean the City of San Luis Obispo. (c) Telephone Corporation, Electrical Corporation, Gas Corporation, Water Corporation and Cable Television Corporation shall have the same meanings as defined in Sections 234, 218, 222, 241, and 215.5, respectively, of the Public Utilities Code of the State of California, as said sections existed on March 4, 1972, and shall include governmental agencies or entities. (d) Tax Administrator shall mean the Director of Finance of the City of San Luis Obispo. (e) Service Supplie r shall mean a telephone, electrical, gas, water or cable television corporation required to collect and remit a M, X imposed by this article, and shall include the City's Water Department. (f) Service User shall mean a person required to pay a tax imposed by this article. (g) Month shall mean a calendar month. Section 6602. City, Public Entity and Constitutional Exemptions. Nothing in this chapter shall be construed as imposing a tax upon (1) the City, or (2) any person when imposition of such tax upon that person would be in violation of the Constitution of the United States or that of the State of California, or (3) the State, any county, municipal corporation, city -and county, district or any political subdivision of the State of California. - 197-A-'9 Utility Users Tax Ance Second Draft Page 2 Section 6603. Telephone Users Tax. (a) There is hereby imposed a tax upon every person, other than a telephone corporation, using intrastate telephone communication services in the city. The tax imposed by this section shall be at the rate of five per cent (59D of all charges made for such services and shall be paid by the person paying such charges. (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 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; nor shall, the term "telephone - communication services" include landmobile services or maritime - mobile services as defined in Section 2.1 of Title 47 of the Code of Federal Regulations as such section existed on January 1, 1970. (c) Notwithstanding the provisions of subsection (a) the tax imposed under this section shall not be imposed upon any person for using intrastate telephone communication services to the extent that the amounts paid for such services are exempt from or not subject to the tax imposed by Section 4251 of Title 26 of the United States Code, as such section existed on January 1, 1972, without regard to subsection (b) thereof. Section 6604. Electricity Users Tax. (a) There is hereby imposed a tax upon every person, other than an electrical corporation or a gas corporation, using electrical energy in the city. The tax imposed by this section shall be at the rate of five per cent (59D of the charge made for such energy and shall be paid by the person paying such charges. "Charges ", as used in this section, shall include charges made for (1) metered energy, and (2) minimum charges for service, including customer charges, service charges, demand charges, standby charges, and annual and monthly charges. (b) 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. The term shall not include electricity used in water pumping by water corporations; nor shall the term include the mere receiving of such energy by an electrical corporation or governmental agency at a point within the city for resale. Utility Users Tax Ordh.- _.,.ice Second Draft Page 3 Section 6605. Gas Users Tax. (a) There is hereby imposed a tax upon every person, other than a gas corporation or an electrical corporation, using gas in the city which is delivered through mains or pipes. The tax imposed by this section shall be at the rate of five per cent (59D of the charges made for such gas and shall be paid by the person paying such charges. (b) There shall be excluded from the base on which the tax imposed in this section is computed (1) charges made for gas which is to be resold and delivered through mains or pipes; (2) charges made for ga.s to be used in the generation of electrical energy by an electrical corporation; (3) charges for gas used in water pumping by water corporations; and (4) charges made for gas utilized to propel motor vehicles. Section 6606. Water Users Tax. (a) There is hereby imposed a tax upon every person using water in the city which is delivered through mains or pipes. The tax imposed by this section shall be at the rate of five per cent (57� of the charges made for such water and shall Uc paid by the person paying such charges. (b) "Charges ", as used in this section, shall include minimum chards for service, including customer charges, service charges, standby charges, and annual and monthly charges. (c) There shall be excluded from the base on which the tax imposed in this section is computed charges made for water which is to be resold and delivered through mair_: or pipes and charges made for water used in the generation of electrical energy by an electrical corporation. Section 6607.. Cable Television Users Tax. There is hereby imposed a tax upon every person using cable television service in the city. The tax imposed by this section shall be at the rate of five per cent (59 of the charges made for such service and shall be paid by the person paying such charges. Section 6608. Operative Date of Tax. The utility users