Note: Editor's note for Chapter 3.29: Utility Users' Tax ratified by Claremont voters on March 4, 1997 (97-01).
The following words and phrases whenever used in this chapter shall be construed as defined in this section.
"Cogenerator"
means any corporation or person employing cogeneration technology for producing power from other than a conventional power source for the generation of electricity for self use or sale to others.
"Fuel"
means natural or manufactured gas or any alternate hydrocarbon fuel which may be substituted therefor. It shall not include fuel intended for use in motor vehicles and subject to taxation under the State of California motor vehicles fuels tax.
"Month"
means a calendar month.
"Nonutility supplier"
means a service supplier, other than an electrical corporation franchised to serve the City, which generates electrical energy in capacities of at least fifty kilowatts for its own use or for sale to others; or, a gas supplier other than a gas corporation, that sells or supplies gas to users within the City.
"Person"
means any domestic or foreign corporation, firm, association, syndicate, joint stock company, partnership of any kind, joint venture, club, Massachusetts business or common law trust, society, or individual. "Person" shall include both nonprofit and for-profit organizations, and without regard to exemption from real property or income taxes.
"Residence,"
for the purpose of Section 3.29.030, means an individual dwelling unit, and not group quarters such as a dormitory or health care facility.
"Service supplier"
means any entity required to collect or self-impose and remit a tax as imposed by this chapter.
"Service user"
means a person required to pay a tax imposed by this chapter.
"Tax administrator"
means the City Manager, or his or her designee.
"Telephone corporation," "electrical corporation," "gas corporation," "water corporation," and "cable television corporation"
have the same meanings as defined in Sections 234, 218, 222, 241 and 215-5, respectively, of the California Public Utilities Code, except "electrical corporation," "gas corporation," and "water corporation" shall also be construed to include any municipality, public agency or person engaged in the selling or supplying of electrical power or gas or water to a service user.
(93-4)
A. 
Nothing in this chapter shall be construed as imposing a tax upon any person when imposition of such tax upon that person would be in violation of the Constitution of the United States or that of the State of California, or of any applicable state or federal law.
B. 
The tax administrator shall prepare a list of the persons exempt from the provisions of this chapter by virtue of this section and furnish a copy thereof to each service supplier.
(93-4)
A. 
The tax imposed by this chapter shall not apply to utilities supplied to the separately metered or billed residence of a service user if: (1) the combined gross income of all members of the service user's residence is less than the amount established for Los Angeles County by the United States Department of Housing and Urban Development for very low-income families for the applicable household size; and (2) such condition is demonstrated to the tax administrator's satisfaction.
B. 
The income exemption limit provided herein shall be revised annually by the tax administrator to conform to the most current very low-income limits for Los Angeles County for applicable household sizes, as determined by the United States Department of Housing and Urban Development (HUD) with regard to the Public Housing and Section 8 Program.
C. 
The exemption granted by this section shall not eliminate the duty of the service supplier, nonutility supplier, or person to collect and remit utility users' taxes for exempt persons, or the duty of exempt persons to pay such taxes unless an exemption is applied for and granted in accordance with Section 3.29.040.
(93-4)
A. 
Any service user meeting the exemption qualifications of Section 3.29.030 may file an application with the tax administrator for an exemption. Such application shall be made on forms supplied by the tax administrator and shall recite under oath facts which qualify the applicant for an exemption.
B. 
The tax administrator shall review all such applications, certify qualified applicants as exempt, and notify all affected service suppliers when an exemption is approved, stating the name of the applicant, the address to which exempt service is being supplied, the account number, if any, and such other information as may be necessary for the service supplier to remove the exempt service user from its tax billing procedure. The service supplier shall remove the exempt service user from its tax billing procedure no later than sixty days after receipt of such notice from the tax administrator.
C. 
Approved exemptions under this section shall not apply retroactively.
D. 
Except as provided hereinafter, exemptions shall be renewed by the tax administrator as long as the facts supporting the application for exemption continue. An exemption granted shall automatically terminate with any change in the residence of the person exempted, but such person may apply for a new exemption with each change of residence.
E. 
Any person exempt from the tax shall notify the tax administrator within ten days of any change in fact or circumstance which might cause the person to become ineligible for exemption.
F. 
Any person knowingly receiving the benefits of this exemption when the basis for such exemption does not exist or ceases to exist, shall be guilty of a misdemeanor.
G. 
