HomeMy Public PortalAboutOrdinance 702ORDINANCE NO. 702
AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF BEAUMONT, CALIFORNIA, ESTABLISHING A UTILITY TAX
OF Three (3 %) PERCENT UPON TELEPHONE, ELECTRIC, GAS
AND CABLE T.V. UTILITY USERS
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT,
STATE OF CALIFORNIA, AS FOLLOWS:
SECTION 1:
hereby repealed.
SECTION 2: Chapter 13.14 is hereby added to read as
follows:
Chapter 13.14 of the Beaumont Municipal Code is
Sections:
13.14.010
13.14.020
13.14.030
13.14.040
13.14.050
13.14.060
13.14.070
13.14.080
13.14.090
13.14.100
13.14.110
13.14.120
13.14.130
13.14.140
13.14.150
Chapter 13.14
UTILITY USER TAX
Established --Purpose.
Definitions.
Exemptions.
Telephone users tax.
Electricity users tax.
Gas users tax.
Cable television users tax.
Penalty for delinquency.
Actions to collect.
Duty to collect --Procedures.
Powers of Tax Administrator.
Assessment --Collection by Tax Administrator.
Records.
Refunds.
Civil debt.
13.14.010 Established --Purpose. There is hereby
established a Three (_%) percent utility user tax for the
purpose of providing general fund operating funds for use by the
City.
13.14.020 Definitions. The following words and phrases,
whenever used in this Ordinance shall be construed as defined in
this Section:
A. "City" shall mean the City of Beaumont.
B. "Month" shall mean a calendar month.
C. "Person" shall mean 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 individuals.
D. "Tax Administrator" shall mean the Finance Director of
the City of Beamont.
E. "Telephone corporation", "Electrical corporation", "Gas
corporation" and "Cable Television corporation" shall have the
same meanings as defined in Section 234, 218, 222 and 215-5,
respectively, of the Public Utilities Code of the State of
California as said sections existed on January 1, 1986.
"Electrical corporation" shall be construed to include any
municipality or franchised agency engaged in the selling or
supplying of electircal power to a service user.
F. "Service supplier" shall mean a utility company which
receives taxes paid and remits same as imposed by this Ordinance.
G. "Service user" shall mean a person required to pay a tax
imposed by this Ordinance.
H. "Non-utility service supplier" shall mean a service
supplier, other than an electrical corporation franchised to
serve the City, which generates electrical energy in capacities
-1-
6/6/91
of at least fifty (50) kilowatts for its own use or for sale to
others.
13.14.030 Exemptions. Nothing in this Ordinance 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.
A. A household with a combined annual gross income of
$7,500.00 or less is eligible for exemption or refund when
application is made pursuant to Sections 13.14.110(D) and
13.14.140(F).
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.
13.14.040 Telephone users tax.
A. There is hereby imposed a tax on the amounts paid for
any intrastate telephone services by every person in the City
using such services. The tax imposed by this Section shall be at
the rate of Three (3 %) percent of the charges made 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 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 during any period in which the same
lease from persons other than a service supplier subject to
Public Utility regulations, nor shall the words "telephone
communication service" include land mobile services or maritime
mobile services as defined in Section 2.1 of 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 all charges billed to a telephone account having a
situs in the City, irrespective of whether a particular
communication services originates and/or terminates within the
City.
C. The tax imposed by this Section shall be collected from
the service user by the person providing the intrastate telephone
communications services, or the person receiving payment for such
services. The amount of the tax collected in one (1) month shall
be remitted to the Tax Administrator on or before the last day of
the following month; or the amount of tax collected in one (1)
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.
D. Notwithstanding the provisions of Subsection A of this
Section, the tax imposed under this Section shall not be imposed
upon any person for using intrastate telephone communication
services to the extent that the amounts paid for such services
are exempt from or not subject to the tax imposed under Division
2, Part 20 of the California Revenue and Taxation Code, or the
tax imposed under Section 4251 of the Internal Revenue Code.
13.14.050 Electricity users tax.
A. There is hereby 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 Three ( 3 %) percent of the
charges made for such energy by an electrical corporation
franchised to serve the City and shall be paid by the person
-2-
using the energy. The tax applicable to electrical energy
provided by a non-utility service 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 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,
stand-by charges and annual and monthly charges, fuel cost
adjustments, etc.
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 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; 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 or governmental agency at a point within the City of
Beaumont for resale; or the use of such energy in the production
or distribution of water by a public utility or a governmental
agency.
C. The tax imposed in this Section shall be collected from
the service user by the person supplying such energy. The tax
shall be self-imposed by non-utility suppliers as to their own
use. The amount of tax collected in one (1) 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, measured
by the tax billed in the previous month, shall be remitted to the
Tax Administrator on or before the last day of each month.
Remittance of tax may be predicated on a formula based upon the
payment pattern of the supplier's customers.
13.14.060 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 delivered through mains or pipes.
The tax imposed by this Section shall be at the rate of three
(3 %) percent of the charges made for such gas and shall be paid
by the person paying for such gas. "Charges" as used in this
Section shall include: (1) gas which is delivered through mains
or pipes; (2) minimum charges for such services, including
customer charges, service charges and annual and monthly charges.
