HomeMy Public PortalAboutOrd. 1631ORDINANCE NO. 1631
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AMENDING
SECTIONS 6 -5.5 AND 6 -5.17 OF THE LYNWOOD MUNICIPAL CODE PERTAINING
TO THE UTILITY USERS' TAX
WHEREAS, on November 4, 2008 voters approved and ratified the City's Utility
User' Tax (UUT) at a reduced rate of 9 %; and
WHEREAS, the voters also approved updating the City's UUT ordinance based
on changes in laws and technology that had occurred since 1990; and
WHEREAS, the City Council seeks to clarify the exceptions to Telephone Users'
Tax to ensure that the UUT's applicability is consistent with the intent of the ordinance
approved by the voters; and
t
WHEREAS, the City Council seeks to add a section to the Telephone Users' Tax
to clarify the Tax Administrator's authority to administer administrative rulings to
implement the Telephone Users' Tax; and
WHEREAS, the City Council seeks to amend its UUT ordinance to clarify the
refunds procedure including the statute of limitations.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES
HEREBY ORDAIN AS FOLLOWS:
Section 1. Section 6 -5.5 of Chapter 6 of the Lynwood Municipal Code is
hereby amended to read in its entirety as follows:
6 -5.5 Telephone Users Tax.
a. There is hereby imposed a tax on the amounts paid for any intrastate or
interstate telephone communication services by every person in the City using
such services including commercial mobile radio services. The tax imposed by
this subsection shall be at the rate of not more than nine (9 %) percent of the
charges made for such services and shall be paid by the person paying for such
services.
b. As used in this subsection, 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
furnished by a service supplied 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 communication services" include
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 services 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 service originates and /or
terminates within the City.
C. The tax imposed by this subsection shall be collected from the service user by
the person providing the intrastate or interstate telephone communication
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 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. The Tax Administrator may issue and disseminate to telephone communication
service suppliers, which are subject to the tax collection requirements of this
Chapter, an administrative ruling: i) identifying those telephone communication
services, or charges therefore, that are subject to or not subject to the tax of
subsection (a) above, and in rendering such a ruling, the Tax Administrator may
consider the common rules, guidelines and definitions promulgated by other
taxing jurisdictions in California that impose a tax on intrastate and interstate
telephone communications services; and, ii) establishing sourcing rules for the
taxation of telephone communication services, including but not limited to,
commercial mobile radio service, post -paid telephone communication services,
prepaid telephone communication services, and VoIP; provided that such rules
are based upon custom and common practice that further administrative
efficiency and minimize multi - jurisdictional taxation.
e. Notwithstanding the provisions of paragraph a., the tax imposed under this
subsection shall not be imposed upon any person for using intrastate or
interstate telephone communication services to the extent that the amounts paid
for such services are exempt from 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.
Section 2. Section 6 -5.17 of Chapter 6 of the Lynwood Municipal Code is
hereby amended to read in its entirety as follows:
6 -5.17 Refunds.
(a). Written Claim for Refund. Any UUT claim sought pursuant to this section shall
comply with section 2 -7 of this code and the additional requirements as provided herein.
The Tax Administrator may refund any tax that has been overpaid or paid more than
once or has been erroneously or illegally collected or received by the Tax Administrator
under this Chapter from a person or service supplier, provided that no refund shall be
paid under the provisions of this section unless the claimant or his or her guardian,
conservator, executor, or administrator has submitted a written claim to the Tax
Administrator within one year of the overpayment or erroneous or illegal collection of
said tax. Such claim must clearly establish claimant's right to the refund by written
records showing entitlement thereto. Nothing herein shall permit the filing of a claim on
behalf of a class or group of taxpayers unless each member of the class has submitted
a written claim under penalty of perjury as provided by this subsection. It is the intent of
the City Council that the one year written claim requirement of this subsection be given
retroactive effect; provided, however, that any claims which arose prior to the
commencement of the one year claims period of this subsection, and which are not
otherwise barred by a then applicable statute of limitations or claims procedure, must be
filed with the Tax Collector as provided in this subsection within ninety days following
the effective date of this ordinance.