Any service supplier who determines that a new or nonexempt service user is receiving exempt service through a meter or connection previously used by an exempt service user shall immediately notify the tax administrator of such fact; and the tax administrator shall ascertain whether or not the provisions of this article have been complied with and, where appropriate, order the service supplier to commence collecting the tax from the nonexempt service user.
(93-4)
A. 
There is imposed a tax on the amounts paid for any telephone services, by every person in the City using such services other than a gas, electric, cable television, water, or telephone corporation collecting such tax. The tax imposed by this section shall be at the rate of five and one-half percent of the charges for such services, and shall be paid by the person paying for such services.
B. 
As used in this section, the term "charges" shall not include charges for advertising, nor state or federal taxes separately billed to and payable by the service user; nor shall the term "charges" include charges for services paid for by inserting coins in coin-operated telephones except that where such coin-operated service is furnished for a guaranteed amount, the amounts paid under such guarantee plus any fixed monthly or other periodic charge shall be included in the base for computing the amount of tax due; nor shall the term "charges" include charges for any type of service or equipment furnished by a service supplier subject to public utility regulations during any period in which the same or similar services or equipment are also available for sale or lease from persons other than a service supplier subject to public utility regulation; nor shall the words "telephone communications services" include land mobile service or maritime mobile services as defined in Section 2.1 or Title 47 of the Code of Federal Regulations, as said section existed on January 1, 1970. The term "telephone communication services" refers to that service which provides access to a telephone system and the privilege of telephone quality communication with substantially all persons having telephone stations which are part of such telephone system. The telephone users' tax is intended to, and does, apply to basic monthly charges for cellular telephone service or enhanced specialized mobile radio communication service, when the service use has a billing address in the City.
C. 
The tax imposed by this section shall be collected from the service user by the person providing the telephone communication services, or the person receiving payment for such services. The amount of the tax collected in one month shall be remitted to the tax administrator on or before the last day of the following month; or, at the option of the person required to collect and remit the tax, an estimated amount of tax collected, measured by the tax bill in the previous month, shall be remitted to the tax administrator on or before the last day of each month with a reconciliation of estimate amount to the actual amount submitted the following month.
D. 
The tax imposed under the provisions of subsection A of this section shall not be imposed upon amounts paid for telephone communication services where imposition of such tax would be in violation of the Constitution of the United States, the United States Code, or the laws of the State of California, or upon toll charges used in the collection and dissemination of news for the public press or on charges for widearea telephone service used by common carriers in the conduct of their business or on charges which are exempt from taxation under Section 4251 of the Internal Revenue Code pursuant to subsections (a), (b), (c), (d), (e), (f), (g) and (i) of Section 4253 of the Internal Revenue Code.
(93-4; 94-14; 95-03)
A. 
There is imposed a tax upon every person in the City using electrical energy in the City other than a gas, electrical, cable television, water, or telephone corporation collecting such tax. The tax imposed by this section shall be at the rate of five and one-half percent of the charges made for such energy by an electrical corporation franchised to serve the City and shall be paid by the person using the energy. The tax applicable to electrical energy provided by a nonutility supplier shall be determined by applying the tax rate to the equivalent charges the service user would have incurred if the energy used had been provided by the electrical corporation franchised by the City. Rate schedules for this purpose shall be available from the City. Non-utility suppliers shall install and maintain an appropriate utility-type metering system which will enable compliance with this section. "Charges," as used in this section, shall include charges made for: (1) metered energy; and (2) minimum charges for service, including customer charges, service charges, demand charges, standby charges, and all other annual and monthly charges, fuel or other cost adjustments authorized by the California Public Utilities Commission or the Federal Energy Regulatory Commission. "Charges" shall not include state or federal taxes separately billed to and payable by the service user.
B. 
As used in this section, the term "using electrical energy" shall not be construed to mean the storage of such energy by a person in a battery owned or possessed by him or her for use in an automobile or other mechanical 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; nor shall the term include electricity used and consumed by an electric utility supplier in the conduct of its business as an electric public utility; nor shall the term include the mere receiving of such energy by an electric public utility or governmental agency at a point within the City for resale; nor shall the term include the use of such energy in the production or distribution of water by a public utility or a government agency; nor shall the term include the use of electricity generated by a cogenerator or a fuel cell for its own use.
C. 