taxes provided for herein shall be operative from and after Janes 1 , 1973, or at the beginning of the first regular billing period for each service user after said January 1 1973, whichever is later. Section 6609. Collection of Tax. (a) Every service supplier receiving payment of charges from a service user shall collect the amount of: tax imposed by this chapter from the service user. (b) The tax shall bed collected insofar as practicable at the same time as and along with the collection of charges made in accordance with the regular billing practice of the service supplier. If the amount paid by a service user is less than the full amour, 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. Utility Users Tax Ordi—nce Second Draft Page 4 (c) The duty to collect the tax from service users shall commence upon the operative date of the tax as set forth in Section 6608. Section 6609.1. Reporting and Remitting. Each service supplier shall, on or before the last day of each month, make a return to the Tax Administrator, on forms provided by him, stating the amount of taxes billed by the service supplier during the preceding month. At the time the return is filed, the full amount of the tax collected shall be remitted to the Tax Administrator. The Tax Administrator is authorized to require such further information as he reasonably deems necessary to determine if the tax here imposed is being levied and collected in accordance with this chapter. Returns and remittances are due immediately upon cessation of business for any reason. Section 6609.2. Administrative Agreements. The Tax Administrator may make administrative agreements to vary the strict requirements of this chapter so that collection and remittance of any tax imposed herein may be made in conformance with the billing procedures of a particular service supplier so long as the over -all result of said agreements result in collection of the tay. in conformance with the general purpose and scope of this chapter. A copy of each such agreement shall be on file and available for public examination in the Tax Administrator's office. Section 6609.3. Interest and Penalty. (a) Taxes collected from a service user by a service supplier which are not remitted to the Tax Administrator on or before the due date are delinquent. (b) Interest and penalties for delinquency in remittance of any tax collected shall be assessed as follows: (1) Any service supplier who fails to remit any tax imposed by this chapter within ten (10) days after receipt of written notice from the city of such failure shall pay a penalty of ten per cent (10 %O) of the amount of the ta,x. (2) If the Tax Administrator determines that the non - payment of any remittance due is due to fraud, wilfulness or inexcusable neglect, a penalty of twenty-five per cent (259D of the amount of the tax shall be added thereto in addition to the penalty stated in subparagraph (1) of this subsection (b) . (3) In addition to the penalties imposed in this subsection (b), any service supplier who fails to timely remit any tax imposed by this chapter, shall pay interest at the rate of one-half of one per cent (1/277 per month, or fraction thereof, on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent until paid. Utility Users Tax Ordi;.ance Second Draft Page 5 (4) Every penalty imposed upon a service supplier, and such interest as accrues, under the provisions of this subsection (b) shall become a part of the tax required to be remitted. Section 6610. Actions to Collect. Any tax required to be paid by a service user wider 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 person owing money to the city under the provisions of this chapter shall be liable to an action brought in the name of the city for the recovery of such amount. Section 6611. refusal of Service Supplier to Collect and Report Tax - Determination of Tax bar Tax Administrator. If any service supplier shall refuse to make within the time provided in this chapter any report and remittance of said tax or any portion thereof required by this chapter, the Tax Administrator shall proceed in such manner as he may deem best to obtain facts and information on which to base his estimate of the tax due. As soon as he procures such facts and information he shall estimate said tax and shall assess against such service supplier the tax, interest and penalties provided for by this chapter. The Tax Administrator shall give a notice of the amount so assessed by serving it personally or by depositing it in the United States mail, postage prepaid, addressed to the service supplier so assessed at his last kno%vn place of address. Such service supplier may within ten (10) days after the serving or mailing of such notice, make application in writing to the Tax Administrator for a hearing on the amount assessed. If application by the service supplier for a hearing is not made within the time prescribed, the tax, interest and penalties, if any, determined by the Tax Administrator shall become final and conclusive and i..mediately due and payable. If such application is made, the Tax Administrator shall give not less than five (5) days written notice in the manner prescribed herein to the service supplier to show cause at a time and place