HomeMy Public PortalAbout09-1423ORDINANCE NO. 09 -1423
AN ORDINANCE OF THE PEOPLE OF THE CITY OF
CARSON, CALIFORNIA, ESTABLISHING AND
IMPOSING A TWO PERCENT (2 %) TAX ON ELECTRIC
AND GAS UTILITY USERS
WHEREAS, on December 2, 2008, the Carson City Council ordered an election to
consider whether a temporary Utility Users Tax (UUT) should be enacted to help pay for general
fund expenditures; and
WHEREAS, on March 3, 2009, the voters of the City of Carson approved Measure C,
which adopted the proposed temporary UUT on certain residential and nonresidential users of
utilities within the City; and
WHEREAS, on March 17, 2009, the City Council declared the results of the election held
on March 3, 2009, in which Measure C was approved by the voters of the City of Carson.
NOW, THEREFORE, THE PEOPLE OF THE CITY OF CARSON DO HEREBY ORDAIN AS
FOLLOWS:
Section 1. A new Chapter 11 is added to Article VI of the Carson Municipal Code to
read, in its entirety, as follows:
"ARTICLE VI
CHAPTER 11
TABLE OF CONTENTS
61101. Findings
61102. Purpose
61103. Definitions
61104. Exemptions; Limitations
61105. Electricity Users Tax
61106. Gas Users Tax
61107. Service Users Receiving Direct Purchase of Electricity or Gas
61108. Remittance of Tax
61109. Actions to Collect
61110. Duty to Collect — Procedures
61111. Additional Power and Duties of Tax Administrator
61112. Assessment - Service User Administrative Remedy
61113. Records
61114. Refunds
61115. Severability
61116. Amendment
61117. Operative Date
61118. Sunset Date
61119. Oversight Committee
§ 61101. Findings.
The City Council of the city of Carson finds and declares:
a. The city is facing a current budget crisis and must reduce law enforcement services,
maintenance of the streets, sidewalks, alleys, trees and other property open to the public,
as well as other community services vital to the preservation of the public peace, health,
and safety.
ORDINANCE NO. 09 -1423
PAGE 2 OF 8
b. The cost of supplies, materials and other services required to provide necessary city
services increases each year, yet at the time of the adoption of this ordinance the State of
California is proposing to reduce the level of funding allocated to local government.
c. It is the intention and understanding of the people that this measure shall be deemed a
"general tax" and that it is not a "special tax" within the meaning of Section 4 of Article
XIII A of the California Constitution by virtue of the fact that the proceeds of this tax are
to be deposited in the general fund of the city and are to be available to be used for any
general governmental purpose that the City Council shall determine.
d. As soon as practical after the adoption of this ordinance, the City Council shall appoint a
citizens oversight committee which shall receive reports from the Tax Administrator at
least annually on the implementation of this chapter, the funds collected, and how funds
collected are spent. The citizens oversight committee, which may make
recommendations to the City Council on any matter relating to this chapter, shall hold all
meetings in compliance with the Ralph M. Brown Act. (Cal. Gov. Code § 54950, et seq.)
§ 61102. Purpose.
The purpose of this section is to establish the methods for calculating a utility users' tax on users
of electric and gas utility services in the city and to establish standards for administration of the
taxes.
§ 61103. Definitions.
The following words and phrases whenever used in this section shall be construed as defined in
this subsection.
a. Person shall mean any domestic or foreign corporation, firm, association, syndicate, joint
stock company, partnership of any kind, joint venture, club, business or common law
trust, society, or individuals.
b. City shall mean the city of Carson.
c. Gas shall mean natural or manufactured gas or any alternate hydrocarbon fuel that may
be substituted therefor.
d. Electrical corporation and gas corporation shall have the same meanings as defined in the
California Public Utilities Code except, "electrical corporation" and "gas corporation"
shall also be construed to include any municipality, public agency or person engaged in
the selling or supplying of electrical power or gas to a service user.
e. Tax Administrator shall mean the person designated by the City Manager to implement
this chapter.
f. Service supplier shall mean any entity required to collect or self - impose and remit a tax
as imposed by this section.
g. Service user shall mean a person required to pay a tax imposed by this section.
h. Month shall mean a calendar month.
i. Non - utility supplier shall mean: (a) a service supplier, other than an electrical corporation
serving within the city, which generates electrical energy in capacities of at least fifty
(50) kilowatts for its own use or for sale to others; or (b) a gas supplier other than a gas
corporation, that sells or supplies gas to users within the city.