The tax imposed in this section shall be collected from the service user by the service supplier or nonutility supplier. The tax imposed in this section on use supplied by self-generation or from a nonutility supplier not subject to the jurisdiction of this chapter, shall be collected and remitted to the tax administrator in the manner set forth in Section 3.29.070. The amount of tax collected by a service supplier or a nonutility supplier in one month shall be remitted by United States Mail, to the tax administrator, postmarked on or before the last day of the following month; or, at the option of the person required to collect and remit the tax, an estimated amount of tax measured by the tax billed in the previous month or upon the payment pattern of the customers of the service supplier, shall be remitted by United States Mail to the tax administrator, postmarked on or before the last day of each month, with a reconciliation of estimate amount to the actual amount submitted the following month. Remittance of tax may be predicated on a formula based upon the payment pattern of the supplier's customers.
(93-4)
A. 
There is imposed a tax upon every person in the City using natural gas and other hydrocarbon fuels, which is transported through the gas pipeline distribution system or by mobile transport, other than a gas, electrical, cable television, water, or telephone corporation collecting such tax. The tax imposed by this section shall be at the rate of five and one-half percent of the amount that will be paid by the person using the fuel. The tax applicable to fuel provided by nonutility suppliers shall be determined by applying the tax rate to the actual charges the service user incurred.
"Charges" as used in this section shall include that billed for: (1) fuel which is delivered through a gas pipeline distribution system or mobile transport; (2) fuel transportation charges; (3) demand charges, service charges, customer charges, annual and monthly charges, and any other charge authorized by the California Public Utilities Commission or Federal Energy Regulatory Commission.
B. 
There shall be excluded from the base on which the tax imposed in this section is computed: (1) charges for gas which is to be resold and delivered through mains and pipes; (2) charges made for gas sold for use in the generation of electrical energy or for the production or distribution of water by a public utility or governmental agency; (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 that phrase is defined in the Vehicle Code of the State of California, utilizing natural gas; (5) charges related to late payments and returned checks; (6) charges made for gas used by a nonutility supplier to generate electrical energy for its own use or for sale to others provided the electricity so generated is subject to the tax in accordance with Section 3.29.060 of this chapter; and (7) state or federal taxes separately billed to and payable by the service user.
C. 
The tax imposed in this section shall be collected from the person using the fuel by the person selling or transporting the fuel. A person selling or providing transportation services of natural gas to a user for delivery through mains or pipes shall collect the tax from the user based upon the cost of transporting the fuel. The person selling or transporting the fuel shall, on or before the twentieth of each calendar month, commencing on the twentieth day of the calendar month after the effective date of the ordinance codified in this chapter, make a return to the tax administrator stating the amount of taxes billed during the preceding calendar month. At the time such returns are filed, the person selling or transporting the gas shall remit tax payments to the tax administrator in accordance with schedules established or approved by the tax administrator. The tax imposed in this section on use supplied by self-production or a nonutility supplier not subject to the jurisdiction of this chapter, shall be collected and remitted to the tax administrator in the manner set forth in Section 3.29.080.
(93-4)
A. 
Notwithstanding any other provision of this chapter, a service user receiving fuel or electricity directly from a nonutility supplier not under the jurisdiction of this chapter, or otherwise not having the full tax due on the use of fuel or electricity within the incorporated limits of the City directly billed and collected by the service supplier shall report the fact to the tax administrator within thirty days of said use and shall directly remit to the City the amount of tax due.
B. 
The tax administrator may require the service user to provide, subject to audit, filed tax returns or other satisfactory evidence documenting the quantity of fuel or electricity used and the actual price thereof.
(93-4)
A. 
There is imposed a tax upon every person in the City using water, which is delivered through mains or pipes, other than gas, electric, cable television, water, or telephone corporations collecting such tax. The tax imposed by this section shall be at the rate of five and one-half percent 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; charges made by a municipal water department, public utility or a City or water district for water used and consumed by such department, utility, or district; state regulatory fees separately billed to and payable by the service user; and City sewer maintenance fees billed by the water corporation.
C. 
The tax imposed in this section shall be collected from the service user by the person supplying the water. The amount collected in one month shall be remitted to the tax administrator on or before the last day of the following month.
(93-4)
A. 
There is imposed a tax upon every person in the City using cable television service. The tax imposed by this section shall be at the rate of five and one-half percent of the charges made for such service and shall be paid by the person paying for such service. For purposes of this section, a cable television service shall mean any television signal delivered by cable, microwave or other method of telecommunication for a fee or charge.
B. 