fixed in said notice why said amount specified therein should not be fixed for such tax, interest and penalties. At such hearing, the service supplier may appear and offer evidence why such specified tax, interest and penalties should .not. be -so fixed. After such hearing, the Tax Administrator shall-determine the proper tax to be remitted and shall thereafter give written notice to the service supplier in the manner prescribed above of such determination and the amount of such tax, interest and penalties. The amount determined to be due shall be payable after fifteen (15) days unless an appeal is taken as provided in Section 6613. Utility Users Tax Orouiance Second Draft Page 6 Section 6612. Nonpayment of Tax by Service User. Assessment Administrative Remedy. Whenever the Tax Administrator believes that a service user has deliberately failed to pay the amount of any users tax imposed herein, he may relieve the service supplier of the obligation to collect said tax from said service user for specified billing periods; provided that if a service user has failed to pay the amount of the tax to a service supplier for a period of four consecutive billing periods, the Tax Administrator shall relieve such service supplier of the obligation to collect said tax from said service user for said billing periods. The Tax Administrator shall notify the service user that he has assumed responsibility to collect the taxes due for the stated periods and demand payment of such taxes. The notice shall be served on the service user by handing it to him personally or by deposit of the notice in the United States mail, postage prepaid thereon, addressed to the service user at the address to which billing was made by the service supplier, or, should the service user have changed his address, to his last known address. If a service user fails to remit the tax to the Tax Administrator within fifteen (15) days from the date of the service of the notice upon him, which shall be the date of mailing if service is not accomplished in person, a penalty of ten per cent (109D of the amount of the tax set forth in the notice shall be imposed, but not less than $10, and shall become part of the tax herein required to be paid. Section 6613. Appeal. Any person aggrieved by any decision of the Tax Administrator may appeal to the City Council by filing a notice of appeal with the City Clerk and the Tax Administrator within fifteen (15) days of the serving or mailing of the decision. The Council shall fix a time and place for hearing such appeal, and the City Clerk shall give notice in writing to such person at his last known place of address. Any amount found by the Council to be owed by the service user shall be due and payable in full at once. Section 6614. Records. It shall be the duty of every service supplier required to collect and remit to the city any tax imposed by this chapter to keep and preserve, for a period of three (3) years, all records as may be necessary to determine the amount of such tax as such service supplier may have been required to collect and remit to the City, which records the Tax Administrator shall have the right to inspect at all reasonable times. utility Users Tax Orce - Second Draft Page 7 Section 6615. Refunds - Overpayment. r (a) Filing Claim. 'V henever the amount of any tax, interest or penalty 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 (3) years of the date Hof payment. The claim shall be on forms furnished by the Tax Administrator. (b) Refund to Service Supplier. 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 is established that the service user from whom the tax has been collected did not owe the tax; provided, however, that no such refund or a credit shall be allowed unless the amount of the tax so collected has either been refunded to the service user or credited to charges subsequently payable by him. (c) Refund to Service User. 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. (d) Proof Required. No refund shall be paid under the provisions of this section unless the claimant establishes his right thereto by written records showing entitlement thereto. Section 6616. Refunds - Low Income Households. (a) A refund of not to exceed ten dollars of all taxes due and paid under the provisions of this chapter for utility services rendered on and after July 1, 1972 , and through June 30, V7_, or for any such succeeding twelve - month period, shall be made whenever all of the following occur: (1) The annual gross income of the household in which claimant lives is less than five thousand dollars for the claimant's last preceding federal or state personal income tax reporting period; (2) Claimant makes application and files a verified claim in writing at the department. of finance at city hall for such refund upon a clam form provided by the Tax Administrator; Utility Users Tax Ord ace Second Draft Page 8 (3) The claim is approved by the Tax Administrator as being in conformance with this subsection. Only one member of each household may file a claim, and only one claim may be filed for each individual household. (b) The claimant shall be the person in whose name the bills for utilities services were rendered. Income of the household means all income of the