HomeMy WebLinkAboutReso 2015-205 RESOLUTION NO. 2015-20�
RESOLUTION OF THE CITY COUT�'CIL OF THE CITY OF
CHULA VISTA AUTHORIZII�'G THE CITl' MAI�'AGER TO
EXECUTE AN AGREEMEI�TT V�lTH THE ST.ATE BOARD OF
EQUALIZATION FOR IMPLEn4ENTATION OF THE LOCAL
PREP.AID MOBILE TELEPHONY SER\'ICES COLLECTION
ACT
WHEREAS, on August 18. 201�, the Cin� of Chula Vista cenified that Ordinance \o.
3318 applies its local charge (utility users ta�) to prepaid mobile telephony services; and
VJHEREAS. the Local Prepaid Mobile Telephon�� Ser��ices Collection Act mandates the
Board of Equalization (Boazd) to administer and collect the local chazoes for ail applicable local
jurisdictions (Re��. R Ta� Code Section 42103); and
R'HEREAS, the Board w�ill perform all functions incident to administration and
collection of the local chazaes for the Cit�� of Chula Vista: and
WHEREAS. the Board requires that the Citv of Chula Vista enter into an "Aereement for
State Collection and Administration of Local Chazees;" as set forth in E.�hibit 1, attached hereto
and incorporated herein by reference as if set forth in full: prior to implementation of the Local
, Prepaid Mobile Telephon�� Services Collection Act; and
�
V�'HEREAS. the Board requires that the Cit�� of Chula Vista authorize the agreement.
?�'OV`'; THEREFORE, BE IT RESOLVED b�� the Cin- Council of the Cit�� of Chula
Vista. that the "Agreement for State Collection and Administration of Local Charges" as
reflected in Exhibit 1 to this Resolution. is hereb�� approved and the Ciri� Manaeer is herebv
authorized to execute the aereement. �
Presented b�� Approved as to form by
> � �
Maria'l:achadoorian ` len R oeins
Deputy Cit}� Manager/Director of Finance Gi�� Atto y
Resolution No. ?O1�-20�
Page No. 2
PASSED, APPROVED, and ADOPTED by the Cit�� Council of the Cit�� of Chula Vista
California, this 18th dav of August 2015 by the following vote:
AYES: Councilmembers: Aguilar, Bensoussan; McCann, Miesen and Salas
NAYS: Councilmembers: I��one
ABSENT: Councilmembers: None
` �
Mary S as, Mayor
ATTEST:
�
Donna R. I�'orris. C�. C�Clerk
STATE OF CALIFORI�'IA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Donna R. Norris, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2015-205 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 18th day of August 2015.
Executed this ]8th day of August 201�.
�
Donna R. Norris, CMC Citv Clerk
E�hibit 1 Resolution No. 201�-20�
Pase I�o. 3
Local Jurisdiction c;n otChuis visa
AGREEAiE\-I FOR STATE COLLECTIO�.�\� :+,D��IL�ZSTRATIO\OF
LOC.AI. CH_4RGE5
This .4greement is for the purpose of implementine the Loca] Prepaid 1�lobile Telephon}�
Sen�ices Collection �ct (Par[ ?1.1. commencine��ith Section A2100) of Division 2 of the
Revenue and Taaation Code), hereinafrer referred to u the Local Charae .4ct. The
Cin�of Chula Visu and the State Board of Equalization, hereinafrer called
the Board. do a2ree as follows:
ARTICLE I
� � DEFL�II'IOI�'S
linless the conteat requires otherwise. ���here��er the follo���ing terms appear in this
Agreement the��shall be interpreted to mean the follo�ti�in�:
9. "Administrative Ezpenses" means all eapenses incurred b}�the Board in the
administration and collection of the loca] charges. includine preparation and wind do��n
costs which are reimbursable to the Board from the re�•enues collected bv the Board on
behalf of the local jurisdiction.
B. "Contingent Fee" includes, but is not limited to, a fee that is based on a
percentaee of the ta.� liabilit�� reported on a retum, a fee that is based on a percentase of
the taxes ow�ed, or a fee that depends on the specific tax result attained.
C. "Direct Seller' means a prepaid ?�lobile Telephon} Sen�ice (A4TS)pro��ider or
sen�ice suppliec as defined in section 41007, that ma}:es a sale of prepaid mobile
telephom�sen�ices directly to a prepaid consumer for am purpose other than resale in the
reoular course of business. A direct seller includes, but is no[ limited to, a telephone
corporation, a person that provides an interconnected Voice over Intemet Protocol (VoIP)
sen�ice; and a retailer as described in section�200�(b)(1).