"Lower- income households" means persons and families whose incomes do not exceed
the qualifying limits for lower- income families as determined and published by the
California Department of Housing and Community Development. (See California Health
and Safety Code § 50079.5.)
§ 61104. Exemptions; Limitations.
a. Nothing in this section 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.
ORDINANCE NO. 09 -1423
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b. The City Council may, by minute order or resolution, establish one or more classes of
persons or one or more classes of utility service otherwise subject to payment of a tax
imposed by this section and provide that such classes of persons or service shall be
exempt, in whole or in part from such tax.
c. Notwithstanding any other provision of this chapter, residential customers shall be
exempt from the payment of any utility users' tax if the household qualifies as any of the
following: (a) households where the household resident whose name appears on the
utility bill is age 62 years and older or (b) lower- income households as defined
hereinabove.
d. The Tax Administrator shall prepare a list of the persons exempt from the provisions of
this section by virtue of this subsection and furnish a copy thereof to each service
supplier. The Tax Administrator shall make the final determination as to the eligibility
for any exemption.
e. Notwithstanding any other provision of this chapter, no service user shall be required to
pay more than $1 million in electricity users tax, or gas users tax, or both combined, for
service provided in any calendar year. Any claim for refund must be made in writing in
accordance with § 61114.
§ 61105. Electricity Users Tax.
a. There is hereby imposed a tax upon every person other than an electric or gas corporation
using electrical energy in the city. The tax imposed by this subsection shall be at the rate
of not more than two (2 %) percent of the charges made for such energy by an electrical
corporation providing service in the city and shall be billed to and paid by the person
using the energy. The tax applicable to electrical energy provided by a non - utility
supplier shall be determined by applying the tax rate to the equivalent charge the service
user would have incurred if the energy used had been provided by the electrical
ORDINANCE NO. 09 -1423
PAGE 4 OF 8
corporation serving the residents of the city. Rate schedules for this purpose shall be
available from the city. Non - utility suppliers shall install, maintain and use an
appropriate utility -type metering system which will enable compliance with this
subsection. "Charges," as used in this subsection, 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 costs adjustments, authorized by the California Public Utilities
Commission or the Federal Energy Regulatory Commission.
b. As used in this subsection, 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 machinery 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; nor shall the term include the mere receiving of such energy by
an electric corporation or governmental agency at a point within the city of Carson for
resale; nor shall the term include the use of such energy in the production or distribution
of water by a water utility or a governmental agency.
c. The tax imposed in this subsection shall be collected from the service user by the service
supplier or non - utility supplier. The tax imposed in this subsection on use supplied by
self - generation or from a non - utility supplier not subject to the jurisdiction of this section,
shall be collected and remitted to the Tax Administrator in the manner set forth in this
chapter or by order of the Tax Administrator. The amount of tax collected by a service
supplier or a non - utility supplier in one (1) month shall be remitted by U.S. mail to the
Tax Administrator, postmarked on or before the last day of the following month.
§ 61106. Gas Users Tax.
a. There is hereby imposed a tax upon every person in the city other than a gas corporation
or electrical corporation, using, in the city, gas which is transported through mains or
pipes or by mobile transport. The tax imposed by this subsection shall be at the rate of not
more than two (2 %) percent of the charges made for the gas and shall be billed to and
paid by the person using the gas. The tax applicable to gas or gas transportation provided
by non - utility suppliers shall be determined by applying the tax rate to the equivalent
charges the service user would have incurred if the gas or gas transportation has been
provided by the gas corporation franchised by the city. "Charges" as used in this
subsection shall include: (1) that billed for gas, which is delivered through mains or
pipes; (2) gas transportation charges; and (3) demand charges, service charges, customer
charges, minimum charges, annual and monthly charges, and any other charge authorized
by the California Public Utilities Commission or the Federal Energy Regulatory
Commission.
b. The tax otherwise imposed by this subsection is not applicable to: (1) charges made for
gas which is to be resold and delivered through mains and pipes; (2) charges made for gas
used and consumed by a public utility or governmental agency in the conduct of its
business or, (3) charges made by a gas public utility or gas used and consumed in the
course of its public utility business; and (4) charges made for gas used in the propulsion
of a motor vehicle, as authorized in the Vehicle Code of the State of California.