There shall be excluded from the base of which the tax imposed in this section is computed charges for unreturned equipment, any amount separately billed equal to the franchise fee paid by the cable television corporation to the City, if any, and state or federal taxes separately billed to and payable by the service user.
C. 
The tax imposed in this section shall be collected from the service user by the person furnishing the cable television service. The amount collected in one month shall be remitted to the tax administrator on or before the last day of the following month.
(93-4)
Taxes collected from a service user which are not remitted by the service supplier 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, taxes collected shall not be delinquent if the tax return is postmarked on the first regular working day following a Saturday/Sunday or legal holiday.
(93-4)
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, and not remitted to the tax administrator, shall be deemed a debt owed to the City by the person required to collect and remit. 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.
(93-4)
The duty to collect and remit the taxes imposed by this chapter shall be performed as follows:
A. 
Notwithstanding the provisions of Section 3.29.080, the tax shall be collected insofar as practicable at the same time as and along with the charges made in accordance with the regular billing practices of the service supplier. Where the amount paid by a service user to a service supplier is less than the full amount of the utility charge and tax which has accrued for the billing period, such amount and any subsequent payments by a service user shall be applied to the utility charge first until such charge has been fully satisfied. Any remaining balance shall be applied to taxes due. In those cases where a service user has notified the service supplier of his or her refusal to pay the tax imposed on said utility charges, Section 3.29.150(D) will apply.
B. 
The duty to collect tax from a service user shall commence with the beginning of the first full regular billing period applicable to the service user where all charges normally included in such regular billing are subject to the provisions of this chapter. 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.
(93-4)
A. 
The tax administrator shall have the power and duty, and is directed to enforce each and all of the provisions of this chapter.
B. 
The tax administrator shall have the power to adopt rules and regulations not inconsistent with provisions of this chapter for the purpose of carrying out and enforcing the payment, collection, and remittance of the taxes herein imposed. A copy of such rules and regulation shall be on file in the tax administrator's office.
C. 
The tax administrator may make administrative agreements to vary the requirements of this chapter so that collection of any tax imposed here may be made in conformance with the billing procedures of the particular service supplier so long as said agreements result in collection of the tax in conformance with the general purpose and scope of this chapter. A copy of each such agreement shall be on file in the tax administrator's office.
D. 
The tax administrator shall determine the eligibility of any person who asserts a right to exemption from the tax imposed by this chapter. The tax administrator shall notify the service supplier of termination of any person's right to exemption hereunder, or the change of any address to which service is supplied to any exempt person.
(93-4)
A. 
The tax administrator may make an assessment for taxes not remitted by a person required to remit.
B. 
Whenever the tax administrator determines that a service user has deliberately withheld the amount of the tax owed from the amounts remitted to a person required to collect the tax, or that a service user has refused to pay the amount of tax to such person, or whenever the tax administrator deems it in the best interest of the City, such person may be relieved of the obligation to collect taxes due under this chapter from certain named service users for specified billing periods.
C. 
The service supplier shall provide the City with amounts refused and/or unpaid along with the names and addresses of service users neglecting to pay the tax imposed under provision of this chapter. Whenever the service user has failed to pay the amount of tax for a period of two or more billing periods, the service supplier shall be relieved of the obligation to collect the past due taxes, except that the service supplier shall forthwith notify the tax administrator if any payment of the past due tax amount is made by the service user.
D. 
The tax administrator shall notify the service user that he or she 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 person required to collect the tax; 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, but not less than twenty dollars. The penalty shall become part of the tax herein required to be paid.
E. 
If the tax administrator determines that failure to pay the required tax was due to reasonable error, or that the tax due is a minimal amount, the tax administrator may waive all or part of the penalty.
(93-4)
It shall be the duty of every person required to collect and remit to the City the 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 tax as such person may have been liable for remittance to the tax administrator, which records the tax administrator shall have the right to inspect at all reasonable times.
(93-4)
Any claim for a refund of any tax, interest or penalty collected or received by the City under this chapter shall be presented in accordance with Chapter 1.16 of Title 1 of this Code.
(93-4; 96-04)
The utility users' tax imposed by this chapter shall be applied to all covered telephone, electricity, fuel, water and cable television charges billed on or after May 1, 1993, or as soon thereafter as the respective utilities are physically and mechanically able to implement the charges but not more than thirty additional days.
(93-4)
The utility users' tax rate shall be reviewed by the City Council in conjunction with development of the City's budget over two public hearings to receive public comment on the need to continue the tax and the amount of the tax.
(14-07)