D. `�Local Charges" means a utilin� user ta� imposed on the consumption of
prepaid mobile telephony sen�ices, as described in section 42102. and charees for access
to communication services or to local "9ll" emersency telephone s��stems imposed by a
local jurisdiction. u described in section �2102.�.
E. "Local Jurisdiction" or "local a�eo�" means a city, count.�, or cin� and
counn�, which includes a charter cit��, counn�, or cin� and count��of this State. which has
adopted an ordinance imposine a loca] charee of the kind described in Part 21.1 of
Di��ision 2 of the Re��enue and Taxation Code and has entered into a contract �cith the
Board to perform all functions incident to the collection of the local charees.
F. ��Ordinance" means an ordinance of a local jurisdiction imposine a local
charee; including an}� local enactment relatins to the filine of a refund or a claim arisin�
.under the ordinance. attached hereto, as amended from time to time. �
�
Resolution No. 2015-?05
Page No. 4
G. "Quarterlc local char�es" means the total amount of ]oca] charaes
transmitted by the Board to a local jurisdiction for a calendar quarter, as set forth i�
section 42106(a)(1).
H. "Refund" means the amount of local charges deducted b�� [he Board from a
]ocal jurisdiction`s quarterl} bcal charges in order to pa}� that jurisdiction s shaze of a
loca] charee refund due to one taapa��er.
I. "Section"—al] section references are to[he Revenue and Taxation Code.
J. �"Seller' means a person that sells prepaid mobile telephony sen�ice to a
- person in a retai] transaction.
ARTICLE II
BOARD ADD'IIA'ISTRATION AI�`D COLLECTION OF LOCAL CHARGES
A. Administration. The Board and the local _jurisdiction agree that the Board
shall perform functions incident to the collection of the local charses from sellers that are
not direct sellers. �
B. Cullection. The Board shall collea the ]ocal charges in the same manner as it
collects the prepaid MTS Surchar�e in the Prepaid n4obile Telephom� Services Surchazee
Collection Act, subject to specified limita[ions in the Local Charoe Act for which the
local jurisdiction is responsible, as set forth in Article]I] of this Agreeme�t.
C. Aodits. The Board`s audit duties shal] be limited to verification that the seller
that is not a direct seller complied ���ith the Local Charge Act.
D. Other applicable Iaws. The Board and the local jurisdiction agree that all
pro��isions orla�r applicable to the administration and operation ofthe Local Charge Act,
Prepaid �4obile Telephony Sen�ices Surcharge Collection Act, and the Fee Collection
Procedures LaN�(FCPL) shall be applicable to the collection of]ocal charges. References
in the FCPL to feepa}�er include a person required to pay the ]ocal charge, includin2 the
seller. All future amendments to applicable la�i�s are automatically incorporated into this
Asreement.
E. Deposit of Local Charges. All local charges collected b�� the Board shall be
deposited in [he Local Charees for Prepaid Mobile Telephony Services Fund in the State
Treasury to be held in trust for the loca] taxing jurisdiction. Local charges shal] consist
of aI] taaes; charees; interest, penalties, and other amounts collected and paid to the
Board, ]ess payments for refunds and'reimbursemeni to the Board for expenses incurred
in the administra[ion and collection of che local charges, includine preparation and �n�ind-
do��� costs.
P. Allocation of Expenses. The Board shall allocate the total combined annua]
eapenses incurred for administration and collection pur'suant to the Prepaid Mobile
Telephom� Services Surcharse Collection Act and the Local Charge Act on a pro rata
basis according to reve�ues collected for. (1)the emergency telephone users surcharge
portion of the prepaid 1�4TS surchar,e, (2)the Public Utilities Commission surcharses
z
Resolution No. 201�-20�
Paee ivo. �
portion of the prepaid A4TS surcharee, and (3) loca] charees. The Board shall chazge a
local jurisdiction ics pro rata share of the Board's cost of collection and administration.
G. 7ransmittal of mone�. All local chazoes collected b�� the Board shall be
vansmined to the ]ocal jurisdiction once in each calendar quarter. Transmittals ma� be
made b�� mail or by deposit co the account of the local jurisdiction in a bank desienated
b��that jurisdiction. The Boazd shall furnish a statement quarterl}� indicating the amounts
paid and withheld for expenses ofthe Board.
H. Rules. The Board shall prescribe and adopt such rules and rewlations az in its
judement aze nuessan�or desi*able fnr the administration and colleccion of local charges
'� and the distributioo of the local chazees collected.