ORDINANCE NO. 09 -1423
PAGE 5 OF 8
c. The tax imposed in this subsection shall be collected from the service user by the person
selling or transporting the gas. A person selling only transportation services to a user for
delivery of gas through mains or pipes shall collect the tax from the service user based on
the transportation charges. The person selling or transporting the gas shall, on or before
the 20th of each month after the effective date of this section 61106, 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 on this section on use supplied by
self - production or a non - utility supplier not subject to the jurisdiction of this ordinance
shall be collected and remitted to the Tax Administrator in the manner set forth in this
chapter or by order of the Tax Administrator.
§ 61107. Service Users Receiving Direct Purchase of Electricity or Gas.
a. Notwithstanding any other provision of this section, a service user receiving gas or
electricity directly from a non - utility supplier not under the jurisdiction of this section, or
otherwise not having the full tax due on the use of electricity or gas in the city directly
billed and collected by the service supplier, shall report said fact to the Tax Administrator
within thirty (30) days of said use and shall directly remit to the city the amount of tax
due.
b. The Tax Administrator may require said service user to provide, subject to audit, filed tax
returns or other satisfactory evidence documenting the quantity of electricity or gas used
and the price thereof.
§ 61108. Remittance of Tax.
Taxes collected from a service user 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 may be postmarked on the first regular working day following a
Saturday /Sunday, or a legal holiday.
§ 61109. Actions to Collect.
Any tax required to be paid by a service user under the provisions of this section shall be deemed
a debt owed by the service user to the city. Any such tax collected from a service user which has
willfully been withheld from 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 section shall be liable to an action brought in the name of the city for the
recovery of such amount.
§ 61110. Duty to Collect - Procedures.
The duty to collect and remit the taxes imposed by this section shall be performed as follows:
a. Notwithstanding any other provision, 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 service 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.
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.
§ 61111. Additional Power and Duties of Tax Administrator.
a. The Tax Administrator shall have the power and duty, and is hereby directed to enforce
each and all of the provisions of this section.
ORDINANCE NO. 09 -1423
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b. The Tax Administrator shall have the power to adopt rules and regulations not
inconsistent with provisions of this section for the purpose of carrying out and enforcing
the payment, collection and remittance of the taxes herein imposed. A copy of such rules
and regulations shall be on file in the Tax Administrator's office.
c. The Tax Administrator may make administrative agreements to vary the strict
requirements of this section so that collection of any tax imposed here may be made in
conformance with the billing procedures of particular service supplier so long as said
agreements result in collection of the tax in conformance with the general purpose and
scope of this section. 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 section. The Tax Administrator shall provide the
service supplier with the name of any person who the Tax Administrator determines is
exempt from the tax imposed hereby, together with the address and account number to
which service is supplied to any such exempt person. 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.
e. The Tax Administrator shall provide notice to all service suppliers, at least ninety (90)
days prior to any annexation or other change in the city's boundaries. Said notice shall set
forth the revised boundaries by street and address, along with a copy of the final
annexation order from LAFCO.
§ 61112. Assessment - Service User Administrative Remedy.
a. Whenever the Tax Administrator determines that a service user has deliberately withheld
from the service supplier the amount of the tax owed by him or her, or that a service user
has refused to pay the amount of tax, the service supplier may be relieved of the
obligation to collect taxes due under this Section from certain named service users for
specified billing periods as set forth below. 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 mailed by the person required to collect the tax.
b. The service supplier shall provide the city with amounts refused and /or unpaid along with
the names and addresses of the service users neglecting to pay the tax imposed under
provisions of this Section. Whenever the service user has failed to pay the amount of tax
for a period of two (2) or more billing periods, the service supplier may be relieved of the
obligation to collect taxes due.
