Note: Prior history: Prior code Sections 6620 through
6634 and Ord. No. 808CCS, adopted 6/24/69, effective 7/1/69; Ord.
No. 1047CCS, adopted 11/23/76; Ord. No. 1287CCS, adopted 11/8/83;
Ord. No. 1351, adopted 12/10/85; Ord. No. 1533CCS adopted 7/25/90;
Ord. No. 1684CCS, adopted 6/1/93; and Ord. No. 1863CCS, adopted 9/24/96.
The following words and phrases whenever used in this Chapter
shall be given the meaning stated below unless otherwise provided.
mean services that are associated with or incidental to the
provision, use or enjoyment of telecommunications services, including
but not limited to the following services:
"Conference bridging 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.
Any service which separately states information pertaining to
individual calls on a customer's billing statement.
Any service which provides telephone number information, or
address information.
Any service offered in connection with one or more telecommunications
services, which offers advanced calling features that allow customers
to identify callers or to manage multiple calls or to call connections,
including conference bridging services.
Any service that enables a service user to store, send or receive
recorded messages.
mean services that are associated with or incidental to the
provision or delivery of video services, including but not limited
to the provision of converters and similar equipment, electronic program
guide services, recording services, search functions, or other interactive
services or communications that are associated with or incidental
to the provision, use or enjoyment of video services.
means the mailing address of the service user where the service
supplier submits invoices or bills for payment by the customer.
means any and all services related to the providing of television, video or origination programming or services, including any communications that are ancillary, necessary or common to the use or enjoyment of the programming or service, provided to premises located in the City through any cable, or any other similar medium, in part or exclusively, that is used to transmit television or video signals, regardless of the content of the video programming or communications. However, cable television service shall not include services for which a tax is paid under Section 6.72.020 of this Chapter.
means any person, company or service which provides one or
more channels or signals of television, video or television programming
or services, including any communications that are ancillary, necessary
or common to the use or enjoyment of the programming or services,
to or from a business, home, condominium or apartment, where some
fee is paid, whether directly or indirectly, whether or not the public
rights-of-way are utilized in the delivery of the video or television
programming or communications and regardless of the content of such
video or television programming or communication. Cable television
supplier includes, but is not limited to, multichannel video programming
distributors, as defined in 47 U.S.C. Section 522(13), open video
systems (OVS) suppliers, suppliers of cable television, master antenna
television, satellite master antenna television, multichannel multipoint
distribution services, direct broadcast satellite, and other suppliers
of video programming or communications including two way communications,
whatever their technology, to the extent allowed by law.
means the City of Santa Monica.
has the same meaning as it is defined in Section 218 of the
California Public Utilities Code. "Electrical corporation" shall be
construed to include any municipality or franchised agency engaged
in the selling or supplying of electrical power to a service user.
has the same meaning as set forth in the Federal Power Act,
15 U.S.C. Section 79z-5a, and regulations thereunder.
means natural or manufactured gas or any alternate hydrocarbon
fuel, which may be substituted therefor.
has the same meaning as it is defined in Section 222 of the
California Public Utilities Code.
means a calendar month.
means:
A service supplier, other than a supplier 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, co-generator,
exempt wholesale generator, municipal utility district, Federal power
marketing agency, electric rural cooperative, or other supplier or
seller of electricity;
An electric service provider (ESP), electricity broker, marketer,
aggregator, pool operators, or other electricity supplier other than
a supplier 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; or
A gas service supplier, aggregator, marketer or broker, other
than a supplier 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.
means, without limitation, any natural individual, firm,
trust, common law trust, estate, partnership of any kind, association,
syndicate, club, joint stock company, joint venture, limited liability
company, corporation (including foreign, domestic, and non-profit),
municipal district or municipal corporation, other than the City,
cooperative, receiver, trustee, guardian, or other representative
appointed by order of any court.
means the residential street address or the business street
address of the service user's primary place of usage. As determined
by the Tax Administrator "service address" may include the location
of the service user's communication equipment from which the communication
originates or terminates, regardless of where the communication is
billed or paid. For prepaid telecommunication service, "service address"
means the location associated with the service number.
means any entity or person, including the City, that is required
to collect, self-collect or self-impose and remit a tax subject to
this Chapter including any billing agent. Service supplier includes
any person that provides telecommunication, electric, gas, cable,
water or wastewater service to a user of such services within the
City.
