HomeMy WebLinkAboutOrd 1978-1803 , �
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• ' . Revi'sed �6'-30�78
ORDINANCE NO. 1803
AN ORDINANCE OF THE CITY OF CHULA VISTA AMENDING
SECTIONS 3. 44 .010 , 3. 44 . 030 , 3. 44. 040 , 3 . 44 .050 ,
3. 44. 140, 3.44. 150 , 3. 44 . 160 AND REPEALING SECTZON
" 3. 44. 022 OF THE CHULA VISTA MUNICIPAL CODE RELATING '
TO THE UTILITY USERS' TAX
The City Council of the City of Chula Vista does ordain
as follows :
SECTION I : That Sections 3 .44.010 , 3. 44 , 030, 3 . 44'. 040,
3. 44. 050, 3 .44. 140 , 3 .44. 150 and 3. 44 . 160 of the Chula Vista Muni-
cipal Code be, and the same are hereby amended to read as follows:
CHAPTER 3.44 UTILITY USERS' TAX.
Sec. 3 . 44. 010 Purpose and Intent-Definitions .
- � In amending the utility users ' tax ordinance, it
is the purpose and intent of the City Council to
achieve three major goals. First, it is necessary
and desirable to generate for fiscal year 1978-79 a
minor increase in revenue from the utility tax while
retaining the program of basing the taxation on units
of energy used to benefit both business enterprises and
smaller utility using taxpayers to supplement the
revenues derived from the distribution of the surplus
by the State of California. Second, it is essential
to provide an additional increase in the utility
users ' tax in order to insure a reasonable level of
revenue for the necessary operations of the City of
Chula Vista in fiscal year 1979-80 and beyond if no
state surplus assistance is then available, and if
there has been no governmental reorganization achieved
which would provide necessary .tax relief to local
governments. Third, both the major commercial and
industrial enterprises of the city utilizing energy and
providing both productivity and employment as well as
the smaller utility using ta�cpayers must be protected
from increases in the tax brought about by the increases
of rates granted by the Public Utilities Commission.
These goals can best be accomplished by establishing
an increase in the present factors to . 00250 per kilowatt
of electricity and . 00919 per therm of gas for fiscal
year 1978-79, and secondly, by establishing a second
increase in .said factors to . 00300 per kilowatt of elec-
tricity and . 0�1103 per therm of 'gas commencing on July 1,
1979 and establishing a 58 tax rate based upon gross
receipts for fiscal year 1978-79 and 68 commencing on
July 1, 1979 for telephone and subjecting said tax rates
to semi-annual adjustments ,after appropriate public hearings
are conducted by the City Council. In addition, the City
Council is authorized herein to waive all or a portion of
the tax for major commercial and industrial enterprises as
well as providing a clear exemption for senior citizens in
_ order to insure the most equitable application of the tax.
Except where the context otherwise requires , the
definitions given in this section govern the con-
struction of this chapter.
A. "Month" means a calendar month for purposes
of the deliver�^ofdcollected taxes by the
utility companies to the city, and the billing
period for the service user for the purpose of
collection of the tax by the utility companies
from the service user.
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B. "Person" :�eans ar.y incividual, 'ir� nartaer-
SIl'_p � �01.^.i. ven�nre � dSSOC1c1�1GII� SOC'_dl CIL'tiJ �
-Y��.°T::d�. OT(�'d:l'_Zdi,�0:1� join� SCOC�C CO.':l,L'a:]f�
COL^O�c'�t10.^. (excep't pL'a11C ll�lli�le5� , estate� .
t.1"L'St � :)L'Sli?ESS ti'15�� receiver, till5L22 � SVI]-
dicate, or an}• ot::er groua or combina'tion acting
as a unit. .
C. "Public utility" as used herein has the same
meanings as defined in Sections 218 , 222 and
239 , resaectively, o� the Public litil_�ies
CoCe o= the State oz California as said sec-
tions existed on Seatemaer 1 , 1970 .
