City of Culver City, California
City Council Agenda Item Report
RECOMMENDATION:
Discuss the proposed draft ordinance to modernize provisions of the City’s Utility
Users’ Tax at its existing rate and give staff direction.
BACKGROUND:
On June 18, 2007, staff presented the City Council with fourteen (14) options to
address some of the City’s outstanding financial issues, including an option to place
a ballot measure on the April 8, 2008 general municipal election to modernize the
current Utility Users’ Tax (UUT) provisions related to communications, found in Title
3, Chapter 3.08.200, et seq. of the Culver City Municipal Code. The City Council
unanimously directed staff to return with a draft UUT ordinance for further
discussion.
A UUT is a tax levied on each user of a utility (i.e. telephone, electricity, gas, water,
or video services) within the City’s boundaries. The City’s current Utility Users’ Tax
rate is 11% of applicable charges and has been in force (at various rates) since the
1960’s. Since then, communication technology has changed tremendously with the
invention of cell phones, the internet, satellite communication, and other
communication media.
Similar to many cities in California, Culver City’s UUT ordinance excluded from the
tax base amounts paid for communication services that were “exempt from” or “not
subject to” the Federal Excise Tax (FET). Prior to May 2006, the IRS had followed a
policy of imposing the FET on telephone service charges based on either time OR
distance and Culver City did the same. In May 2006, the IRS announced that, due
Meeting Date: 09/24/07 Item Number: A-1
AGENDA ITEM: Discussion of a Proposed Draft Ordinance Modernizing Title 3,
Chapter 3.08.200, et seq., of the Culver City Municipal Code, Utility Users’ Tax.
Contact Person/Dept.: Marlee Chang,
City Manager’s Office; Nick Kimball,
Budget & Finance
Phone Number: 310.253.6011;
310.253.6013
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [X] Attachments: [X]
Public Notification:
Master Notification List (09/19/07)
Department Approval:
Marlee Chang (9/17/07)
City Attorney Approval:
Carol Schwab (9/19/07)
City Controller Approval:
Marlee Chang (9/19/07)
City Manager Approval:
Jerry B. Fulwood (09/19/07) City of Culver City, California
City Council Agenda Item Report
to a number of legal challenges, it would no longer impose the FET on telephone
charges unless those charges are based on both time AND distance.
Charges for many current telephone plans, especially cellular phone plans, are
based on time only, not on time and distance. Since Culver City’s telephone UUT
referenced the FET definition, there was concern about the impact of the IRS’
change in practice on the City’s practice of collecting UUT on telephone charges
based on either time OR distance.
In response to the IRS’ change, the City amended its UUT ordinance on July 24,
2006 to clarify that it did not wish to adopt the IRS’ new practice, but rather wished to
continue to impose the UUT as it had historically been imposed (i.e. for charges
based on time OR distance). Many other cities chose to protect their UUT revenue
by adopting similar amendments.
Submitting an ordinance for voter approval will allow the public to confirm this action
and will also serve to modernize the language and include new communications
technology within the tax base as they are developed in the future. Since the UUT
issue significantly impacts a large number of California cities (as well as cities
outside of California), Council directed staff to explore the possibility of federal or
state legislation being drafted to address the legal issues. Staff subsequently
contacted the City’s federal and state lobbyists. Both lobbyists indicated that there is
currently nothing in the pipeline related to the UUT issue, and they do not believe
that anything will be drafted in the near future. Therefore, staff proceeded with
preparing a draft ordinance per Council direction.
DISCUSSION:
On June 18, 2007, Council directed staff to move forward with the process of
drafting an ordinance to modernize the current language of the communications
portion of the UUT ordinance, hereafter referred to as Communications Users Tax
(CUT), in order to preserve the City’s CUT tax base. Over the past few months,
lawsuits have been filed by telecommunications companies in a few jurisdictions
challenging the ability of local governments to continue to apply their CUT based on
the former IRS approach without voter approval. As a result, many California cities
are going to the voters to reaffirm the collection methodology, modernize their
ordinances, and ensure application of the tax on new or emerging technologies.
Staff from the City Attorney’s Office, City Treasurer’s Office, City Manager’s Office,
and Budget & Finance have been meeting continuously since the IRS decision in
May 2006. This team has worked with legal counsel from Colantuono & Levin, PC,
who have extensive experience with Utility Users’ Tax issues, to draft a modernized
ordinance. City of Culver City, California
City Council Agenda Item Report
The definitions in the current Municipal Code are based upon the technology that
existed at the time of the adoption of these definitions, more than 30 years ago. At
that time, the primary medium for communication technology was the public
switched network (i.e. land line technology). The current trend in communication
technology has been away from the public switched network towards technologies
that operate on different media. Modernizing the language in the ordinance will
reaffirm the City’s intent to tax the communication technologies of the future,
regardless which medium is being used to deliver the communication services.
Additionally, as telecommunication technology advances and competition between
service providers increases, the cost of service is driven downward (e.g. cheaper
calling packages and per minute charges). As costs decrease and taxpayers pay
less for telecommunication services, the City’s tax revenues decrease accordingly.
This loss of revenue is compounded by the trend away from the public switched
network and toward broadband network communications. This has become
increasingly apparent over the last few years as the revenues from the
telecommunications portion of the UUT have steadily decreased (see Fiscal Analysis
section of this report). Modernizing the UUT language and including the City’s intent
to tax emerging technology as it develops may offset some of the revenues that are
lost as a result of decreasing consumer costs.
A summary of the proposed changes to the UUT is included as Attachment 1. Some
important highlights of the proposed UUT ordinance include:
• The tax rate will remain unchanged at 11%;
• Existing exemptions, including those for income-eligible individuals 60 years
of age or older, or disabled, will continue; and
• Emerging technology is included within the tax base as it develops.
Modernizing the City’s UUT ordinance, as proposed, is governed by Proposition 218
and requires majority approval (50% + 1) by the voters at the City’s next general
election, which is April 8, 2008. It should be noted that, if voters do not pass a
modernized UUT measure, the existing UUT would remain in place and there may
be some risk of a challenge to the existing ordinance. Regardless of voters’
approval, CUT revenue may vary over time due to pricing and market changes that
are not within the City's control.
City of Culver City, California
City Council Agenda Item Report
In order to gather public opinion data related to modernizing the UUT ordinance,
many California cities have retained public opinion research and public education
advisory firms. Staff has also solicited proposals from public opinion research and
public education advisory firms. Consideration of those proposals will be
forthcoming at a future Council meeting as noted below.
Estimated Timeline
Activity Timeline
Receive City Council Comments on Draft UUT
Ordinance
September 24
th
Consideration of Contract Award for Public
Opinion Research and Advisory Services
October 1
st
Incorporate Council Comments into Final UUT
Ordinance
October/November
Council Consideration of Final UUT Ordinance
and Possible Presentation of Public Opinion
Survey Results, Recommendations for Public
Education (if directed by Council)
November 12
th
City Clerk Presents Resolution Calling April ’08
Election
November 26
th
Ballot Measure Argument(s) Filed
December 10
th
Rebuttal Argument(s) May Be Filed
December 20
th
Begin Public Education Activities
January/February 2008
Election April 8, 2008
City of Culver City, California
City Council Agenda Item Report
FISCAL ANALYSIS:
The City’s UUT revenue is General Fund revenue and is used to fund crucial City
services, such as police and fire services, street and park maintenance, and
recreation programs. UUT revenue is the City’s second largest source of revenue,
accounting for nearly 20% of total General Fund revenues. The CUT alone
accounts for nearly 7% of total General Fund revenues. The following table shows
the historical revenues collected from UUT:
2003-04 2004-05 2005-06 2006-07*
Electricity
$4,941,302 $4,942,240 $5,468,241 $6,128,805
Gas
1,009,576 1,193,226 1,268,783 1,257,923
Water
707,248 811,386 813,609 942,317
Telecomm
5,270,405 5,103,307 5,019,061 4,935,930
Cable TV 477,900 567,115 585,927 637,756
Total $12,406,431 $12,617,274 $13,155,621 $13,902,731
*Pre-audit figures
While most UUT revenues have remained relatively stable, total Telecommunication
revenues have steadily declined since 2003-04. As previously discussed,
competition between providers and rapid advances in communications technology
has driven down costs, resulting in price reductions of communications equipment
and usage plans for consumers. Consequently, revenues have also decreased.
The current legal challenges to some cities’ ordinances primarily threaten revenues
collected on cellular charges. The table below details the estimated cellular vs. non-
cellular UUT revenues for Culver City:
2003-04
2004-05 2005-06 2006-07*
Cellular
$2,590,931 $2,576,757 $2,710,795 $2,679,575
Non-cellular
2,679,474 2,429,219 2,308,266 2,256,355
TOTAL
$5,270,405
$5,103,307
$5,019,061
$4,935,930
*Pre-audit figures
Cellular charges typically account for approximately 50 – 55% of the total CUT
revenue receipts. Overall, CUT revenues have been steadily declining since 2003-
04, which is mainly the result of declining non-cellular revenues.
Non-cellular revenues have declined by almost 16% since 2003-04, while cellular
revenues have increased a little more than 3 ½%. This suggests that consumers City of Culver City, California
City Council Agenda Item Report
are using non-cellular forms of telecommunications (primarily publicly switched land
lines) less.
If the City were to lose the cellular portion of the CUT revenue, there would be an
immediate negative impact as approximately $2.5 million in revenue would be lost.
Additionally, it is expected that revenues from non-cellular sources would continue to
decline as other forms of communication become more prolific.
The negative impacts of lost revenue of this magnitude would be significant. Many
City staff and the programs and services they support would be cut as the City would
need to reduce the budget initially by approximately $2.5 – 3 million (based on the
current revenue stream).
City of Culver City, California
City Council Agenda Item Report
ATTACHMENTS:
Attachment 1: Summary of Proposed Changes to UUT
Attachment 2: Utility Users Tax, Chapter 3.08.200, et seq. of the Culver City
Municipal Code
Attachment 3: Proposed Modernized UUT Ordinance (Redline Version)
Attachment 4: Proposed Modernized UUT Ordinance (Non-Redline Version)
MOTIONS:
That the City Council:
Discuss the proposed ordinance and direct staff as appropriate.
MEETING DATE: September 24, 2007
AGENDA ITEM : Discussion of a Draft Ordinance Modernizing Title 3, Chapter
3.08.200, et seq., of the Culver City Municipal Code, Utility
Users’ Tax.
ATTACHMENTS
Pages
1. Summary of Proposed Amendments to 1-4
Chapter 3.08 Utility Users Tax
2. Current Chapter 3.08, Utility Users Tax 5-23
3. Redline of Proposed Amendments to Chapter 3.08 24-55
4. Non-Redline (Clean) of Proposed Amendments to 56-81
Chapter 3.08
Attachment 1
SUMMARY OF PROPOSED AMENDMENTS TO CHAPTER 3.08 UTILITY USERS TAX (UUT)|1010|
Section No. Section Name Action Proposed Amendments
1
3.08.200
Attachment 3,
page 26
Title No Change None
2
3.08.205
Attachment 3,
pages 26-29
Definitions Definitions added and deleted;
definitions designated by alphabet in
alphabetical order.
Definitions Added—
• (A1-A5),Ancillary Telecommunications, including defining “Conference
Bridging Service”, “Detailed Telecommunications Billing Service”,
“Directory Assistance”, “Vertical Service”; and “Voicemail Service”
• (D),Communication Services
• (J), Service Address
• (N),Telecommunications Services
• (Q),Video Services, definition expanded to include ancillary video
services
Definitions Deleted—
• (O),Telephone Communication Services
• (O),Telephone Corporation, Gas Corporation, Water Corporation and
Cable Television Corporation
• (Q), Last sentence eliminated from old UUT ordinance
3
3.08.210
Attachment 3,
pages 29-34
Communication
Users’ Tax
Section title changed from “Telephone
Users’ Tax” to “Communication Users’
Tax”. Portions of ”Video Users’ Tax”,
former §3.08.230, incorporated into this
Section.
Replace—
• References to “telephone” and “telecommunications” to “communication”
Delete—
• B(8), “District of Columbia”
• (C), reference to non-taxable and taxable service billing
• (E), sentence referring to charges for coin operated telephone service
• (H), claims for overpayment (procedure outlined in §3.08.275)
Add—
• (A), Communications tax imposed to Billing or Service Address in City, to
the extent permitted by state and federal law
• (B4), Secretary further defined as United States Secretary of Treasury
|1010|Amendments which may include capitalization, punctuation, grammatical corrections or other nonsubstantive clerical changes are not delineated in this summary.
Page 1 of 4
Page 1 of 81Attachment 1
Section No. Section Name Action Proposed Amendments
3
3.08.210
(continued)
Communication
Users’ Tax
Add—(continued)
• (D1-D8), Charges for Video Services
• (E), adding duties of the Tax Administrator and elimination of sentence
referring to coin operated telephones
• (G), clarifies the City's intent to exercise the full extent of taxing
jurisdiction permissible under federal law. Eliminate former language
establishing legal nexus for imposition and collection of UUT.
• (H), collection of tax on Communication Services and Video Service/
Service User
• (I), Tax Administrator’s discretion to settle disputes and other authority
4
3.08.215
Attachment 3,
pages 34-35
Electricity
Users’ Tax
Eliminate “late charges” in (B5) and
sentence in (D)
Delete—
• (B5), “late charges”
• (D), reference to non-taxable and taxable service billing.
5
3.08.220
Attachment 3,
pages 35-37
Gas Users’ Tax Eliminate “late charges” in (B4) and
sentence in (D)
Delete—
• (B4), “late charges”
• (D), reference to non-taxable and taxable service billing
6
3.08.222
Attachment 3,
page 38
Collection of
Tax from
Service Users
Receiving Direct
Purchase of
Gas or
Electricity
Nonsubstantive changes Replace—
• (A), “Town” Administrator to “Tax” Administrator
7
3.08.225
Attachment 3,
pages 38-39
Water Users’
Tax
Nonsubstantive changes
8
3.08.230
Attachment 3,
page 39
Effect of State
and Federal
Authorization
New section added Add—
• City’s ability to continue to impose and collect tax despite state or federal
law changes
9
3.08.230
Video Users’
Tax
Incorporated in §3.08.210 with
Communication Users’ Tax
Deleted in its entirety
Section No. Section Name Action Proposed Amendments
Page 2 of 4
Page 2 of 81Attachment 1
10
3.08.232
Attachment 3,
page 40
Bundling
Taxable and
Non-Taxable
Charges
New section added Add—
• Non-taxable and taxable service billed together under a single charge
shall be deemed taxable unless otherwise proven by Service Supplier
11
3.08.235
Attachment 3,
pages 41-44
Exemptions Consolidate UUT “Exemptions”
pertaining to income or disability from
former §3.08.285 into new §3.08.235
Delete—
• Former §3.08.235(B) outlining exemption procedure
Add—
• (L), Service Supplier or its billing agent shall provide a list of the names
and addresses of customers if requested by the Tax Administrator
12
3.08.240
Attachment 3,
page 44
Collection of
Tax
Nonsubstantive changes
13
3.08.245
Attachment 3,
pages 44-45
Reporting and
Remitting
Clarify and change reference to
Revenue and Taxation Code
Replace—
• “Revenue and Tax Code §7284.5” to “California Revenue and Taxation
Code 7284.6”
14
3.08.250
Attachment 3,
page 45
Penalty Amend section (B); add new penalty
section (C);
Delete—
• (B), phrase about Service User that fails to self collect and remit tax
Add—
• (C), penalty of fifteen percent (15%) imposed upon Service Supplier or
Service User that fails to collect and remit tax
15
3.08.255
Attachment 3,
page 46
Actions to
Collect
Add sentence about debt owed to the
City.
Add—
• Service Supplier that fails to remit tax shall be deemed a debt owed by
the Service Supplier to the City
16
3.08.257
Attachment 3,
pages 46-47
Additional
Powers and
Duties of Tax
Administrator
Add additional powers to the Tax
Administrator to settle disputes.
Delete—
• (D), the word “alone”, to conform with proposed UUT
Add—
• (C), authorizes the Tax Administrator’s discretion to settle disputes. City
retains ability to impose UUT and does not change its taxing
methodology for purposes of Government Code Section 53750
17
3.08.260
Attachment 3,
pages 47-48
Failure to Pay
Tax; Adminis-
strative Remedy
Nonsubstantive changes
Page 3 of 4
Page 3 of 81Attachment 1
Section No. Section Name Action Proposed Amendments
18
3.08.265
Attachment 3,
pages 48-50
Appeals Renumber subsections, streamline
appeals process by setting deadlines
Delete—
• (B), personal service of appeal to Tax Administrator
• (C), administrative proceedings exhausted and City has right to bring an
action
• (F), deadline for written exceptions to Board of Review amended
• Former §3.08.265(B), no injunction or writ of mandate, moved as stand
alone Section 3.08.267
Add—
• (C) Board of Review must issue decision within 30 days of hearing or
within 30 days of waiver of the hearing
• (F) Board of Review must issue decision within 30 days of hearing or
within 30 days of waiver of the hearing
• (G) City’s failure to satisfy notice and timing requirements does not result
in the waiver of the City’s rights
19
3.08.267
Attachment 3,
page 50
No Injunction or
Writ of Mandate
Deleted from §3.08.265(B) to new stand
alone §3.08.267
Stand alone, no changes to existing language
20
3.08.270
Attachment 3,
page 51
Records Clarify reference to Revenue and
Taxation Code
Replace—
• “Revenue and Tax Code §7284.6-.7” to “California Revenue and
Taxation Code §§7284.6-7284.7”
21
3.08.275
Attachment 3,
pages 51-52
Refunds Add reference to Government Code Add—
• (B), reference to Government Code Section 912.4
Replace—
• (C), “Subchapter” to “section”
22
3.08.280
Attachment 3,
page 52
Severability No change None
23
3.08.285
Attachment 3,
pages 52-55
Exemptions Deleted in its entirety; incorporated into
new §3.08.235
Page 4 of 4
Page 4 of 81Attachment 2
UTILITY USERS TAX
§ 3.08.200 TITLE.
This Subchapter shall be known as the Utility Users Tax Ordinance of the City of
Culver City.
('65 Code, § 33B-1) (Ord. No. CS-621 § 1 (part); Am. Ord. No. 2000-001§ 1 (part))
§ 3.08.205 DEFINITIONS.
Except where the context otherwise requires, the definitions given in this section
govern the construction of this Subchapter.
BILLING ADDRESS. The mailing address of the service user where the service
supplier submits invoices or bills for payment by the customer.
CITY. The City of Culver City.
EXEMPT WHOLESALE GENERATOR. The same meaning as set forth in the
Federal Power Act (15 U.S.C. Section 79z-5a) and regulations thereunder.
GAS. Natural or manufactured gas or any alternate hydrocarbon fuel, which may be
substituted therefor.
MONTH. A calendar month.
NON-UTILITY SERVICE SUPPLIER.
1. A service supplier, other than a provider of electric distribution services to all
or a significant portion of the city, which generates electricity for sale to others, and shall
include but is not limited to any publicly-owned electric utility, investor-owned utility,
cogenerator, exempt wholesale generator, municipal utility district, federal power
marketing agency, electric rural cooperative, or other supplier or seller of electricity.
2. An electric service provider (ESP), electricity broker, marketer, aggregator,
pool, operator, or other electricity supplier other than a provider of electric distribution
services to all or a significant portion of the city, which sells or supplies electricity or
supplemental services to electricity users within the city; and
3. A gas service supplier, aggregator, marketer or broker, other than a provider
of gas distribution services to al or a significant portion of the city, which sells or
supplies gas or supplemental services to gas users within the city.
PERSON. Without limitation, any domestic, non-profit or foreign corporation, firm,
association, syndicate, joint-stock company, partnership of any kind, joint venture, club,
trust, limited liability company, Massachusetts business or common-law trust, society,
any natural individual, cooperative, receiver, trustee, guardian or other representative
appointed by order of any court, or any municipal corporation (other than the City).
SERVICE SUPPLIER. Any entity or person that provides telephone communication,
electric, gas, water, or video service to a user of such services within the city. The term
shall include an entity or person required to collect or self-collect under § 3.08.222 of
this Chapter and remit a tax imposed by this Chapter, including its billing agent in the
case of gas, electric, water and video service suppliers.
SERVICE USER. A person required to pay a tax imposed by this Subchapter.
TAX ADMINISTRATOR. The Treasurer of the City of Culver City, or his or her
authorized representative.
Page 1 of 19
Page 5 of 81Attachment 2
TELEPHONE CORPORATION, ELECTRICAL CORPORATION, GAS
CORPORATION, WATER CORPORATION, and CABLE TELEVISION
CORPORATION. The same meanings as defined in Cal. Pub. Util. Code §§ 234, 218,
222, 241, and 215.5, respectively, as amended. ELECTRICAL CORPORATION and
WATER CORPORATION shall be construed to include any organization or municipality
or agency engaged in the selling or supplying of electrical power or water to a service
user.
TELEPHONE COMMUNICATION SERVICES. Any telephonic quality
communication that is interconnected to the public switched network, and shall include,
without limitation, for the purpose of transmitting messages or information (including but
not limited to voice, telegraph, teletypewriter, data, facsimile, video, or text) by
electronic, radio or similar means through "interconnected service" with the "public
switched network" [as these terms are commonly used in the Federal Communications
Act and the regulations of the Federal Communications Commission - see 47 U.S.C.A.
Section 332(d)], whether such transmission occurs by wire, cable, fiber-optic, light
wave, laser, microwave, radio wave (regardless of radio spectrum used), switching
facilities, satellite or any other similar facilities.
VIDEO SERVICE SUPPLIER. Any person, company, or service which provides one
or more channels of video programming or communications (including the leasing of
channel access to provide such video programming or communications) to or from an
address in the city, including to or from a business, home, condominium, or apartment,
where some fee is paid, whether directly or included in dues or rental charges for that
service, whether or not public rights-of-way are utilized in the delivery of the video
programming or communications. A VIDEO SERVICE SUPPLIER includes, but is not
limited to, multichannel video programming distributors [as defined in 47 U.S.C. Section
522(12)], suppliers of cable television, master antenna television, satellite master
antenna television, multichannel multipoint distribution services, direct broadcast
satellite (to the extent allowed by federal law), and other suppliers of video programming
or communications (including two-way communications), whatever their technology.
VIDEO SERVICES. Any and all services related to the supplying of video
programming (including origination programming), communications (including two-way
communications), regardless of the content of the video programming or
communications, and shall include the leasing of channel access (e.g., home shopping)
to the extent that the service user is subject to an additional direct or indirect charge for
programming or communications over the leased channel. VIDEO SERVICES shall not
include services for which a tax is paid under § 3.08.210 of this chapter.
('65 Code, § 33B-2) (Ord. No. CS-621 § 1 (part); Am. Ord. No. 2000-001§ 1 (part))
§ 3.08.210 TELEPHONE USERS' TAX.
A. There is hereby imposed a tax upon every person who uses Telephone
Communication Services in the city, including intrastate, interstate (including calls to the
District of Columbia), and international telephone communication services. The tax
imposed by this Section shall be at the rate of eleven percent (11%) of the charges
made for such telephone communication services and shall be collected from the
service user by the telephone communication services supplier or its billing agent To the
extent allowed by law, the tax on telephone communication services shall apply to a
Page 2 of 19
Page 6 of 81Attachment 2
service user if the billing or service address of the service user is within the city's
boundaries.