means a person required to pay a tax imposed under the provisions
of this Chapter.
means the City's Director of Finance or his or her designee.
means the transmission, conveyance, or routing by any method
or mean of any voice, data, audio, video, or any other information
or signals to a point, or between or among points, regardless of the
technology or method or mean of transmission, conveyance or routing
that may be used. Telecommunication service includes, without any
limitation whatsoever, any transmission, conveyance, or routing in
which computer processing, or any other technology or application
of any kind, may be used to act on any form, code or protocol of content
for purposes of transmission, conveyance or routing, without regard
to whether such service is described or otherwise referred to as voice
over internet protocol (VoIP) service or is classified by the Federal
Communications Commission, or any other successor entity, as enhanced
or value added. Telecommunication service includes video or data or
any other service that is functionally integrated, in whole or in
part, with any telecommunication service. Telecommunication service
further includes, but is not limited to, the following services, regardless
of the manner or basis on which such services are calculated or billed:
ancillary telecommunication services; intrastate, interstate and international
telecommunication service; mobile telecommunications service; prepaid
or post-paid telecommunication service; private telecommunication
service; paging service; "800" or "900 numbers or any other similar
numbers designated by the Federal Communications Commission or any
other successor entity; ancillary video services and video services.
Telecommunication service also includes, but is not limited to, any
charge however calculated or billed for: connection, reconnection,
termination, movement, or change of service; late payment fees; detailed
billing; central office; custom features; directory assistance; access,
line or universal service; regulatory, administrative or other cost
recovery fees; local number portability; text and instant messaging;
video programming; equipment leases; service calls; service protection
plans; and special or other services of any kind. Telecommunication
service does not include digital downloads that are not "ancillary
telecommunication services," such as music, ringtones, games, and
similar digital products.
has the same meaning as defined in Section 234 of the California
Public Utilities Code.
means programming services provided to service users by a
"video service supplier" including but not limited to basic services,
premium services, audio services, video games, pay-per-view services,
video on demand, origination programming, or any other similar services,
regardless of the content of such video programming, or the technology
used to deliver such services, and regardless of the manner or basis
on which such services are calculated or billed.
means any and all services and equipment related to the providing,
recording, delivering, use or enjoyment of video programming, including
but not limited to, origination programming and programming using
Internet Protocol, e.g., IP-TV and IP-Video, using one or more channels
by a video service supplier, regardless of the technology used to
deliver, store or provide such services, and regardless of the manner
or basis on which such services are calculated or billed, and includes
ancillary video services, data services, telecommunication services,
or interactive communication services that are functionally integrated,
in whole or in part, with video services.
(Added by Ord. No. 1979CCS §
1, adopted 7/25/00; amended by Ord. 2203CCS § 1, adopted 7/26/06; Ord. No. 2280CCS § 1,
adopted 11/4/08)
(a)
There
is hereby imposed a tax upon every person using telecommunication
services in the City, other than a telephone corporation, including
intrastate, interstate, and international telephone communication
services. The tax imposed by this Section shall be at the rate of
ten percent of all charges made for such telecommunication services
and shall be collected from the service user by the telecommunication
services supplier or its billing agent. To the extent allowed by law,
the tax on telecommunication services shall apply to a service user
if the billing or service address of the service user is within the
City's boundaries. If the billing address of the service user is different
from the service address, the service address of the service user
shall be used.
(b)
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
telecommunication services. If any nontaxable service or charge is
combined with and not separately stated from taxable service charges
on the bill or invoice of a service supplier, the combined charge
is subject to tax unless the service supplier can reasonably identify
the portions of the combined charge that are nontaxable and taxable
through the service supplier's books and records that are kept in
the regular course of business, and in accordance with generally accepted
accounting principles. The service supplier has the burden of proving
the proper apportionment of taxable and non-taxable charges. If the
service supplier offers a combination of taxable and non-taxable services,
and the charges are separately stated, then for taxation purposes,
the values assigned the taxable and non-taxable services shall be
based on its books and records kept in the regular course of business
and in accordance with generally accepted accounting principles, and
not created and maintained for tax purposes. The service supplier
has the burden of proving the proper valuation of the taxable and
non-taxable services. As used in this Section, the term "charges"
shall not include charges for services paid for by inserting coins
or other forms of payment in coin or payment operated telephones,
except that where such coin or payment 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.