I. Securin�. The Board aerees that an��securin�which it hereafrer requires to be
fumished under the FCPL section >j022 will be upon such terms that it also mill be
available for the pa}Tnent of the claims of the local jurisdiction for local taxes o�ving to it
as its interest appears. The Board shall not be required to chanse the terms of any securin
noH�held by it, and the local jurisdiction shall not panicipate in an�� security no�j�held bv
the Board.
J. Records of the Board.
l. Information obtained bv the local jurisdiction from the eaamination of the
Board`s records shall be used b}� the local jurisdiction onl}� for purposes related to the
collection of the prepaid mobile telephom� sen�ices surcharee and local charees by the
Board pursuant to this.Aereement.
2:When requested b}'resolution of the Ieeislati��e bodv of a local jurisdiction, the
Board shall permit an}�iiulv authorized officer or emplo��ee or other person designated bv
that resolution to examine an� information for its o���n jurisdiction that is reasonabl}�
a��ailable to the Board reeardin�the proper collection and reminance of a local charee of
the local jurisdiction b��a seller, includine a direct seller, subject to the confidentialin
requirements of sections 728�.6, 72S�J and 19�42. (sections a2110(b), 42103(e).).
3. The resolution of the local jurisdiction shall certif��that anv person desienazed
b��the resolution, other than an officer and an emplo}�ee, meets all of the followin�
conditions: �
a. Has an existine contract with the local jurisdiction that authorizes the person
to examine the prepaid A4TS surcharoe and local chazee records.
b. Is required by that connact �rith the local jurisdiction to disclose information
contained in or derived from, those records onlv ro an officer or emplo}�ee of
the local jurisdiction authorized b��the resolution to examine the information.
c Is prohibited bv that contract from performins consulting sen�ices for a seller
durina the term of that contract.
� d. Is prohibited b��that contract from retainina information contained in, or
deri��ed from, those prepaid A1TS surcharee and local charge records, after
that contract has e�:pired.
3
Resolution No. 201�-20�
Page No. 6
�. ?.n}�third pam contract bena�een the loca] jurisdiction and an entip�or person
authorized b�'the local jurisdiction to request information from the Board shal] be subject
to che folloti�ing limitations:
a. An��third party shall, to the same extent as the Board, be subject to Section
55381. relatine to unlaH�fu] discbsures.
b. A third part��contract shall not pro��idz, in whole or in part, in any manner a
continee�t fee arraneement as payment for ser��ices rendered. �
� �. Information obtained by examination of Board records shal] be used onl�� for
purposes related to the collection of the prepaid MTS surcharge and local charges by the
board pursuant to the contract. or for purposes related to other sovemmental functions of
the loca]jurisdiction set fonh in the resolution.
6. If the Board belie��es that any information obtained from the Board's recordS '
related to the collection of the prepaid MTS surcharoe and local charges has been
disclosed to an}�person not authorized or desianated by the resolution of the local
jurisdiction, or has been used for purposes not permitted by section 42110(b). the board
may impose conditions on access to its local charee records that the board considers
reasonable, in order to protecf the confidentialiry of those records. (section 42110 (c).)
7. The costs incurred by [he Board in complying.N�ith a request for information
shall be deducted b}� the Board from those revenues collected by the Board on behalf of
the loca]jurisdiction makins the request as authorized by section 42110(b)(1).
ARTICLE III
LOCAL JURISDICTION
AD11'IIn7STRATION AND RESPONSIBILITIES
9. The local jurisdictions shall be solel}' responsible for all of the folloµing:
l. Defendine an}� claim reearding the validip� of[he ordinance in its application
to prepaid mobile telephom� service. The claim shall be processed in accordance ti�ith the
pro��isions of the local ordina�ce that allows the claim to be filed.
2. Interpreting any provision of the ordinaoce, eacept to the extent specifically
superseded b�� section 4210� of the Local Charge Act.. The claim shall be processed in
accordance�vith the pro��isions of the local enactment that allo���s the daim to be filed.
3. Respondino to specified consumer claims for refund invol��ing: (1) rebuttin� �
the pres�med location of the retail transaction; (2) a consumer claim of e�;emption from
the local charee under [he ordinance; or (3) any acdon or claim challeneing the validih�
of a local tax ordinance, in ���hole or part. The claim shall be processed in accordance
with the provisions ofthe local enactment thaYallows the claim to be filed_
� 4. Refundine [he ta�es in the e��ent a local jurisdiction or Iocal govemment is
ordered to refund the tax under the local ordinance.
a
Resolution No. 201�-20>
Pase No. 7
�. Reallocatin� local charees az a result of correctine errors relatin� to the
location of the point of sale of a seller or the knoHn address of a consumer, for up to tw�o
past quaners from the date oi};nowledge.