D, "Seri,ice liser" means a person reauired to nay
a tax i;�posed uncer the provisions of this
cnapter. '
Sec. 3. �14 . 030 Telephone Users ' Tax-Imposition-
� Rate-Collection-Exemptioas-Charges
Defined.
A. There is imposed a tax upon every nerson in
the city usir.g intrastate telephor.e cor,ununi-
cation services in the city. The tax imposed
by this section shall be at the rate oi £ive
rercent of t:e charges made for such services ,
and shall be paid by the person oaying for
such se�vices . E�ective on July 1, 1479 ,
said rate shall be increased to six. percent
o� the charges mace for such services and shall
be paid by the person paying for such service.
B. As used in this section, the term "c?�araes"
snall not include charges for services oaid
for by inserting coins in coin-operated tele-
pnones except that where such coin-operated
teleohone service is furnished £or a guaranteed
a*�ount, the amounts paid under such guarantee
plus any fixed *�ontzly or othe- periodic charce
shall be included in the base £or computing the
ar,.ount of tax due. The term "charges" shall
not include charges for services paid for by
users of mobile telephone and marine telephone
service.
, C. Not�aithstanding the provisions of subsection A,
the tax imposed under this section shall not be
imposed upon any person ior using intrastate
telephone communications services to the extent
that the amounts paid for such services are
exempt from or not subject to the tax imposed
under Section 4251 of Title 26 of the United
States Code, as such section e:cisted on Sep-
tember 1 , 1970 .
D. The tax imposed in this section sha11 be col-
lected from the service user by the person
provicing the intrastate telephone. communica-
tions services . The amount of tax collected
in one month shall be remitted to the city
finance officer on or before the t�aentieth
day o� the following month.
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Sec. 3. 44.040 Electricity Users ' Tax-Imposition-
Rate-Collection-Exemptions-Rate
A. There is imposed a tax upon every person in the
city using electrical energy in the city. The
tax imposed by this section shall be at a rate
established by the imposition of the £actor of
. 00250 £or each kilowatt of such energy used
and shall be paid by the person paying for such
energy. Effective on July 1, 1979, the tax
imposed by this section shall be at a rate
established by the imposition of the factor of
. 00300 for each killowatt of such energy used
and shall be paid by the person paying for such
energy. "Charges" as used in this section shall
include charges made for metered energy and mini-
mum charges for service, including customer charges,
service charges, service establishment charges ,
demand charges , standby charges, and annual and
monthly charges.
B. As used in this section, the term "using electri-
cal 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 pre-
mises upon which the energy was received; pro-
vided, 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 the mere receiving of such energy by
an electric public utility at a point within the
city for resale. •
C. There shall be excluded from such tax all elec-
tricity used by a public utility in the conduct
of its business.
D. The tax imposed in this section shall be collected
from the service user by the person supplying such
energy. The amount of tax, computed by application
_ of the_factor.s_set_for_th_hereinabove for each
, killowatt of_ enerav used � each month, less the
tax-exempt accounts and reduced by previous months '
uncollectibe accounts upon which said tax was applied,
shall be remitted to the city finance officer on
or before the last day of the month following the
close of the taxing periocl. It is understood that
the amount of said uncollectible accounts or "bad
debts" shall be determined on the basis of the
current month' s bad debts,' less collections of pre-
' viously deducted bad debts.
E. The city shall assume full responsibility for rebates
to any fully or partially exempted users after the
utility company has collected and remitted said
accounts in full to the city. '
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Sec. 3. 44 . 050 Gas Users ! Tax-Impostion-Rate-
Collection-Exemptions-Rebates.
A. There is imposed a tax upon every person in the
city using in said city gas which is delivered
through mains or pipes. The tax imposed by this
section shall be at.a rate established by the
imposition.o£ the factor of . 00919 for each therm
of such energy used and shall be paid by the
person paying for such energy. .Effective on
July 1, 1979 , the tax imposed by this section
shall be at a rate established by the imposition
of' the factor of . 01103 for each therm of such
energy used and shall be paid by the person paying
t for such energy. "Charges" as� used in this section
shall include charges made for metered gas and
minimum charges for service, including customer
charges , service charges , service establishment
charges , demand charges , standby charges, and
annual and monthly charges.