ORDINANCE NO. 09 -1423
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c. The Tax Administrator shall notify the service user that the Tax Administrator 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 mailed by the person
required to collect the tax; or, should the service user's address change, to the last known
address. If a service user fails to remit the tax to the Tax Administrator within fifteen (15)
days from the date of the service of the notice upon him or her, which shall be the date of
mailing if service is not accomplished in person, a penalty of twenty -five percent (25 %)
of the amount of the tax set forth in the notice shall be imposed. The penalty shall
become part of the tax herein required to be paid.
§ 61113. Records.
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 3
()years, all records as may be necessary
to determine the amount of such tax as he may have been liable for the remittance to the Tax
Administrator, which records the Tax Administrator shall have the right to inspect at all
reasonable times.
§ 611 l4. Refunds.
a. Written Claim Required: Whenever the amount of any tax, interest, or penalty has been
overpaid or paid more than once or has been erroneously or illegally collected or received
by the Tax Administrator under this chapter, it may be refunded as provided in this
Subsection. However, any claim must be in writing, stating under penalty of perjury the
specific grounds upon which the claim is founded, and filed with the Tax Administrator
within 15 days of the day the claimed amount was paid. The claim shall be made on a
form furnished by the Tax Administrator.
b. Refund Or Credit: Notwithstanding the provisions of subsection (a) above, a service
supplier may claim a refund; or take as credit against taxes remitted the amount overpaid,
paid more than once, or erroneously or illegally collected or received when it is
established that the service user from whom the tax has been collected did not owe the
tax; provided, however, that neither a refund nor a credit shall be allowed unless the
amount of the tax erroneously or illegally 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. A service supplier that has collected any amount of tax in
excess of the amount of tax imposed by this Section may refund such amount to the
service user and may, with the prior written approval of the Tax Administrator, claim
credit for such overpayment against the amount of tax that is due to the city, provided
that a claim for such credit is presented within the time and in the manner prescribed by
this Code.
c. Taxes Refunded: Notwithstanding other provisions of this Subsection, whenever a service
supplier, pursuant to an order of the California Public Utilities Commission or a court of
competent jurisdiction, makes a refund to service users of charges for past utility
services, the taxes paid pursuant to this Section on the amount of such refunded charges
shall also be refunded to service users, and the service supplier shall be entitled to claim a
credit for such refunded taxes against the amount of tax which is due upon the next
monthly returns. In the event this Section is repealed, the amounts of any refundable
taxes will be borne by the City.
§ 61115. Severability.
If any subsection, subdivision, paragraph, sentence, clause or phrase of this Section or any part
thereof is for any reason held to be unconstitutional, such decision shall not affect the validity of
the remaining portion of this Section or any part thereof. The City Council hereby declares that it
would have passed each subsection, subdivision, paragraph, sentence, clause, or phrase thereof,
irrespective of the fact that any one or more subsection, subdivision, paragraph, sentence, clause,
or phrase be declared unconstitutional.
§ 61116. Amendment.
The tax rate set forth in this chapter may only be amended by a vote of the people of the city of
Carson; provided, however, that the City Council may otherwise amend this chapter to achieve
the purpose or intent of this chapter.
§ 61117. Operative Date.
Under the provisions of Government Code section 36937, this section shall become effective
immediately upon passage of the enacting ordinance. The tax imposed under this section shall
apply to bills rendered on or after ninety (90) days or as soon thereafter as the respective utilities
are physically and mechanically able to get "on line" for the imposition of charges (not more
than 60 days).
ORDINANCE NO. 09 -1423
PAGE 8 OF 8
§ 61118. Sunset Date.
The utility users' tax described in this chapter shall no longer be effective on July 1, 2016, and at
such time this chapter shall be repealed without further action, except that the provisions of this
chapter shall remain in effect as to any tax due and owing, but unpaid, as of July 1, 2016.
§ 61119. Oversight Committee.
As soon as practical after the adoption of this ordinance, the City Council shall appoint a citizens
oversight committee which shall receive reports from the Tax Administrator at least annually on
the implementation of this chapter, the funds collected, and how funds collected are spent. The
citizens oversight committee, which may make recommendations to the City Council on any
matter relating to this chapter, shall hold all meetings in compliance with the Ralph M. Brown
Act. (Cal. Gov. Code § 54950, et seq.)"
I, Helen S. Kawagoe, City Clerk of the City of Carson, California, do hereby certify that
Ordinance No. 09 -1423 was Passed, Approved, and Adopted by the People of the City of
Carson, California, voting on the 3rd day of March, 2009.