(c)
To
prevent actual multi-jurisdictional taxation of telecommunication
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 telecommunication
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
a sufficient legal basis for the imposition and collection of utility
users tax for telecommunication 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.
(d)
The
tax on telecommunication service imposed by this Section shall be
collected from the service user by the service supplier or its billing
agent. The amount of tax collected in one month shall be remitted
to the Tax Administrator, and is due to the Tax Administrator on or
before the 20th day of the following month.
(e)
Any natural person, who satisfies the special exemption requirements established by Section 6.72.150, shall be exempt from the tax imposed by this Section. Nothing in this Chapter shall be construed as imposing a tax upon any person or service when the imposition of such tax upon such person or service would be in violation of a Federal or State statute, the Constitution of the United States or the Constitution of the State of California. The City Council may, in its discretion and in accordance with applicable law, create by ordinance exemptions from the telecommunication services tax.
(f)
The
Tax Administrator is authorized to enforce the provisions of this
Chapter and may adopt administrative rules and regulations and may
issue determinations as appropriate for the proper administration
and interpretation of this Chapter and that are consistent with provisions
and intent of this Chapter. The Tax Administrator may also issue and
disseminate to service suppliers sourcing and other administrative
rules or determinations for the taxation of telecommunication services,
including but not limited to post-paid communication services, prepaid
communication services, and private communication services.
(Added by Ord. No. 1979CCS §
1, adopted 7/25/00; amended by Ord. 2203CCS § 2, adopted 7/26/06; Ord. No. 2280CCS § 1,
adopted 11/4/08)
(a)
There
is imposed a tax upon every person using electricity in the City.
The tax imposed by this Section shall be at the rate of ten percent
of all charges made for such electricity, and for any supplemental
services or other associated activities directly related to or necessary
for the provision of electricity to the service user, which are provided
by a service supplier or non-utility service supplier to a service
user. The tax shall be collected from the service user by the service
supplier or non-utility service supplier, or its billing agent.
(b)
The Tax Administrator may, 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, commercial and 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 item shall be subject to the tax of subsection (a) above.
(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
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.
(d)
As
used in this Section, the term "using electricity" shall not include
electricity used in water pumping by water corporations, nor shall
the term include the mere receiving of such electricity by an electrical
corporation at a point within the City for resale.
(e)
The tax on electricity 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 Section 6.72.045 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 month shall be remitted to the Tax Administrator on or before the twentieth day of the following month; or, at the option of the person required to collect 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 users, which must be remitted to the Tax Administrator on or before the twentieth day of the following month.
(Added by Ord. No. 1979CCS §
1, adopted 7/25/00)
(a)
There
is imposed a tax upon every person using gas in the City which is
transported and delivered through any mains, pipes or other distribution
pipeline system. The tax imposed by this Section shall be at the rate
of ten percent of all charges made for such gas, including all services
related to the storage, transportation and delivery of such gas. The
tax shall be collected from the service user by the service supplier
or non-utility service supplier, or its billing agent.
(b)
The Tax Administrator may, from time to time, survey the gas service suppliers to identify the various billing components of gas retail service that they commonly provide to residential and commercial/industrial customers in the City, and the charges therefor, including unbundled components and 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 item shall be subject to the tax of subsection (a) above.
(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
gas or services related to the provision 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.
(d)
There
shall be excluded from the base on which the tax imposed in this Section
is computed: (1) charges made for gas which is to be resold and delivered
through mains, pipes, or any 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;
and (4) until December 31, 2010, unless extended by resolution adopted
by the City Council, charges made for gas used in the propulsion of
a motor vehicle, as that phrase is defined in the California Vehicle
Code, utilizing natural gas.
(e)
The tax on 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 Section 6.72.045 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 month shall be remitted to the Tax Administrator, and is due to the Tax Administrator on or before the twentieth day of the following month; or, at the option of the person required to collect 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 remitted to the Tax Administrator on or before the twentieth day of the following month.
(Added by Ord. No. 1979CCS §
1, adopted 7/25/00; amended by Ord. No. 1993CCS § 1, adopted 11/28/00)
(a)
Any service user subject to the tax imposed by Section 6.72.030 or by Section 6.72.040 of this Chapter, which produces gas or electricity for self-use, or 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 such facts to the Tax Administrator and shall remit the tax due directly to the Tax Administrator within thirty days of such use. In lieu of paying such actual tax, the service user may, at its option, remit to the Tax Administrator within thirty 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 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 such 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 schedules for this purpose
shall be available from the City.