claimant's household while members of such household and related to the claimant as a spouse or as defined in Sections 17056 and 17057 of the Revenue and Taxation Code of California. (c) "Gross income" means the sum of adjusted gross income as used for purposes of the California Personal Income Tax Law, together with the net income from all sources of all hinds, including but not limited to alimony, support money, cash public assistance and relief, pensions, annuities, social security, interest on securities (including tax free interest on governmental securities), realized capital gains, workmen's compensation (not including medical benefits), unemployment insurance income, insurance benefits of all kinds (other than medical), and gifts, except that income shall not include medicare benefits, medicaid benefits, gifts of food and gifts between members of the household, the receipt of surplus food or other relief in kind supplied by a governmental agency. (d) The claim for such refund, for the preceding twelve -month period ending on June 30, shall be made only during the month of September or October of each year, and must be accompanied by a copy of the utility bills, together with proof that the utility taxes have been paid by the claaimant or some member of the household. No such refund shall be made on any claim filed or postmarked later than the 31st day of October. (e) No refund shall be made to any person for taxes levied on a utility account for which any utility tax is due and outstanding for the period for which refund is claimed or for any prior period. No refund shall be made of any tax which was paid with public assistance -or relief bmds..whieh includedan allowance to pay the tax. (f) Nothing in this section shall be construed to require that any utility company has any obligation to make or furnish, for the purpose of the refund provisions hereof, proof of utility taxes due or utility taxes paid. 0 560 FINALLY PASSED this 21st day of August lg 72 by the following roll call vote: AYES: Councilmen Blake, Brown, Graham and Mayor Schwartz NOES: Councilman Gurnee ABSENT: None ATTEST: 1 Utility Users Tax Ordin,__ ,a Second Draft Page 9 Section 6616.1. Refunds - Low income Retirement Homes. If a billing for utility services includes charges for two or more households situated within non - profit retirement facilities (1) which are operated solely for the accommodation of persons with low incomes and (2) which qualify for the welfare exemption set forth in the California Revenue and Taxation Code, and if the charges for such services are paid by the operators of the retirement facilities, said operators shall be entitled to an annual refund of all taxes paid under the provisions of this chapter. The procedure for obtaining such refunds shall be established by the Tax Administrator in substantial conformance with the applicable provisions of Section 6616. The Tax Administrator may require whatever proof he deems necessary to establish an operator's qualifications for a refund, and he shall deny a refund if such qualifications are not established to his satisfaction. Nothing in this section shall be construed to prohibit persons re-siding in said retirement facilities from obtaining a refund under the provisions of Section 6616 for utility services which are billed through separate billings applicable only to the household in which such person resides, the charges for which are paid by such person. Section 6617. California Public Utilities Commission jurisdiction. Nothing contained in this ordinance is intended to conflict with applicable rules, - regulations and tariffs of any service supplier subject to the jurisdiction of the California Public Utilities Commission. In the event of any conflict, the provisions of said rules, regulations and tariffs shall control. Section 6618. Purpose. The taxes imposed and levied by the provisions of this chapter are solely for the purpose of providing revenue for the usual and current expenses of the city.. The provisions of this chapter are not enacted for regulatory purposes. Section 6619. Severability. If any section, subsection, sentence, clause, phrase or portion of this chapter is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portion of this chapter. The Council of the City of San Luis Obispo hereby declares that it would have adopted this chapter and each section, subsection, sentence, clause, phrase or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. " �Crtc7N 2. This Ordinance, together with the ayes and noes, shall be published once in full in the Telegram Tribune, a newspaper published and circulated in the City of San Luis Obispo. t Utility Users Tax Oronce Second Draft Page 10 INTRODUCED AND FINALLY PASSED by the Council of the City of San Luis Obispo -at a Regular 1V:eeting held thereof on the 7th day of August 1972, on motion of Councilman Malke seconded by Councilman Brown , and on the following roll call vote: AYES: Councilmen Blake, Brown and Mayor Schwartz NOES: Councilman Graham ABSENT: Councilman Gurnee ATTEST: ity Clerk 0 559 FINALLY PASSED this 21st day of August 19 72 by the following roll call vote: ATTEST �v AYES: Councilman Blake, Brown, Graham, Mayor Schwartz NOES: Councilman Gurnee ABSENT: None