B. Except as otherwise provided herein, TELEPHONE COMMUNICATION
SERVICES shall include local and long-distance telephone service for which there is a
charge, regardless of the means or technology used to provide such services. The tax
imposed under Subsection A. above shall not be imposed upon any person for using
the following TELEPHONE COMMUNICATION SERVICES:
1. Service paid for by inserting coins in coin-operated telephones available with
respect to local telephone service, or with respect to toll telephone service if the charge
for such toll telephone service is less than Twenty-Five Cents ($0.25); 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 subject to the tax.
2. Except with respect to local telephone service, services used in the
collection of news for the public press, or a news ticker service furnishing a general
news service similar to that of the public press or radio broadcasting, or in the
dissemination of news through the public press, or a news ticker service furnishing a
general news service similar to that of the public press or by means of radio
broadcasting, if the charge for such service is billed in writing to such person.
3. Services furnished to an international organization or to the American
National Red Cross.
4. Any toll telephone service which originates within a combat zone and is from
a member of the Armed Forces of the United States performing service in such combat
zone; provided a certificate, setting forth such facts as the Secretary may by regulations
prescribe, is furnished to the person receiving such payment.
5. Any toll telephone service which entitles the subscriber, upon payment of a
periodic charge (determined as a flat amount or upon the basis of total elapsed
transmission time), to the privilege of an unlimited number of telephonic
communications to or from all or a substantial portion of the persons having telephone
or radio telephone stations in a specified area which is outside the local telephone
system area in which the station provided with this service is located, that is for use by a
common carrier, telephone or telegraph company, or radio broadcasting station or
network in the conduct of its business as such.
6. The installation of any instrument, wire, pole, switchboard, apparatus or
equipment as is properly attributable to such installation.
7. Amounts paid by a nonprofit hospital for services furnished to such
organization.
8. Services or facilities furnished to the government of any State, or any
political subdivision thereof, or the District of Columbia.
9. Services or facilities paid for by a nonprofit educational organization and
furnished to such organization. For purposes of this subsection, the term NONPROFIT
EDUCATIONAL ORGANIZATION means an educational organization described in
Section 170(b)(1)(A)(ii) of the Internal Revenue Code, which is exempt from income tax
under Section 501(a) of the same code. The term also includes a school operated as an
activity of an organization described in Section 501(c)(3) of the Internal Revenue Code,
which is exempt from income tax under Section 501(a) of the same code, if such school
Page 3 of 19
Page 7 of 81Attachment 2
normally maintains a regular faculty and curriculum and normally has a regularly
enrolled body of pupils or students in attendance at the place where its educational
activities are regularly carried on.
C. As used in this section, the term CHARGES shall include the value of any other
services, credits, property of every kind or nature, or other consideration provided by the
service user in exchange for the telephone communication services. If a non-taxable
service and a taxable service are billed together under a single charge, the entire
charge shall be deemed taxable unless the service supplier can reasonably identify
charges not subject to the utility users tax based upon its books and records that are
kept in the regular course of business, which shall be consistent with generally accepted
accounting principles. 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.
D. To prevent actual multi-jurisdictional taxation of telephone communication
services subject to tax under this section, any service user, upon proof to the Tax
Administrator that the service user has previously paid the same tax in another state or
city on such telephone communication services, shall be allowed a credit against the tax
imposed to the extent of the amount of such tax legally imposed in such other state or
city; provided, however, the amount of credit shall not exceed the tax owed to the city
under this section. For purposes of establishing sufficient legal nexus for the imposition
and collection of utility users tax on charges for telephone communication services
pursuant to this chapter, MINIMUM CONTACTS shall be construed broadly in favor of
the imposition and collection of the utility users tax to the fullest extent permitted by
California and federal law, and as it may change from time to time.
E. Claims for refunds pursuant to Subsection D. above or pursuant to any claim of
multiple taxation or overpayment shall be made within ninety (90) days of the date of the
billing notice or invoice upon which the alleged overpayment is based. The tax on
telephone communication services imposed by this section shall be collected from the
service user by the service supplier. The amount of tax collected in one (1) month shall
be remitted to the Tax Administrator, and must be received by the Tax Administrator on
or before the twentieth (20th) day of the following month. If a service supplier of
telephone communication services uses a billing agent or billing aggregator to bill,
collect, and/or remit the tax, the service supplier shall: i) provide to the Tax
Administrator the name, address and telephone number of each billing agent and billing
aggregator currently authorized by the service supplier to bill, collect, and/or remit the
tax to the city; and, ii) upon request of the Tax Administrator, deliver, or effect the
delivery of, any information or records in the possession of such billing agent or billing
aggregator that, in the opinion of the Tax Administrator, is necessary to verify the proper
application, calculation, collection and/or remittance of such tax to the city.
F. The Tax Administrator may, from time to time, issue and disseminate to
telecommunication service suppliers, which are subject to the tax collection
requirements of this section, an administrative ruling identifying those
telecommunication services that are subject to the tax of subsection A. above. This
administrative ruling shall be consistent with legal nexus and the federal excise tax
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rules, regulations, and laws pertaining to COMMUNICATIONS SERVICES. In the event
that the federal excise tax on telecommunications is repealed, this administrative ruling
shall refer to the federal excise tax law on telecommunications that existed immediately
prior to the date of repeal.
('65 Code, § 33B-3) (Ord. No. CS-621 § 1 (part); Ord. No. CS-829 § 1; Ord. No. 84-
011 § 1; Ord. No. 88-013 § 1; Ord. No. 94-022 §§ 1-4 ; Am. Ord. No. 2000-001§ 1
(part); Ord. No. 2006-005 § 1; Ord. No. 2006-007 § 1)
§ 3.08.215 ELECTRICITY USERS' TAX.
A. There is hereby imposed a tax upon every person using electricity in the city.
The tax imposed by this Section shall be at the rate of eleven percent (11%) of the
charges made for such electricity, and for any supplemental services or other
associated activities directly related to and/or necessary for the provision of electricity to
the service users, which are provided by a service supplier or non-utility service supplier
to a service user.
B. As used in this Section, the term CHARGES shall include:
1. Energy charges;
2. Distribution or transmission charges;
3. Metering charges;
4. Stand-by, reserves, firming, ramping, voltage support, regulation,
emergency, or other similar minimum charges for services.
5. Customer charges, late charges, service establishment or reestablishment
charges, demand charges, fuel or other cost adjustments, power exchange charges,
independent system operator (ISO) charges, stranded investment or competitive
transition charges (CTC), trust transfer, amounts (bond financing charges), franchise
fees, franchise surcharges, which are necessary or common to the receipt, use and
enjoyment of electric service; and,
6. Charges, fees, or surcharges for electric services or programs, which are
mandated by the California Public Utilities Commission or the Federal Energy
Regulatory Commission, whether or not such charges, fees, or surcharges appear on a
bundled or line item basis on the customer billing.
C. The Tax Administrator shall, from time to time, survey the electric service
suppliers to identify the various unbundled billing components of electric retail service
that they commonly provide to residential and commercial/industrial customers in the
city, and the charges therefor, including those items that are mandated by state or
federal regulatory agencies as a condition of providing such electric service. The Tax
Administrator may, thereafter, issue and disseminate to such electric service suppliers
an administrative ruling identifying those components and items which are: i) necessary
or common to the receipt, use and enjoyment of electric service; or, ii) currently, or
historically have been, included in a single or bundled rate for electric service by a local
distribution company to a class of retail customers. Unbundled charges for such
components and items shall be subject to the tax of subsection A. above.
D. As used in this section, the term CHARGES shall include the value of any other
services, credits, property of every kind or nature, or other consideration provided by the
service user in exchange for the electricity or services related to the provision of such
electricity. If a non-taxable service and a taxable service are billed together under a
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single charge, the entire charge shall be deemed taxable unless the service supplier
can reasonably identify charges not subject to the utility users tax based upon its books
and records that are kept in the regular course of business, which shall be consistent
with generally accepted accounting principles.
E. As used in this section, the term USING ELECTRICITY shall not include the
mere receiving of such electricity by an electric public utility or governmental agency at
a point within the city for resale.
F. The tax on electricity provided by a non-utility service supplier not under the
jurisdiction of this chapter shall be collected and remitted in the manner set forth in §
3.08.222 of this chapter. All other taxes on charges for electricity imposed by this
section shall be collected from the service user by the electric service supplier or its
billing agent. The amount of tax collected in one (1) month shall be remitted to the Tax
Administrator, and must be received by the Tax Administrator on or before the twentieth
(20th) day of the following month; or, at the option of the person required to collect
and/or remit the tax, such person shall remit an estimated amount of tax measured by
the tax billed in the previous month or upon the payment pattern of the service user,
which must be received by the Tax Administrator on or before the twentieth (20th) day
of the following month. If an electric service supplier uses a billing agent or billing
aggregator to bill, collect, and/or remit the tax, the service supplier shall: i) provide to the
Tax Administrator the name, address and telephone number of each billing agent and
billing aggregator currently authorized by the service supplier to bill, collect, and/or remit
the tax to the city; and, ii) upon request of the Tax Administrator, deliver, or effect the
delivery of, any information or records in the possession of such billing agent or billing
aggregator that, in the opinion of the Tax Administrator, is necessary to verify the proper
application, calculation, collection and/or remittance of such tax to the city.
('65 Code, § 33B-4) (Ord. No. CS-621 § 1 (part); Ord. No. CS-829 § 2; Ord. No. 84-
011 § 2; Ord. No. 94-025 §§ 1, 2; Am. Ord. No. 2000-001§ 1 (part))
§ 3.08.220 GAS USERS' TAX.
A. There is hereby imposed a tax upon every person using gas in the city, which is
delivered through a pipeline distribution system. The tax imposed by this Section shall
be at the rate of eleven percent (11%) of the charges made for such gas, including all
services related to the storage, transportation and delivery of such gas.
B. As used in this section, the CHARGES shall include:
1. The community charges for purchased gas, or the cost of gas owned by the
service user (including the actual costs attributed to drilling, production, lifting, storage,
gathering, trunkline, pipeline, and other operating costs associated with the production
and delivery of such gas), which is delivered through a gas pipeline distribution system
or by mobile transport;
2. Gas transportation charges (including interstate charges to the extent not
included in commodity charges);
3. Storage charges; provided, however, that the service supplier shall not be
required to apply the tax to any charges for gas storage services when the service
supplier cannot, as a practical matter, determine the jurisdiction where such stored gas
in ultimately used; but it shall be the obligation of the service user to self-collect the
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amount of tax not applied to any charge for gas storage by the service supplier and to
remit the tax to the appropriate jurisdiction;
4. Capacity or demand charges, late charges, service establishment or
reestablishment charges, transition charges, customer charges, minimum charges,
annual and monthly charges, and any other charges, which are necessary or common
to the receipt, use and enjoyment of gas service; and,
5. Charges, fees, or surcharges for gas services or programs, which are
mandated by the California Public Utilities Commission or the Federal Energy
Regulatory Commission, whether or not such charges, fees, or surcharges appear on a
bundled or line item basis on the customer billing.
C. The Tax Administrator shall, from time to time, survey the gas service suppliers
to identify the various unbundled billing components of gas retail service that they
commonly provide to residential and commercial/ industrial customers in the city, and
the charges therefor, including those items that are mandated by state or federal
regulatory agencies as a condition of providing such gas service. The Tax Administrator
may, thereafter, issue and disseminate to such gas service suppliers an administrative
ruling identifying those components and items which are: i) necessary or common to the
receipt, use and enjoyment of gas service; or, ii) currently, or historically have been,
included in a single or bundled rate for gas service by a local distribution company to a
class of retail customers. Unbundled charges for such components and items shall be
subject to the tax of subsection A. above.
D. As used in this section, the term CHARGES shall include the value of any other
services, credits, property of every kind or nature, or other consideration provided by the
service user in exchange for the gas or services related to the delivery of such gas. If a
non-taxable service and a taxable service are billed together under a single charge, the
entire charge shall be deemed taxable unless the service supplier can reasonably
identify charges not subject to the utility users tax based upon its books and records
that are kept in the regular course of business, which shall be consistent with generally
accepted accounting principles.
E. There shall be excluded from the base on which the tax is imposed in this
section is computed (1) charges made for gas which is to be resold and delivered
through a pipeline distribution system; (2) charges made for gas to be used in the
generation of electricity by an Electrical Corporation; (3) charges made by a gas public
utility for gas used and consumed in the conduct of the business of gas public utilities;
(4) charges made for gas used in the propulsion of a motor vehicle, as defined in the
California Vehicle Code, utilizing natural gas, and (5) charges made for gas used by a
non-utility service supplier to generate electricity for its own use or for sale to others
provided the electricity so generated is subject to the tax in accordance with § 3.08.215
of this chapter.
F. The tax that is calculated on charges for gas provided by self-production or by a
non-utility service supplier not under the jurisdiction of this chapter shall be collected
and remitted in the manner set forth in § 3.08.222 of this chapter. All other taxes on
charges for gas imposed by this section shall be collected from the service user by the
gas service supplier or its billing agent. The amount of tax collected in one (1) month
shall be remitted to the Tax Administrator, and must be received by the Tax
Administrator, on or before the twentieth (20th) day of the following month; or, at the
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option of the person required to collect and/or remit the tax, such person shall remit an
estimated amount of tax measured by the tax billed in the previous month or upon the
payment pattern of the service user, which must be received by the Tax Administrator
on or before the twentieth (20th) day of the following month. If a gas service supplier
uses a billing agent or billing aggregator to bill, collect, and/or remit the tax, the service
supplier shall: i) provide to the Tax Administrator the name, address and telephone
number of each billing agent and billing aggregator currently authorized by the service
supplier to bill, collect, and/or remit the tax to the city; and, ii) upon request of the Tax
Administrator, deliver, or effect the delivery of, any information or records in the
possession of such billing agent or billing aggregator that, in the opinion of the Tax
Administrator, is necessary to verify the proper application, calculation, collection and/or
remittance of such tax to the city.
('65 Code, § 33B-5) (Ord. No. CS-621 § 1 (part); Ord. No. CS-829 § 3; Ord. No. 84-
011 § 3; Ord. No. 94-025 §§ 3, 4; Am. Ord. No. 2000-001§ 1 (part))
§ 3.08.222 COLLECTION OF TAX FROM SERVICE USERS RECEIVING DIRECT
PURCHASE OF GAS OR ELECTRICITY.
A. Any service user subject to the tax imposed by §§ 3.08.215 or by 3.08.220 of
this chapter, which produces gas or electricity for self-use; which receives gas or
electricity, including any related supplemental services, directly from a non-utility service
supplier not under the jurisdiction of this chapter; or which, for any other reason, is not
having the full tax collected and remitted by its service supplier, a non-utility service
supplier, or its billing agent on the use of gas or electricity, including any related
supplemental services, in the city, shall report said fact to the Tax Administrator and
shall remit the tax due directly to the Tax Administrator within thirty (30) days of such
use. In lieu of paying said actual tax, the service user may, at its option, remit to the Tax
Administrator within thirty (30) days of such use an estimated amount of tax measured
by the tax billed in the previous month, or upon the payment pattern of similar
customers of the service supplier using similar amounts of gas or electricity, provided
that the service user shall submit an adjusted payment or request for credit, as
appropriate, within sixty (60) days following each calendar quarter. The credit, if
approved by the Town Administrator, may be applied against any subsequent tax bill
that becomes due.
B. The Tax Administrator may require said service user to identify its non-utility
service supplier and provide, subject to audit, invoices, books of account, or other
satisfactory evidence documenting the quantity of gas or electricity used, including any
related supplemental services, and the cost or price thereof. If the service user is unable
to provide such satisfactory evidence, or, if the administrative cost of calculating the tax
in the opinion of the Tax Administrator is excessive, the Tax Administrator may
determine the tax by applying the tax rate to the equivalent charges the service user
would have incurred if the gas or electricity used, including any related supplemental
services, had been provided by the service supplier that is the primary supplier of gas or
electricity within the city. Rate schedule for this purpose shall be available from the city.
(Ord. No. 2000-001§ 1 (part))
§ 3.08.225 WATER USERS' TAX.
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A. There is hereby imposed a tax upon every person using the City water which is
delivered through mains or pipes. The tax imposed by this Section shall be at the rate of
eleven percent (11%) of the charges made for such water and shall be paid by the
person paying for such water.
B. 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 mains
or pipes; and 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 in the conduct of the business of such department, utility or district.
('65 Code, § 33B-6) (Ord. No. CS-621 § 1 (part); Ord. No. CS-829 § 4; Ord. No. CS-
830 §§ 1, 2; Ord. No. 968 § 1; Ord. No. 84-011 § 4; Ord. No. 94-025 § 5; Am. Ord. No.
2000-001§ 1 (part))
§ 3.08.230 VIDEO USERS' TAX.
A. There is hereby imposed a tax upon everyone in the City using video services
from a video service supplier. The tax imposed by this Section shall be at a rate of
eleven percent (11%) of the charges made for such video services.
B. As used in this section, the term CHARGES shall include charges made for:
1. Franchise fees and access fees (PEG), whether designated on the
customer's bill or not.
2. Initial installation of equipment necessary for provision and receipt of Video
Services;
3. Late fees, collection fees, bad debt recoveries, and return check fees;
4. Activation fee, reactivation fees, and reconnection fees;
5. All programming services (e.g., basic services, premium services, audio
services, video games, pay-per-view services, and electronic program guide services);
6. Equipment leases (e.g., converters, remote devices);
7. Service calls, service protection plans, name changes, changes of service,
and special services (e.g., no promotional mail);
8. The leasing of channel access (e.g., home shopping) to the extent that the
service user is subject to an additional direct or indirect charge for programming or
communications over the leased channel; provided that, in the absence of evidence of
direct payment by the service user, the indirect payment of the service user(s), which is
subject to the utility users tax, shall be deemed to be the lease payment to the video
service supplier by the party leasing the channel access.
C. The Tax Administrator shall, from to time, survey the video service suppliers in
the city to identify the various components of the video service that are being offered to
customers within the city, and the charges therefor. The Tax Administrator may,
thereafter, issue and disseminate to such video service suppliers an administrative
ruling identifying those components: i) that are necessary or common to the receipt, use
and enjoyment of video services; or, ii) which currently are, or historically have been,
included in a bundled rate for video service by a local distribution company. Charges for
such components shall be subject to the tax of subsection A. above.
D. As used in this section, the term CHARGES shall include the value of any other
services, credits, property of every kind or nature, or other consideration provided by the
service user in exchange for the video services. If a non-taxable service and a taxable
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service are billed together under a single charge, the entire charge shall be deemed
taxable unless the service supplier can reasonably identify charges not subject to the
utility users tax based upon its books and records that are kept in the regular course of
business, which shall be consistent with generally accepted accounting principles.
E. The tax imposed by this section shall be collected from the service user by the
video service supplier, its billing agent, or a reseller of such services. In the case of
video services, the service user shall be deemed to be the purchaser of the bulk video
services (e.g., an apartment owner), unless such services are resold to individual users,
in which case the service user shall be the ultimate purchaser of the video service. The
amount of tax collected in one (1) month shall be remitted to the Tax Administrator, and
must be received by the Tax Administrator on or before the twentieth (20th) day of the
following month. If a video service supplier uses a billing agent or billing aggregator to
bill, collect, and/or remit the tax, the service supplier shall: i) provide to the Tax
Administrator the name, address and telephone number of each billing agent and billing
aggregator currently authorized by the service supplier to bill, collect, and/or remit the
tax to the city; and, ii) upon request of the Tax Administrator, deliver, or effect the
delivery of, any information or records in the possession of such billing agent or billing
aggregator that, in the opinion of the Tax Administrator, is necessary to verify the proper
application, calculation, collection and/or remittance of such tax to the city.
('65 Code, § 33B-7) (Ord. No. CS-612 § 1 (part); Ord. No. 829 § 5; Ord. No. 84-011 § 5;
Ord. No. 84-015; Ord. No. 83-0009 § 1; Ord. No. 96-030 § 1; Am. Ord. No. 2000-001§ 1
(part))
§ 3.08.235 EXEMPTIONS.
A. Nothing in this Subchapter shall be construed as imposing a tax upon:
1. Any person or service if imposition of such tax upon that person or service
would be in violation of a federal or California statute, the Constitution of the United
States or the Constitution of the State of California; and,
2. The city.
B. Any service user that is from the tax imposed by this subchapter pursuant to
subsection A. shall file an application with the Tax Administrator for an exemption;
provided, however, this requirement shall not apply to a service user that is a service
user of telephone communication services that has received a federal excise tax
exemption certificate for such service. Said application shall be made upon a form
approved by the Tax Administrator and shall state those facts, declared under penalty of
perjury, which qualify the applicant for an exemption, and shall include the names of all
utility service suppliers serving that service user. If deemed exempt by the Tax
Administrator, such service user shall give the Tax Administrator timely written notice of
any change in utility service suppliers so that the Tax Administrator can properly notify
the new utility service supplier of the service user's tax exempt status. A service user
that fails to comply with this section shall not be entitled to a refund of utility users taxes
collected and remitted to the Tax Administrator from such service user as a result of
such non-compliance. Upon request of the Tax Administrator, a service supplier or non-
utility service supplier, or its billing agent, shall provide a list of the names and
addresses of those customers which, according to its billing records, are deemed
exempt from the utility users tax. With respect to a service user of telephone
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communication services, a service supplier of such telephone communication services
doing business in the city shall, upon request of the Tax Administrator, provide a copy of
the federal exemption certificate for each exempt customer within the city that is served
by such service supplier.
('65 Code, § 33B-8) (Ord. No. CS-621 § 1 (part); Am. Ord. No. 2000-001§ 1 (part))
§ 3.08.240 COLLECTION OF TAX.
A. The duty of service suppliers to collect and remit the taxes imposed by the
provisions of this Subchapter shall be performed as follows:
B. The tax shall be 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.
C. The duty to collect tax from a service user shall commence with the beginning
of the first regular billing period applicable to that person which starts on or after the
operative date of this Subchapter. Where a person receives more than one (1) billing,
one or more being for different periods than another, the duty to collect shall arise
separately for each billing period.
D. If the amount paid by a service user to a service supplier is less than the full
amount of the charge and tax which has accrued for the billing period, a proportionate
share of both the charge and the tax shall be deemed to have been paid. In those cases
where a service user has notified the service supplier of refusal to pay the tax imposed
on said charges, § 3.08.260 of this chapter shall apply.
('65 Code, § 33B-9) (Ord. No. CS-621 § 1 (part); Ord. No. CS-880 § 1; Am. Ord. No.
2000-001§ 1 (part))
§ 3.08.245 REPORTING AND REMITTING.
Each person required by this chapter to remit a tax shall file a return with the Tax
Administrator on forms approved by the Tax Administrator on or before the due date.
The full amount of the tax owed shall be included with the return and filed with the Tax
Administrator. The Tax Administrator is authorized to require such further information as
he deems necessary to properly determine if the tax here imposed is being levied and
collected in accordance with this Subchapter. Returns and remittances are due
immediately upon cessation of business for any reason. Pursuant to Revenue and Tax
Code § 7284.5, the Tax Administrator, and its agents, shall maintain such filing returns
as confidential information, and not subject to the Public Records Act.