City Clerk, City of Carson, California
ORDINANCE NO. 09-1423
AN ORDINANCE OF THE PEOPLE OF THE CITY OF
CARSON, CALIFORNIA, ESTABLISHING AND
IMPOSING A TWO PERCENT (2 %) TAX ON ELECTRIC
AND GAS UTILITY USERS
WHEREAS, on December 2, 2008, the Carson City Council ordered an election to
consider whether a temporary Utility Users Tax (UUT) should be enacted to help pay for general
fund expenditures; and
WHEREAS, on March 3, 2009, the voters of the City of Carson approved Measure C,
which adopted the proposed temporary UUT on certain residential and nonresidential users of
utilities within the City; and
WHEREAS, on March 17, 2009, the City Council declared the results of the election held
on March 3, 2009, in which Measure C was approved by the voters of the City of Carson.
NOW, THEREFORE, THE PEOPLE OF THE CITY OF CARSON DO HEREBY ORDAIN AS
FOLLOWS:
Section 1. A new Chapter 11 is added to Article VI of the Carson Municipal Code to
read, in its entirety, as follows:
"ARTICLE VI
CHAPTER 11
TABLE OF CONTENTS
61101. Findings
61102. Purpose
61103. Definitions
61104. Exemptions; Limitations
61105. Electricity Users Tax
61106. Gas Users Tax
61107. Service Users Receiving Direct Purchase of Electricity or Gas
61108. Remittance of Tax
61109. Actions to Collect
61110. Duty to Collect — Procedures
61111. Additional Power and Duties of Tax Administrator
61112. Assessment - Service User Administrative Remedy
61113. Records
61114. Refunds
61115. Severability
61116. Amendment
61117. Operative Date
61118. Sunset Date
61119. Oversight Committee
ORDINANCE NO. 09 -1423
PAGE 2 OF 8
§ 61101. Findings.
The City Council of the city of Carson finds and declares:
a. The city is facing a current budget crisis and must reduce law enforcement services,
maintenance of the streets, sidewalks, alleys, trees and other property open to the public,
as well as other community services vital to the preservation of the public peace, health,
and safety.
b. The cost of supplies, materials and other services required to provide necessary city
services increases each year, yet at the time of the adoption of this ordinance the State of
California is proposing to reduce the level of funding allocated to local government.
c. It is the intention and understanding of the people that this measure shall be deemed a
"general tax" and that it is not a "special tax" within the meaning of Section 4 of Article
XIII A of the California Constitution by virtue of the fact that the proceeds of this tax are
to be deposited in the general fund of the city and are to be available to be used for any
general governmental purpose that the City Council shall determine.
d. As soon as practical after the adoption of this ordinance, the City Council shall appoint a
citizens oversight committee which shall receive reports from the Tax Administrator at
least annually on the implementation of this chapter, the funds collected, and how funds
collected are spent. The citizens oversight committee, which may make
recommendations to the City Council on any matter relating to this chapter, shall hold all
meetings in compliance with the Ralph M. Brown Act. (Cal. Gov. Code § 54950, et seq.)
§ 61102. Purpose.
The purpose of this section is to establish the methods for calculating a utility users' tax on users
of electric and gas utility services in the city and to establish standards for administration of the
taxes.
§ 61103. Definitions.
The following words and phrases whenever used in this section shall be construed as defined in
this subsection.
a. Person shall mean any domestic or foreign corporation, firm, association, syndicate, joint
stock company, partnership of any kind, joint venture, club, business or common law
trust, society, or individuals.
b. City shall mean the city of Carson.
c. Gas shall mean natural or manufactured gas or any alternate hydrocarbon fuel that may
be substituted therefor.
d. Electrical corporation and gas corporation shall have the same meanings as defined in the
California Public Utilities Code except, "electrical corporation" and "gas corporation"
shall also be construed to include any municipality, public agency or person engaged in
the selling or supplying of electrical power or gas to a service user.
e. Tax Administrator shall mean the person designated by the City Manager to implement
this chapter.
ORDINANCE NO. 09 -1423
PAGE 3 OF 8
f. Service supplier shall mean any entity required to collect or self - impose and remit a tax
as imposed by this section.
g. Service user shall mean a person required to pay a tax imposed by this section.
h. Month shall mean a calendar month.