(Added by Ord. No. 1979CCS §
1, adopted 7/25/00)
(a)
There
is imposed a tax upon every person using a cable television service
in the City from a cable television supplier. The tax imposed by this
Section shall be at the rate of ten percent of all charges made for
such cable television service. The tax shall be collected from the
service user by the cable television service supplier, or its billing
agent.
(b)
The Tax Administrator may, from time to time, survey the cable television service suppliers in the City to identify the various components of cable television service that are being offered to customers within the City, and the charges therefor. The Tax Administrator may, thereafter, issue and disseminate to such cable television service suppliers an administrative ruling identifying those components: (i) that are necessary or common to the receipt, use and enjoyment of cable television service; or (ii) which currently are, or historically have been, included in a bundled rate for cable television service by a local distribution company. Charges for such components shall be subject to the tax of subsection (a) above.
(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
cable television 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.
(d)
The
tax imposed by this Section shall be collected from the service user
by the cable television supplier, its billing agent or a reseller
of such services. In the case of cable television service, the service
user shall be deemed to be the purchaser of the bulk cable television
service (e.g., an apartment owner), unless such service is resold
to individual users, in which case the service user shall be the ultimate
purchaser of the cable television service. The amount of tax collected
in one month shall be remitted to the Tax Administrator, and is due
to the Tax Administrator on or before the twentieth day of the following
month.
(Added by Ord. No. 1979CCS §
1, adopted 7/25/00)
(a)
There
is hereby imposed a tax upon every person in the City using the City's
water and wastewater services. The tax imposed by this Section shall
be at the rate of ten percent of all charges made for such water and
wastewater services. The tax shall be collected from the service user
by the water and wastewater service supplier or its billing agent.
(b)
As
used in this Section, the term "charges" shall include charges made
for: (1) metered and unmetered water usage; (2) wastewater discharge
including sewer service charges; and (3) minimum, fixed and variable
charges for service, including all customer charges, service charges,
demand charges, standby charges, and annual, monthly and bimonthly
charges.
(Added by Ord. No. 1979CCS §
1, adopted 7/25/00)
(a)
Nothing
in this Chapter shall be construed as imposing a tax upon (1) the
City, or (2) any person or service supplier if imposition of such
tax would be in violation of a federal or California statute, the
Constitution of the United States, or the Constitution of the State
of California.
(b)
Any service user that is exempt from the tax imposed by this Chapter 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 state or federal agency or subdivision with a commonly recognized name, or is a service user of telephone communication services that has received a federal excise tax exemption certificate for such service. Such 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 noncompliance. 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 the 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.
(Added by Ord. No. 1979CCS §
1, adopted 7/25/00)
The duty of service suppliers to collect and remit the taxes
imposed by the provisions of this Chapter shall be performed as follows:
(a)
The tax shall be collected insofar as practicable at the same time as, and along with, the collection of charges made in accordance with the regular billing practice of the service supplier. Where the amount paid by a service user to a service supplier is less than the full amount of the charge and tax which was 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 such charges, Section 6.72.110(b) of this Chapter shall apply.
(b)
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 July 1, 1969. Where a person receives more than
one billing, one or more being for different periods than another,
the duty to collect shall arise separately for each billing period.
(Added by Ord. No. 1979CCS §
1, adopted 7/25/00)
(a)
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. At the time the return is filed, the full
amount of the tax owed shall be remitted to the Tax Administrator.
The Tax Administrator is authorized to require such further information
as he or she deems necessary to properly determine if the tax here
imposed is being levied, collected and remitted in accordance with
this Chapter. Returns and remittances are due immediately upon cessation
of business for any reason. Pursuant to Revenue and Tax Code Section
7284.6, the Tax Administrator, and his or her agents, shall maintain
the filed returns as confidential information, and not subject to
disclosure under the Public Records Act. Any person required to remit
a tax may, upon written application to and with the written consent
of, the Tax Administrator, make reports and remittances on a quarterly
basis.
(b)
A
tax shall be considered remitted to the Tax Administrator if it is
sent, postage paid, by United States Postal Service first class mail
and postmarked on or before its due date.
(c)
Any
person who collects or remits a tax under this Chapter and who is
authorized to remit an estimated tax amount, shall remit an adjusted
tax payment or request for credit, as appropriate, within sixty days
following each calendar quarter. The credit, if approved by the Tax
Administrator, may be applied against any subsequent tax bill that
becomes due.