B. There shall be excluded from such tax all gas
used by a public utility in the conduct of its
business.
C. The tax imposed in this section shall be col-
lected from the service user by the person
selling the gas. The amount of tax, computed
by application o£ theifactors set forth
hereinabove for therms of energy used
� each month, less the tax exempt accounts
and reduced by previous months' uncollectible
accounts upon which said tax was applied; shall
be remitted to the City Finance �Officer on or
before the last day of the month following the
close of the taxing period. It is understood
that the amount of said uncollectible accounts
for bad debts shall be determined on the basis
of the' current month' s bad debts , less collections
of previously deducted bad debts .
D. The City shall assume full .responsibility for
rebates to any fully or partially exempted users
after the utility company has collected and re- -
mitted said accounts in full to the City.
Sec. 3 . 44. 140 Ef£ective Date-Billing Procedure.
The taxes for fiscal year 1978-79 imposed by this
chapter shall become operative as of July 1, 1978;
provided, however; that the utility companies shall
compute and impose the utility users' tax upon said
users for the charges set forth in this chapter at
the commencement of the billing period for said users
arising £rom and after July 1, 1978 , for services provided
to said users in accordance with accepted billing prac-
tices of said utility companies , so that there will
be no need to prorate said utility users' tax. The
tax imposed for fiscal years 1979-80 and beyond shall '
be operative as of July 1, 1979 .
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Sec . 3 . 44 . 150 Public Hearing Requirements .
Not later than November 30 , 1978 , the City Council
shall conduct a public hearing to consider whether or notthe tax
rate as established herein shall be repealed or de-
creased and thereafter each year not later than the
time the City Council schedules its public hearing
for the adoption of a budget and not later than
November 30 , the City Council shall conduct public
hearings to evaluate the effect of the current utility
users ' tax rate being imposed within the maximum limita-
tion of. the factor of . 00300 for each killowat of such
energy and . 01103 for each therm of such energy used,
and shall make the appropriate adjustment thereto to
achieve the purpose and intent as set forth in this
chapter. The rate established at said public hearing
shall remain in effect to and until the subsequent public
hearing at which time it may be modified or kept at the
same level so long as any such modification shall not
exceed the maximum set forth hereinabove and should the
Council fail to take any affirmative action in so modi=
fying said maximum rate, the maximum rate shall be deemed
to be in full force and effect until the time required
for the subsequent public hearing.
Sec. 3 . 44 . 160 Violations Deemed Infractions .
Any person who wilfully attempts in any manner to
avoid or defeat the tax imposed by this chapter or
the payment of all or any part thereof, or any person
required by this chapter to pay the tax , to make a
_ return, to keep any records , or to supply any infor-
mation, who wilfully fails to pay all or any part of
such tax, make such return, keep such records , or supply
such information at the time or times required by this
chapter shall be guilty of an infraction.
SECTION II : That Section 3 . 44 . 022 of the Chula Vista
Municipal Code be, and the same is hereby repealed.
SECTION III : This ordinance shall become effective'
upon first reading and adoption.
Presented and App oved as to Form by
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George D. Lindberg , City Attorney
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APPROVED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF
CHULA VISTA, CALIFORNIA, AT FIRST READING THIS 29t1i DAY OF June
, .
�97 8 , by ihe foilowing vote, to—wit:
AYES� Councilmen Hyde , Gillo�a, Cox �
NAYES� Councilmen Scott , Egdahl
ABSTAIN: Councilmen None
ABSENT: Councilmen vone
l.�J� `( ,
Mayor of the City of C Vista
ATTEST __ i i
j City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss.
CITY OF CHULA VISTA )
I, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chula Vista, California,
DO HEREBY CERTIFY ihat ihe above and foregoing is a full, true and correct copy of
,and ihat the same has nof been amended or repealed.
DATED
(seal) City Clerk
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CC-660