Non - utility supplier shall mean: (a) a service supplier, other than an electrical corporation
serving within the city, which generates electrical energy in capacities of at least fifty
(50) kilowatts for its own use or for sale to others; or (b) a gas supplier other than a gas
corporation, that sells or supplies gas to users within the city.
j. "Lower- income households" means persons and families whose incomes do not exceed
the qualifying limits for lower- income families as determined and published by the
California Department of Housing and Community Development. (See California Health
and Safety Code § 50079.5.)
§ 61104. Exemptions; Limitations.
a. Nothing in this section 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.
b. The City Council may, by minute order or resolution, establish one or more classes of
persons or one or more classes of utility service otherwise subject to payment of a tax
imposed by this section and provide that such classes of persons or service shall be
exempt, in whole or in part from such tax.
c. Notwithstanding any other provision of this chapter, residential customers shall be
exempt from the payment of any utility users' tax if the household qualifies as any of the
following: (a) households where the household resident whose name appears on the
utility bill is age 62 years and older or (b) lower - income households as defined
hereinabove.
d. The Tax Administrator shall prepare a list of the persons exempt from the provisions of
this section by virtue of this subsection and furnish a copy thereof to each service
supplier. The Tax Administrator shall make the final determination as to the eligibility
for any exemption.
e. Notwithstanding any other provision of this chapter, no service user shall be required to
pay more than $1 million in electricity users tax, or gas users tax, or both combined, for
service provided in any calendar year. Any claim for refund must be made in writing in
accordance with § 61114.
§ 61105. Electricity Users Tax.
a. There is hereby imposed a tax upon every person other than an electric or gas corporation
using electrical energy in the city. The tax imposed by this subsection shall be at the rate
of not more than two (2 %) percent of the charges made for such energy by an electrical
corporation providing service in the city and shall be billed to and paid by the person
using the energy. The tax applicable to electrical energy provided by a non - utility
supplier shall be determined by applying the tax rate to the equivalent charge the service
user would have incurred if the energy used had been provided by the electrical
ORDINANCE NO. 09 -1423
PAGE 4 OF 8
corporation serving the residents of the city. Rate schedules for this purpose shall be
available from the city. Non - utility suppliers shall install, maintain and use an
appropriate utility -type metering system which will enable compliance with this
subsection. "Charges," as used in this subsection, 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 costs adjustments, authorized by the California Public Utilities
Commission or the Federal Energy Regulatory Commission.
b. As used in this subsection, 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 machinery 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; nor shall the term include the mere receiving of such energy by
an electric corporation or governmental agency at a point within the city of Carson for
resale; nor shall the term include the use of such energy in the production or distribution
of water by a water utility or a governmental agency.
c. The tax imposed in this subsection shall be collected from the service user by the service
supplier or non - utility supplier. The tax imposed in this subsection on use supplied by
self - generation or from a non - utility supplier not subject to the jurisdiction of this section,
shall be collected and remitted to the Tax Administrator in the manner set forth in this
chapter or by order of the Tax Administrator. The amount of tax collected by a service
supplier or a non - utility supplier in one (1) month shall be remitted by U.S. mail to the
Tax Administrator, postmarked on or before the last day of the following month.
§ 61106. Gas Users Tax.
a. There is hereby imposed a tax upon every person in the city other than a gas corporation
or electrical corporation, using, in the city, gas which is transported through mains or
pipes or by mobile transport. The tax imposed by this subsection shall be at the rate of not
more than two (2 %) percent of the charges made for the gas and shall be billed to and
paid by the person using the gas. The tax applicable to gas or gas transportation provided
by non - utility suppliers shall be determined by applying the tax rate to the equivalent
charges the service user would have incurred if the gas or gas transportation has been
provided by the gas corporation franchised by the city. "Charges" as used in this
subsection shall include: (1) that billed for gas, which is delivered through mains or
pipes; (2) gas transportation charges; and (3) demand charges, service charges, customer
charges, minimum charges, annual and monthly charges, and any other charge authorized
by the California Public Utilities Commission or the Federal Energy Regulatory
Commission.
b. The tax otherwise imposed by this subsection is not applicable to: (1) charges made for
gas which is to be resold and delivered through mains and pipes; (2) charges made for gas
used and consumed by a public utility or governmental agency in the conduct of its
business or, (3) charges made by a gas public utility or gas used and consumed in the
course of its public utility business; and (4) charges made for gas used in the propulsion
of a motor vehicle, as authorized in the Vehicle Code of the State of California.