('65 Code, § 33B-10) (Ord. No. CS-621 § 1 (part); Am. Ord. No. 2000-001§ 1 (part))
§ 3.08.250 PENALTY.
A. Taxes collected from a service user, or owed by a service user subject to §
3.08.222 of this Subchapter, which are not remitted to the Tax Administrator on or
before the due dates provided in this Subchapter are delinquent. Should the due date
occur on a weekend or legal holiday, the return must be received by the Tax
Administrator on the first regular working day following the weekend or legal holiday.
B. If the person required to collect and/or remit the utility users tax fails to collect
the tax by failing to properly assess the tax on one or more services or charges on the
customer's billing, or fails to remit the tax collected, or, in the case of a service user that
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fails to properly self-collect and remit the tax under § 3.08.222 of this Subchapter, the
Tax Administrator shall attach a penalty for such delinquencies or deficiencies at the
rate of fifteen percent (15%) of the total tax that is delinquent or deficient in the
remittance.
C. The Tax Administrator shall have power to impose additional penalties upon
persons required to collect and/or remit taxes under the provisions of this Subchapter
for fraud or negligence in reporting or remitting at the rate of fifteen percent (15%) of the
amount of the tax collected and/or required to be remitted, or as recomputed by the Tax
Administrator.
D. In addition to any other penalties imposed by this Subchapter, any person
required to collect and/or remit any tax imposed by the provisions of this Subchapter
who fails to collect the tax (by failing to properly assess the tax on the customers' billing)
or fails to remit the tax collected, or, in the cases of a service user that fails to properly
self-collect and remit the tax under § 3.08.222 of this Subchapter, shall pay interest at
the rate of three-quarters of one percent (¾%) per month, or any fraction thereof, on the
amount of the tax, exclusive of penalties, from the date on which the remittance first
became delinquent, until paid.
('65 Code, § 33B-11) (Ord. No. CS-621 § 1 (part); Am. Ord. No. 2000-001§ 1 (part))
§ 3.08.255 ACTIONS TO COLLECT.
Any tax required to be paid by a service user under the provisions of this Subchapter
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 person required to collect and remit and shall no
longer be a debt of the service user. Any person owing money to the City under the
provisions of this Subchapter shall be liable to an action brought in the name of the City
for the recovery of such amount, plus any collection costs incurred by the City as a
result of the person's noncompliance with this Subchapter, including, but not limited to,
reasonable attorney's fees.
('65 Code, § 33B-12) (Ord. No. CS-621 § 1 (part); Am. Ord. No. 2000-001§ 1 (part))
§ 3.08.257 ADDITIONAL POWER AND DUTIES OF TAX ADMINISTRATOR.
A. The Tax Administrator shall have the power and duty, and is hereby directed, to
enforce each and all of the provisions of this Subchapter.
B. The Tax Administrator may adopt administrative rules and regulations not
inconsistent with provisions of this Subchapter for the purpose of carrying out and
enforcing the payment, collection and remittance of the taxes herein imposed. A copy of
such administrative rules and regulations shall be on file in the Tax Administrator's
office.
C. Upon a proper showing of good cause, the Tax Administrator may make
administrative agreements, with appropriate conditions, to vary from the strict
requirements of this Subchapter, and thereby: i) conform to the billing procedures of a
particular service supplier (or service user subject to § 3.08.222 of this Subchapter) so
long as said agreements result in the collection of the tax in conformance with the
general purpose and scope of this Subchapter; or ii) to avoid a hardship where the
administrative costs of collection and remittance greatly outweigh the tax benefit. A copy
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of each such agreement shall be on file in the Tax Administrator's office, and is voidable
by the Tax Administrator or the city at any time.
D. The Tax Administrator alone shall be authorized to determine the eligibility of
any person who asserts a right to exemption from or a refund of, the tax imposed by this
Subchapter.
(Ord. No. 2000-001§ 1 (part))
§ 3.08.260 FAILURE TO PAY TAX; ADMINISTRATIVE REMEDY.
A. 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 (2) or more billing periods, or whenever the Tax Administrator deems it in
the best interest of the City, he may relieve the service supplier of the obligation to
collect taxes due under this Subchapter from certain named service users for specified
billing periods. The service supplier shall provide the City with the names and
addresses of such service users and the amounts of taxes owed under the provisions
of this Subchapter.
B. 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 twenty-five percent (25%)
of the amount of the tax set forth in the notice shall be imposed, along with interest at
the rate of three-quarters of one percent (¾%) per month, or any fraction thereof, on the
amount of the tax, exclusive of penalties, form the date on which the remittance first
became delinquent, until paid, but not less than Five Dollars ($5.00).
C. The Tax Administrator may make an assessment for taxes not paid or remitted
by a service user required to pay or remit. A notice of the assessment which shall refer
briefly to the amount of the taxes and penalties imposed and the time and place when
such assessment shall be submitted to the City Council for confirmation or modification.
The Tax Administrator shall mail a copy of such notice to the service supplier and
service user at least ten (10) days prior to the date of the hearing and shall post such
notice for at least five (5) continuous days prior to the date of the hearing in a
conspicuous place freely accessible to the public at large. Any interested party having
any objections may appear and be heard at the hearing provided his objection is filed in
writing with the Tax Administrator prior to the time set for the hearing. At the time fixed
for considering said assessment, the City Council shall hear the same together with any
objection filed regarding aforesaid and thereupon may confirm or modify said
assessment by motion.
('65 Code, § 33B-13) (Ord. No. CS-621 § 1 (part); Am. Ord. No. 2000-001§ 1 (part))
§ 3.08.265 APPEALS.
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Page 17 of 81Attachment 2
A. If the service user or service supplier is aggrieved by any decision or
administrative ruling of the Tax Administrator, or with the failure to grant a refund or
exemption as provided for under this Subchapter, he/she may appeal to a Board of
Review comprised of the City Manager, the Community Development Director and the
Public Works Director, or their duly authorized designee, by filing a notice of appeal with
the Tax Administrator within fourteen (14) days of the decision or administrative ruling
aggrieved the service user or service supplier. The Tax Administrator shall thereupon fix
a time and place for a hearing of such appeal. The Tax Administrator shall give notice to
such person of the time and place of hearing as herein provided herein.
1. The notice of appeal shall contain the name and address of the person
appealing the action, the decision appealed from and the grounds for the appeal. A
defect in the form of the notice does not affect the validity or right to an appeal. The
notice of appeal shall be accompanied by the fee fixed by resolution of the City Council.
The notice of appeal shall be served upon the person either by handling it to him or her
personally, or by a deposit of the notice in the United States mail, postage prepaid
thereon, addressed to the person at the address of the Billing Address appearing on the
face of the registration certificate. For the purpose of this section, a service by mail is
complete at the time of deposit in the United States mail. Within fifteen (15) days after
the date of service, the person assessed may either apply in writing to the Tax
Administrator for a hearing on the assessment or may file a written request that such
hearing be waived. If the person neither requests a hearing upon the assessment nor
requests a waiver of hearing within the prescribed time, the amount of the assessment
shall be final and the amount thereof shall immediately be due and owing to the City of
Culver City, but penalties and interest as provided by this Subchapter shall continue to
accrue until paid.
2. Waiver of Hearing. If the person requests that the hearing be waived, the
Tax Administrator may either grant such request and notify the person thereof in writing
or may, in his or her discretion, deny the request and set the assessment for hearing at
the time and in the manner prescribed herein. If the Tax Administrator grants the
request for waiver of hearing, the administrator proceeding prescribed by the section
shall be deemed exhausted and the city shall have the right to bring an action in any
court of competent jurisdiction to collect the amount of the assessment, plus such
penalties and interest as may have accrued thereon as provided by this Subchapter.
3. If the person requests a hearing upon any decision or administrative ruling of
the Tax Administrator or if the Tax Administrator denies the request for the waiver of
hearing, the Tax Administrator shall cause the matter to be set for hearing before the
Board of Review no later than ninety (90) days after the date of the application, or as
the case may be, the date of the Tax Administrator's denial of the request for waiver of
hearing. Notice of the time and place of the hearing shall be mailed to the person
assessed not later than fifteen (15) days before the date set for hearing and, if the Tax
Administrator desires said person to produce specific records at such hearing, such
notice may designate the records required to be produced.
4. At the hearing the person appealing the action and the Tax Administrator,
may submit such evidence as they believe to be relevant to their respective positions.
The Board of Review may require the presentation of additional evidence from either
the person assessed or from the Tax Administrator, or from both, and may continue the
Page 14 of 19
Page 18 of 81Attachment 2
hearing from time to time for the purpose of allowing the presentation of additional
evidence.
5. Exception. Within fifteen (15) days from the date of service of the notice of
decision of the Board of Review, the person appealing the action may file written
exceptions to the decision of the Board of Review, but shall not be required to do so. If
the person does not do so, the person shall nevertheless be deemed to have exhausted
the administrative proceedings provided by this section. Upon filing of written
exceptions, the Board of Review may either deny the exceptions or modify its decision,
as it deems appropriate. If the Board of Review may either deny the exceptions or
modify its decision, as it deems appropriate. If the Board of Review modifies its
decision, it shall cause a written notice of decision as required herein to be given to the
person assessed as the time, and in the manner provided therein. If the Board of
Review does not modify its decision within thirty (30) days from the service of said
exceptions, the exceptions shall be deemed denied.
6. Effect of delay in administrative proceeding. Failure of the Tax Administrator
to set any hearing within the time prescribed herein and failure of the Board of Review
to complete any procedure prescribed in this section within the period stated shall not
affect the validity of any proceedings taken hereunder.
7. Effect of payment of a tax. Acceptance of any payment upon a tax, the
validity of which has not previously been passed upon by the Board of Review, shall not
preclude the Tax Administrator from subsequently levying another assessment in any
case where the original assessment does not truly reflect the correct tax liability.
B. No injunction or writ of mandate or other legal or equitable process shall issue
in any suit, action, or proceeding in any court against this city or against any officer of
the city to prevent or enjoin the collection under this Subchapter of any tax or any
amount of tax required to be collected and/or remitted.
('65 Code, § 33B-14) (Ord. No. CS-621 § 1 (part); Am. Ord. No. 2000-001§ 1 (part);
Ord. No. 2006-009 § 22 (part))
§ 3.08.270 RECORDS.
A. It shall be the duty of every person required to collect and/or remit to the City
any tax imposed by this Subchapter to keep and preserve, for a period of at least three
(3) 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, or the Tax Administrator's designated
representative, shall have the right to inspect at all reasonable times. The Tax
Administrator, or the Tax Administrators' designated representative, is authorized to
execute a non-disclosure agreement approved by the City Attorney to protect the
confidentiality of customer information pursuant to Revenue and Tax Code § 7284.6-.7.
B. The Tax Administrator, or the Tax Administrators' designated representative,
may request from a person providing transportation or distribution services of gas or
electricity to service users within the City, a list of the names, billing and service
addresses, quantities of gas or electricity delivered, and other pertinent information, of
its transportation customers within the City pursuant to Section 6354(e) of the California
Public Utilities Code.
Page 15 of 19
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C. If any person subject to record-keeping under this section unreasonably denies
the Tax Administrator, or the Tax Administrator's designated representative, access to
such records, the Tax Administrator or the Tax Administrator's designated
representative may impose a penalty of five hundred dollars ($500) on such person for
each day following the initial date that the person refuses to provide such access. This
penalty shall be in addition to any other penalty imposed under this Subchapter.
('65 Code, § 33B-15) (Ord. No. CS-621 § 1 (part); Ord. No. 2000-001§ 1 (part))
§ 3.08.275 REFUNDS.
A. Whenever the amount of any tax has been overpaid, paid more than once, or
has been erroneously or illegally collected or received by the Tax Administrator under
this Subchapter, it may be refunded as provided in this Section.
B. The Tax Administrator may refund any tax that has been overpaid, paid more
than once, or has been erroneously or illegally collected or received by the Tax
Administrator under this Subchapter, provided that no refund shall be paid under the
provisions of this section unless the claimant or his or her guardian, conservator,
executor or administrator has submitted a written claim to the Tax Administrator within
one year of the overpayment or erroneous or illegal collection of said tax. Such claim
must clearly establish claimant's right to the refund by written records showing
entitlement thereto. Nothing herein shall permit the filing of a claim on behalf of a class
or group of taxpayers. The submission of a written claim, which is acted upon by the
City Council, shall be a prerequisite to a suit thereon. (See Government Code Section
935). The City Council shall act upon the refund claim within the time period set forth in
Government Code Section 912.4. If the City Council fails or refuses to act on a refund
claim within the time prescribed by the City Council on the last day of the period within
which the City Council was required to act upon the claim as provided in Government
Code Section 912.4.
C. It is the intent of the City Council that the one year written claim requirement of
this subsection be given retroactive effect; provided, however, that any claims which
arose prior to the commencement of the one year claims period of this section, and
which are not otherwise barred by a then-applicable statute of limitations or claims
procedure, must be filed with the Tax Administrator as provided in this subsection within
ninety (90) days following the effective date of this Subchapter.
D. Notwithstanding other provisions of this section, whenever a service supplier,
pursuant to an order of the California Public Utilities Commission or a court of
competent jurisdiction, makes a refund to service users of charges for past utility
services, the taxes paid pursuant to this Subchapter on the amount of such refunded
charges shall also be refunded to service users, and the service supplier shall be
entitled to claim a credit for such refunded taxes against the amount of tax which is due
upon the next monthly return. In the event this Subchapter is repealed, the amounts of
any refundable taxes shall be borne by the City.
('65 Code, § 33B-16) (Ord. No. CS-621 § 1 (part); Ord. No. 2000-001§ 1 (part))
§ 3.08.280 SEVERABILITY.
If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this
Subchapter or any part thereof is for any reason held to be unconstitutional, such
Page 16 of 19
Page 20 of 81Attachment 2
decision shall not affect the validity of the remaining portions of this Subchapter or any
part thereof. The City Council hereby declares that it would have passed each section,
subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of
the fact that any one (1) or more sections, subsections, subdivisions, paragraphs,
sentences, clauses or phrases be declared unconstitutional.
('65 Code, § 33B-17) (Ord. No. CS-621 § 1 (part); Ord. No. 2000-001§ 1 (part))
§ 3.08.285 EXEMPTIONS.
A. The utility users tax imposed by this Subchapter shall not apply to any
individual sixty (60) years of age or older, who uses telephone, electric, gas, water or
video services; in or upon any premises occupied by such individual; provided the total
adjusted gross income of that individual, as used for purposes of the California Personal
Income Tax Law, was no more than $18,200 for the most recent completed calendar
years; and provided the combined adjusted gross income of all members of the
household in which such individual resided was no more than $21,500.
B. The provisions of this exemption shall also apply to any individual who meets
the criterion of disability, as established by the Social Security Administration's
Supplemental Security Income Program for the Aged, Blind, and Disabled (Title XVI of
the Social Security Act as amended), without regard to the age of such disabled
individual.
C. The exemption granted by this Section shall not eliminate the duty of the
service supplier from collecting taxes from such exempt individuals, or the duty of such
exempt individuals from paying such taxes to the service supplier; unless an exemption
is applied for by the service user and granted in accordance with the provisions of this
Section.
D. Any service user exempt from the taxes imposed by this Subchapter because
of the provisions of Subsections A. or B. above, may file an application with the Tax
Administrator for an exemption. Such application shall be made upon a form supplied by
the Tax Administrator; and shall state those facts, declared under oath, which qualify
the applicant for an exemption.
E. The Tax Administrator shall review all such applications, and shall certify as
exempt those applicants determined to qualify therefor; and shall notify all service
suppliers affected that such exemptions have been approved. For each exemption, the
following information shall be transmitted to the service supplier:
1. Name of exempt applicant;
2. Account number shown on utility bill;
3. Address to which exempt service is being supplied; and
4. Any other information as may be necessary for the service supplier to
remove the exempt service user from its tax billing procedure.
F. Upon receipt of such notice, the service supplier shall not be required to
continue to bill any further tax imposed by this Subchapter from such exempt service
user, until further notice by the Tax Administrator is given. The service supplier shall
eliminate such exempt service user from its tax billing procedure no later than sixty (60)
days after receipt of such notice from the Tax Administrator.
G. All exemptions shall continue and be renewed automatically by the Tax
Administrator, so long as the prerequisite facts supporting the initial qualification for
Page 17 of 19
Page 21 of 81Attachment 2
exemption shall continue; provided, however, that the exemption shall automatically
terminate with any change in the service address or residence of the exempt individual;
further provided such individual may nevertheless apply for a new exemption with each
change of address or residence.
H. The Tax Administrator shall have the power and right to demand evidence of
continued eligibility of a service user for exemption under the provisions of this Section.
Such evidence may include, but need not be limited to, copies of business records,
letters or statements from the Social Security Administration, copies of income tax
returns, and such other evidence concerning the service user or other members of his
household as may tend to prove or disprove such eligibility. Failure to provide such
evidence as is within the control of a service user to so provide, either directly by him or
by his consent or the consent of a member of his household when such evidence is
requested of the service user in writing by the Tax Administrator, shall be grounds for
the immediate discontinuance of the service user's eligibility for exemption under the
provisions of this Section. Evidence provided to the Tax Administrator upon request, or
voluntarily provided by the service user without request, may not be used against such
service user as evidence of violation of the provisions of this Section; such evidence
may only be used as grounds for termination of the exemption herein provided.
I. Any individual exempt from the tax shall notify the Tax Administrator within ten
(10) days of any change in fact or circumstance which might disqualify said individual
from receiving such exemption. It shall be a misdemeanor for any person to knowingly
receive the benefits of the exemptions provided by this Section, when the basis for such
exemption either does not exist or ceases to exist.
J. Notwithstanding any of the provisions hereof, any service supplier who
determines by any means that a new or nonexempt service user is receiving service
through a meter or connection exempt by virtue of an exemption issued to a previous
user or exempt user of the same meter or connection, such service supplier shall
immediately notify the Tax Administrator of such fact; and the Tax Administrator shall
conduct an investigation to ascertain whether or not the provisions of this section have
been complied with, and where appropriate, order the service supplier to commence
collecting the tax from the nonexempt service user.
K. Commencing January 1, 1977, any individual entitled to be exempt from the
taxes imposed by this Subchapter, who used telephone, electric, gas, water or video
services and paid more than $3.00 in such taxes, may, during the calendar year
following such payment, apply for a refund thereof on forms provided by the Tax
Administrator. Refund applications shall contain a declaration of those facts, under oath,
which qualify the applicant for a refund, and shall be accompanied by the customer's
bills showing the amount of such taxes billed by service supplier during the preceding
calendar year. Refund claims may be filed by an individual who used telephone,
electric, gas, water or video services and paid the taxes prescribed by this Subchapter
either directly or indirectly to the "service user" rather than the service supplier. In the
event the applicant has lost or destroyed any relevant billings or statements showing the
amount of tax paid, or if the applicant indirectly paid such taxes in conjunction with the
occupation of premises without receiving a specific billing therefor from the service user,
the maximum refund shall be $48.00, or $4.00 for each full month of services received
by the applicant, whichever is less.
Page 18 of 19
Page 22 of 81Attachment 2
L. If the Tax Administrator determines that an application for exemption is faulty,
or that the applicant has failed to truthfully set forth such facts, application for the
exemption shall be denied in writing to the applicant. The applicant shall thereafter have
a right to file an amended application for exemption; or to appeal the Tax Administrator's
decision to the City Manager within a 10-day period after the mailing date of the Tax
Administrator's rejection. In the case of an appeal, the City Manager shall review the
facts in consultation with the City Attorney, and shall render a final determination on
such appeal.
('65 Code, § 33B-18) (Ord. No. CS-671 § 1; Ord. No. CS-727 § 1; Ord. No. CS-771 § 1;
Ord. No. CS-812 § 1; Ord. No. CS-820 § 1; Ord. No. CS-879 § 1; Ord. No. CS-887 § 1;
Ord. No. 86-004 § 1; Ord. No. 2000-001§ 1 (part); Ord. no. 2001-010 § 1; Ord. No.
2006-009 § 22 (part))
§ 3.08.290 NOTICE OF CHANGES TO SUBCHAPTER.
If a tax under this Chapter is added, repealed, increased, reduced, or the tax base is
changed, the Tax Administrator shall follow the notice requirements of Public Utilities
Code Section 799. Prior to the effective date of the ordinance change, the Service
Supplier shall provide the Tax Administrator with a copy of any written procedures
describing the information that the Service Supplier needs to implement the ordinance
change. If the Service Supplier fails to provide such written instructions, the Tax
Administrator, or its agent, shall send by first class mail, a copy of the ordinance change
to all collectors and remitters of the City's utility users taxes according to the latest
payment records of the Tax Administrator.
Page 19 of 19
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Page 1 of 32 Redline of UUT Ordinance
TABLE OF CONTENTS
REDLINE OF PROPOSED AMENDMENTS TO
TITLE 3, CHAPTER 3.08.200, et seq. of the
CULVER CITY MUNICIPAL CODE REGARDING THE UTILITY USERS’ TAX
Section No. Section/Topic Page No.
Section 1 3.08.200 Title 3
Section 2 3.08.205 Definitions 3-6
Section 3 3.08.210 Communication Users’ Tax 6-11
Section 4 3.08.215 Electricity Users’ Tax 11-12
Section 5 3.08.220 Gas Users’ Tax 12-14
Section 6 3.08.222 Collection of Tax from Service 15
Users Receiving Direct Purchase of
Gas or Electricity
Section 7 3.08.225 Water Users’ Tax 15-16
Section 8 3.08.230 Effect of State and Federal 16
Authorization
Section 9 3.08.232 Bundling Taxable and Non-Taxable 17
Charges
Section 10 3.08.235 Exemptions 18-21
Section 11 3.08.240 Collection of Tax 21
Section 12 3.08.245 Reporting and Remitting 21-22
Section 13 3.08.250 Penalty 22-23
Section 14 3.08.255 Actions to Collect 23
Section 15 3.08.257 Additional Powers and Duties of 24-25
Tax Administrator
Section 16 3.08.260 Failure to Pay Tax; Administrative 24-25
Remedy
Section 17 3.08.265 Appeals 25-27
Section 18 3.08.267 No Injunction or Writ of Mandate 27
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Page 2 of 32 Redline of UUT Ordinance
Section No. Section/Topic Page No.
Section 19 3.08.270 Records 28
Section 20 3.08.275 Refunds 28-29
Section 21 3.08.280 Severability 29
Section 22 3.08.285 (Reserved)
Page 25 of 81Attachment 3
Page 3 of 32 Redline of UUT Ordinance
Section 1. (No Change) Section 3.08.200 TITLE.
This Subchapter shall be known as the Utility Users Tax Ordinance of the City of
Culver City.
Section 2. (Code Amendment) Section 3.08.205 of the Culver City Municipal Code is
hereby amended to read as follows:
Ҥ 3.08.205 DEFINITIONS.
Except where the context otherwise requires, the definitions given in this
section govern the construction of this Subchapter.
A. ‘Ancillary Telecommunications Services’ means services that are
associated with or incidental to the provision, use or enjoyment of
telecommunications services, including but not limited to the following
services:
(1) ‘Conference Bridging Service’ means an ancillary service that links two or
more participants of an audio or video conference call and may include the
provision of a telephone number. Conference Bridging Service does not
include the telecommunications services used to reach the conference bridge.