(d)
A
direct deposit, including electronic fund transfers and other similar
methods of electronically exchanging monies between financial accounts,
made by a service supplier in satisfaction of its remitting obligations
under this Chapter, shall be considered timely remitted if the transfer
is initiated on or before the due date, and the transfer settles into
the City's account by no later than the following business day.
(Added by Ord. No. 1979CCS §
1, adopted 7/25/00)
(a)
Taxes collected from a service user, or owed by a service user subject to Section 6.72.045 of this Chapter, which are not remitted to the Tax Administrator on or before the due dates provided in this Chapter 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 or remit the utility users tax fails to collect the tax, such as 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 fails to properly self-collect and remit the tax under Section 6.72.045 of this Chapter, the Tax Administrator shall attach a penalty at the rate of fifteen percent of the total tax that is delinquent or deficient in the remittance. Notwithstanding the foregoing, a person required to collect or remit the utility users tax shall not be subject to the fifteen percent penalty and interest for an "improper assessment," if such "improper assessment" is voluntarily disclosed to the Tax Administrator, or its agent, and promptly corrected thereafter by such person, whether the disclosure occurs in the course of a Tax Administrator survey under this Chapter or the disclosure is voluntarily initiated by such person. For purposes of this subsection, the term "voluntarily disclosed" shall mean information provided by a service supplier to the City for the purpose of increasing the accuracy of the service supplier's tax collection or remittances before the issue has been raised or an inquiry has been initiated by the City or any other California municipality.
(c)
The
Tax Administrator shall have power to impose additional penalties
upon persons required to collect or remit taxes under the provisions
of this Chapter for fraud or gross negligence in reporting or remitting
at the rate of fifteen percent of the amount of the tax collected
or required to be remitted, or as recomputed by the Tax Administrator.
(d)
In addition to any other penalties imposed by this Chapter, any person required to collect or remit any tax imposed under the provisions of this Chapter who fails to collect the tax or who fails to remit the tax collected, or, in the case of a service user that fails to properly self-collect and remit the tax under Section 6.72.045 of this Chapter, shall pay interest at the rate of three-quarters of one percent per month, or any fraction thereof, on the amount of the tax from the date on which the remittance first became delinquent, until paid.
(e)
The
Tax Administrator shall have the power to reduce or to waive any penalty
upon persons required to collect and remit taxes under the provisions
of this Chapter so long as such reduction or waiver is in writing
and complies with any administrative rules adopted by resolution of
the City Council to facilitate the implementation of this Chapter.
Any request for reduction or waiver of any penalty assessed pursuant
to this Section shall be made in writing no later than thirty days
following the assessment of penalty.
(Added by Ord. No. 1979CCS §
1, adopted 7/25/00)
Any tax required to be paid by a service user under the provisions
of this Chapter shall be deemed a debt owed by the service user to
the City. Any such tax collected from a service user which has not
been remitted to the Tax Administrator shall be deemed a debt owed
to the City by the 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 Chapter shall be liable in 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 Chapter including, but not limited
to, reasonable attorneys' fees.
(Added by Ord. No. 1979CCS §
1, adopted 7/25/00)
(a)
Whenever
the Tax Administrator determines that a service user has deliberately
withheld the amount of the tax owed by him or her from the amounts
remitted to a service supplier required to collect the tax, that a
service user has failed to pay the amount of the tax for a period
of two or more billing periods, or whenever the Tax Administrator
deems it in the best interest of the City, the Tax Administrator,
in his or her sole discretion, may relieve the service supplier of
the obligation to collect taxes due under this Chapter from certain
named service users for specified billing periods. The 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 Chapter.
(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 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 days from the date of the
service of the notice upon him or her, which shall be the date of
mailing if service is not accomplished in person, a penalty of twenty-five
percent of the amount of the tax set forth in the notice shall be
imposed, along with-interest at the rate of three-quarters of-one
percent 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, but not less than five dollars.