(b). Compliance with Claims Act. The filing of a written claim pursuant to Government
Code Section 935 is a prerequisite to any suit thereon. Any action brought against the
City pursuant to this section shall be subject to the provisions of Government Code
Sections 945.6 and 946. The Tax Administrator, or the City Council where the claim is in
excess of five thousand dollars ($5,000), shall act upon the refund claim within the time
period set forth in Government Code Section 912.4. If the Tax Administrator /City
Council fails or refuses to act on a refund claim within the time prescribed by
Government Section 912.4, the claim shall be deemed to have been rejected by the City
Council on the last day of the period within which the City Council was required to act
upon the claim as provided in Government Code Section 912.4. The Tax Administrator
shall give notice of the action in a form which substantially complies with that set forth in
Government Code Section 913.
(c). Refunds to Service Suppliers. Notwithstanding the., nofiice ,,,provisions.of,�subsection
(a) of this Section, the Tax Administrator may, at his or her discretion, give written
permission to a service supplier, who has collected and remitted any amount of tax in
excess of the amount of tax imposed by this Chapter, to claim credit for such
overpayment against the amount of tax which is due the City upon a subsequent
monthly return(s) to the Tax Administrator, provided that: i) such credit is claimed in a
return dated no later than one year from the date of overpayment or erroneous
collection of said tax; ii) the Tax Administrator is satisfied that the underlying basis and
amount of such credit has been reasonably established; and, iii) in the case of an
overpayment by a service user to the service supplier that has been remitted to the City,
the Tax Administrator has received proof, to his or her satisfaction, that the
overpayment has been refunded by the service supplier to the service user in an
amount equal to the requested credit.
Section 3. The City finds that this action is within the grant of authority given to
it by the State Legislature.
Section 4. If any section, subsection, sentence, clause, phrase, or portion of
this ordinance is for any reason held to be invalid or unconstitutional by the decision of
any court of competent jurisdiction, such decision shall not affect the validity of the
remaining sections, subsections, sentences, clauses, phrase, or portions of this
ordinance. The City Council hereby declares that it would have adopted this ordinance
and each section, subsection, sentence, clause, phrase, or portion thereof, irrespective
of the fact of the fact that any one or more sections, subsections, sentences, clauses,
phrases, or portions be declared invalid or unconstitutional.
Section 5. This Ordinance shall take effect 30 days after its final passage, and
within fifteen (15) days after its passage, the City Clerk shall cause it to be posted as
required by law, and hereby designated for that purpose.
First read at a regular meeting of the City Council held on the 20th day of Aril, 2010 and
adopted and ordered published at a regular meeting of said Council on 4t day of May,
2010.
PASSED, APPROVED and ADOPTED this 4th day of May, 2010.
Mar6 T. Santillan, Mayor
ATTEST:
At 'M
- - -111 ra r6ji MA
uinonez, City Clerk
Y M
APPROVED AS TO FORM:
Fred Galante, City Attorney
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
APPROVED AS TO CONTENT:
Robert S. Torrez, tant City
Manager — Admin & Community Services
I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the
above and foregoing Ordinance was duly adopted by the City Council of the City of
Lynwood at its regular meeting held on the 4t" day of May, 2010.
AYES: COUNCIL MEMBERS FLORES, MORTON, RODRIGUEZ, AND
SANTILLAN
NOES: NONE
ABSTAIN: COUNCIL MEMBER CASTRO
ABSENT: NONE
P'P'7nr.'_en*:' W""
Maria Quinonez, City Clerk-"
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES )
I, the undersigned, City Clerk of the City of Lynwood, and Clerk of the City
Council of said City, do hereby certify that the above and foregoing is a full, true and
correct copy of Ordinance No. 1631 in my office and that said Ordinance was adopted
on the date and by the vote therein stated. Dated this 4t" day of May, 2010.
Maria Quinonez, City Clerk