(2) ‘Detailed Telecommunications Billing Service’ means an ancillary service
of separately stating information pertaining to individual calls on a customer’s
billing statement.
(3) ‘Directory Assistance’ means an ancillary service of providing telephone
number information, and/or address information.
(4) ‘Vertical Service’ means an ancillary service that is offered in connection
with one or more telecommunications services, which offers advanced calling
features that allow customers to identify callers and to manage multiple calls
and call connections, including Conference Bridging Services.
(5) ‘Voicemail Service’ means an ancillary service that enables the customer
to store, send or receive recorded messages. Voicemail service does not
include any vertical services that the customer may be required to have in
order to utilize the voicemail service.
B. ‘Billing Address’ILLING ADDRESS. means tThe mailing address of the
Sservice Uuser where the Sservice Ssupplier submits invoices or bills for
payment by the customer.
C. ‘City’CITY. means tThe City of Culver City.
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Page 4 of 32 Redline of UUT Ordinance
D. ‘Communication Services’ means Telecommunications Services and
Video Services.
E. ‘ExemptXEMPT WholesaleHOLESALE Generator’ENERATOR. has
tThe same meaning as set forth in the Federal Power Act (15 U.S.C. Section
79z-5a) and regulations thereunder.
F. ‘Gas’AS. means nNatural or manufactured gas or any alternate
hydrocarbon fuel, which may be substituted therefor.
G. ‘MMonth’ONTH. means A calendar month.
H. NON-UTILITY SERVICE SUPPLIER’Non-Utility Service Supplier’ means
the following:.
1. A Sservice Ssupplier, other than a provider of electric distribution
services to all or a significant portion of the Ccity, which generates electricity
for sale to others, and shall include but is not limited to any publicly-owned
electric utility, investor-owned utility, cogenerator, Eexempt Wwholesale
Ggenerator, municipal utility district, federal power marketing agency, electric
rural cooperative, or other supplier or seller of electricity.
2. An electric service provider (ESP), electricity broker, marketer,
aggregator, pool, operator, or other electricity supplier other than a provider of
electric distribution services to all or a significant portion of the Ccity, which
sells or supplies electricity or supplemental services to electricity users within
the Ccity; and
3. A Ggas Sservice Ssupplier, aggregator, marketer or broker, other
than a provider of Ggas distribution services to all or a significant portion of
the Ccity, which sells or supplies Ggas or supplemental services to Ggas
users within the Ccity.
I. ‘Person’ means, wPERSON. Without limitation, any domestic, non-profit
or foreign corporation, firm, association, syndicate, joint-stock company,
partnership of any kind, joint venture, club, trust, limited liability company, ,
Massachusetts business or common-law trust, society, any natural individual,
cooperative, receiver, trustee, guardian or other representative appointed by
order of any court, or any municipal corporation (other than the City).
J. ‘Service Supplier’ means aSERVICE SUPPLIER. Any entity or Pperson
that provides telephone communication, electric, Ggas, or water , or video
service to a user of such services within the Ccity. The term shall include an
entity or Pperson required to collect (or self-collect under § 3.08.222 of this
SubchapterChapter) and remit a tax imposed by this Chapter Subchapter,
including its billing agent in the case of Ggas, electric, water and Vvideo
Sservice Ssuppliers.
Page 27 of 81Attachment 3
Page 5 of 32 Redline of UUT Ordinance
K. ‘Service User’ means anySERVICE USER. A Pperson required to pay a
tax imposed by this Subchapter.
L. ‘Tax Administrator’ means tTAX ADMINISTRATOR. The Treasurer of
the City of Culver City, or his or her authorized representative.
M. ‘Telecommunications Services’ means the transmission, conveyance, or
routing of voice, data, audio, video, or any other information or signals to a
point, or between or among points, whether or not such information is
transmitted through interconnected service with the public switched network,
whatever the technology used, and includes, without limitation, broadband
services [e.g., digital subscriber line (DSL), fiber optic, coaxial cable, and
wireless broadband, including Wi-Fi, WiMAX, and Wireless MESH]. The term
“telecommunications services” includes such transmission, conveyance, or
routing in which computer processing applications are used to act on the
form, code or protocol of the content for purposes of transmission,
conveyance or routing without regard to whether such services are referred to
as voice over internet protocol (VoIP) services or are classified by the Federal
Communications Commission as enhanced or value added, and includes
video and/or data services that is functionally integrated with
‘Telecommunications Services’. ‘Telecommunications Services’ include, but
are not limited to the following services, regardless of the manner or basis on
which such services are calculated or billed: central office and custom calling
features (including but not limited to call waiting, call forwarding, caller
identification and three-way calling), local number portability, text messaging,
ancillary telecommunication services; broadband service (to the extent federal
and/or state law permits taxation of such service); mobile telecommunications
service; private telecommunication service; paging service; and 800 service
(or any other toll-free numbers designated by the Federal Communications
Commission).
N. TELEPHONE CORPORATION, ELECTRICAL CORPORATION, GAS
CORPORATION, nWATER CORPORATION, and CABLE TELEVISION
CORPORATION. The same meanings as defined in Cal. Pub. Util. Code §§
234, 218, 222, 241, and 215.5, respectively, as amended. ‘Electrical
Corporation’ELECTRICAL CORPORATION and WATER CORPORATION
shall be construed to include any organization or municipality or agency
engaged in the selling or supplying of electrical power or water to a sService
uUser.
TELEPHONE COMMUNICATION SERVICES. Any telephonic quality
communication that is interconnected to the public switched network, and
shall include, without limitation, for the purpose of transmitting messages or
information (including but not limited to voice, telegraph, teletypewriter, data,
facsimile, video, or text) by electronic, radio or similar means through
"interconnected service" with the "public switched network" [as these terms
are commonly used in the Federal Communications Act and the regulations of
the Federal Communications Commission - see 47 U.S.C.A. Section 332(d)],
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Page 6 of 32 Redline of UUT Ordinance
whether such transmission occurs by wire, cable, fiber-optic, light wave, laser,
microwave, radio wave (regardless of radio spectrum used), switching
facilities, satellite or any other similar facilities.
O. ‘Video Service Supplier’ means aVIDEO SERVICE SUPPLIER. Any
Pperson, company, or service which provides one or more channels of video
programming or communications (including the leasing of channel access to
provide such video programming or communications) to or from an address in
the Ccity, including to or from a business, home, condominium, or apartment,
where some fee is paid, whether directly or included in dues or rental charges
for that service, whether or not public rights-of-way are utilized in the delivery
of the video programming or communications. ‘Video Service Supplier’A
VIDEO SERVICE SUPPLIER includes, but is not limited to, multichannel
video programming distributors [as defined in 47 U.S.C. Section 522(12)],
suppliers of cable television, master antenna television, satellite master
antenna television, multichannel multipoint distribution services, direct
broadcast satellite (to the extent allowed by federal law), and other suppliers
of video programming or communications (including two-way
communications), whatever their technology.
P. ‘Video Services’ means aVIDEO SERVICES. Any and all services
related to the supplying of video programming (including origination
programming), communications (including two-way communications),
regardless of the content of the video programming or communications, and
shall include, without limitation, the leasing of channel access (e.g., home
shopping) to the extent that the Sservice Uuser is subject to an additional
direct or indirect charge for programming or communications over the leased
channel and ancillary video services, including any service that is associated
with or incidental to the provision or delivery of video services, including but
not limited to electronic program guide services, search functions, or other
interactive services that are associated with or incidental to the provision or
use of video programming.”
. VIDEO SERVICES shall not include services for which a tax is paid under §
3.08.210 of this chapter.”
Section 3. (Code Amendment.) Section 3.08.210 of the Culver City Municipal Code is
hereby amended to read as follows:
Ҥ 3.08.210 COMMUNICATIONTELEPHONE USERS' TAX.
A. There is hereby imposed a tax upon every Pperson with a Billing or
Service Address in the City who uses Telephone Communication Services in
the Ccity, including intrastate, interstate (including calls to the District of
Columbia), and international C ommunicationstelephone communication
sservices, to the extent permitted by state and federal law. The tax imposed
by this Section shall be at the rate of eleven percent (11%) of the charges
made for such telephone Ccommunication Sservices and shall be collected
from the Sservice Uuser by the telephone Scommunication services Ssupplier
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Page 7 of 32 Redline of UUT Ordinance
or its billing agent. To the extent allowed by law, the tax on telephone
Ccommunication Sservices shall apply to a Sservice Uuser if the bBilling or
sService aAddress of the Sservice Uuser is within the Ccity's boundaries.
B. Except as otherwise provided herein, TELEPHONE Communication
ServicesCOMMUNICATION SERVICES shall include all Communicationlocal
and long-distance telephone Sservice for which there is a charge, regardless
of the means or technology used to provide such services. The tax imposed
under Subsection A. above shall not be imposed upon any Pperson for using
the following CommunicationsTELEPHONE COMMUNICATION
ServicesSERVICES:
1. Service paid for by inserting coins in coin-operated telephones
available with respect to local telephone service, or with respect to toll
telephone service if the charge for such toll telephone service is less than
Twenty-Five Cents ($0.25); 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 subject to
the tax.
2. Except with respect to local telephone service, services used in
the collection of news for the public press, or a news ticker service furnishing
a general news service similar to that of the public press or radio
broadcasting, or in the dissemination of news through the public press, or a
news ticker service furnishing a general news service similar to that of the
public press or by means of radio broadcasting, if the charge for such service
is billed in writing to such Pperson.
3. Services furnished to an international organization or to the
American National Red Cross.
4. Any toll telephone service which originates within a combat zone
and is from a member of the Armed Forces of the United States performing
service in such combat zone; provided a certificate, setting forth such facts as
the Secretary of the United States Treasury may by regulations prescribe, is
furnished to the Pperson receiving such payment.
5. Any toll telephone service which entitles the subscriber, upon
payment of a periodic charge (determined as a flat amount or upon the basis
of total elapsed transmission time), to the privilege of an unlimited number of
telephonic communications to or from all or a substantial portion of the
Ppersons having telephone or radio telephone stations in a specified area
which is outside the local telephone system area in which the station provided
with this service is located, that is for use by a common carrier, telephone or
telegraph company, or radio broadcasting station or network in the conduct of
its business as such.
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6. The installation of any instrument, wire, pole, switchboard,
apparatus or equipment as is properly attributable to such installation.
7. Amounts paid by a nonprofit hospital for services furnished to such
organization.
8. Services or facilities furnished to the government of any State, or
any political subdivision thereof., or the District of Columbia.
9. Services or facilities paid for by a nonprofit educational
organization and furnished to such organization. For purposes of this
subsection, the term NONPROFIT EDUCATIONAL ORGANIZATION means
an educational organization described in Section 170(b)(1)(A)(ii) of the
Internal Revenue Code, which is exempt from income tax under Section
501(a) of the same code. The term also includes a school operated as an
activity of an organization described in Section 501(c)(3) of the Internal
Revenue Code, which is exempt from income tax under Section 501(a) of the
same code, if such school normally maintains a regular faculty and curriculum
and normally has a regularly enrolled body of pupils or students in attendance
at the place where its educational activities are regularly carried on.
C. As used in this section, the term CHARGES shall include the value of
any other services, credits, property of every kind or nature, or other
consideration provided by the Sservice Uuser in exchange for the Ctelephone
communication sServices. If a non-taxable service and a taxable service are
billed together under a single charge, the entire charge shall be deemed
taxable unless the service supplier can reasonably identify charges not
subject to the utility users tax based upon its books and records that are kept
in the regular course of business, which shall be consistent with generally
accepted accounting principles.
D. Charges for Video Services that are taxable under this section
include, but are not limited to, charges for the following:
1. Franchise fees and access fees (PEG), whether designated on the
customer's bill or not;
2. Initial installation of equipment necessary for provision and receipt
of Video Services;
3. All programming services (e.g., basic services, premium services,
audio services, video games, pay-per-view services, and electronic program
guide services);
4. Equipment leases (e.g., converters, remote devices);
5. Service calls, service protection plans, name changes, changes of
service, and special services (e.g., no promotional mail); and
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6. The leasing of channel access (e.g., home shopping) to the extent
that the Service User is subject to an additional direct or indirect charge for
programming or communications over the leased channel; provided that, in
the absence of evidence of direct payment by the Service User, the indirect
payment of the Service User(s), which is subject to the utility users tax, shall
be deemed to be the lease payment to the Video Service Supplier by the
party leasing the channel access.
E. The Tax Administrator shall, from to time, survey the Video Service
Suppliers in the City to identify the various components of the video service
that are being offered to customers within the City, and the charges therefor.
The Tax Administrator may, thereafter, issue and disseminate to such Video
Service Suppliers an administrative ruling identifying those components: i)
that are necessary or common to the receipt, use and enjoyment of Video
Services; or, ii) which currently are, or historically have been, included in a
bundled rate for video service by a local distribution company. Charges for
such components shall be subject to the tax of subsection A. above.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.
FD. To prevent actual multi-jurisdictional taxation of telephone
Ccommunication Sservices subject to tax under this section, any Sservice
Uuser, upon proof to the Tax Administrator that the Sservice Uuser has
previously paid the same tax in another state or city on such telephone
Ccommunication Sservices, shall be allowed a credit against the tax imposed
to the extent of the amount of such tax legally imposed in such other state or
city; provided, however, the amount of credit shall not exceed the tax owed to
the Ccity under this section. .
G. For purposes of imposing a tax or establishing a duty to collect and
remit a tax under this Subchapter, “substantial nexus” and “minimum
contacts” shall be construed broadly in favor of the imposition, collection
and/or remittance of the utility users tax to the fullest extent permitted by state
and federal law, and as it may change from time to time by judicial
interpretation or by statutory enactment. Any Communication Service
(including VoIP) used by a Person with a Service Address in the City, which
service is capable of terminating a call to another Person on the general
telephone network, shall be subject to a rebuttable presumption that
“substantial nexus/minimum contacts” exists for purposes of imposing a tax,
or establishing a duty to collect and remit a tax, under this Subchapter. A
Service Supplier shall be deemed to have sufficient activity in the City for tax
collection and remittance purposes if its activities include, but are not limited
to, any of the following: maintains or has within the City, directly or through
an agent or subsidiary, a place of business of any nature; solicits business in
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the City by employees, independent contractors, resellers, agents or other
representatives; solicits business in the City on a continuous, regular,
seasonal or systematic basis by means of advertising that is broadcast or
relayed from a transmitter with the City or distributed from a location with the
City; or advertises in newspapers or other periodicals printed and published
within the City or through materials distributed in the City by means other than
the United States mail.
For purposes of establishing sufficient legal nexus for the imposition and
collection of utility users tax on charges for telephone communication services
pursuant to this chapter, MINIMUM CONTACTS shall be construed broadly in
favor of the imposition and collection of the utility users tax to the fullest
extent permitted by California and federal law, and as it may change from
time to time.
HE. Claims for refunds pursuant to Subsection D. above or pursuant to
any claim of multiple taxation or overpayment shall be made within ninety (90)
days of the date of the billing notice or invoice upon which the alleged
overpayment is based. The tax on telephone Ccommunication Sservices
imposed by this section shall be collected from the Sservice Uuser by the
Sservice Ssupplier. In the case of Video Services, the Service User shall be
deemed to be the purchaser of the bulk Video Services (e.g., an apartment
owner), unless such services are resold to individual users, in which case the
Service User shall be the ultimate purchaser of the Video Services. The
amount of tax collected in one (1) Mmonth shall be remitted to the Tax
Administrator, and must be received by the Tax Administrator on or before the
twentieth (20th) day of the following Mmonth. If a Sservice Ssupplier of
telephone Ccommunication Sservices uses a billing agent or billing
aggregator to bill, collect, and/or remit the tax, the Sservice Ssupplier shall: i)
provide to the Tax Administrator the name, address and telephone number of
each billing agent and billing aggregator currently authorized by the Sservice
Ssupplier to bill, collect, and/or remit the tax to the Ccity; and, ii) upon request
of the Tax Administrator, deliver, or effect the delivery of, any information or
records in the possession of such billing agent or billing aggregator that, in
the opinion of the Tax Administrator, is necessary to verify the proper
application, calculation, collection and/or remittance of such tax to the Ccity.
IF. The Tax Administrator may, from time to time, issue and disseminate
to telecommunication Sservice Ssuppliers, which are subject to the tax
collection requirements of this section, an administrative ruling identifying
those Communicationtelecommunication Sservices that are subject to the tax
of subsection A. above. This administrative ruling shall be consistent with
legal nexus and the federal excise tax rules, regulations, and laws pertaining
to Communication Services.COMMUNICATIONS SERVICES In the event
that the federal excise tax on telecommunications is repealed, this
administrative ruling shall refer to the federal excise tax law on
telecommunications that existed immediately prior to the date of repeal. To
the extent that the Tax Administrator determines that the tax imposed under
this section shall not be collected in full for any period of time, such a
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determination falls within the Tax Administrator’s discretion to settle disputes.
The Tax Administrator’s exercise of prosecutorial forbearance under this
Subchapter does not constitute a change in taxing methodology for purposes
of Government Code section 53750, and the City does not waive or abrogate
its ability to impose the communication users’ tax in full as a result of entering
into such administrative agreements.”
Section 4. (Code Amendment.) Section 3.08.215 of the Culver City Municipal Code is
hereby amended to read as follows:
Ҥ 3.08.215 ELECTRICITY USERS' TAX.
A. There is hereby imposed a tax upon every Pperson using electricity in the
Ccity. The tax imposed by this Section shall be at the rate of eleven percent (11%) of
the charges made for such electricity, and for any supplemental services or other
associated activities directly related to and/or necessary for the provision of
electricity to the Sservice Uusers, which are provided by a Sservice Ssupplier or
Nnon-Uutility Sservice Ssupplier to a Sservice Uuser.
B. As used in this Ssection, the term CHARGES shall include:
1. Energy charges;
2. Distribution or transmission charges;
3. Metering charges;
4. Stand-by, reserves, firming, ramping, voltage support, regulation,
emergency, or other similar minimum charges for services;.
5. Customer charges, late charges, service establishment or
reestablishment charges, demand charges, fuel or other cost adjustments, power
exchange charges, independent system operator (ISO) charges, stranded
investment or competitive transition charges (CTC), trust transfer, amounts (bond
financing charges), franchise fees, franchise surcharges, which are necessary or
common to the receipt, use and enjoyment of electric service; and,
6. Charges, fees, or surcharges for electric services or programs, which are
mandated by the California Public Utilities Commission or the Federal Energy
Regulatory Commission, whether or not such charges, fees, or surcharges appear
on a bundled or line item basis on the customer billing.
C. The Tax Administrator shall, from time to time, survey the electric Sservice
Ssuppliers to identify the various unbundled billing components of electric retail
service that they commonly provide to residential and commercial/industrial
customers in the Ccity, and the charges therefor, including those items that are
mandated by state or federal regulatory agencies as a condition of providing such
electric service. The Tax Administrator may, thereafter, issue and disseminate to
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such electric Sservice Ssuppliers an administrative ruling identifying those
components and items which are: i) necessary or common to the receipt, use and
enjoyment of electric service; or, ii) currently, or historically have been, included in a
single or bundled rate for electric service by a local distribution company to a class
of retail customers. Unbundled charges for such components and items shall be
subject to the tax of subsection A. above.
D. As used in this section, the term CHARGES shall include the value of any
other services, credits, property of every kind or nature, or other consideration
provided by the Sservice Uuser in exchange for the electricity or services related to
the provision of such electricity. If a non-taxable service and a taxable service are
billed together under a single charge, the entire charge shall be deemed taxable
unless the service supplier can reasonably identify charges not subject to the utility
users tax based upon its books and records that are kept in the regular course of
business, which shall be consistent with generally accepted accounting principles.
E. As used in this section, the term USING ELECTRICITY shall not include the
mere receiving of such electricity by an electric public utility or governmental agency
at a point within the Ccity for resale.
F. The tax on electricity provided by a Nnon-Uutility Sservice Ssupplier not
under the jurisdiction of this Subchapter shall be collected and remitted in the
manner set forth in § 3.08.222 of this Subchapter. All other taxes on charges for
electricity imposed by this section shall be collected from the Sservice Uuser by the
electric Sservice Ssupplier or its billing agent. The amount of tax collected in one (1)
Mmonth shall be remitted to the Tax Administrator, and must be received by the Tax
Administrator on or before the twentieth (20th) day of the following Mmonth; or, at
the option of the Pperson required to collect and/or remit the tax, such Pperson shall
remit an estimated amount of tax measured by the tax billed in the previous Mmonth
or upon the payment pattern of the Sservice Uuser, which must be received by the
Tax Administrator on or before the twentieth (20th) day of the following Mmonth. If
an electric Sservice Ssupplier uses a billing agent or billing aggregator to bill, collect,
and/or remit the tax, the Sservice Ssupplier shall: i) provide to the Tax Administrator
the name, address and telephone number of each billing agent and billing
aggregator currently authorized by the Sservice Ssupplier to bill, collect, and/or remit
the tax to the Ccity; and, ii) upon request of the Tax Administrator, deliver, or effect
the delivery of, any information or records in the possession of such billing agent or
billing aggregator that, in the opinion of the Tax Administrator, is necessary to verify
the proper application, calculation, collection and/or remittance of such tax to the
Ccity.”
Section 5. (Code Amendment.). Section 3.08.220 of the Culver City Municipal Code is
hereby amended to read as follows:
Ҥ 3.08.220 GAS USERS' TAX.
A. There is hereby imposed a tax upon every Pperson using Ggas in the
Ccity, which is delivered through a pipeline distribution system. The tax
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imposed by this Section shall be at the rate of eleven percent (11%) of the
charges made for such Ggas, including all services related to the storage,
transportation and delivery of such Ggas.
B. As used in this section, the CHARGES shall include:
1. The community charges for purchased Ggas, or the cost of Ggas
owned by the Sservice Uuser (including the actual costs attributed to drilling,
production, lifting, storage, gathering, trunkline, pipeline, and other operating
costs associated with the production and delivery of such Ggas), which is
delivered through a Ggas pipeline distribution system or by mobile transport;
2. Gas transportation charges (including interstate charges to the
extent not included in commodity charges);
3. Storage charges; provided, however, that the Sservice Ssupplier
shall not be required to apply the tax to any charges for Ggas storage
services when the Sservice Ssupplier cannot, as a practical matter, determine
the jurisdiction where such stored Ggas in ultimately used; but it shall be the
obligation of the Sservice Uuser to self-collect the amount of tax not applied
to any charge for Ggas storage by the Sservice Ssupplier and to remit the tax
to the appropriate jurisdiction;
4. Capacity or demand charges, late charges, service establishment
or reestablishment charges, transition charges, customer charges, minimum
charges, annual and monthly charges, and any other charges, which are
necessary or common to the receipt, use and enjoyment of Ggas service;
and,
5. Charges, fees, or surcharges for Ggas services or programs,
which are mandated by the California Public Utilities Commission or the
Federal Energy Regulatory Commission, whether or not such charges, fees,
or surcharges appear on a bundled or line item basis on the customer billing.