6. Collectine local charges on prepaid roobile telephon} sen�ice and access to
communication sen�ices or access to ]ocal 911 eme;eenc��telephone systems imposed on
direct sellers.
i. Enforcement. indudins audits. of the collection and remittance of local
chazges b� d'uect sellers pursuant to the ordinance.
' 8. The local jurisdiction shall be the sole necessary parr}� defendant on whose
behalf the local charee is collected in an� action sezkine to enjoin collection of a local
charge b� a seller. in anv action seekine declaraton� relief concemine a local charee, in
am� action seekine a refund of a local charee. or i❑ an�• action ceekina to otherN�ise
invalidate a local chazge. There shall be no recover.� from the State for the imposition of
an}� unconstimtional or othenjise im•alid local chazge that is collected under the Local
Act.
9. Enterine into an aereement �+�ith the Board to perform the functions incident to
the collection of the local chazoes imposed on sellers that are not direct sellers.
]0. Submittine an executed Certification to the Board. cenifi�in�that:
(a) the local jurisdiction's ordinance applies the local charee to prepaid mobile
telephom ser��ices:
(b) the amount of the rate charged for access to local 911 emergenc�� telephone
systems or access to communications sen�ices complies ���ith the requirements of section
42102.�; and/or applies the tiered rate for the utilit�� user ta.�, as identified in section
�2102.
(c) The local jurisdiction shall further cenifi� that it aerees to indemnif�� and to
hold harmless the Board, its officers, aeents, and employees for any and all liabilit}� for
damages that ma��result from the Board'scollection pursuant to this Aareement.
11. Subminine siened documents to the Board to include aareement(s),
cenification. cop}�of ordinance(s), and resolution(s).
12. Pro��idine payment to the Board of the local jurisdiction's pro rata share of the
Board`s cost of collection and administration as established pursuant to subdi��ision (e) of
section 42020.
s
Resolution No. 201�-20�
Page No. 8
.ARTICLE IV �
LOC.AL CEi_ARGES
A. Local Charges — Timeliness — This part shall remain iu effect until
proposed California Code of Regulations, title 18, section 2460 is adopted bp the
Buard and approved bp t6e Office of Admiuistrative Law.
1. Ordinances in effect as of September 1, 2015.
On or afrer January ], 2016, a local charse imposed by a Iocal jurisdiction on prepaid
mobile telephon�� sen�ices shall be collected from the prepaid consumer b}� a seller at the
same cime and in the same manner as the prepaid MTS surcharae is collected under Part
�- 21 (commencine w�ith section 42001) provided that, on or before Sepcember 1, 201�; the
]ocal jurisdiction enters into a convact ���ith the Board pursuant to section 42101.�.
Thereafrer. all subsequentl�� enacced local charees, increases to local charees, or other
chanees thereto, shall become operative pursuant to paragraphs(Z), (3), and (4).
2. I�'ew charees. �k'hen a local jurisdiction adopts a neti� local charee afrer
September 1; 201�. the local jurisdiction shall enter into a contract with the Board.
pwsuant to section �2101.�, on or before December 1"; ���ith collection of the local
charge to commence April Is`ofthe neat calendaz��ear.
3. Increases in local charges. �l'hen a local jurisdiction increases an e�istina
local charee afrer September 1, 201�, the local jurisdiction shall provide the Board
���ritten notice of the increase; on or before December 15', with collection of the local
charee to comme�ce april 1�`of the neat calendar}�ear.
4. Inaccurate rate posted on the Board's website. When a local jurisdiction
notifies the Board in writing that the rate posted on the Board's Internet Web site (posted
rate) for a loca] charee imposed by that local jurisdiction is inaccurate, incl�dine
scenarios �here the local charee was reduced or eliminated, the recalculated rate
applicable to the local jurisdiction shall become operative on the first day of the calendar
quarter commenaing more than 60 da��s from the dare the Board receives the local
jurisdiction's«�ritten notification that the posted rate is inaccurate.
.A. Local Charges — Timeliness — This part shall take effect and supersede
the above "Local Charges — Timeliness section when California Code of
Regulations, title 18, section 2460 is adopted bp the Board and approved b�� the
Office otAdministrative Law.
1. Ordioances in effect as of September 1, 2015. O� or afier January I, 2076,
a local charse imposed by a local jurisdiction on prepaid mobile telephony services shall
be collected from the prepaid consumer by a seller at the same time and in the same
manner as the prepaid MTS surcharee is co]Iected under Part 21 (commencing ��-ith
sec[ion 42001) pro��ided that, on or before September l; 2015, the local jurisdiction enters
into a contract ���ith the Board pursuant to section 42101.�.