ORDINANCE NO. 09 -1423
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c. The tax imposed in this subsection shall be collected from the service user by the person
selling or transporting the gas. A person selling only transportation services to a user for
delivery of gas through mains or pipes shall collect the tax from the service user based on
the transportation charges. The person selling or transporting the gas shall, on or before
the 20th of each month after the effective date of this section 61106, 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 on this section on use supplied by
self - production or a non - utility supplier not subject to the jurisdiction of this ordinance
shall be collected and remitted to the Tax Administrator in the manner set forth in this
chapter or by order of the Tax Administrator.
§ 61107. Service Users Receiving Direct Purchase of Electricity or Gas.
a. Notwithstanding any other provision of this section, a service user receiving gas or
electricity directly from a non - utility supplier not under the jurisdiction of this section, or
otherwise not having the full tax due on the use of electricity or gas in the city directly
billed and collected by the service supplier, shall report said fact to the Tax Administrator
within thirty (30) days of said use and shall directly remit to the city the amount of tax
due.
b. The Tax Administrator may require said service user to provide, subject to audit, filed tax
returns or other satisfactory evidence documenting the quantity of electricity or gas used
and the price thereof.
§ 61108. Remittance of Tax.
Taxes collected from a service user 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 may be postmarked on the first regular working day following a
Saturday /Sunday, or a legal holiday.
§ 61109. Actions to Collect.
Any tax required to be paid by a service user under the provisions of this section shall be deemed
a debt owed by the service user to the city. Any such tax collected from a service user which has
willfully been withheld from 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 section shall be liable to an action brought in the name of the city for the
recovery of such amount.
§ 61110. Duty to Collect - Procedures.
The duty to collect and remit the taxes imposed by this section shall be performed as follows:
a. Notwithstanding any other provision, 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 service 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.
ORDINANCE NO. 09 -1423
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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.
§ 61111. Additional Power and Duties of Tax Administrator.
a. The Tax Administrator shall have the power and duty, and is hereby directed to enforce
each and all of the provisions of this section.
b. The Tax Administrator shall have the power to adopt rules and regulations not
inconsistent with provisions of this section for the purpose of carrying out and enforcing
the payment, collection and remittance of the taxes herein imposed. A copy of such rules
and regulations shall be on file in the Tax Administrator's office.
c. The Tax Administrator may make administrative agreements to vary the strict
requirements of this section so that collection of any tax imposed here may be made in
conformance with the billing procedures of particular service supplier so long as said
agreements result in collection of the tax in conformance with the general purpose and
scope of this section. 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 section. The Tax Administrator shall provide the
service supplier with the name of any person who the Tax Administrator determines is
exempt from the tax imposed hereby, together with the address and account number to
which service is supplied to any such exempt person. 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.
e. The Tax Administrator shall provide notice to all service suppliers, at least ninety (90)
days prior to any annexation or other change in the city's boundaries. Said notice shall set
forth the revised boundaries by street and address, along with a copy of the final
annexation order from LAFCO.
§ 61112. Assessment - Service User Administrative Remedy.
a. Whenever the Tax Administrator determines that a service user has deliberately withheld
from the service supplier the amount of the tax owed by him or her, or that a service user
has refused to pay the amount of tax, the service supplier may be relieved of the
obligation to collect taxes due under this Section from certain named service users for
specified billing periods as set forth below. 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 mailed by the person required to collect the tax.
b. The service supplier shall provide the city with amounts refused and /or unpaid along with
the names and addresses of the service users neglecting to pay the tax imposed under
provisions of this Section. Whenever the service user has failed to pay the amount of tax
for a period of two (2) or more billing periods, the service supplier may be relieved of the
obligation to collect taxes due.