C. The Tax Administrator shall, from time to time, survey the Ggas
Sservice Ssuppliers to identify the various unbundled billing components of
Ggas retail service that they commonly provide to residential and commercial/
industrial customers in the Ccity, and the charges therefor, including those
items that are mandated by state or federal regulatory agencies as a
condition of providing such Ggas service. The Tax Administrator may,
thereafter, issue and disseminate to such Ggas Sservice Ssuppliers an
administrative ruling identifying those components and items which are: i)
necessary or common to the receipt, use and enjoyment of Ggas service; or,
ii) currently, or historically have been, included in a single or bundled rate for
Ggas service by a local distribution company to a class of retail customers.
Unbundled charges for such components and items shall be subject to the tax
of subsection A. above.
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D. As used in this section, the term CHARGES shall include the value of
any other services, credits, property of every kind or nature, or other
consideration provided by the Sservice Uuser in exchange for the Ggas or
services related to the delivery of such Ggas. If a non-taxable service and a
taxable service are billed together under a single charge, the entire charge
shall be deemed taxable unless the service supplier can reasonably identify
charges not subject to the utility users tax based upon its books and records
that are kept in the regular course of business, which shall be consistent with
generally accepted accounting principles.
E. There shall be excluded from the base on which the tax is imposed in
this section is computed (1) charges made for Ggas which is to be resold and
delivered through a pipeline distribution system; (2) charges made for Ggas to
be used in the generation of electricity by an Electrical Corporation; (3)
charges made by a Ggas public utility for gas used and consumed in the
conduct of the business of Ggas public utilities; (4) charges made for Ggas
used in the propulsion of a motor vehicle, as defined in the California Vehicle
Code, utilizing natural Ggas, and (5) charges made for Ggas used by a Nnon-
Uutility Sservice Ssupplier to generate electricity for its own use or for sale to
others provided the electricity so generated is subject to the tax in accordance
with § 3.08.215 of this Subchapter.
F. The tax that is calculated on charges for Ggas provided by self-
production or by a Nnon-Uutility Sservice Ssupplier not under the jurisdiction
of this chapter shall be collected and remitted in the manner set forth in §
3.08.222 of this Subchapter. All other taxes on charges for Ggas imposed by
this section shall be collected from the Sservice Uuser by the gGas Sservice
Ssupplier or its billing agent. The amount of tax collected in one (1) Mmonth
shall be remitted to the Tax Administrator, and must be received by the Tax
Administrator, on or before the twentieth (20th) day of the following Mmonth;
or, at the option of the person required to collect and/or remit the tax, such
Pperson shall remit an estimated amount of tax measured by the tax billed in
the previous Mmonth or upon the payment pattern of the Sservice Uuser,
which must be received by the Tax Administrator on or before the twentieth
(20th) day of the following Mmonth. If a Ggas Sservice Ssupplier uses a
billing agent or billing aggregator to bill, collect, and/or remit the tax, the
Sservice Ssupplier shall: i) provide to the Tax Administrator the name,
address and telephone number of each billing agent and billing aggregator
currently authorized by the Sservice Ssupplier to bill, collect, and/or remit the
tax to the Ccity; and, ii) upon request of the Tax Administrator, deliver, or
effect the delivery of, any information or records in the possession of such
billing agent or billing aggregator that, in the opinion of the Tax Administrator,
is necessary to verify the proper application, calculation, collection and/or
remittance of such tax to the Ccity.”
Section 6. (Code Amendment.) Section 3.08.222 of the Culver City Municipal Code is
hereby amended to read as follows:
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Ҥ 3.08.222 COLLECTION OF TAX FROM SERVICE USERS RECEIVING
DIRECT PURCHASE OF GAS OR ELECTRICITY.
A. Any Sservice Uuser subject to the tax imposed by §§ 3.08.215 or by
3.08.220 of this Subchapter, which produces Ggas or electricity for self-use;
which receives Ggas or electricity, including any related supplemental
services, directly from a Nnon-Uutility Sservice Ssupplier not under the
jurisdiction of this Subchapter; or which, for any other reason, is not having
the full tax collected and remitted by its Sservice Ssupplier, a Nnon-Uutility
Sservice Ssupplier, or its billing agent on the use of Ggas or electricity,
including any related supplemental services, in the Ccity, shall report said fact
to the Tax Administrator and shall remit the tax due directly to the Tax
Administrator within thirty (30) days of such use. In lieu of paying said actual
tax, the Sservice Uuser may, at its option, remit to the Tax Administrator
within thirty (30) days of such use an estimated amount of tax measured by
the tax billed in the previous Mmonth, or upon the payment pattern of similar
customers of the Sservice Ssupplier using similar amounts of Ggas or
electricity, provided that the Sservice Uuser shall submit an adjusted payment
or request for credit, as appropriate, within sixty (60) days following each
calendar quarter. The credit, if approved by the Taxown Administrator, may
be applied against any subsequent tax bill that becomes due.
B. The Tax Administrator may require said Sservice uUser to identify its
Nnon-Uutility Sservice Ssupplier and provide, subject to audit, invoices, books
of account, or other satisfactory evidence documenting the quantity of Ggas
or electricity used, including any related supplemental services, and the cost
or price thereof. If the Sservice Uuser is unable to provide such satisfactory
evidence, or, if the administrative cost of calculating the tax in the opinion of
the Tax Administrator is excessive, the Tax Administrator may determine the
tax by applying the tax rate to the equivalent charges the Sservice Uuser
would have incurred if the Ggas or electricity used, including any related
supplemental services, had been provided by the Sservice Ssupplier that is
the primary supplier of Ggas or electricity within the Ccity. Rate schedule for
this purpose shall be available from the Ccity.”
Section 7. (Code Amendment.) Section 3.08.225 of the Culver City Municipal Code is
hereby amended to read as follows:
Ҥ 3.08.225 WATER USERS' TAX.
A. There is hereby imposed a tax upon every Pperson using the City
water which is delivered through mains or pipes. The tax imposed by this
Section shall be at the rate of eleven percent (11%) of the charges made for
such water and shall be paid by the Pperson paying for such water.
B. 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 mains or pipes; and charges made by a municipal water
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department, public utility or a county or municipal water district for water used
and consumed by such department, utility or district in the conduct of the
business of such department, utility or district.”
Section 8. (Code Amendment.) Section 3.08.230 of the Culver City Municipal Code is
hereby amended to read as follows:
Ҥ 3.08.230 EFFECT OF STATE AND FEDERAL AUTHORIZATION
To the extent that the City’s authorization to impose or collect the tax imposed
in this Subchapter is expanded or limited as a result of changes in state or
federal law, no amendment or modification of this Subchapter shall be
required to conform the tax to those changes, and the tax shall be imposed
and collected to the full extent of the City’s authorization up to the full amount
of the tax imposed by this Subchapter.”
§ 3.08.230 VIDEO USERS' TAX.
A. There is hereby imposed a tax upon everyone in the City using video services from
a video service supplier. The tax imposed by this Section shall be at a rate of eleven
percent (11%) of the charges made for such video services.
B. As used in this section, the term CHARGES shall include charges made for:
1. Franchise fees and access fees (PEG), whether designated on the customer's
bill or not.
2. Initial installation of equipment necessary for provision and receipt of Video
Services;
3. Late fees, collection fees, bad debt recoveries, and return check fees;
4. Activation fee, reactivation fees, and reconnection fees;
5. All programming services (e.g., basic services, premium services, audio
services, video games, pay-per-view services, and electronic program guide services);
6. Equipment leases (e.g., converters, remote devices);
7. Service calls, service protection plans, name changes, changes of service, and
special services (e.g., no promotional mail);
8. The leasing of channel access (e.g., home shopping) to the extent that the
service user is subject to an additional direct or indirect charge for programming or
communications over the leased channel; provided that, in the absence of evidence of
direct payment by the service user, the indirect payment of the service user(s), which is
subject to the utility users tax, shall be deemed to be the lease payment to the video
service supplier by the party leasing the channel access.
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C. The Tax Administrator shall, from to time, survey the video service suppliers in the
city to identify the various components of the video service that are being offered to
customers within the city, and the charges therefor. The Tax Administrator may, thereafter,
issue and disseminate to such video service suppliers an administrative ruling identifying
those components: i) that are necessary or common to the receipt, use and enjoyment of
video services; or, ii) which currently are, or historically have been, included in a bundled
rate for video service by a local distribution company. Charges for such components shall
be subject to the tax of subsection A. above.
D. As used in this section, the term CHARGES shall include the value of any other
services, credits, property of every kind or nature, or other consideration provided by the
service user in exchange for the video services. If a non-taxable service and a taxable
service are billed together under a single charge, the entire charge shall be deemed
taxable unless the service supplier can reasonably identify charges not subject to the utility
users tax based upon its books and records that are kept in the regular course of business,
which shall be consistent with generally accepted accounting principles.
E. The tax imposed by this section shall be collected from the service user by the
video service supplier, its billing agent, or a reseller of such services. In the case of video
services, the service user shall be deemed to be the purchaser of the bulk video services
(e.g., an apartment owner), unless such services are resold to individual users, in which
case the service user shall be the ultimate purchaser of the video service. The amount of
tax collected in one (1) month shall be remitted to the Tax Administrator, and must be
received by the Tax Administrator on or before the twentieth (20th) day of the following
month. If a video service supplier uses a billing agent or billing aggregator to bill, collect,
and/or remit the tax, the service supplier shall: i) provide to the Tax Administrator the name,
address and telephone number of each billing agent and billing aggregator currently
authorized by the service supplier to bill, collect, and/or remit the tax to the city; and, ii)
upon request of the Tax Administrator, deliver, or effect the delivery of, any information or
records in the possession of such billing agent or billing aggregator that, in the opinion of
the Tax Administrator, is necessary to verify the proper application, calculation, collection
and/or remittance of such tax to the city.
Section 9. (Code Addition.) Section 3.08.232 of the Culver City Municipal Code is hereby
added to read as follows:
Ҥ 3.08.232 BUNDLING TAXABLE AND NON-TAXABLE CHARGES
If a non-taxable service and a taxable service are billed together under a
single charge, the entire charge shall be deemed taxable unless the Service
Supplier can reasonably identify actual charges not subject to the utility users
tax based upon its books and records that are kept in the regular course of
business, which shall be in a manner consistent with generally accepted
accounting principles.”
Section 10. (Code Amendment.) Section 3.08.235 of the Culver City Municipal Code is
hereby amended to read as follows:
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Ҥ 3.08.235 EXEMPTIONS.
A. Nothing in this Subchapter shall be construed as imposing a tax
upon:
1. Any Pperson or service if imposition of such tax upon that Pperson
or service would be in violation of a federal or California statute, the
Constitution of the United States or the Constitution of the State of California;
and,
2. The Ccity;.
B. Any service user that is from the tax imposed by this subchapter
pursuant to subsection A. shall file an application with the Tax Administrator
for an exemption; provided, however, this requirement shall not apply to a
service user that is a service user of telephone communication services that
has received a federal excise tax exemption certificate for such service. Said
application shall be made upon a form approved by the Tax Administrator and
shall state those facts, declared under penalty of perjury, which qualify the
applicant for an exemption, and shall include the names of all utility service
suppliers serving that service user. If deemed exempt by the Tax
Administrator, such service user shall give the Tax Administrator timely
written notice of any change in utility service suppliers so that the Tax
Administrator can properly notify the new utility service supplier of the service
user's tax exempt status. A service user that fails to comply with this section
shall not be entitled to a refund of utility users taxes collected and remitted to
the Tax Administrator from such service user as a result of such non-
compliance. Upon request of the Tax Administrator, a service supplier or non-
utility service supplier, or its billing agent, shall provide a list of the names and
addresses of those customers which, according to its billing records, are
deemed exempt from the utility users tax. With respect to a service user of
telephone communication services, a service supplier of such telephone
communication services doing business in the city shall, upon request of the
Tax Administrator, provide a copy of the federal exemption certificate for each
exempt customer within the city that is served by such service supplier.”
3. Any individual sixty (60) years of age or older, who uses
communication, electric, gas, or water services; in or upon any premises
occupied by such individual; provided the total adjusted gross income of that
individual, as used for purposes of the California Personal Income Tax Law,
was no more than $18,200 for the most recent completed calendar years; and
provided the combined adjusted gross income of all members of the
household in which such individual resided was no more than $21,500; or
4. Any individual who meets the criterion of disability, as established
by the Social Security Administration's Supplemental Security Income
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Program for the Aged, Blind, and Disabled (Title XVI of the Social Security
Act as amended), without regard to the age of such disabled individual.
B. The exemptions granted by this Section shall not eliminate the duty
of the Service Supplier from collecting taxes from such exempt individuals, or
the duty of such exempt individuals from paying such taxes to the Service
Supplier; unless an exemption is applied for by the Service User and granted
in accordance with the provisions of this Section.
C. Any Service User exempt from the taxes imposed by this Subchapter
because of the provisions of Subsection A. above, may file an application with
the Tax Administrator for an exemption. Such application shall be made upon
a form supplied by the Tax Administrator; and shall state those facts, declared
under oath, which qualify the applicant for an exemption.
D. The Tax Administrator shall review all such applications, and shall
certify as exempt those applicants determined to qualify therefor; and shall
notify all Service Suppliers affected that such exemptions have been
approved. For each exemption, the following information shall be transmitted
to the Service Supplier:
1. Name of exempt applicant;
2. Account number shown on utility bill;
3. Address to which exempt service is being supplied; and
4. Any other information as may be necessary for the Service
Supplier to remove the exempt Service User from its tax billing procedure.
E. Upon receipt of such notice, the Service Supplier shall not be
required to continue to bill any further tax imposed by this Subchapter from
such exempt Service User, until further notice by the Tax Administrator is
given. The Service Supplier shall eliminate such exempt Service User from its
tax billing procedure no later than sixty (60) days after receipt of such notice
from the Tax Administrator.
F. All exemptions shall continue and be renewed automatically by the
Tax Administrator, so long as the prerequisite facts supporting the initial
qualification for exemption shall continue; provided, however, that the
exemption shall automatically terminate with any change in the service
address or residence of the exempt individual; further provided such
individual may nevertheless apply for a new exemption with each change of
address or residence.
G. The Tax Administrator shall have the power and right to demand
evidence of continued eligibility of a Service User for exemption under the
provisions of this Section. Such evidence may include, but need not be limited
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to, copies of business records, letters or statements from the Social Security
Administration, copies of income tax returns, and such other evidence
concerning the Service User or other members of his or her household as
may tend to prove or disprove such eligibility. Failure to provide such
evidence as is within the control of a Service User to so provide, either
directly by him or by his consent or the consent of a member of his or her
household when such evidence is requested of the Service User in writing by
the Tax Administrator, shall be grounds for the immediate discontinuance of
the Service User's eligibility for exemption under the provisions of this
Section. Evidence provided to the Tax Administrator upon request, or
voluntarily provided by the Service User without request, may not be used
against such Service User as evidence of violation of the provisions of this
Section; such evidence may only be used as grounds for termination of the
exemption herein provided.
H. Any individual exempt from the tax shall notify the Tax Administrator
within ten (10) days of any change in fact or circumstance which might
disqualify said individual from receiving such exemption. It shall be a
misdemeanor for any Person to knowingly receive the benefits of the
exemptions provided by this Section, when the basis for such exemption
either does not exist or ceases to exist.
I. Notwithstanding any of the provisions hereof, any Service Supplier
who determines by any means that a new or nonexempt Service User is
receiving service through a meter or connection exempt by virtue of an
exemption issued to a previous user or exempt user of the same meter or
connection, such Service Supplier shall immediately notify the Tax
Administrator of such fact; and the Tax Administrator shall conduct an
investigation to ascertain whether or not the provisions of this section have
been complied with, and where appropriate, order the Service Supplier to
commence collecting the tax from the nonexempt Service User.
J. Any individual entitled to be exempt from the taxes imposed by this
Subchapter, who used communication, electric, Gas, or water services and
paid more than $3.00 in such taxes, may, during the calendar year following
such payment, apply for a refund thereof on forms provided by the Tax
Administrator. Refund applications shall contain a declaration of those facts,
under oath, which qualify the applicant for a refund, and shall be
accompanied by the customer's bills showing the amount of such taxes billed
by Service Supplier during the preceding calendar year. Refund claims may
be filed by an individual who used communication, electric, Gas, or water
services and paid the taxes prescribed by this Subchapter either directly or
indirectly to the ‘Service User’ rather than the Service Supplier. In the event
the applicant has lost or destroyed any relevant billings or statements
showing the amount of tax paid, or if the applicant indirectly paid such taxes
in conjunction with the occupation of premises without receiving a specific
billing therefor from the Service User, the maximum refund shall be $48.00, or
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$4.00 for each full month of services received by the applicant, whichever is
less.
K. If the Tax Administrator determines that an application for exemption
is faulty, or that the applicant has failed to truthfully set forth such facts, the
application for the exemption shall be denied in writing to the applicant. The
applicant shall thereafter have a right to file an amended application for
exemption; or to appeal the Tax Administrator's decision to the City Manager
within a 10-day period after the mailing date of the Tax Administrator's
rejection. In the case of an appeal, the City Manager shall review the facts in
consultation with the City Attorney, and shall render a final determination on
such appeal.
L. Upon request of the Tax Administrator, a Service Supplier, or its
billing agent, shall provide a list of the names and addresses of those
customers which, according to its billing records, are deemed exempt from
the utility users tax.”
Section 11. (Code Amendment.) Section 3.08.240 of the Culver City Municipal Code is
hereby amended to read as follows:
Ҥ 3.08.240 COLLECTION OF TAX.
A. The duty of Sservice Ssuppliers to collect and remit the taxes
imposed by the provisions of this Subchapter shall be performed as follows:
B. The tax shall be 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 Sservice Ssupplier.
C. The duty to collect tax from a Sservice Uuser shall commence with
the beginning of the first regular billing period applicable to that Pperson
which starts on or after the operative date of this Subchapter. Where a
Pperson receives more than one (1) billing, one or more being for different
periods than another, the duty to collect shall arise separately for each billing
period.
D. If the amount paid by a Sservice Uuser to a Sservice Ssupplier is
less than the full amount of the charge and tax which has accrued for the
billing period, a proportionate share of both the charge and the tax shall be
deemed to have been paid. In those cases where a Sservice Uuser has
notified the Sservice Ssupplier of refusal to pay the tax imposed on said
charges, § 3.08.260 of this Subchapter shall apply.”
Section 12. (Code Amendment.) Section 3.08.245 of the Culver City Municipal Code is
hereby amended to read as follows:
Ҥ 3.08.245 REPORTING AND REMITTING.
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Each Pperson required by this Subchapter to remit a tax shall file a return
with the Tax Administrator on forms approved by the Tax Administrator on or
before the due date. The full amount of the tax owed shall be included with
the return and filed with the Tax Administrator. The Tax Administrator is
authorized to require such further information as he deems necessary to
properly determine if the tax here imposed is being levied and collected in
accordance with this Subchapter. Returns and remittances are due
immediately upon cessation of business for any reason. Pursuant to
California Revenue and Taxation Code § 7284.65, the Tax Administrator, and
its agents, shall maintain such filing returns as confidential information, and
not subject to the Public Records Act.”
Section 13. (Code Amendment.) Section 3.08.250 of the Culver City Municipal Code is
hereby amended to read as follows:
Ҥ 3.08.250 PENALTY.
A. Taxes collected from a Sservice Uuser under this Subchapter, or
owed by a Sservice Uuser subject to § 3.08.222 of this Subchapter, which
are not remitted to the Tax Administrator on or before the due dates
provided in this Subchapter are delinquent. Should the due date occur on a
weekend or legal holiday, the return must be received by the Tax
Administrator on the first regular working day following the weekend or legal
holiday.
B. If the Pperson required to collect and/or remit athe utility users tax
under this Subchapter fails to collect the tax by failing to properly assess the
tax on one or more services or charges on the customer's billing, or fails to
remit the tax collected, or, in the case of a Sservice Uuser that fails to
properly self-collect and remit the tax under § 3.08.222 of this Subchapter,
such taxes are delinquent.
C. A penalty at the rate of fifteen percent (15%) of the total tax that is
delinquent shall be imposed upon the Service Supplier, or the Service User
that fails to properly self collect and remit the tax under § 3.08.222 of this
Subchapter. the Tax Administrator shall attach a penalty for such
delinquencies or deficiencies at the rate of fifteen percent (15%) of the total
tax that is delinquent or deficient in the remittance.
DC. The Tax Administrator shall have power to impose additional
penalties upon Ppersons required to collect and/or remit taxes under the
provisions of this Subchapter for fraud or negligence in reporting or remitting
at the rate of fifteen percent (15%) of the amount of the tax collected and/or
required to be remitted, or as recomputed by the Tax Administrator.
ED. In addition to any other penalties imposed by this Subchapter, any
Pperson required to collect and/or remit any tax imposed by the provisions
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of this Subchapter who fails to collect the tax (by failing to properly assess
the tax on the customers' billing) or fails to remit the tax collected, or, in the
cases of a Sservice Uuser that fails to properly self-collect and remit the tax
under § 3.08.222 of this Subchapter, shall pay interest at the rate of three-
quarters of one percent (¾%) per Mmonth, or any fraction thereof, on the
amount of the tax, exclusive of penalties, from the date on which the
remittance first became delinquent, until paid.”
Section 14. (Code Amendment.) Section 3.08.255 of the Culver City Municipal Code is
hereby amended to read as follows:
Ҥ 3.08.255 ACTIONS TO COLLECT.
Any tax required to be paid by a Sservice Uuser under the provisions of
this Subchapter shall be deemed a debt owed by the Sservice Uuser to the
City. Any such tax collected from a Sservice Uuser which has not been
remitted to the Tax Administrator shall be deemed a debt owed to the City by
the Pperson required to collect and remit and shall no longer be a debt of the
Sservice Uuser. In the event that a Service Supplier required to collect and
remit a tax under the provisions of this Subchapter fails to do so in whole or in
part, the amount of such unremitted tax shall be deemed a debt owed by the
Service Supplier to the City. Any Pperson owing money to the City under the
provisions of this Subchapter shall be liable to an action brought in the name
of the City for the recovery of such amount, plus any collection costs incurred
by the City as a result of the Pperson's noncompliance with this Subchapter,
including, but not limited to, reasonable attorney's fees.”
Section 15. (Code Amendment.) Section 3.08.257 of the Culver City Municipal Code is
hereby amended to read as follows:
Ҥ 3.08.257 ADDITIONAL POWER AND DUTIES OF TAX
ADMINISTRATOR.
A. The Tax Administrator shall have the power and duty, and is hereby
directed, to enforce each and all of the provisions of this Subchapter.
B. The Tax Administrator may adopt administrative rules and
regulations not inconsistent with provisions of this Subchapter for the purpose
of carrying out and enforcing the payment, collection and remittance of the
taxes herein imposed. A copy of such administrative rules and regulations
shall be on file in the Tax Administrator's office.
C. Upon a proper showing of good cause, the Tax Administrator may
make administrative agreements, with appropriate conditions, to vary from the
strict requirements of this Subchapter, and thereby: i) conform to the billing
procedures of a particular Sservice Ssupplier (or Sservice Uuser subject to §
3.08.222 of this Subchapter) so long as said agreements result in the
collection of the tax in conformance with the general purpose and scope of
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this Subchapter; or ii) to avoid a hardship where the administrative costs of
collection and remittance greatly outweigh the tax benefit. A copy of each
such agreement shall be on file in the Tax Administrator's office, and is
voidable by the Tax Administrator or the Ccity at any time. Such
administrative agreements fall within the Tax Administrator’s discretion to
settle disputes. The Tax Administrator’s exercise of prosecutorial
forbearance under this Subchapter does not constitute a change in taxing
methodology for purposes of Government Code section 53750, and the City
does not waive or abrogate its ability to impose the utility users tax in full as a
result of entering into such administrative agreements.
