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HomeMy WebLinkAboutOrd 1970-1288 < follows: ORDINANCE NO. 1288 AN ORDINANCE OF THE CITY OF CHULA VISTA, AMENDING CHAPTER 30 OF THE CHULA VISTA CITY CODE BY ADDING THERETO A NEW ARTICLE 5, RELATING TO THE IMPOSITION OF A TAX UPON THE USERS OF TELEPHONE, GAS AND ELEC- TRICITY UTILITIES The City Council of the City of Chula Vista does ordain as SECTION I: That Chapter 30 of the Chula Vista City Code be, and the same is hereby amended by adding thereto a new article, to be known and designated as Article 5, "Telephone, Electricity and Gas Users' Tax", containing Sections 30.501 through 30.515, to read as follows: ARTICLE 5. TELEPHONE, ELECTRICITY AND GAS USERS' TAX. Sec. 30.501. Definitions. Except where the context otherwise requires, the defini- tions given in this section govern the construction of this article. "Month" shall mean a calendar month for purposes of the delivery of collected taxes by the utility companies to the City of Chula Vista, and the billing period for the service user for the purpose of collection of the tax by the utility companies from the service user. "Person" shall mean any individual, firm, partnership, joint venture, association, social club, fraternal organ- ization, joint stock company, corporation (except public utilities), estate, trust, business trust, receiver, trustee, syndicate, or any other group or combination action as a unit. "Public Utility" as used herein shall have the same meanings as defined in Sections 218, 222 and 234, respec- tively, of the Public utilities Code of the State of California as said Sections existed on September 1, 1970. "Service User" shall mean a person required to pay a tax imposed under the provisions of this article. Sec. 30.502. Constitutional Exemptions. Nothing in this article 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. -1- Sec. 30.503. Telephone Users' Tax. 1. There is hereby imposed a tax upon every person in the City of Chula Vista using intrastate telephone communication services in the City of Chula vista. The tax imposed by this section shall be at the rate of five percent (5%) of the charges made for such services and shall be paid by the person paying for such services. 2. 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 telephone service is furnished for a guaran- teed amount, the amounts paid under such guarantee plus any fixed monthly or other periodic charge shall be in- cluded in the base for computing the amount of tax due. The term "charges" shall not include charges for services paid for by users of Mobile Telephone and Marine Telephone services. 3. Notwithstanding the provisions of subsection (1), the tax imposed under this section shall not be imposed upon any person for using intrastate telephone communica- tions 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 existed on September 1, 1970. 4. The tax imposed in this section shall be collected from the service user by the person providing the intra- state telephone communications services. The amount of tax collected in one (1) month shall be remitted to the City Finance Officer on or before the 20th day of the following month. Sec. 30.504. Electricity Users' Tax. 1. There is hereby imposed a tax upon every person in the City of Chula vista using electrical energy in the City. The tax imposed by this section shall be at the rate of five percent (5%) of the charges made for such energy 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 minimum charges for service, including customer charges, service charges, service establishment charges, demand charges, standby charges, and annual and monthly charges. 2. 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; 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 of Chula Vista for resale. 3. There shall be excluded from such tax all electric- ity used by a public utility in the conduct of its business. 4. The tax imposed in this section shall be collected from the service user by the person supplying such energy. -2- The amount of tax, computed by application of the above- mentioned tax rate to one hundred percent (100%) of the revenues billed 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 or "bad debts" shall be determined on the basis of the current month's bad debts, less collections of previously deducted bad debts. 5. The City shall assume full responsibility for re- bates to any fully or partially exempted users after the utility company has collected and remitted said accounts in full to the City. Sec. 30.505. Gas Users' Tax. 1. There is hereby imposed a tax upon every person in the City of Chula Vista using in said City gas which is delivered through mains or pipes. The tax imposed by this section shall be at the rate of five percent (5%) 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 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. 2. There shall be excluded from such tax all gas used by a public utility in the conduct of its business. 3. The tax imposed in this section shall be collected from the service user by the person selling the gas. The amount of tax, computed by application of the above- mentioned tax rate to one hundred percent (100%) of the revenues billed 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 or "bad debts" shall be determined on the basis of the current month's bad debts, less collections of previously deducted bad debts. 4. The City shall assume full responsibility for re- bates to any fully or partially exempted users after the utility company has collected and remitted said accounts in full to the City. Sec. 30.506. Reserved. Sec. 30.507. Interest and Penalty. 1. Taxes collected from a service user which are not remitted to the City Finance Officer on or before the due dates provided in this article are delinquent. 2. Interest and penalties for delinquency in remit- tance of any tax collected, or any deficiency determina- tion shall attach and be paid by the person required to I -3- collect and remit at the rates and in the same manner as is provided in this chapter for delinquency in payment of Transient Occupancy Tax. 3. The City Finance Officer shall have power to im- pose additional penalties upon persons required to col- lect and remit taxes under the provisions of this article for fraud and negligence in reporting and remitting in the same manner and at the smae rates as are provided in this chapter for such penalties upon persons required to pay Transient Occupancy Tax. 4. Every penalty imposed and such interest as accrues under the provisions of this section shall become a part of the tax required to be remitted. Sec. 30.508. Actions to Collect. 