(c)
The
Tax Administrator may make an assessment for taxes not paid or remitted
by a service user who was required to pay or remit a tax under this
Chapter. The Tax Administrator shall mail a notice of such assessment,
which shall identify the amount of the taxes and other charges, interest
or penalties due or imposed and the time and place where the assessment
may be contested, to the person selling the service and to the service
user at least ten days prior to the date of the hearing and shall
conspicuously post such notice for at least five continuous days prior
to the date of the hearing at the Chambers of the City Council. Any
interested party having any objections may appear and be heard at
the hearing provided his or her objection is filed in writing with
the Tax Administrator prior to the time set for the hearing. At the
time fixed for considering such assessment, the Tax Administrator
shall hear the assessment together with any objection filed and thereupon
may confirm or modify the assessment.
(Added by Ord. No. 1979CCS §
1, adopted 7/25/00)
(a)
The
Tax Administrator shall have the power and duty, and is hereby directed,
to enforce each and all of the provisions of this Chapter.
(b)
The
Tax Administrator may adopt administrative rules, and issue administrative
rulings and regulations consistent with the provisions of this Chapter
for the purpose of carrying out and enforcing the payment, collection
and remittance of the taxes imposed by this Chapter. A copy of the
administrative rules and regulations shall be on file in the Tax Administrator's
office. In performing his or her duties under this Chapter, the Tax
Administrator shall not impose a new tax or increase an existing tax
except as authorized by law.
(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 Chapter and thereby: (i) conform to the billing procedures of a particular service supplier (or service user subject to Section 6.72.045 of this Chapter) so long as such agreements result in the collection of the tax in conformance with the general purpose and scope of this Chapter; 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 are voidable by the Tax Administrator or the City at any time.
(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 Chapter.
(Added by Ord. No. 1979CCS §
1, adopted 7/25/00)
(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 Chapter,
he or she may appeal to the City Manager, or his or her duly authorized
designee, by filing a notice of appeal with the City Clerk within
fourteen days of the decision or administrative ruling which aggrieved
the service user or service supplier. The City Clerk shall thereupon
fix a time and place for a hearing of such appeal within forty-five
days of the date that the notice of appeal is filed with the City
Clerk. The City Clerk shall give notice to such person of the time
and place of hearing as herein provided.
(b)
The
decision of the City Manager, or his or her duly authorized designee,
shall be final and not appealable to the City Council, but subject
to judicial review pursuant to California Code of Civil Procedure
Section 1094.5.
(c)
No
injunction or writ of mandate or other legal or equitable process
shall issue in any suit, action or proceeding in any court against
the City or against any officer of the City to prevent or enjoin the
collection under this Chapter of any tax or any amount of tax required
to be collected or remitted.
(Added by Ord. No. 1979CCS §
1, adopted 7/25/00)
(a)
It
shall be the duty of every person required to collect or remit to
the City any tax imposed by this Chapter to keep and preserve, for
a period of at least three years, all records as may be necessary
to determine the amount of such tax as he or she may have been liable
for the collection of or remittance to the Tax Administrator, which
records the Tax Administrator, or the Tax Administrator's designated
representative, shall have the right to inspect at a reasonable time.
(b)
The
City may issue an administrative subpoena to compel a person to deliver,
to the Tax Administrator, copies of all records deemed necessary by
the Tax Administrator to establish compliance with this Chapter, including
the delivery of records in a common electronic format on readily available
media if such records are kept electronically by the person in the
usual and ordinary course of business. As an alternative to delivering
the subpoenaed records to the Tax Administrator on or before the due
date provided in the administrative subpoena, such person may provide
access to such records to the City on or before the due date; provided,
that such person shall reimburse the City for all reasonable travel
expenses incurred by the City to inspect those records, including
travel, lodging, meals and other similar expenses, but excluding the
normal salary or hourly wages of those persons designated by the City
to conduct the inspection.
(c)
The
Tax Administrator, or the Tax Administrator's 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 Tax Code Sections 7284.6 and 7284.7.
The Tax Administrator, or the Tax Administrator's 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.
(d)
If
a service supplier uses a billing agent or billing aggregator to bill,
collect 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 or remittance of such tax to the City.
(e)
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, or fails to produce the information
requested in an administrative subpoena within the time specified,
the Tax Administrator or the Tax Administrator's designated representative
may impose a penalty of five hundred dollars on such person for each
day following: (i) the initial date that the person refuses to provide
such access; or (ii) the due date for production of records as set
forth in the administrative subpoena. This penalty shall be in addition
to any other penalty imposed under this Chapter.
(Added by Ord. No. 1979CCS §
1, adopted 7/25/00)
(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 Chapter, 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 Chapter; 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. The 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.