D. The Tax Administrator alone shall be authorized to determine the
eligibility of any Pperson who asserts a right to exemption from or a refund of,
the tax imposed by this Subchapter.”
Section 16. (Code Amendment.) Section 3.08.260 of the Culver City Municipal Code is
hereby amended to read as follows:
Ҥ 3.08.260 FAILURE TO PAY TAX; ADMINISTRATIVE REMEDY.
A. Whenever the Tax Administrator determines that a Sservice Uuser
has deliberately withheld the amount of the tax owed by him from the
amounts remitted to a Sservice Ssupplier, or that a Sservice Uuser has failed
to pay the amount of the tax for a period of two (2) or more billing periods, or
whenever the Tax Administrator deems it in the best interest of the City, he
may relieve the service supplier of the obligation to collect taxes due under
this Subchapter from certain named Sservice Uusers for specified billing
periods. The Sservice Ssupplier shall provide the City with the names and
addresses of such Sservice Uusers and the amounts of taxes owed under the
provisions of this Subchapter.
B. The Tax Administrator shall notify the Sservice Uuser that he or she
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 Sservice
Uuser by handing it to him or her personally or by deposit of the notice in the
United States mail, postage prepaid thereon, addressed to the Sservice
Uuser at the address to which billing was made by the Sservice Ssupplier; or
should the Sservice Uuser have changed his or her address, to his or her last
known address. If a Sservice Uuser fails to remit the tax to the Tax
Administrator within fifteen (15) days from the date of the service of the notice
upon him or her, which shall be the date of mailing if service is not
accomplished in person, a penalty of twenty-five percent (25%) of the amount
of the tax set forth in the notice shall be imposed, along with interest at the
rate of three-quarters of one percent (¾%) per Mmonth, or any fraction
thereof, on the amount of the tax, exclusive of penalties, form the date on
which the remittance first became delinquent, until paid, but not less than Five
Dollars ($5.00).
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C. The Tax Administrator may make an assessment for taxes not paid
or remitted by a Sservice Uuser required to pay or remit. A notice of the
assessment which shall refer briefly to the amount of the taxes and penalties
imposed and the time and place when such assessment shall be submitted to
the City Council for confirmation or modification. The Tax Administrator shall
mail a copy of such notice to the Sservice Ssupplier and Sservice Uuser at
least ten (10) days prior to the date of the hearing and shall post such notice
for at least five (5) continuous days prior to the date of the hearing in a
conspicuous place freely accessible to the public at large. Any interested
party having any objections may appear and be heard at the hearing provided
his objection is filed in writing with the Tax Administrator prior to the time set
for the hearing. At the time fixed for considering said assessment, the City
Council shall hear the same together with any objection filed regarding
aforesaid and thereupon may confirm or modify said assessment by motion.”
Section 17. (Code Amendment.) Section 3.08.265 of the Culver City Municipal Code is
hereby amended to read as follows:
Ҥ 3.08.265 APPEALS.
A. If the Sservice Uuser or Sservice Ssupplier is aggrieved by any
decision or administrative ruling of the Tax Administrator, or with the failure to
grant a refund or exemption as provided for under this Subchapter, he/she
may appeal to a Board of Review comprised of the City Manager, the
Community Development Director and the Public Works Director, or their duly
authorized designee, by filing a notice of appeal with the Tax Administrator
within fourteen (14) days of the decision or administrative ruling that
aggrieved the service user or service supplier. The Tax Administrator shall
thereupon fix a time and place for a hearing of such appeal. The Tax
Administrator shall give notice to such person of the time and place of hearing
as herein provided herein.
B.
1. The notice of appeal filed by the Service User or Service Supplier
shall contain the name and address of the Pperson appealing the action, the
decision appealed from and the grounds for the appeal. A defect in the form
of the notice does not affect itsthe validity or the right to an appeal. The
notice of appeal shall be accompanied by the fee fixed by resolution of the
City Council. The notice of appeal shall be served upon the Tax
Administratorperson either by handling it to him or her personally, or by a
deposit of the notice in the United States mail, postage prepaid thereon,
addressed to the person at the address of the Billing Address appearing on
the face of the registration certificateTax Administrator. For the purpose of
this section, a service by mail is complete at the time of deposit in the United
States mail. Within fifteen (15) days after the date of service, the Pperson
assessed may either apply in writing to the Tax Administrator for a hearing on
the assessment or may file a written request that such hearing be waived. If
the Pperson neither requests a hearing upon the assessment nor requests a
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waiver of hearing within the prescribed time, the amount of the assessment
shall be final and the amount thereof shall immediately be due and owing to
the City of Culver CityTax Administrator’s decision becomes final, andbut
penalties and interest as provided by this Subchapter shall continue to accrue
until paid.
C2. Waiver of Hearing. If the Pperson requests that the hearing be
waived, the Tax Administrator may either grant such request and notify the
person thereof in writing or may, in his or her discretion, deny the request and
set the assessment appeal for hearing at the time and in the manner
prescribed herein. If the Tax Administrator grants the request for waiver of
hearing, the administrator proceeding prescribed by the section shall be
deemed exhausted and the city shall have the right to bring an action in any
court of competent jurisdiction to collect the amount of the assessment, plus
such penalties and interest as may have accrued thereon as provided by this
SubchapterBoard of Review shall consider the appeal without conducting a
hearing on the matter and issue its written decision within thirty (30) days of
the date upon which the Tax Administrator granted the request for waiver of
hearing. The decision of the Board of Review shall be served upon the
appealing Service User or Service Supplier by a deposit of a copy of the
decision in the United States mail, postage prepaid thereon, addressed to
such Person
D 3. If the Pperson requests a hearing upon any decision or
administrative ruling of the Tax Administrator or if the Tax Administrator
denies the request for the waiver of hearing, the Tax Administrator shall
cause the matter to be set for hearing before the Board of Review no later
than ninety (90) days after the date of the application, or as the case may be,
the date of the Tax Administrator's denial of the request for waiver of hearing.
Notice of the time and place of the hearing shall be mailed to the person
assessedPerson appealing the decision of the Tax Administrator not later
than fifteen (15) days before the date set for hearing and, if the Tax
Administrator desires said person to produce specific records at such hearing,
such notice may designate the records required to be produced.
E4. At the hearing the Pperson appealing the decisionaction and the
Tax Administrator, may submit such evidence as they believe to be relevant
to their respective positions. The Board of Review may require the
presentation of additional evidence from either the person assessed or from
the Tax Administrator, or from both, and may continue the hearing from time
to time for the purpose of allowing the presentation of additional evidence.
The Board of Review shall issue a written decision within thirty (30) days of
the conclusion of the hearing. The decision of the Board of Review shall be
served upon the appealing Service User or Service Supplier by a deposit of a
copy of the decision in the United States mail, postage prepaid thereon,
addressed to such Person.
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F 5. Exception. Within fifteen (15) days from the date of service of
the notice of decision of the Board of Review, the Pperson appealing the
decision of the Tax Administratoraction may file written exceptions to the
decision of the Board of Review, but shall not be required to do so. If the
person does not do so, the person shall nevertheless be deemed to have
exhausted the administrative proceedings provided by this section. Upon
filing of written exceptions, the Board of Review may either deny the
exceptions or modify its decision, as it deems appropriate. If the Board of
Review may either deny the exceptions or modify its decision, as it deems
appropriate. If the Board of Review modifies its decision, it shall cause a
written notice of decision as required herein to be given to the person
assessedperson appealing the decision of the Tax Administrator atas the
time, and in the manner provided therein herein. If the Board of Review does
not modify its decision within thirty (30) days from the service of said
exceptions, the exceptions shall be deemed denied.
G6. Effect of delay in administrative proceeding. Failure of the Tax
Administrator to set any hearing within the time prescribed herein and failure
of the Board of Review to complete any procedure prescribed in this section
within the period stated shall not affect the validity of any proceedings taken
hereunder. The City’s failure to meet the notice and timing requirements
under this section does not constitute a waiver of the City’s rights; nor does
such a failure abrogate any decision of the Tax Administrator or the Board of
Review.
H7. Effect of payment of a tax. Acceptance of any payment upon a
tax, the validity of which has not previously been passed upon by the Board of
Review, shall not preclude the Tax Administrator from subsequently levying
another assessment in any case where the original assessment does not truly
reflect the correct tax liability.”
B. No injunction or writ of mandate or other legal or equitable process
shall issue in any suit, action, or proceeding in any court against this city or
against any officer of the city to prevent or enjoin the collection under this
Subchapter of any tax or any amount of tax required to be collected and/or
remitted.”
Section 18. (Code Addition.) Section 3.08.267 of the Culver City Municipal Code is
hereby adopted to read as follows:
Ҥ 3.08.267 No Injunction or Writ of Mandate
No injunction or writ of mandate or other legal or equitable process shall issue in any
suit, action, or proceeding in any court against this city or against any officer of the city
to prevent or enjoin the collection under this Subchapter of any tax or any amount of
tax required to be collected and/or remitted.”
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Section 19. (Code Amendment.) Section 3.08.270 of the Culver City Municipal Code is
hereby amended to read as follows:
Ҥ 3.08.270 RECORDS.
A. It shall be the duty of every Pperson required to collect and/or remit
to the City any tax imposed by this Subchapter to keep and preserve, for a
period of at least three (3) 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, or the Tax Administrator's designated representative, shall
have the right to inspect at all reasonable times. The Tax Administrator, or the
Tax Administrators' designated representative, is authorized to execute a
non-disclosure agreement approved by the City Attorney to protect the
confidentiality of customer information pursuant to California Revenue and
Taxation Code §§ 7284.6-7284.7.
B. The Tax Administrator, or the Tax Administrators' designated
representative, may request from a Pperson providing transportation or
distribution services of Ggas or electricity to Sservice Susers within the City, a
list of the names, billing and service addresses, quantities of Ggas or
electricity delivered, and other pertinent information, of its transportation
customers within the City pursuant to Section 6354(e) of the California Public
Utilities Code.
C. If any Pperson subject to record-keeping under this section
unreasonably denies the Tax Administrator, or the Tax Administrator's
designated representative, access to such records, the Tax Administrator or
the Tax Administrator's designated representative may impose a penalty of
five hundred dollars ($500) on such Pperson for each day following the initial
date that the Pperson refuses to provide such access. This penalty shall be in
addition to any other penalty imposed under this Subchapter.”
Section 20. (Code Amendment.) Section 3.08.275 of the Culver City Municipal Code is
hereby amended to read as follows:
Ҥ 3.08.275 REFUNDS.
A. Whenever the amount of any tax has been overpaid, paid more than
once, or has been erroneously or illegally collected or received by the Tax
Administrator under this Subchapter, it may be refunded as provided in this
Section.
B. The Tax Administrator may refund any tax that has been overpaid,
paid more than once, or has been erroneously or illegally collected or
received by the Tax Administrator under this Subchapter, provided that no
refund shall be paid under the provisions of this section unless the claimant or
his or her guardian, conservator, executor or administrator has submitted a
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written claim to the Tax Administrator within one year of the overpayment or
erroneous or illegal collection of said tax. Such claim must clearly establish
claimant's right to the refund by written records showing entitlement thereto.
Nothing herein shall permit the filing of a claim on behalf of a class or group of
taxpayers. The submission of a written claim, which is acted upon by the City
Council, shall be a prerequisite to a suit thereon. (See Government Code
Section 935). The City Council shall act upon the refund claim within the time
period set forth in Government Code Section 912.4. If the City Council fails or
refuses to act on a refund claim within the time prescribed by Government
Code Section 912.4, the claim shall be deemed to be rejected by the City
Council on the last day of the period within which the City Council was
required to act upon the claim as provided in Government Code Section
912.4.
C. It is the intent of the City Council that the one year written claim
requirement of this subsection be given retroactive effect; provided, however,
that any claims which arose prior to the commencement of the one year
claims period of this section, and which are not otherwise barred by a then-
applicable statute of limitations or claims procedure, must be filed with the
Tax Administrator as provided in this subsection within ninety (90) days
following the effective date of this Subchaptersection.
D. Notwithstanding other provisions of this section, whenever a Sservice
Ssupplier, pursuant to an order of the California Public Utilities Commission or
a court of competent jurisdiction, makes a refund to Sservice Uusers of
charges for past utility services, the taxes paid pursuant to this Subchapter on
the amount of such refunded charges shall also be refunded to Sservice
Uusers, and the Sservice Ssupplier 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 this Subchapter is repealed, the amounts of any
refundable taxes shall be borne by the City.”
Section 21. (No Change) Section 3.08.280 SEVERABILITY.
If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this
Subchapter or any part thereof is for any reason held to be unconstitutional, such decision
shall not affect the validity of the remaining portions of this Subchapter or any part thereof.
The City Council hereby declares that it would have passed each section, subsection,
subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any
one (1) or more sections, subsections, subdivisions, paragraphs, sentences, clauses or
phrases be declared unconstitutional.
Section 22. (Code Deletion, refer to Section 3.08.235 for Exemptions.) Section 3.08.285
of the Culver City Municipal Code is hereby deleted.
§ 3.08.285 EXEMPTIONS.
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A. The utility users tax imposed by this Subchapter shall not apply to any individual
sixty (60) years of age or older, who uses telephone, electric, gas, water or video services;
in or upon any premises occupied by such individual; provided the total adjusted gross
income of that individual, as used for purposes of the California Personal Income Tax Law,
was no more than $18,200 for the most recent completed calendar years; and provided the
combined adjusted gross income of all members of the household in which such individual
resided was no more than $21,500.
B. The provisions of this exemption shall also apply to any individual who meets the
criterion of disability, as established by the Social Security Administration's Supplemental
Security Income Program for the Aged, Blind, and Disabled (Title XVI of the Social Security
Act as amended), without regard to the age of such disabled individual.
C. The exemption granted by this Section shall not eliminate the duty of the service
supplier from collecting taxes from such exempt individuals, or the duty of such exempt
individuals from paying such taxes to the service supplier; unless an exemption is applied
for by the service user and granted in accordance with the provisions of this Section.
D. Any service user exempt from the taxes imposed by this Subchapter because of
the provisions of Subsections A. or B. above, may file an application with the Tax
Administrator for an exemption. Such application shall be made upon a form supplied by
the Tax Administrator; and shall state those facts, declared under oath, which qualify the
applicant for an exemption.
E. The Tax Administrator shall review all such applications, and shall certify as
exempt those applicants determined to qualify therefor; and shall notify all service suppliers
affected that such exemptions have been approved. For each exemption, the following
information shall be transmitted to the service supplier:
1. Name of exempt applicant;
2. Account number shown on utility bill;
3. Address to which exempt service is being supplied; and
4. Any other information as may be necessary for the service supplier to remove
the exempt service user from its tax billing procedure.
F. Upon receipt of such notice, the service supplier shall not be required to continue
to bill any further tax imposed by this Subchapter from such exempt service user, until
further notice by the Tax Administrator is given. The service supplier shall eliminate such
exempt service user from its tax billing procedure no later than sixty (60) days after receipt
of such notice from the Tax Administrator.
G. All exemptions shall continue and be renewed automatically by the Tax
Administrator, so long as the prerequisite facts supporting the initial qualification for
exemption shall continue; provided, however, that the exemption shall automatically
terminate with any change in the service address or residence of the exempt individual;
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further provided such individual may nevertheless apply for a new exemption with each
change of address or residence.
H. The Tax Administrator shall have the power and right to demand evidence of
continued eligibility of a service user for exemption under the provisions of this Section.
Such evidence may include, but need not be limited to, copies of business records, letters
or statements from the Social Security Administration, copies of income tax returns, and
such other evidence concerning the service user or other members of his household as
may tend to prove or disprove such eligibility. Failure to provide such evidence as is within
the control of a service user to so provide, either directly by him or by his consent or the
consent of a member of his household when such evidence is requested of the service user
in writing by the Tax Administrator, shall be grounds for the immediate discontinuance of
the service user's eligibility for exemption under the provisions of this Section. Evidence
provided to the Tax Administrator upon request, or voluntarily provided by the service user
without request, may not be used against such service user as evidence of violation of the
provisions of this Section; such evidence may only be used as grounds for termination of
the exemption herein provided.
I. Any individual exempt from the tax shall notify the Tax Administrator within ten (10)
days of any change in fact or circumstance which might disqualify said individual from
receiving such exemption. It shall be a misdemeanor for any person to knowingly receive
the benefits of the exemptions provided by this Section, when the basis for such exemption
either does not exist or ceases to exist.
J. Notwithstanding any of the provisions hereof, any service supplier who determines
by any means that a new or nonexempt service user is receiving service through a meter or
connection exempt by virtue of an exemption issued to a previous user or exempt user of
the same meter or connection, such service supplier shall immediately notify the Tax
Administrator of such fact; and the Tax Administrator shall conduct an investigation to
ascertain whether or not the provisions of this section have been complied with, and where
appropriate, order the service supplier to commence collecting the tax from the nonexempt
service user.
K. Commencing January 1, 1977, any individual entitled to be exempt from the taxes
imposed by this Subchapter, who used telephone, electric, gas, water or video services and
paid more than $3.00 in such taxes, may, during the calendar year following such payment,
apply for a refund thereof on forms provided by the Tax Administrator. Refund applications
shall contain a declaration of those facts, under oath, which qualify the applicant for a
refund, and shall be accompanied by the customer's bills showing the amount of such taxes
billed by service supplier during the preceding calendar year. Refund claims may be filed
by an individual who used telephone, electric, gas, water or video services and paid the
taxes prescribed by this Subchapter either directly or indirectly to the "service user" rather
than the service supplier. In the event the applicant has lost or destroyed any relevant
billings or statements showing the amount of tax paid, or if the applicant indirectly paid such
taxes in conjunction with the occupation of premises without receiving a specific billing
therefor from the service user, the maximum refund shall be $48.00, or $4.00 for each full
month of services received by the applicant, whichever is less.
Page 54 of 81Attachment 3
Page 32 of 32 Redline of UUT Ordinance
L. If the Tax Administrator determines that an application for exemption is faulty, or
that the applicant has failed to truthfully set forth such facts, application for the exemption
shall be denied in writing to the applicant. The applicant shall thereafter have a right to file
an amended application for exemption; or to appeal the Tax Administrator's decision to the
City Manager within a 10-day period after the mailing date of the Tax Administrator's
rejection. In the case of an appeal, the City Manager shall review the facts in consultation
with the City Attorney, and shall render a final determination on such appeal.
Page 55 of 81Attachment 4
TABLE OF CONTENTS
CLEAN VERSION OF PROPOSED AMENDMENTS TO
TITLE 3, CHAPTER 3.08.200, et seq. of the
CULVER CITY MUNICIPAL CODE REGARDING THE UTILITY USERS’ TAX
Section No. Section/Topic Page No.
Section 1 3.08.200 Title 3
Section 2 3.08.205 Definitions 3-6
Section 3 3.08.210 Communication Users’ Tax 6-10
Section 4 3.08.215 Electricity Users’ Tax 10-11
Section 5 3.08.220 Gas Users’ Tax 11-13
Section 6 3.08.222 Collection of Tax from Service 13-14
Users Receiving Direct Purchase of
Gas or Electricity
Section 7 3.08.225 Water Users’ Tax 13
Section 8 3.08.230 Effect of State and Federal 14-15
Authorization
Section 9 3.08.232 Bundling Taxable and Non-Taxable 15
Charges
Section 10 3.08.235 Exemptions 15-18
Section 11 3.08.240 Collection of Tax 18
Section 12 3.08.245 Reporting and Remitting 18-19
Section 13 3.08.250 Penalty 19
Section 14 3.08.255 Actions to Collect 19-20
Section 15 3.08.257 Additional Powers and Duties of 20
Tax Administrator
Section 16 3.08.260 Failure to Pay Tax; Administrative 21
Remedy
Section 17 3.08.265 Appeals 22-23
Section 18 3.08.267 No Injunction or Writ of Mandate 24
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Section No. Section/Topic Page No.
Section 19 3.08.270 Records 24
Section 20 3.08.275 Refunds 24-25
Section 21 3.08.280 Severability 25-26
Section 22 3.08.285 (Reserved)
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Section 1. (No Change) Section 3.08.200 TITLE.
This Subchapter shall be known as the Utility Users Tax Ordinance of the City of
Culver City.
Section 2. (Code Amendment) Section 3.08.205 of the Culver City Municipal Code is
hereby amended to read as follows:
Ҥ 3.08.205 DEFINITIONS.
Except where the context otherwise requires, the definitions given in this
section govern the construction of this Subchapter.
A. ‘Ancillary Telecommunications Services’ means services that are
associated with or incidental to the provision, use or enjoyment of
telecommunications services, including but not limited to the following
services:
(1) ‘Conference Bridging Service’ means an ancillary service that links two or
more participants of an audio or video conference call and may include the
provision of a telephone number. Conference Bridging Service does not
include the telecommunications services used to reach the conference bridge.
(2) ‘Detailed Telecommunications Billing Service’ means an ancillary service
of separately stating information pertaining to individual calls on a customer’s
billing statement.
(3) ‘Directory Assistance’ means an ancillary service of providing telephone
number information, and/or address information.
(4) ‘Vertical Service’ means an ancillary service that is offered in connection
with one or more telecommunications services, which offers advanced calling
features that allow customers to identify callers and to manage multiple calls
and call connections, including Conference Bridging Services.
(5) ‘Voicemail Service’ means an ancillary service that enables the customer
to store, send or receive recorded messages. Voicemail service does not
include any vertical services that the customer may be required to have in
order to utilize the voicemail service.
B. ‘Billing Address’ means the mailing address of the Service User where
the Service Supplier submits invoices or bills for payment by the customer.
C. ‘City’ means the City of Culver City.
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D. ‘Communication Services’ means Telecommunications Services and
Video Services.
E. ‘Exempt Wholesale Generator’ has the same meaning as set forth in
the Federal Power Act (15 U.S.C. Section 79z-5a) and regulations
thereunder.
F. ‘Gas’ means natural or manufactured gas or any alternate hydrocarbon
fuel, which may be substituted therefor.
G. ‘Month’ means calendar month.
H. ’Non-Utility Service Supplier’ means the following:
1. A Service Supplier, other than a provider of electric distribution
services to all or a significant portion of the City, which generates electricity
for sale to others, and shall include but is not limited to any publicly-owned
electric utility, investor-owned utility, cogenerator, Exempt Wholesale
Generator, municipal utility district, federal power marketing agency, electric
rural cooperative, or other supplier or seller of electricity.
2. An electric service provider (ESP), electricity broker, marketer,
aggregator, pool, operator, or other electricity supplier other than a provider of
electric distribution services to all or a significant portion of the City, which
sells or supplies electricity or supplemental services to electricity users within
the City; and
3. A Gas Service Supplier, aggregator, marketer or broker, other
than a provider of Gas distribution services to all or a significant portion of the
City, which sells or supplies Gas or supplemental services to Gas users within
the City.
I. ‘Person’ means, without limitation, any domestic, non-profit or foreign
corporation, firm, association, syndicate, joint-stock company, partnership of
any kind, joint venture, club, trust, limited liability company, business or
common-law trust, society, any natural individual, cooperative, receiver,
trustee, guardian or other representative appointed by order of any court, or
any municipal corporation (other than the City).