1. Any tax required to be paid by a service user under the provisions of this article shall be deemed a debt owed by the service user to the City. Any such tax not paid by said service user to the person required to collect and remit, although the amount of such tax may have been remitted pursuant to the terms of this article, shall be deemed a debt owed by the service user to the City. 2. Any such tax collected from a service user which has not been remitted to the City Finance Officer shall be deemed a debt owed to the City by the person required to collect and remit. 3. Any person owing money to the City under the pro- visions of this article shall be liable to an action brought in the name of the City for the recovery of such amount. Sec. 30.509. Duty to Collect; Procedures. i ' I I, I: II I: , ' " The duty to collect and remit the taxes imposed by this article shall be performed as follows: 1. 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 practice. If the amount paid by a service user is less than the full amount of the charge and tax which has accrued for the billing period, a proportionate share of both the charge and the tax shall be deemed to have been paid. I' II: r 'II ,:," .~ N I 2. The duty to collect tax from a service user shall commence with the beginning of the first regular billing period applicable to that person which starts on or after the operative date of this article. Where a person re- ceives more than one billing, one or more being for different periods than another, the duty to collect shall arise separately for each billing period. -4- Sec. 30.510. Additional Powers and Duties of City Finance Officer. The City Finance Officer shall have the power and duty, and is hereby directed to enforce each and all of the provisions of this article. In administering and enforc- ing the provisions of this article, the City Finance Officer shall have the same powers and duties with respect to collecting provided herein as he has with respect to the collection of the Transient Occupancy Tax. Sec. 30.511. Assessment; Administrative Remedy. The City Finance Officer may make an assessment for taxes not remitted by a person required to remit for any reason. The manner of making and providing notice of such assessment; the right to a hearing and the conduct of such hearing; the preparation and service of findings; filing exceptions and passing upon exceptions shall be the same as provided in this chapter for Transient Occupancy Tax. Sec. 30.512. Records. It shall be the duty of every person required to col- lect and remit to the City any tax imposed by this article 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 City Finance Officer, which records the City Finance Officer shall have the right to inspect at all reasonable times. Sec. 30.513. Refunds. 1. Whenever the amount of any tax has been overpaid or paid more than once or has been erroneously or ille- gally collected or received by the City Finance Officer under this article, it may be refunded as provided in this section. Except as otherwise provided, refunds of overpaid taxes shall be made in the same manner as is provided in this chapter for refunds of overpayments in the Transient Occupancy Tax. :,1 ;'1 i Ii , I \ i 1 2. A person required to collect and remit taxes imposed under this article 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 estab- lished in a manner prescribed by the City Finance Officer that the service user from whom the tax has been collected did not owe the tax; provided, however, 5- 1 , 1 i 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. 3. No refund shall be paid under the provisions of this section unless the claimant establishes his right thereto by written records showing entitlement thereto. Sec. 30.514. Utilization of Revenues. All revenues collected by the City under this article and remaining after payment of the costs incurred in the administration of this article shall be deposited in the General Fund and the Council may, from time to time, by resolution, specifically designate the purpose for which these revenues may be utilized. Sec. 30.515. Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this article, or any part thereof, is for any reason held to be unconstitutional, such decision shall not affect the validity of the re- maining portions of this article, or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that anyone or more sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases be declared unconstitutional. SECTION II: The taxes imposed by this ordinance shall 'ecome operative as of September 1, 1970, provided, however, that he utility companies shall compute and impose the utility users' "~x upon said users for the charges set forth in this ordinance at e commencement of the billing period for said users arising from 'd after September 1, 1970, for services provided to said users in 9cordance with accepted billing practices of said utility companies, Q that there will be no need to prorate said utility users' tax. , ';1 SECTION III: Any person who wilfully attempts in any manner o avoid or defeat the tax imposed by this article or the payment of "lor any part thereof, or any person required by this article to y the tax, to make a return, to keep any records, or to supply any tormation, who wilfully fails to pay all or any part of such tax, e such return, keep such records, or supply such information at ~ time or times required by this ordinance shall be guilty of a ,demeanor. II,i I'I " 'I iil 1,,, I, II ~ I'i I' Ii:' ~6- SECTION IV: This ordinance shall take effect and be in full force on the thirty-first day from and after its passage and approval. Presen~d by h..J Approved (7 ) [' ,,[// F .f//.../ / ~. V--p'Z....,.--t:.v....-L f/~"\--/:~,-z..-~"-~'-;:7 ' Gordon Grant, City Finance Officer as to ADOPTED AND APPROVED VISTA, CALIFORNIA, this 7th following vote, to-wit: by the CITY COUNCIL of the CITY OF CHULA day of July , 19.J..SL.., by the AYES: Councilmen Hobel, Hamilton, Scott NAYES: Councilmen None ABSENT: Councilmen Hyde, Egdahl ~ '- ~. ATTEST . -C-CA..~__'. City_ Clerk , /e-rAdC4 (~L nYt, I Mayor of ~ C'~ ty of Ch~~sta S);-(iL ,,-,-/'l~&~ ,/ STATE OF CALIFORNIA ..COUNTY OF SAN DIEGO '.CITY OF CHULA VISTA ss. I, ;Vista, California, DO HEREBY CERTIFY ,correct copy of Ordinance No. ~ended or repealed. DATED , City Clerk of the City of Chula that the above is a full, true and , and that the same has not been Ci ty Clerk 11 II il I -7-