In the event a local jurisdiction does not enter into a contract with the Board b��
September l, 201�. the ]ocal jurisdiction may encer into a contract with the Board,
'pursuant to section 42107.5, on or before December ]s', �vith collection of the local
charae to commence April ]s` of the next calendar year. Thereafter; all subsequenth�
6
Resolution No. 201�-20�
Paee No. 9
enacted Iocal charges, increases to ]ocal chazees, or other changes thereto. shall become
operati�•e pursuanc co para�aphs(2). (3). (�)and (�) of this subdivision.
Z. \ew char�es. �l��hen a local jurisdiction adopt a neH• loca] charee afrer
September I, 201�, the local jurisdiction shall enter into a convact with the Boazd.
pursuant to section 42101.�, on or before December Is: �a�ith collection of the local
charge to commence April 1�of the neat calendaz vear.
3. Increases in local char�es. When a local jurisdiccion increases an eaistin�
local charge afrer September 1. 201i, the local jurisdiction shall pro��ide the Board
�+•rinen notice of the increasz. on or before December 1`. uith collection of the local
• charse to commence,4pril 1s of the neat calendar vear.
4. Advance written notificatioo. \l�en a loca] charge is about to expire or
decreue in rate, the local jurisdiction imposine the local charee shall notifi� the Boazd in
���ritine of the upcoming chanee, not less than 1]0 da��s prior to the date the local charee
is scheduled to eapire or decrease. The change shall become operative on the first dav of
the calendar quarter commencino afrer the specified date of expiration or decrease in rate.
If advaoce��ritten notice is provided less [han 110 da}�s prior to the specified date
of eapiration or decrease in rate, the chanee shall become operative on the first da.�of the
calendaz quaner commencine more than 60 da��s afrer the specified date of eapiration or
decre��e.
5. Inaccurate Rate Posted on the Board's �Veb site. Wlien a local Iw�sdiction
notifies the Board in writine that the rate posted on the Board's Intemet \�'eb site (posted
rate) for a local charee imposed b�� that local jurisdiction is inaccurate, includine
scenazios where the local charee was reduced or eliminated and the local jurisdiction
fziled to pro��ide advance written notice pursuant to pazagraph 4 of this subdivision, the
recalculated rate applicable to the local jurisdiction shall become operati��z on the first
day of the calendar quarter commencina more than 60 da}�s from the date the Board
receives the local jurisdiction's �rritten notification that the posted rate is inaccurate. The
local jurisdiction shall promptl�� notify the Board in ���ritine of an}� such discrepancies
with the posted rate that aze l:no�t�n or disco��ered b}�the local jurisdiction.
ARTICLE �'
CODIPENSATI ON
The local jurisdiction agrees to pa��the Board its pro rata shaze of the Board`s cost of
collection and administracion of the local charees, as established pursuant to section
42020. subdi��ision (e). Such amounts shall be deducted from the local charges collected
b� the Board for the Iocal jurisdiction.
:1RTICLE \�I
AIISCELL:�\�OliS PRO�'ISIONS
' A. Communications. Communications and notices mav be sent b� first-class
linited States �1ai1. A notification is complete ��hen deposited in the mail.
Communications and notices to be sent to the Board shall be addressed to:
Resolution No. 201�-20�
Page No. 10
State Board of Equalization
P.O. Box 942879 MIC: 27
Sacramento, Califomia 94279-0001
Artention: $upernisor.
Loca] Revenue Albcation Unit
Communications and notices to be sent to the loca]jurisdiction shall be addressed to:
' � Cirv of Chula Vista
276 Fourth Avenue
Chula V"ista, CA 91910
Attention: Treasury Manager
B. Term. The date of this Agreement is the date on which it is appro��ed b�� the
Depanment of General Services. The Aareement shall take effect on the first day of the
calendar quarter neat succeedins the date of such approval, but in no case before the
operative date of the local jurisdiction`s ordinance,nor on a day other than the first da��of
a calendar quarter. This Aereement shall be renewed automaticall;� from year to }�ear
until January l; 2020, when [he Loca] Charge Act is repealed, unless a stawte enacted
prior to that date eztends that date. In such eeent,this Agreement will continue to renew
automaticalh�from vear to vear to the date authorized bv statute.
STATE BOARI) OF EQUALIZATION
Bv
Administrator.
Return Analysis and Allocation Section
LOC.AL
JURISDICTIOT�' CipofChuiavis�a
B��
(Srg�aaiure on this line)
Garv Halbert
(Tvpe name here)
' Cii}'Manager
(7L/�e tide l�ere)
8