J. ‘Service Supplier’ means any entity or Person that provides
communication, electric, Gas, or water service to a user of such services
within the City. The term shall include an entity or Person required to collect
(or self-collect under § 3.08.222 of this Subchapter) and remit a tax imposed
by this Subchapter, including its billing agent in the case of Gas, electric,
water and Video Service Suppliers.
K. ‘Service User’ means any Person required to pay a tax imposed by this
Subchapter.
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L. ‘Tax Administrator’ means the Treasurer of the City of Culver City, or his
or her authorized representative.
M. ‘Telecommunications Services’ means the transmission, conveyance, or
routing of voice, data, audio, video, or any other information or signals to a
point, or between or among points, whether or not such information is
transmitted through interconnected service with the public switched network,
whatever the technology used, and includes, without limitation, broadband
services [e.g., digital subscriber line (DSL), fiber optic, coaxial cable, and
wireless broadband, including Wi-Fi, WiMAX, and Wireless MESH]. The term
“telecommunications services” includes such transmission, conveyance, or
routing in which computer processing applications are used to act on the
form, code or protocol of the content for purposes of transmission,
conveyance or routing without regard to whether such services are referred to
as voice over internet protocol (VoIP) services or are classified by the Federal
Communications Commission as enhanced or value added, and includes
video and/or data services that is functionally integrated with
‘Telecommunications Services’. ‘Telecommunications Services’ include, but
are not limited to the following services, regardless of the manner or basis on
which such services are calculated or billed: central office and custom calling
features (including but not limited to call waiting, call forwarding, caller
identification and three-way calling), local number portability, text messaging,
ancillary telecommunication services; broadband service (to the extent federal
and/or state law permits taxation of such service); mobile telecommunications
service; private telecommunication service; paging service; and 800 service
(or any other toll-free numbers designated by the Federal Communications
Commission).
N. ‘Electrical Corporation’ shall be construed to include any organization or
municipality or agency engaged in the selling or supplying of electrical power
to a Service User.
O. ‘Video Service Supplier’ means any Person, company, or service which
provides one or more channels of video programming or communications
(including the leasing of channel access to provide such video programming
or communications) to or from an address in the City, including to or from a
business, home, condominium, or apartment, where some fee is paid,
whether directly or included in dues or rental charges for that service, whether
or not public rights-of-way are utilized in the delivery of the video
programming or communications. ‘Video Service Supplier’ includes, but is not
limited to, multichannel video programming distributors [as defined in 47
U.S.C. Section 522(12)], suppliers of cable television, master antenna
television, satellite master antenna television, multichannel multipoint
distribution services, direct broadcast satellite (to the extent allowed by
federal law), and other suppliers of video programming or communications
(including two-way communications), whatever their technology.
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Page 60 of 81Attachment 4
P. ‘Video Services’ means any and all services related to the supplying of
video programming (including origination programming), communications
(including two-way communications), regardless of the content of the video
programming or communications, and shall include, without limitation, the
leasing of channel access (e.g., home shopping) to the extent that the Service
User is subject to an additional direct or indirect charge for programming or
communications over the leased channel and ancillary video services,
including any service that is associated with or incidental to the provision or
delivery of video services, including but not limited to electronic program
guide services, search functions, or other interactive services that are
associated with or incidental to the provision or use of video programming.”
Section 3. (Code Amendment.) Section 3.08.210 of the Culver City Municipal Code is
hereby amended to read as follows:
Ҥ 3.08.210 COMMUNICATION USERS' TAX.
A. There is hereby imposed a tax upon every Person with a Billing or
Service Address in the City who uses Communication Services, including
intrastate, interstate (including calls to the District of Columbia), and
international Communications services, to the extent permitted by state and
federal law. The tax imposed by this Section shall be at the rate of eleven
percent (11%) of the charges made for such Communication Services and
shall be collected from the Service User by the Service Supplier or its billing
agent. To the extent allowed by law, the tax on Communication Services shall
apply to a Service User if the Billing or Service Address of the Service User is
within the City's boundaries.
B. Except as otherwise provided herein, Communication Services shall
include all Communication Service for which there is a charge, regardless of
the means or technology used to provide such services. The tax imposed
under Subsection A. above shall not be imposed upon any Person for using
the following Communications Services:
1. Service paid for by inserting coins in coin-operated telephones
available with respect to local telephone service, or with respect to toll
telephone service if the charge for such toll telephone service is less than
Twenty-Five Cents ($0.25); 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 subject to
the tax.
2. Except with respect to local telephone service, services used in
the collection of news for the public press, or a news ticker service furnishing
a general news service similar to that of the public press or radio
broadcasting, or in the dissemination of news through the public press, or a
news ticker service furnishing a general news service similar to that of the
Page 6 of 26 Non-Redline of Proposed UUT Ordinance
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public press or by means of radio broadcasting, if the charge for such service
is billed in writing to such Person.
3. Services furnished to an international organization or to the
American National Red Cross.
4. Any toll telephone service which originates within a combat zone
and is from a member of the Armed Forces of the United States performing
service in such combat zone; provided a certificate, setting forth such facts as
the Secretary of the United States Treasury may by regulations prescribe, is
furnished to the Person receiving such payment.
5. Any toll telephone service which entitles the subscriber, upon
payment of a periodic charge (determined as a flat amount or upon the basis
of total elapsed transmission time), to the privilege of an unlimited number of
telephonic communications to or from all or a substantial portion of the
Persons having telephone or radio telephone stations in a specified area
which is outside the local telephone system area in which the station provided
with this service is located, that is for use by a common carrier, telephone or
telegraph company, or radio broadcasting station or network in the conduct of
its business as such.
6. The installation of any instrument, wire, pole, switchboard,
apparatus or equipment as is properly attributable to such installation.
7. Amounts paid by a nonprofit hospital for services furnished to such
organization.
8. Services or facilities furnished to the government of any State, or
any political subdivision thereof.
9. Services or facilities paid for by a nonprofit educational
organization and furnished to such organization. For purposes of this
subsection, the term NONPROFIT EDUCATIONAL ORGANIZATION means
an educational organization described in Section 170(b)(1)(A)(ii) of the
Internal Revenue Code, which is exempt from income tax under Section
501(a) of the same code. The term also includes a school operated as an
activity of an organization described in Section 501(c)(3) of the Internal
Revenue Code, which is exempt from income tax under Section 501(a) of the
same code, if such school normally maintains a regular faculty and curriculum
and normally has a regularly enrolled body of pupils or students in attendance
at the place where its educational activities are regularly carried on.
C. As used in this section, the term CHARGES shall include the value of
any other services, credits, property of every kind or nature, or other
consideration provided by the Service User in exchange for the
Communication Services.
Page 7 of 26 Non-Redline of Proposed UUT Ordinance
Page 62 of 81Attachment 4
D. Charges for Video Services that are taxable under this section
include, but are not limited to, charges for the following:
1. Franchise fees and access fees (PEG), whether designated on the
customer's bill or not;
2. Initial installation of equipment necessary for provision and receipt
of Video Services;
3. All programming services (e.g., basic services, premium services,
audio services, video games, pay-per-view services, and electronic program
guide services);
4. Equipment leases (e.g., converters, remote devices);
5. Service calls, service protection plans, name changes, changes of
service, and special services (e.g., no promotional mail); and
6. The leasing of channel access (e.g., home shopping) to the extent
that the Service User is subject to an additional direct or indirect charge for
programming or communications over the leased channel; provided that, in
the absence of evidence of direct payment by the Service User, the indirect
payment of the Service User(s), which is subject to the utility users tax, shall
be deemed to be the lease payment to the Video Service Supplier by the
party leasing the channel access.
E. The Tax Administrator shall, from to time, survey the Video Service
Suppliers in the City to identify the various components of the video service
that are being offered to customers within the City, and the charges therefor.
The Tax Administrator may, thereafter, issue and disseminate to such Video
Service Suppliers an administrative ruling identifying those components: i)
that are necessary or common to the receipt, use and enjoyment of Video
Services; or, ii) which currently are, or historically have been, included in a
bundled rate for video service by a local distribution company. Charges for
such components shall be subject to the tax of subsection A. above.
F. To prevent actual multi-jurisdictional taxation of Communication
Services subject to tax under this section, any Service User, upon proof to the
Tax Administrator that the Service User has previously paid the same tax in
another state or city on such Communication Services, shall be allowed a
credit against the tax imposed to the extent of the amount of such tax legally
imposed in such other state or city; provided, however, the amount of credit
shall not exceed the tax owed to the City under this section.
G. For purposes of imposing a tax or establishing a duty to collect and
remit a tax under this Subchapter, “substantial nexus” and “minimum
contacts” shall be construed broadly in favor of the imposition, collection
and/or remittance of the utility users tax to the fullest extent permitted by state
Page 8 of 26 Non-Redline of Proposed UUT Ordinance
Page 63 of 81Attachment 4
and federal law, and as it may change from time to time by judicial
interpretation or by statutory enactment. Any Communication Service
(including VoIP) used by a Person with a Service Address in the City, which
service is capable of terminating a call to another Person on the general
telephone network, shall be subject to a rebuttable presumption that
“substantial nexus/minimum contacts” exists for purposes of imposing a tax,
or establishing a duty to collect and remit a tax, under this Subchapter. A
Service Supplier shall be deemed to have sufficient activity in the City for tax
collection and remittance purposes if its activities include, but are not limited
to, any of the following: maintains or has within the City, directly or through
an agent or subsidiary, a place of business of any nature; solicits business in
the City by employees, independent contractors, resellers, agents or other
representatives; solicits business in the City on a continuous, regular,
seasonal or systematic basis by means of advertising that is broadcast or
relayed from a transmitter with the City or distributed from a location with the
City; or advertises in newspapers or other periodicals printed and published
within the City or through materials distributed in the City by means other than
the United States mail.
H. The tax on Communication Services imposed by this section shall be
collected from the Service User by the Service Supplier. In the case of Video
Services, the Service User shall be deemed to be the purchaser of the bulk
Video Services (e.g., an apartment owner), unless such services are resold to
individual users, in which case the Service User shall be the ultimate
purchaser of the Video Services. The amount of tax collected in one (1)
Month shall be remitted to the Tax Administrator, and must be received by the
Tax Administrator on or before the twentieth (20th) day of the following
Month. If a Service Supplier of Communication Services uses a billing agent
or billing aggregator to bill, collect, and/or remit the tax, the Service Supplier
shall: i) provide to the Tax Administrator the name, address and telephone
number of each billing agent and billing aggregator currently authorized by
the Service Supplier to bill, collect, and/or remit the tax to the City; and, ii)
upon request of the Tax Administrator, deliver, or effect the delivery of, any
information or records in the possession of such billing agent or billing
aggregator that, in the opinion of the Tax Administrator, is necessary to verify
the proper application, calculation, collection and/or remittance of such tax to
the City.
I. The Tax Administrator may, from time to time, issue and disseminate
to Service Suppliers, which are subject to the tax collection requirements of
this section, an administrative ruling identifying those Communication
Services that are subject to the tax of subsection A. above. This
administrative ruling shall be consistent with legal nexus rules, regulations,
and laws pertaining to Communication Services. To the extent that the Tax
Administrator determines that the tax imposed under this section shall not be
collected in full for any period of time, such a determination falls within the
Tax Administrator’s discretion to settle disputes. The Tax Administrator’s
exercise of prosecutorial forbearance under this Subchapter does not
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constitute a change in taxing methodology for purposes of Government Code
section 53750, and the City does not waive or abrogate its ability to impose
the communication users’ tax in full as a result of entering into such
administrative agreements.”
Section 4. (Code Amendment.) Section 3.08.215 of the Culver City Municipal Code is
hereby amended to read as follows:
Ҥ 3.08.215 ELECTRICITY USERS' TAX.
A. There is hereby imposed a tax upon every Person using electricity in the
City. The tax imposed by this Section shall be at the rate of eleven percent (11%) of
the charges made for such electricity, and for any supplemental services or other
associated activities directly related to and/or necessary for the provision of
electricity to the Service Users, which are provided by a Service Supplier or Non-
Utility Service Supplier to a Service User.
B. As used in this section, the term CHARGES shall include:
1. Energy charges;
2. Distribution or transmission charges;
3. Metering charges;
4. Stand-by, reserves, firming, ramping, voltage support, regulation,
emergency, or other similar minimum charges for services;
5. Customer charges, service establishment or reestablishment charges,
demand charges, fuel or other cost adjustments, power exchange charges,
independent system operator (ISO) charges, stranded investment or competitive
transition charges (CTC), trust transfer, amounts (bond financing charges), franchise
fees, franchise surcharges, which are necessary or common to the receipt, use and
enjoyment of electric service; and,
6. Charges, fees, or surcharges for electric services or programs, which are
mandated by the California Public Utilities Commission or the Federal Energy
Regulatory Commission, whether or not such charges, fees, or surcharges appear
on a bundled or line item basis on the customer billing.
C. The Tax Administrator shall, from time to time, survey the electric Service
Suppliers to identify the various unbundled billing components of electric retail
service that they commonly provide to residential and commercial/industrial
customers in the City, and the charges therefor, including those items that are
mandated by state or federal regulatory agencies as a condition of providing such
electric service. The Tax Administrator may, thereafter, issue and disseminate to
such electric Service Suppliers an administrative ruling identifying those components
and items which are: i) necessary or common to the receipt, use and enjoyment of
Page 10 of 26 Non-Redline of Proposed UUT Ordinance
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electric service; or, ii) currently, or historically have been, included in a single or
bundled rate for electric service by a local distribution company to a class of retail
customers. Unbundled charges for such components and items shall be subject to
the tax of subsection A. above.
D. As used in this section, the term CHARGES shall include the value of any
other services, credits, property of every kind or nature, or other consideration
provided by the Service User in exchange for the electricity or services related to the
provision of such electricity.
E. As used in this section, the term USING ELECTRICITY shall not include the
mere receiving of such electricity by an electric public utility or governmental agency
at a point within the City for resale.
F. The tax on electricity provided by a Non-Utility Service Supplier not under
the jurisdiction of this Subchapter shall be collected and remitted in the manner set
forth in § 3.08.222 of this Subchapter. All other taxes on charges for electricity
imposed by this section shall be collected from the Service User by the electric
Service Supplier or its billing agent. The amount of tax collected in one (1) Month
shall be remitted to the Tax Administrator, and must be received by the Tax
Administrator on or before the twentieth (20th) day of the following Month; or, at the
option of the Person required to collect and/or remit the tax, such Person shall remit
an estimated amount of tax measured by the tax billed in the previous Month or
upon the payment pattern of the Service User, which must be received by the Tax
Administrator on or before the twentieth (20th) day of the following Month. If an
electric Service Supplier uses a billing agent or billing aggregator to bill, collect,
and/or remit the tax, the Service Supplier shall: i) provide to the Tax Administrator
the name, address and telephone number of each billing agent and billing
aggregator currently authorized by the Service Supplier to bill, collect, and/or remit
the tax to the City; and, ii) upon request of the Tax Administrator, deliver, or effect
the delivery of, any information or records in the possession of such billing agent or
billing aggregator that, in the opinion of the Tax Administrator, is necessary to verify
the proper application, calculation, collection and/or remittance of such tax to the
City.”
Section 5. (Code Amendment.). Section 3.08.220 of the Culver City Municipal Code is
hereby amended to read as follows:
Ҥ 3.08.220 GAS USERS' TAX.
A. There is hereby imposed a tax upon every Person using Gas in the
City, which is delivered through a pipeline distribution system. The tax
imposed by this Section shall be at the rate of eleven percent (11%) of the
charges made for such Gas, including all services related to the storage,
transportation and delivery of such Gas.
B. As used in this section, the CHARGES shall include:
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1. The community charges for purchased Gas, or the cost of Gas
owned by the Service User (including the actual costs attributed to drilling,
production, lifting, storage, gathering, trunkline, pipeline, and other operating
costs associated with the production and delivery of such Gas), which is
delivered through a Gas pipeline distribution system or by mobile transport;
2. Gas transportation charges (including interstate charges to the
extent not included in commodity charges);
3. Storage charges; provided, however, that the Service Supplier
shall not be required to apply the tax to any charges for Gas storage services
when the Service Supplier cannot, as a practical matter, determine the
jurisdiction where such stored Gas in ultimately used; but it shall be the
obligation of the Service User to self-collect the amount of tax not applied to
any charge for Gas storage by the Service Supplier and to remit the tax to the
appropriate jurisdiction;
4. Capacity or demand charges, service establishment or
reestablishment charges, transition charges, customer charges, minimum
charges, annual and monthly charges, and any other charges, which are
necessary or common to the receipt, use and enjoyment of Gas service; and,
5. Charges, fees, or surcharges for Gas services or programs, which
are mandated by the California Public Utilities Commission or the Federal
Energy Regulatory Commission, whether or not such charges, fees, or
surcharges appear on a bundled or line item basis on the customer billing.
C. The Tax Administrator shall, from time to time, survey the Gas
Service Suppliers to identify the various unbundled billing components of Gas
retail service that they commonly provide to residential and commercial/
industrial customers in the City, and the charges therefor, including those
items that are mandated by state or federal regulatory agencies as a
condition of providing such Gas service. The Tax Administrator may,
thereafter, issue and disseminate to such Gas Service Suppliers an
administrative ruling identifying those components and items which are: i)
necessary or common to the receipt, use and enjoyment of Gas service; or, ii)
currently, or historically have been, included in a single or bundled rate for
Gas service by a local distribution company to a class of retail customers.
Unbundled charges for such components and items shall be subject to the tax
of subsection A. above.
D. As used in this section, the term CHARGES shall include the value of
any other services, credits, property of every kind or nature, or other
consideration provided by the Service User in exchange for the Gas or
services related to the delivery of such Gas.
E. There shall be excluded from the base on which the tax is imposed in
this section is computed (1) charges made for Gas which is to be resold and
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delivered through a pipeline distribution system; (2) charges made for Gas to
be used in the generation of electricity by an Electrical Corporation; (3)
charges made by a Gas public utility for gas used and consumed in the
conduct of the business of Gas public utilities; (4) charges made for Gas
used in the propulsion of a motor vehicle, as defined in the California Vehicle
Code, utilizing natural Gas, and (5) charges made for Gas used by a Non-
Utility Service Supplier to generate electricity for its own use or for sale to
others provided the electricity so generated is subject to the tax in accordance
with § 3.08.215 of this Subchapter.
F. The tax that is calculated on charges for Gas provided by self-
production or by a Non-Utility Service Supplier not under the jurisdiction of
this chapter shall be collected and remitted in the manner set forth in §
3.08.222 of this Subchapter. All other taxes on charges for Gas imposed by
this section shall be collected from the Service User by the Gas Service
Supplier or its billing agent. The amount of tax collected in one (1) Month shall
be remitted to the Tax Administrator, and must be received by the Tax
Administrator, on or before the twentieth (20th) day of the following Month; or,
at the option of the person required to collect and/or remit the tax, such
Person shall remit an estimated amount of tax measured by the tax billed in
the previous Month or upon the payment pattern of the Service User, which
must be received by the Tax Administrator on or before the twentieth (20th)
day of the following Month. If a Gas Service Supplier uses a billing agent or
billing aggregator to bill, collect, and/or remit the tax, the Service Supplier
shall: i) provide to the Tax Administrator the name, address and telephone
number of each billing agent and billing aggregator currently authorized by
the Service Supplier to bill, collect, and/or remit the tax to the City; and, ii)
upon request of the Tax Administrator, deliver, or effect the delivery of, any
information or records in the possession of such billing agent or billing
aggregator that, in the opinion of the Tax Administrator, is necessary to verify
the proper application, calculation, collection and/or remittance of such tax to
the City.”
Section 6. (Code Amendment.) Section 3.08.222 of the Culver City Municipal Code is
hereby amended to read as follows:
Ҥ 3.08.222 COLLECTION OF TAX FROM SERVICE USERS RECEIVING
DIRECT PURCHASE OF GAS OR ELECTRICITY.
A. Any Service User subject to the tax imposed by §§ 3.08.215 or by
3.08.220 of this Subchapter, which produces Gas or electricity for self-use;
which receives Gas or electricity, including any related supplemental
services, directly from a Non-Utility Service Supplier not under the jurisdiction
of this Subchapter; or which, for any other reason, is not having the full tax
collected and remitted by its Service Supplier, a Non-Utility Service Supplier,
or its billing agent on the use of Gas or electricity, including any related
supplemental services, in the City, shall report said fact to the Tax
Administrator and shall remit the tax due directly to the Tax Administrator
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within thirty (30) days of such use. In lieu of paying said actual tax, the
Service User may, at its option, remit to the Tax Administrator within thirty
(30) days of such use an estimated amount of tax measured by the tax billed
in the previous Month, or upon the payment pattern of similar customers of
the Service Supplier using similar amounts of Gas or electricity, provided that
the Service User shall submit an adjusted payment or request for credit, as
appropriate, within sixty (60) days following each calendar quarter. The credit,
if approved by the Tax Administrator, may be applied against any subsequent
tax bill that becomes due.
B. The Tax Administrator may require said Service User to identify its
Non-Utility Service Supplier and provide, subject to audit, invoices, books of
account, or other satisfactory evidence documenting the quantity of Gas or
electricity used, including any related supplemental services, and the cost or
price thereof. If the Service User is unable to provide such satisfactory
evidence, or, if the administrative cost of calculating the tax in the opinion of
the Tax Administrator is excessive, the Tax Administrator may determine the
tax by applying the tax rate to the equivalent charges the Service User would
have incurred if the Gas or electricity used, including any related
supplemental services, had been provided by the Service Supplier that is the
primary supplier of Gas or electricity within the City. Rate schedule for this
purpose shall be available from the City.”
Section 7. (Code Amendment.) Section 3.08.225 of the Culver City Municipal Code is
hereby amended to read as follows:
Ҥ 3.08.225 WATER USERS' TAX.
A. There is hereby imposed a tax upon every Person using the City
water which is delivered through mains or pipes. The tax imposed by this
Section shall be at the rate of eleven percent (11%) of the charges made for
such water and shall be paid by the Person paying for such water.
B. 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 mains or pipes; and 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 in the conduct of the
business of such department, utility or district.”
Section 8. (Code Amendment.) Section 3.08.230 of the Culver City Municipal Code is
hereby amended to read as follows:
Ҥ 3.08.230 EFFECT OF STATE AND FEDERAL AUTHORIZATION
To the extent that the City’s authorization to impose or collect the tax imposed
in this Subchapter is expanded or limited as a result of changes in state or
federal law, no amendment or modification of this Subchapter shall be
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required to conform the tax to those changes, and the tax shall be imposed
and collected to the full extent of the City’s authorization up to the full amount
of the tax imposed by this Subchapter.”
Section 9. (Code Addition.) Section 3.08.232 of the Culver City Municipal Code is hereby
added to read as follows:
Ҥ 3.08.232 BUNDLING TAXABLE AND NON-TAXABLE CHARGES
If a non-taxable service and a taxable service are billed together under a
single charge, the entire charge shall be deemed taxable unless the Service
Supplier can reasonably identify actual charges not subject to the utility users
tax based upon its books and records that are kept in the regular course of
business, which shall be in a manner consistent with generally accepted
accounting principles.”