(c)
The
submission of a written claim shall be a prerequisite to a suit for
a refund as provided for in Government Code Section 935. The City
shall act upon the refund claim within the time period set forth in
Government Code Section 912.4. If the City 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 have been rejected by the City
on the last day of the period within which the City was required to
act upon the claim as provided in Government Code Section 912.4.
(d)
Notwithstanding
other provisions of this Section, whenever a service supplier, pursuant
to an order of the California Public Utilities Commission or court
of competent jurisdiction, makes a refund to service users of charges
for past utility services, the taxes paid pursuant to this Chapter
on the amount of such refunded charges shall also be refunded to the
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 returns. The service supplier shall provide
to the Tax Administrator such documentation concerning its entitlement
to a credit under this subsection as the Tax Administrator may deem
necessary. In the event this Chapter is repealed, the amounts of any
refundable taxes shall be borne by the city.
(e)
Notwithstanding subsections (b) and (d) of this Section, a service supplier shall be entitled to take any overpayment as a credit against an underpayment whenever such overpayment has been received by the City within three years next preceding a notice of tax deficiency or assessment by the Tax Administrator, or during any year for which the service supplier, at the request of the Tax Administrator, has executed a waiver of the defense of the statute of limitations with regard to any claim the City may have for a utility users tax. Under no circumstances shall an overpayment taken as a credit against an underpayment pursuant to this subsection qualify a service supplier for a refund to which it would not otherwise be entitled under the one-year written claim requirement of this Section.
(f)
Nothing
in this section is intended to limit any right to refund that may
be ordered by the California Public Utilities Commission.
(Added by Ord. No. 1979CCS §
1, adopted 7/25/00)
(b)
To
be eligible for the special exemption provided for in this Section,
a person must be sixty-two years of age or older, or such person must
meet the criteria 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).
In addition, no person shall be eligible for the special exemption
provided for in this Section if such person's annual gross household
income, as hereinafter defined, exceeds the maximum dollar amount
for the calendar year for which a refund is claimed. The maximum dollar
amount will be established and from time to time amended by administrative
action of the City. For the purposes of this Section, "gross household
income" shall be and include the income of every member of the household
received during the year, including, but not limited to, wages, salaries,
bonuses, tips, gross amounts of pensions and annuities, retirement
benefits, social security payments, disability payments, life insurance
benefits, interest, capital gains and inheritances.
(c)
Notwithstanding subsections (a) and (b), persons who receive taxable utility service from master meters, or for whom utility charges are included in house, apartment or other rental charges shall not be eligible for the special exemption provided for in this Section. Persons receiving funds from any public agency specifically for the payment of such utility users taxes shall, likewise, not be eligible for the rebate provided for herein.
(d)
(Reserved)
(e)
Special
exemption procedures are as follows:
(1)
Any person eligible under subsections (a) and (b) may file an application
for an exemption with the Tax Administrator or his or her designee.
The application shall be submitted on the forms provided by the City
and all statements made therein shall be under oath and subject to
penalty of perjury. No application shall be granted unless the applicant
establishes his or her right thereto by written record showing entitlement
thereto. The Tax Administrator or his or her designee may require
such additional evidence as he or she deems necessary or appropriate
in determining entitlement.
(2)
The Tax Administrator or his or her designee shall review all such
applications and shall certify as exempt those applicants determined
to qualify therefor. The Tax Administrator or his or her designee
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:
(3)
Upon receipt of such notification, the service supplier shall not
be required to continue to bill any further tax imposed by this Chapter
from such exempt service user, until further notice by the Tax Administrator
or his or her designee is given. The service supplier shall eliminate
such exempt service user from its tax billing procedure no later than
sixty days after receipt of such notice from the Tax Administrator
or his or her designee.
(4)
All exemptions shall continue and be renewed automatically by the
Tax Administrator or his or her designee, so long as the prerequisite
facts supporting the initial qualification for exemption shall continue.
The exemption shall automatically terminate with any change in the
service address or residence of the exempt service user, except that
such service user may apply for a new exemption.
(5)
The Tax Administrator or his or her designee shall have the right
and the power to demand evidence of continued eligibility of a service
user for exemption. Failure to provide any evidence requested by the
Tax Administrator or his or her designee as is within the control
of a service user to so provide shall be grounds for the immediate
discontinuance of the exemption. Evidence provided to the Tax Administrator
or his or her designee upon 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.
