[1]
Editor's note: Ord. No. 627, § 1, adopted June 29, 1978, specifically amended the Code by adding Art. VI, §§ 26-50—26-69, as herein set out.
The city council hereby finds and determines that the maintenance of an adequate street lighting system is vital to the public health, safety, and welfare of the residents and taxpayers of the city; that the reduction in property tax revenues available to the Cypress Street Lighting District will mean that revenues available for street lighting purposes will be insufficient unless the city makes a contribution to the Cypress Street Lighting District Fund; and, that the levy and collection of an electrical energy users tax is the most equitable method available to the city to provide it with the revenues necessary to make such a contribution. The city council hereby declares its intention to levy and collect such a tax and to use the proceeds therefrom as a contribution to the Cypress Street Lighting District Fund.
(Ord. No. 627, § 1, 6-29-78)
As used in this article, the following terms and phrases have the meanings ascribed to them in this section, unless the context clearly requires otherwise:
"Electrical corporation"
shall have the same meaning as defined in Section 218 of the Public Utilities Code of the State of California.
"Service supplier"
means a person required to collect and remit a tax imposed by this chapter.
"Service user"
means a person required to pay a tax imposed by this chapter.
"Tax administrator"
means the finance director of the city, or the person who performs the duties of said office.
"Using electrical energy"
shall not be construed to mean the storage of such energy by a person in a battery owned or possessed by him for use in an automobile or other machinery or device apart from the premises upon which the energy was received; provided, however, that the term shall include the receiving of such energy for the purpose of using it in the charging of batteries. The term shall not include electricity used in water pumping by water corporations; nor shall the term include the mere receiving of such energy by an electrical corporation or governmental agency at a point within the city for resale.
"Water corporation"
shall have the same meaning as defined in Section 241 of the Public Utilities Code of the State of California.
(Ord. No. 627, § 1, 6-29-78)
There is imposed a tax upon every person in the city using electrical energy in the city. The tax imposed by this section shall be at the rate of 4.3% of the charges made for such energy, or such lower percent thereof as the city council may from time to time establish by resolution, and shall be paid by the person paying for such energy. "Charges" as used in this section shall include charges made for:
(a) 
Metered energy; and
(b) 
Minimum charges for service, including customer charges, service charges, demand charges, standby charges and annual and monthly charges.
(Ord. No. 627, § 1, 6-29-78)
The money received by the tax administrator pursuant to this article shall be deposited by him in the Cypress Street Lighting District Fund as a contribution to said fund from the City of Cypress, and may thereafter be expended solely for the purposes authorized in connection with said fund; provided, however, that any taxes refunded pursuant to section 26-68 shall be paid from said fund.
(Ord. No. 627, § 1, 6-29-78)
Every person receiving payment of charges from a service user shall collect the amount of tax imposed by this chapter from the service user.
(Ord. No. 627, § 1, 6-29-78)
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.
(Ord. No. 627, § 1, 6-29-78)
The duty to collect the tax from a service user shall commence with the beginning of the first regular billing period applicable to said service user which shall begin as of a date to be fixed by resolution of the city council, or at the beginning of the first regular billing period thereafter; provided, however, that the city council shall conduct a public hearing concerning the tax prior to adopting such resolution. Where a person receives more than one billing, one or more being for different periods than another, the duty to collect shall arise and commence separately for each billing period.
(Ord. No. 627, § 1, 6-29-78; Ord. No. 634, § 1, 10-10-78)
Each service supplier shall make a monthly return to the tax administrator, on forms provided by him, stating the amount of taxes billed by the service supplier during the preceding month. The service supplier shall remit the tax to the tax administrator predicated upon the payment pattern of the customers of the service supplier, with the approval of the tax administrator. The tax administrator is authorized to require such further information as he deems necessary to determine properly if the tax here imposed is being levied and collected in accordance with this chapter. Returns must be postmarked with prepaid postage and properly addressed, or personally delivered to the tax administrator on or before the twentieth of each month. Returns are due immediately upon cessation of business for any reason.
(Ord. No. 627, § 1, 6-29-78)
Taxes collected from a service user which are not filed with the tax administrator on or before the due dates provided in this chapter are delinquent.
(Ord. No. 627, § 1, 6-29-78)
Penalties for delinquency in payment of any tax collected or any deficiency determination, shall attach and be paid by the person required to collect and remit at the rate of 15% of the total tax collected or imposed herein.
(Ord. No. 627, § 1, 6-29-78)
The tax administrator shall have power to impose additional penalties upon persons required to collect taxes under the provisions of this chapter for fraud or willful refusal in reporting or paying at the rate of 15% of the amount of the tax collected or as recomputed by the tax administrator.
(Ord. No. 627, § 1, 6-29-78)
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 paid to the tax administrator shall be deemed a debt owed to the city by the person required to collect and pay. Any person owing money to the city under the provisions of this chapter shall be liable to an action brought in the name of the city for the recovery of such amount.
(Ord. No. 627, § 1, 6-29-78)
Whenever the tax administrator determines that a service user has deliberately withheld the amount of the tax owed by him from the amounts remitted to a service supplier, or that a service user has failed to pay the amount of the tax for a period of two or more billing periods, or whenever the tax administrator deems it in the best interest of the city, he may relieve the service supplier of the obligation to collect taxes due under this chapter from certain named service users for specified billing periods. 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 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 25% of the amount of the tax set forth in the notice shall be imposed, but not less than $5. The penalty shall become part of the tax herein required to be paid.
(Ord. No. 627, § 1, 6-29-78)
The tax administrator may make an assessment for taxes not paid or remitted by a person 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 person selling the service and to the service user at least 10 days prior to the date of the hearing, and shall post such notice for at least five continuous days prior to the date of the hearing on the chamber door of the city council. 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.
(Ord. No. 627, § 1, 6-29-78)
At the time fixed for considering the assessment, the city council shall hear the same together with any objection filed as aforesaid and thereupon may confirm or modify the assessment by motion.
(Ord. No. 627, § 1, 6-29-78)
It shall be the duty of every person required to collect and remit to the city any tax imposed by this chapter to keep and preserve, for a period of three years, all records as may be necessary to determine the amount of such tax as he may have been liable for the collection of and remittance to the tax administrator, which records the tax administrator shall have the right to inspect at all reasonable times.
(Ord. No. 627, § 1, 6-29-78)
Whenever the amount of any tax has been overpaid or paid more than once, or has been erroneously or illegally collected or received by the tax administrator under this chapter, it may be refunded as provided in this section.
(a) 
A person required to collect and remit taxes imposed under this chapter, may claim a refund or take as credit against taxes collected and remitted the amount overpaid, paid more than once or erroneously or illegally collected or received when it is established in a manner prescribed by the tax administrator that the service user from whom the tax has been collected did not owe the tax; provided, however, that neither a refund nor a credit shall be allowed unless the amount of the tax so collected has either been refunded to the service user or credited to charges subsequently payable by the service user to the person required to collect and remit.
(b) 
No refund shall be paid under the provisions of this section unless the claimant establishes his right thereto by written records showing entitlement thereto.
(Ord. No. 627, § 1, 6-29-78)