Section 10. (Code Amendment.) Section 3.08.235 of the Culver City Municipal Code is
hereby amended to read as follows:
Ҥ 3.08.235 EXEMPTIONS.
A. Nothing in this Subchapter shall be construed as imposing a tax
upon:
1. Any Person or service if imposition of such tax upon that Person
or service would be in violation of a federal or California statute, the
Constitution of the United States or the Constitution of the State of California;
2. The City;
3. Any individual sixty (60) years of age or older, who uses
communication, electric, gas, or water services; in or upon any premises
occupied by such individual; provided the total adjusted gross income of that
individual, as used for purposes of the California Personal Income Tax Law,
was no more than $18,200 for the most recent completed calendar years; and
provided the combined adjusted gross income of all members of the
household in which such individual resided was no more than $21,500; or
4. Any individual who meets the criterion of disability, as established
by the Social Security Administration's Supplemental Security Income
Program for the Aged, Blind, and Disabled (Title XVI of the Social Security
Act as amended), without regard to the age of such disabled individual.
B. The exemptions granted by this Section shall not eliminate the duty
of the Service Supplier from collecting taxes from such exempt individuals, or
the duty of such exempt individuals from paying such taxes to the Service
Supplier; unless an exemption is applied for by the Service User and granted
in accordance with the provisions of this Section.
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Page 70 of 81Attachment 4
C. Any Service User exempt from the taxes imposed by this Subchapter
because of the provisions of Subsection A. above, may file an application with
the Tax Administrator for an exemption. Such application shall be made upon
a form supplied by the Tax Administrator; and shall state those facts, declared
under oath, which qualify the applicant for an exemption.
D. The Tax Administrator shall review all such applications, and shall
certify as exempt those applicants determined to qualify therefor; and shall
notify all Service Suppliers affected that such exemptions have been
approved. For each exemption, the following information shall be transmitted
to the Service Supplier:
1. Name of exempt applicant;
2. Account number shown on utility bill;
3. Address to which exempt service is being supplied; and
4. Any other information as may be necessary for the Service
Supplier to remove the exempt Service User from its tax billing procedure.
E. Upon receipt of such notice, the Service Supplier shall not be
required to continue to bill any further tax imposed by this Subchapter from
such exempt Service User, until further notice by the Tax Administrator is
given. The Service Supplier shall eliminate such exempt Service User from its
tax billing procedure no later than sixty (60) days after receipt of such notice
from the Tax Administrator.
F. All exemptions shall continue and be renewed automatically by the
Tax Administrator, so long as the prerequisite facts supporting the initial
qualification for exemption shall continue; provided, however, that the
exemption shall automatically terminate with any change in the service
address or residence of the exempt individual; further provided such
individual may nevertheless apply for a new exemption with each change of
address or residence.
G. The Tax Administrator shall have the power and right to demand
evidence of continued eligibility of a Service User for exemption under the
provisions of this Section. Such evidence may include, but need not be limited
to, copies of business records, letters or statements from the Social Security
Administration, copies of income tax returns, and such other evidence
concerning the Service User or other members of his or her household as
may tend to prove or disprove such eligibility. Failure to provide such
evidence as is within the control of a Service User to so provide, either
directly by him or by his consent or the consent of a member of his or her
household when such evidence is requested of the Service User in writing by
the Tax Administrator, shall be grounds for the immediate discontinuance of
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the Service User's eligibility for exemption under the provisions of this
Section. Evidence provided to the Tax Administrator upon request, or
voluntarily provided by the Service User without request, may not be used
against such Service User as evidence of violation of the provisions of this
Section; such evidence may only be used as grounds for termination of the
exemption herein provided.
H. Any individual exempt from the tax shall notify the Tax Administrator
within ten (10) days of any change in fact or circumstance which might
disqualify said individual from receiving such exemption. It shall be a
misdemeanor for any Person to knowingly receive the benefits of the
exemptions provided by this Section, when the basis for such exemption
either does not exist or ceases to exist.
I. Notwithstanding any of the provisions hereof, any Service Supplier
who determines by any means that a new or nonexempt Service User is
receiving service through a meter or connection exempt by virtue of an
exemption issued to a previous user or exempt user of the same meter or
connection, such Service Supplier shall immediately notify the Tax
Administrator of such fact; and the Tax Administrator shall conduct an
investigation to ascertain whether or not the provisions of this section have
been complied with, and where appropriate, order the Service Supplier to
commence collecting the tax from the nonexempt Service User.
J. Any individual entitled to be exempt from the taxes imposed by this
Subchapter, who used communication, electric, Gas, or water services and
paid more than $3.00 in such taxes, may, during the calendar year following
such payment, apply for a refund thereof on forms provided by the Tax
Administrator. Refund applications shall contain a declaration of those facts,
under oath, which qualify the applicant for a refund, and shall be
accompanied by the customer's bills showing the amount of such taxes billed
by Service Supplier during the preceding calendar year. Refund claims may
be filed by an individual who used communication, electric, Gas, or water
services and paid the taxes prescribed by this Subchapter either directly or
indirectly to the ‘Service User’ rather than the Service Supplier. In the event
the applicant has lost or destroyed any relevant billings or statements
showing the amount of tax paid, or if the applicant indirectly paid such taxes
in conjunction with the occupation of premises without receiving a specific
billing therefor from the Service User, the maximum refund shall be $48.00, or
$4.00 for each full month of services received by the applicant, whichever is
less.
K. If the Tax Administrator determines that an application for exemption
is faulty, or that the applicant has failed to truthfully set forth such facts, the
application for the exemption shall be denied in writing to the applicant. The
applicant shall thereafter have a right to file an amended application for
exemption; or to appeal the Tax Administrator's decision to the City Manager
within a 10-day period after the mailing date of the Tax Administrator's
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rejection. In the case of an appeal, the City Manager shall review the facts in
consultation with the City Attorney, and shall render a final determination on
such appeal.
L. Upon request of the Tax Administrator, a Service Supplier, or its
billing agent, shall provide a list of the names and addresses of those
customers which, according to its billing records, are deemed exempt from
the utility users tax.”
Section 11. (Code Amendment.) Section 3.08.240 of the Culver City Municipal Code is
hereby amended to read as follows:
Ҥ 3.08.240 COLLECTION OF TAX.
A. The duty of Service Suppliers to collect and remit the taxes imposed
by the provisions of this Subchapter shall be performed as follows:
B. The tax shall be 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.
C. The duty to collect tax from a Service User shall commence with the
beginning of the first regular billing period applicable to that Person which
starts on or after the operative date of this Subchapter. Where a Person
receives more than one (1) billing, one or more being for different periods
than another, the duty to collect shall arise separately for each billing period.
D. If the amount paid by a Service User to a Service Supplier is less
than the full amount of the charge and tax which has accrued for the billing
period, a proportionate share of both the charge and the tax shall be deemed
to have been paid. In those cases where a Service User has notified the
Service Supplier of refusal to pay the tax imposed on said charges, §
3.08.260 of this Subchapter shall apply.”
Section 12. (Code Amendment.) Section 3.08.245 of the Culver City Municipal Code is
hereby amended to read as follows:
Ҥ 3.08.245 REPORTING AND REMITTING.
Each Person required by this Subchapter to remit a tax shall file a return
with the Tax Administrator on forms approved by the Tax Administrator on or
before the due date. The full amount of the tax owed shall be included with
the return and filed with the Tax Administrator. The Tax Administrator is
authorized to require such further information as he deems necessary to
properly determine if the tax here imposed is being levied and collected in
accordance with this Subchapter. Returns and remittances are due
immediately upon cessation of business for any reason. Pursuant to
California Revenue and Taxation Code § 7284.6, the Tax Administrator, and
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its agents, shall maintain such filing returns as confidential information, and
not subject to the Public Records Act.”
Section 13. (Code Amendment.) Section 3.08.250 of the Culver City Municipal Code is
hereby amended to read as follows:
Ҥ 3.08.250 PENALTY.
A. Taxes collected from a Service User under this Subchapter, or
owed by a Service User subject to § 3.08.222 of this Subchapter, which are
not remitted to the Tax Administrator on or before the due dates provided in
this Subchapter are delinquent. Should the due date occur on a weekend or
legal holiday, the return must be received by the Tax Administrator on the
first regular working day following the weekend or legal holiday.
B. If the Person required to collect and/or remit a utility users tax under
this Subchapter fails to collect the tax by failing to properly assess the tax
on one or more charges on the customer's billing, such taxes are
delinquent.
C. A penalty at the rate of fifteen percent (15%) of the total tax that is
delinquent shall be imposed upon the Service Supplier, or the Service User
that fails to properly self collect and remit the tax under § 3.08.222 of this
Subchapter.
D. The Tax Administrator shall have power to impose additional
penalties upon Persons required to collect and/or remit taxes under the
provisions of this Subchapter for fraud or negligence in reporting or remitting
at the rate of fifteen percent (15%) of the amount of the tax collected and/or
required to be remitted, or as recomputed by the Tax Administrator.
E. In addition to any other penalties imposed by this Subchapter, any
Person required to collect and/or remit any tax imposed by the provisions of
this Subchapter who fails to collect the tax (by failing to properly assess the
tax on the customers' billing) or fails to remit the tax collected, or, in the
cases of a Service User that fails to properly self-collect and remit the tax
under § 3.08.222 of this Subchapter, shall pay interest at the rate of three-
quarters of one percent (¾%) per Month, or any fraction thereof, on the
amount of the tax, exclusive of penalties, from the date on which the
remittance first became delinquent, until paid.”
Section 14. (Code Amendment.) Section 3.08.255 of the Culver City Municipal Code is
hereby amended to read as follows:
Ҥ 3.08.255 ACTIONS TO COLLECT.
Any tax required to be paid by a Service User under the provisions of this
Subchapter shall be deemed a debt owed by the Service User to the City.
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Page 74 of 81Attachment 4
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 Person
required to collect and remit and shall no longer be a debt of the Service
User. In the event that a Service Supplier required to collect and remit a tax
under the provisions of this Subchapter fails to do so in whole or in part, the
amount of such unremitted tax shall be deemed a debt owed by the Service
Supplier to the City. Any Person owing money to the City under the
provisions of this Subchapter shall be liable to an action brought in the name
of the City for the recovery of such amount, plus any collection costs incurred
by the City as a result of the Person's noncompliance with this Subchapter,
including, but not limited to, reasonable attorney's fees.”
Section 15. (Code Amendment.) Section 3.08.257 of the Culver City Municipal Code is
hereby amended to read as follows:
Ҥ 3.08.257 ADDITIONAL POWER AND DUTIES OF TAX
ADMINISTRATOR.
A. The Tax Administrator shall have the power and duty, and is hereby
directed, to enforce each and all of the provisions of this Subchapter.
B. The Tax Administrator may adopt administrative rules and
regulations not inconsistent with provisions of this Subchapter for the purpose
of carrying out and enforcing the payment, collection and remittance of the
taxes herein imposed. A copy of such administrative rules and regulations
shall be on file in the Tax Administrator's office.
C. Upon a proper showing of good cause, the Tax Administrator may
make administrative agreements, with appropriate conditions, to vary from the
strict requirements of this Subchapter, and thereby: i) conform to the billing
procedures of a particular Service Supplier (or Service User subject to §
3.08.222 of this Subchapter) so long as said agreements result in the
collection of the tax in conformance with the general purpose and scope of
this Subchapter; or ii) to avoid a hardship where the administrative costs of
collection and remittance greatly outweigh the tax benefit. A copy of each
such agreement shall be on file in the Tax Administrator's office, and is
voidable by the Tax Administrator or the City at any time. Such administrative
agreements fall within the Tax Administrator’s discretion to settle disputes.
The Tax Administrator’s exercise of prosecutorial forbearance under this
Subchapter does not constitute a change in taxing methodology for purposes
of Government Code section 53750, and the City does not waive or abrogate
its ability to impose the utility users tax in full as a result of entering into such
administrative agreements.
D. The Tax Administrator shall be authorized to determine the eligibility
of any Person who asserts a right to exemption from or a refund of the tax
imposed by this Subchapter.”
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Page 75 of 81Attachment 4
Section 16. (Code Amendment.) Section 3.08.260 of the Culver City Municipal Code is
hereby amended to read as follows:
Ҥ 3.08.260 FAILURE TO PAY TAX; ADMINISTRATIVE REMEDY.
A. 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 (2) or more billing periods, or whenever
the Tax Administrator deems it in the best interest of the City, he may relieve
the service supplier of the obligation to collect taxes due under this
Subchapter from certain named Service Users for specified billing periods.
The Service Supplier shall provide the City with the names and addresses of
such Service Users and the amounts of taxes owed under the provisions of
this Subchapter.
B. The Tax Administrator shall notify the Service User that he or she
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 or her personally or by deposit of the notice in the
United States mail, postage prepaid thereon, addressed to the Service User
at the address to which billing was made by the Service Supplier; or should
the Service User have changed his or her address, to his or her 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 or her,
which shall be the date of mailing if service is not accomplished in person, a
penalty of twenty-five percent (25%) of the amount of the tax set forth in the
notice shall be imposed, along with interest at the rate of three-quarters of
one percent (¾%) per Month, or any fraction thereof, on the amount of the
tax, exclusive of penalties, form the date on which the remittance first became
delinquent, until paid, but not less than Five Dollars ($5.00).
C. The Tax Administrator may make an assessment for taxes not paid
or remitted by a Service User required to pay or remit. A notice of the
assessment which shall refer briefly to the amount of the taxes and penalties
imposed and the time and place when such assessment shall be submitted to
the City Council for confirmation or modification. The Tax Administrator shall
mail a copy of such notice to the Service Supplier and Service User at least
ten (10) days prior to the date of the hearing and shall post such notice for at
least five (5) continuous days prior to the date of the hearing in a conspicuous
place freely accessible to the public at large. Any interested party having any
objections may appear and be heard at the hearing provided his objection is
filed in writing with the Tax Administrator prior to the time set for the hearing.
At the time fixed for considering said assessment, the City Council shall hear
the same together with any objection filed regarding aforesaid and thereupon
may confirm or modify said assessment by motion.”
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Page 76 of 81Attachment 4
Section 17. (Code Amendment.) Section 3.08.265 of the Culver City Municipal Code is
hereby amended to read as follows:
Ҥ 3.08.265 APPEALS.
A. If the Service User or Service Supplier is aggrieved by any decision
or administrative ruling of the Tax Administrator, or with the failure to grant a
refund or exemption as provided for under this Subchapter, he/she may
appeal to a Board of Review comprised of the City Manager, the Community
Development Director and the Public Works Director, or their duly authorized
designee, by filing a notice of appeal with the Tax Administrator within
fourteen (14) days of the decision or administrative ruling that aggrieved the
service user or service supplier. The Tax Administrator shall thereupon fix a
time and place for a hearing of such appeal. The Tax Administrator shall give
notice to such person of the time and place of hearing as herein provided
herein.
B. The notice of appeal filed by the Service User or Service Supplier
shall contain the name and address of the Person appealing the action, the
decision appealed from and the grounds for the appeal. A defect in the form
of the notice does not affect its validity or the right to an appeal. The notice of
appeal shall be accompanied by the fee fixed by resolution of the City
Council. The notice of appeal shall be served upon the Tax Administrator by
a deposit of the notice in the United States mail, postage prepaid thereon,
addressed to the Tax Administrator. For the purpose of this section, a service
by mail is complete at the time of deposit in the United States mail. Within
fifteen (15) days after the date of service, the Person assessed may either
apply in writing to the Tax Administrator for a hearing on the assessment or
may file a written request that such hearing be waived. If the Person neither
requests a hearing upon the assessment nor requests a waiver of hearing
within the prescribed time, the Tax Administrator’s decision becomes final,
and penalties and interest as provided by this Subchapter shall continue to
accrue until paid.
C. Waiver of Hearing. If the Person requests that the hearing be
waived, the Tax Administrator may either grant such request and notify the
person thereof in writing or may, in his or her discretion, deny the request and
set the appeal for hearing at the time and in the manner prescribed herein. If
the Tax Administrator grants the request for waiver of hearing, the Board of
Review shall consider the appeal without conducting a hearing on the matter
and issue its written decision within thirty (30) days of the date upon which the
Tax Administrator granted the request for waiver of hearing. The decision of
the Board of Review shall be served upon the appealing Service User or
Service Supplier by a deposit of a copy of the decision in the United States
mail, postage prepaid thereon, addressed to such Person.
D. If the Person requests a hearing upon any decision or administrative
ruling of the Tax Administrator or if the Tax Administrator denies the request
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for the waiver of hearing, the Tax Administrator shall cause the matter to be
set for hearing before the Board of Review no later than ninety (90) days after
the date of the application, or as the case may be, the date of the Tax
Administrator's denial of the request for waiver of hearing. Notice of the time
and place of the hearing shall be mailed to the Person appealing the decision
of the Tax Administrator not later than fifteen (15) days before the date set for
hearing and, if the Tax Administrator desires said person to produce specific
records at such hearing, such notice may designate the records required to
be produced.
E. At the hearing the Person appealing the decision and the Tax
Administrator may submit such evidence as they believe to be relevant to
their respective positions. The Board of Review may require the presentation
of additional evidence from either the person assessed or from the Tax
Administrator, or from both, and may continue the hearing from time to time
for the purpose of allowing the presentation of additional evidence. The
Board of Review shall issue a written decision within thirty (30) days of the
conclusion of the hearing. The decision of the Board of Review shall be
served upon the appealing Service User or Service Supplier by a deposit of a
copy of the decision in the United States mail, postage prepaid thereon,
addressed to such Person.
F. Exception. Within fifteen (15) days from the date of service of the
notice of decision of the Board of Review, the Person appealing the decision
of the Tax Administrator may file written exceptions to the decision of the
Board of Review. Upon filing of written exceptions, the Board of Review may
either deny the exceptions or modify its decision, as it deems appropriate. If
the Board of Review modifies its decision, it shall cause a written notice of
decision as required herein to be given to the person appealing the decision
of the Tax Administrator at the time, and in the manner provided herein. If the
Board of Review does not modify its decision within thirty (30) days from the
service of said exceptions, the exceptions shall be deemed denied.
G. Effect of delay in administrative proceeding. Failure of the Tax
Administrator to set any hearing within the time prescribed herein and failure
of the Board of Review to complete any procedure prescribed in this section
within the period stated shall not affect the validity of any proceedings taken
hereunder. The City’s failure to meet the notice and timing requirements
under this section does not constitute a waiver of the City’s rights; nor does
such a failure abrogate any decision of the Tax Administrator or the Board of
Review.
H. Effect of payment of a tax. Acceptance of any payment upon a tax,
the validity of which has not previously been passed upon by the Board of
Review, shall not preclude the Tax Administrator from subsequently levying
another assessment in any case where the original assessment does not truly
reflect the correct tax liability.”
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Section 18. (Code Addition.) Section 3.08.267 of the Culver City Municipal Code is
hereby adopted to read as follows:
Ҥ 3.08.267 No Injunction or Writ of Mandate
No injunction or writ of mandate or other legal or equitable process shall issue in any
suit, action, or proceeding in any court against this city or against any officer of the city
to prevent or enjoin the collection under this Subchapter of any tax or any amount of
tax required to be collected and/or remitted.”
Section 19. (Code Amendment.) Section 3.08.270 of the Culver City Municipal Code is
hereby amended to read as follows:
Ҥ 3.08.270 RECORDS.
A. It shall be the duty of every Person required to collect and/or remit to
the City any tax imposed by this Subchapter to keep and preserve, for a
period of at least three (3) 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, or the Tax Administrator's designated representative, shall
have the right to inspect at all reasonable times. The Tax Administrator, or the
Tax Administrators' designated representative, is authorized to execute a
non-disclosure agreement approved by the City Attorney to protect the
confidentiality of customer information pursuant to California Revenue and
Taxation Code §§ 7284.6-7284.7.
B. The Tax Administrator, or the Tax Administrators' designated
representative, may request from a Person providing transportation or
distribution services of Gas or electricity to Service Ssers within the City, a list
of the names, billing and service addresses, quantities of Gas or electricity
delivered, and other pertinent information, of its transportation customers
within the City pursuant to Section 6354(e) of the California Public Utilities
Code.
C. If any Person subject to record-keeping under this section
unreasonably denies the Tax Administrator, or the Tax Administrator's
designated representative, access to such records, the Tax Administrator or
the Tax Administrator's designated representative may impose a penalty of
five hundred dollars ($500) on such Person for each day following the initial
date that the Person refuses to provide such access. This penalty shall be in
addition to any other penalty imposed under this Subchapter.”
Section 20. (Code Amendment.) Section 3.08.275 of the Culver City Municipal Code is
hereby amended to read as follows:
Ҥ 3.08.275 REFUNDS.
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A. Whenever the amount of any tax has been overpaid, paid more than
once, or has been erroneously or illegally collected or received by the Tax
Administrator under this Subchapter, it may be refunded as provided in this
Section.
B. The Tax Administrator may refund any tax that has been overpaid,
paid more than once, or has been erroneously or illegally collected or
received by the Tax Administrator under this Subchapter, provided that no
refund shall be paid under the provisions of this section unless the claimant or
his or her guardian, conservator, executor or administrator has submitted a
written claim to the Tax Administrator within one year of the overpayment or
erroneous or illegal collection of said tax. Such claim must clearly establish
claimant's right to the refund by written records showing entitlement thereto.
Nothing herein shall permit the filing of a claim on behalf of a class or group of
taxpayers. The submission of a written claim, which is acted upon by the City
Council, shall be a prerequisite to a suit thereon. (See Government Code
Section 935). The City Council shall act upon the refund claim within the time
period set forth in Government Code Section 912.4. If the City Council fails or
refuses to act on a refund claim within the time prescribed by Government
Code Section 912.4, the claim shall be deemed to be rejected by the City
Council on the last day of the period within which the City Council was
required to act upon the claim as provided in Government Code Section
912.4.
C. It is the intent of the City Council that the one year written claim
requirement of this subsection be given retroactive effect; provided, however,
that any claims which arose prior to the commencement of the one year
claims period of this section, and which are not otherwise barred by a then-
applicable statute of limitations or claims procedure, must be filed with the
Tax Administrator as provided in this subsection within ninety (90) days
following the effective date of thissection.
D. Notwithstanding other provisions of this section, whenever a Service
Supplier, pursuant to an order of the California Public Utilities Commission or
a court of competent jurisdiction, makes a refund to Service Users of charges
for past utility services, the taxes paid pursuant to this Subchapter on the
amount of such refunded charges shall also be refunded to Service Users,
and the Service Supplier shall be entitled to claim a credit for such refunded
taxes against the amount of tax which is due upon the next monthly return. In
the event this Subchapter is repealed, the amounts of any refundable taxes
shall be borne by the City.”
Section 21. (No Change) Section 3.08.280 SEVERABILITY.
If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this
Subchapter or any part thereof is for any reason held to be unconstitutional, such decision
shall not affect the validity of the remaining portions of this Subchapter or any part thereof.
The City Council hereby declares that it would have passed each section, subsection,
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subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any
one (1) or more sections, subsections, subdivisions, paragraphs, sentences, clauses or
phrases be declared unconstitutional.
Section 22. (Code Deletion, refer to Section 3.08.235 for Exemptions.) Section 3.08.285
of the Culver City Municipal Code is hereby deleted.
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