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c. The Tax Administrator shall notify the service user that the Tax Administrator 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 mailed by the person
required to collect the tax; or, should the service user's address change, to the last known
address. If a service user fails to remit the tax to the Tax Administrator within fifteen (15)
days from the date of the service of the notice upon him or her, which shall be the date of
mailing if service is not accomplished in person, a penalty of twenty -five percent (25 %)
of the amount of the tax set forth in the notice shall be imposed. The penalty shall
become part of the tax herein required to be paid.
§ 61113. Records.
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 (3) years, all records as may be necessary
to determine the amount of such tax as he may have been liable for the remittance to the Tax
Administrator, which records the Tax Administrator shall have the right to inspect at all
reasonable times.
§ 61114. Refunds.
a. Written Claim Required: Whenever the amount of any tax, interest, or penalty has been
overpaid or paid more than once or has been erroneously or illegally collected or received
by the Tax Administrator under this chapter, it may be refunded as provided in this
Subsection. However, any claim must be in writing, stating under penalty of perjury the
specific grounds upon which the claim is founded, and filed with the Tax Administrator
within 15 days of the day the claimed amount was paid. The claim shall be made on a
form furnished by the Tax Administrator.
b. Refund Or Credit: Notwithstanding the provisions of subsection (a) above, a service
supplier may claim a refund; or take as credit against taxes remitted the amount overpaid,
paid more than once, or erroneously or illegally collected or received when it is
established that the service user from whom the tax has been collected did not owe the
tax; provided, however, that neither a refund nor a credit shall be allowed unless the
amount of the tax erroneously or illegally 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. A service supplier that has collected any amount of tax in
excess of the amount of tax imposed by this Section may refund such amount to the
service user and may, with the prior written approval of the Tax Administrator, claim
credit for such overpayment against the amount of tax that is due to the city, provided
that a claim for such credit is presented within the time and in the manner prescribed by
this Code.
c. Taxes Refunded: Notwithstanding other provisions of this Subsection, whenever a service
supplier, pursuant to an order of the California Public Utilities Commission or a court of
competent jurisdiction, makes a refund to service users of charges for past utility
services, the taxes paid pursuant to this Section on the amount of such refunded charges
shall also be refunded to service users, and the service supplier shall be entitled to claim a
credit for such refunded taxes against the amount of tax which is due upon the next
monthly returns. In the event this Section is repealed, the amounts of any refundable
taxes will be borne by the City.
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§ 61115. Severability.
If any subsection, subdivision, paragraph, sentence, clause or phrase of this Section or any part
thereof is for any reason held to be unconstitutional, such decision shall not affect the validity of
the remaining portion of this Section or any part thereof. The City Council hereby declares that it
would have passed each subsection, subdivision, paragraph, sentence, clause, or phrase thereof,
irrespective of the fact that any one or more subsection, subdivision, paragraph, sentence, clause,
or phrase be declared unconstitutional.
§ 61116. Amendment.
The tax rate set forth in this chapter may only be amended by a vote of the people of the city of
Carson; provided, however, that the City Council may otherwise amend this chapter to achieve
the purpose or intent of this chapter.
§ 61117. Operative Date.
Under the provisions of Government Code section 36937, this section shall become effective
immediately upon passage of the enacting ordinance. The tax imposed under this section shall
apply to bills rendered on or after ninety (90) days or as soon thereafter as the respective utilities
are physically and mechanically able to get "on line" for the imposition of charges (not more
than 60 days).
§ 61118. Sunset Date.
The utility users' tax described in this chapter shall no longer be effective on July 1, 2016, and at
such time this chapter shall be repealed without further action, except that the provisions of this
chapter shall remain in effect as to any tax due and owing, but unpaid, as of July 1, 2016.
§ 61119. Oversight Committee.
As soon as practical after the adoption of this ordinance, the City Council shall appoint a citizens
oversight committee which shall receive reports from the Tax Administrator at least annually on
the implementation of this chapter, the funds collected, and how funds collected are spent. The
citizens oversight committee, which may make recommendations to the City Council on any
matter relating to this chapter, shall hold all meetings in compliance with the Ralph M. Brown
Act. (Cal. Gov. Code § 54950, et seq.)"
I, Helen S. Kawagoe, City Clerk of the City of Carson, California, do hereby certify that
Ordinance No. 09 -1423 was Passed, Approved, and Adopted by the People of the City of
Carson, California, voting on the 3`d day of March, 2009.