(6)
Any individual exempt from the tax shall notify the Tax Administrator
or his or her designee within ten days of any change in fact or circumstance
which might disqualify the individual from receiving such exemption.
No person shall 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.
(7)
If the Tax Administrator or his or her designee determines that an
application for an exemption is faulty or that the applicant has failed
to truthfully set forth the required facts, the application for exemption
shall be denied in writing to the applicant.
(f)
A determination of the Tax Administrator or his or her designee to deny an application for exemption may be appealed in accordance with Municipal Code Section 6.16.030 within ten days after the date of mailing of the rejection of the claim or denial of the application. If an appeal by an aggrieved claimant or applicant is not taken within the ten day period, no appeal of the decision of the Tax Administrator or his or her designee may thereafter be taken, and the determination of the Tax Administrator or his or her designee shall become final.
(Added by Ord. No. 1979CCS §
1, adopted 7/25/00)
If any section, subsection, subdivision, paragraph, sentence,
clause or phrase of this Chapter or any part thereof is for any reason
held to be invalid, unlawful or unconstitutional, such decision shall
not affect the validity of the remaining portions of this Chapter
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 or
more sections, subsections, subdivisions, paragraphs, sentences, clauses
or phrases be declared unconstitutional.
(Added by Ord. No. 1979CCS §
1, adopted 7/25/00)
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 or other
applicable law. 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.
(Added by Ord. No. 1979CCS §
1, adopted 7/25/00)
(a)
The City Council may by resolution grant a temporary utility users tax rebate to any class of service user in a manner and upon terms and conditions as the City Council determines to be appropriate for the purpose of assisting service users to offset extraordinary costs associated with unusual price increases in utility service charges. The rebate period may extend for any period up to twelve months in duration and may be extended for additional periods up to twelve months each. The Tax Administrator shall implement the tax rebate and may issue rules and regulations for this purpose as provided for in Section 6.72.120 of this Chapter. The Tax Administrator shall provide written notice to all affected service suppliers as may be required by the Public Utility Commission and by Public Utilities Code Section 799. Service suppliers shall comply with the rebate as directed by the City Council and the Tax Administrator. Upon termination or expiration of the temporary utility users tax rebate, the tax subject to the rebate shall remain in effect the same as before the rebate.
(b)
The
City Council shall consider the following factors in determining whether
to grant a temporary tax rebate under this Section:
(1)
The amount of the increase in the average billing for the utility
service for which a rebate is being considered;
(2)
The severity of the burden that the increased billing, and associated
tax, imposes on the customer class for which a rebate is being considered;
(3)
The increased expense to the City as a utility customer due to the
increase in the cost of such utility service;
(4)
The estimated time period that the billing increase will likely persist;
(5)
The actual and forecasted utility users tax revenues derived from
other utilities for which a rebate is not being considered, during
the period of utility price increases and during the proposed rebate
period;
(6)
The actual and forecasted revenues during the proposed rebate period
from other municipal taxes than the utility users tax, during the
period of high energy costs and during the proposed rebate period;
(7)
The overall inflation rate during relevant time periods, as measured
by the Consumer Price Index (CPI);
(8)
Any other factor that affects the fairness or equity of granting
such a temporary rebate;
(c)
In
a resolution granting a temporary tax rebate, the City Council shall
make the following findings:
(1)
The temporary tax rebate is necessary to abate a significantly increased
tax burden on a class of service users;
(2)
The temporary tax rebate shall not adversely affect the City's ability
to meet its financial obligations as contemplated in its current and
projected budgets;
(3)
Extraordinary circumstances have created an utility crisis within
the City of Santa Monica; and
(4)
The utility crisis has created a volatile condition that requires
periodic reassessment by the City Council.
(d)
By
enacting any temporary utility users tax rebate under this section,
the City Council does not intend the rebate to constitute a repeal
or reduction of the tax that is subject to the rebate. The City Council
does not intend the termination or expiration of a rebate to constitute
a tax imposition, extension or increase within the meaning of the
California Constitution Article XIIIC. To the extent that any aspect
of a temporary utility users tax rebate is determined to be subject
to any election requirement under or to violate any provision of Article
XIIIC of the California Constitution, the City Council intends the
entire rebate to be deemed null and void as if it were never enacted.
(Added by Ord. No. 2010CCS §
1, adopted 5/22/01)