B. 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 or 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, and
5. Charges related to late payments and returned
checks.
C. The tax imposed in this Section shall be collected from
the service user by the person selling the gas. The person
selling the gas shall, on or before the twentieth (20th) of the
calendar month, commencing on the twentieth (20th) day of
calendar month after the effective date of this part, 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 the gas shall remit tax
payments to the Tax Administrator in accordance with schedules
-3-
established or approved by the Tax Administrator.
13.14.070 Cable television users tax.
A. There is hereby 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 Three (1 %) percent of the
charges made for such service and shall be paid by the person
paying for such service.
B. 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 (1) month shall be remitted
to the Tax Administrator on or before the last day of the
following month.
13.14.080 Penalty for delinquency.
A. Taxes collected from a service user which are not
remitted to the Tax Administrator on or before the due dates
provided in this Ordinance are delinquent.
B. The interest penalty shall be the same as specified in
Section 13.14.120, Paragraph D - Administrative Remedy Penalty.
13.14.090 Actions to collect. Any such tax received 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 holding such
money contrary to provisions of this Ordinance shall be liable to
an action brought in the name of the City for the recovery of
such amount.
13.14.100 Duty to collect -Procedures: The duty to collect
and remit the taxes imposed by this Ordinance shall be performed
as follows:
A. 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 energy 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 charges first
until such charge has been satisfied. Any remaining balance
shall be applied to taxes due. In those cases where a service
user has notified the service supplier of his refusal to pay the
tax imposed on said energy charge, Section 13.14.120 (C) 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.
13.14.110 Powers 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 Ordinance.
B. The Tax Administrator shall have power to adopt rules
and regulations not inconsistent with provisions of this
Ordinance for the purpose of carrying out and enforcing the
payment, collection and remittance of 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 Ordinance so that
collection of any tax imposed here may be made in conformance
with the billing procedures of a particular service supplier so
long as said agreements result in collection of the tax in
conformance with the general purpose and scope of this Ordinance.
A copy of such agreement shall be on file in the Tax
Administrator's office.
-4-
D. The Tax Administrator shall determine the eligibility of
any person who asserts a right to exemption from the tax imposed
by this Ordinance. 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 services
are supplied to any such exempt person. The Tax Administrator
shall notify the service supplier of the termination of any
person's right to exemption hereunder, or the change of any
address to which service is supplied to any exempt person.
13.14.120 Assessment --Collection by Tax Administrator.
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 by him
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, he may relieve such person of the
obligation to collect taxes due under this Ordinance from certain
named service users for specified billing periods.
C. The service supplier shall provide the City with amounts
refused along with the names and addresses of the service users
refusing or neglecting to pay the tax imposed under provisions of
this Ordinance. 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
back taxes due.
D. 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 person required to
collect the tax; or should the service user have changed his
address, to his last known address. If a service user fails to
remit the tax to the Tax Administrator within fifteen (15) days
from the date of the service of the notice upon him, which shall
be the date of mailing if service is not accomplished in person,
a penalty of twenty-five percent (25%) of the amount of the tax
set forth in the notice shall be imposed, but not less than
$5.00. The penalty shall become part of the tax herein required
to be paid.
13.14.130 Records. It shall be the duty of every person
required to collect and remit to the City any tax imposed by this
Ordinance 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 collection of and
remittance to the Tax Administrator, which records the Tax
Administrator shall have the right to inspect at all reasonable
times.
13.14.140 Refunds.
A. 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 Ordinance, it may be
refunded as provided in this Section.
B. Notwithstanding the provisions of Subsection A of this
Section, a service supplier 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 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. A service
supplier that has collected any amount of tax in excess of the
amount of tax imposed by this Ordinance, and actually due from a
service user, may refund such amount to the service user and
claim credit for such overpayment against the amount of tax which
-5-
is due. upon any other monthly returns, provided such credit is
claimed in a return dated no later than three (3) years from the
date of overpayment.
C. No refund shall be paid under the provisions of this
Section unless the claimant establishes his right thereto by
written records showing entitlement thereto.
D. Notwithstanding other provisions of this Section,
whenever a service supplier, pursuant to an order of the
California Public Utilities Commission or a Court of competent
jurisdiction, makes a refund to service users of charges for past
utility service, the taxes paid pursuant to this Ordinance 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 Ordinance
is repealed, the amounts of any refundable taxes will be borne by
the City.
E. If the amount of any tax paid is in excess of the
maximum amount payable as provided in any Section hereof, the Tax
Administrator shall refund the amount overpaid to the service
user within sixty (60) days after the service user has
established his entitlement to such refund, provided that no
refunds under this Subsection need be made more frequently than
quarter -annually.
F. A refund of all taxes due and paid under the provisions
of this Ordinance for utility services rendered on and after July
1, 1990 and through June 30, 1991, or for any succeeding
twelve-month period, shall be made whenever all of the following
occur:
1. The annual gross income of the household in which
claimant lives is less than $7,500 for the claimant's preceding
federal or state personal income tax reporting period;
2. An amount greater than the maximum amount specified
in Section 13.14.050(D) is paid;
3. Claimant makes application and files a verified
claim in writing at the Department of Finance at City Hall for
such refund upon a claim form provided by the Tax Administrator;
4. The claim is approved by the Tax Administrator as
being in conformance with this Subsection.
G. Only one member of each household may file a claim, and
only one claim may be filed for each individual household.
H. The claimant shall be the person in whose name the bills
for utility services were rendered. "Income of the household"
means all income of the claimant's household while members of
such household are related to the claimant as a spouse or as
defined in Sections 17056 and 17057 of the Revenue and Taxation
Code of California.
I. "Gross income" shall mean the sum of adjusted gross
income as used for purposes of the California Personal Income Tax
Law, together with the net income from all sources of all kinds,
including but not limited to alimony, support money, cash public
assistance and relief, pensions, annuities, social security,
interest on securities (including tax free interest on
governmental securities) , realized capital gains, workers'
compensation (not including medical benefits) , unemployment
insurance income, insurance benefits of all kinds (other than
medical) , and gifts, except that income shall not include
Medicare benefits, Medicaid benefits, gifts of food and gifts
between members of the household, the receipt of surplus food or
other relief in kind supplied by a governmental agency.
J. The claim for such refund for the preceding twelve-month
period ending on June 30 shall be made only during the month of
September or October of each year, and must be accompanied by a
copy of the utility bills, together with proof that the utility
taxes have been paid by the claimant or some member of the
household. No such refund shall be made on any claim filed or
postmarked later than the 31st day of October.
K. No refund shall be made to any person for taxes levied
on a utility account for which any utility tax is due and
outstanding for the period for which refund is claimed or for any
prior period. No refund shall be made of any tax which was paid
with public assistance or relief funds which included an
allownace to pay the tax.
L. Nothing in this Section shall be construed to require
-6-
that any utility company has any obligation to make or furnish,
for the purpose of the refund provisions hereof, proof of utility
taxes due or utility taxes paid.
13.14.150 Civil debt. The taxes imposed by this Ordinance
shall be civil debts owing to the City from the service user. A
service supplier is not liable to the City until the tax is
collected from a service user. Any person owing money to the
City under the provisions of this Ordinance shall be liable to an
action brought in the name of the City for the recovery of such
amount.
SECTION 3: If any Section, Subsection, Subdivision,
Paragraph, Sentence, Clause or Phrase of this Ordinance or any
part thereof is for any reason held to be unconstitutional, such
decision shall not affect the validity of the remaining portions
of this Ordinance or any part thereof. The City Council hereby
declares that it would have passed such 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.
SECTION 4: This Ordinance is adopted pursuant to Government
Code Sections 53720 et seq. Pursuant to Section 53723 of said
Code, the City Clerk is hereby directed to submit to the
electorate of the City of Beaumont in the General Election to be
held in November 1991 the question as to whether the voters
approve the adoption of the Ordinance and the imposition of the
taxes charged herein. If this Ordinance is not approved in said
election by a majority of the vote of the voters voting in that
election, then this Ordinance shall be deemed to have been
repealed as of the date of the certification of said election and
no further taxes shall be collected hereunder. Approval by a
majority of said voters shall be deemed retroactive to the date
of the adoption of this Ordinance. If the Supreme Court of the
State of California shall, prior to said election, determine
Government Code Section 53723 to be unconstitutional as applied
to taxes of the type imposed in this Ordinance, the approval by a
vote of the electorate shall not be required, and if said issue
has already been placed on the ballot the results of the election
shall be null and void and this Ordinance shall remain in full
force and effect.
SECTION 5: This Ordinance is passed, accepted and enacted,
pursuant to Section 36934 of the California Government Code as an
urgency measure pursuant to the police power of the City of
Beaumont. The intent and necessity of this Ordinance is to
protect the public health, safety and public welfare of the
citizens of the City of Beaumont by creating the necessary funds
to preserve the services that are presently provided and need to
be provided.
It shall become effective immediately.
PASSED AND ADOPTED on this 10th day of Bina , 1991,
upon the following roll call vote.
AYES: Council Member Leja, MacNeilage, McLaughlin, Parrott
and Mayor Connors.
NOES: None.
ABSTAIN: None.
ABSENT: None.
MAYOR OF THE CITY OF BEAUMONT
ATTEST:
CITY CLERK
APPROVE. D AS TO0
ITY ATT►♦'NEY
CERTIFICATION
I, Robert J. Bounds, City Clerk of the City of
Beaumont, DO HEREBY CERTIFY that the foregoing Ordinance was
introduced at a regular meeting of the City Council of said City
held on .Bina in , 1991, and was duly adopted upon first
reading on li,na in , 1991, upon the following roll call
vote:
AYES: Council Member Leja, MacNeilage, McLaughlin, Parrott
and Mayor Connors.
NOES: None.
ABSTAIN: None.
ABSENT: None.
CITY CLERK, CITY OF BEAUMONT