Chapter 3.50
UTILITY USER’S TAX
Sections:
3.50.010 Findings and purpose.
3.50.040 Telephone user’s tax.
3.50.050 Electricity user’s tax.
3.50.060 Tax on cogenerated electricity.
3.50.080 Collection of tax from service users receiving direct purchase of gas or electricity.
3.50.090 Cable television user’s tax.
3.50.100 Duty to collect – Procedures.
3.50.110 Interest and penalties.
3.50.130 Assessment – Administrative remedy.
3.50.160 Miscellaneous provisions.
3.50.010 Findings and purpose.
A. The city council finds that state government has shifted revenue from local government to the state to satisfy the state budget. As a result, Riverside County has inadequate revenue to provide satisfactory levels of public safety to those cities that contract with the county for such services without increasing the contract prices to the limits allowed by law. In order to provide satisfactory levels of public safety to the citizens of Calimesa, the city will have to pay such new or increased contract prices and will require additional general fund revenues to do so.
B. The city council declares that the purpose of the utility user’s tax provided for in this chapter is to increase the general fund revenue in order to provide a satisfactory level of public safety. [Ord. 93-18 § 1; Code 1990 § 6.14.01.]
3.50.020 Definitions.
The following words and phrases whenever used in this chapter shall be construed as defined in this section unless the context requires otherwise:
“City” shall mean the city of Calimesa.
“City manager” shall mean the city manager of the city of Calimesa or his designated representative.
“Cogenerator” shall mean any person employing cogeneration technology, as defined by California Public Utility Code Section 218.5, for producing power from other than a conventional power source for the generation of electricity for self use or sale to others.
“Gas” shall mean natural or manufactured gas or any alternate hydrocarbon fuel which may be substituted therefor.
“Month” shall mean a calendar month.
“Nonutility supplier” shall mean:
A. An electricity supplier, other than an electrical corporation franchised to serve the city, which generates electrical energy in capacities of at least 50 kilowatts for its own use or for sale to others, including those using cogeneration or fuel cell technologies; or
B. A gas supplier, other than a gas corporation franchised to serve the city, that sells or supplies gas to other users within the city.
“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 individual.
“Service supplier” shall mean any entity required to collect or self-impose and remit a tax as imposed by this chapter.
“Service user” shall mean a person required to pay a tax imposed by this chapter.
“Telephone corporation,” “electrical corporation,” “gas corporation,” and “cable television corporation” shall have the same meanings as defined in Sections 234, 218, 222 and 215.5, respectively, of the California Public Utilities Code, except that “electrical corporation” and “gas corporation” shall also include any municipality or public agency engaged in the selling or supplying of electrical power or gas to a service user. [Ord. 93-18 § 1; Code 1990 § 6.14.02.]
3.50.030 Exemptions.
A. The city council may, by resolution, establish one or more classes of persons or one or more classes of utility service otherwise subject to the payment of tax imposed by this chapter and provide that such classes of persons or service shall be exempt, in whole or in part, from such tax.
B. The city manager shall prepare a list of the persons exempt from the provisions of this chapter by virtue of this section and furnish a copy thereof for approval by the city council and furnish a copy of the approved list to each service supplier.
C. The entities defined by CMC 3.50.020, mutual water companies and other public agencies, such as, but not limited to, water districts and school districts, shall be exempt from the tax imposed by this chapter.
D. The tax imposed by this chapter shall not apply to charges related to late payments, returned checks and other collection charges. [Ord. 93-18 § 1; Code 1990 § 6.14.03.]
3.50.040 Telephone user’s tax.
A. There is hereby imposed a tax on the amounts paid for intrastate telephone services by every person in the city using such services. The tax imposed by this section shall be at a rate imposed annually by resolution of the city council and shall be a percentage 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 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 regulations; nor shall the words “telephone communication services” include land mobile service 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 user’s 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 in the city.
C. The tax imposed by this section shall be collected from the service user by the person providing intrastate communication services, or the person receiving payment for such services. The amount of tax collected in one month shall be remitted to the city manager 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 city manager 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. [Ord. 93-18 § 1; Code 1990 § 6.14.04.]
3.50.050 Electricity user’s tax.
A. There is hereby imposed a tax on every person using electrical energy in the city. The tax imposed by this section shall be a rate imposed annually by resolution of the city council and shall be a percentage of the charges made for such energy by an electrical corporation franchised to serve the city and shall be paid by the person using the energy. The applicable tax for electrical energy provided by a nonutility supplier shall be determined by applying the tax rate to the equivalent charges the service user would have incurred if the electrical energy had been provided by the electrical corporation franchised by the city. Rate schedules for this purpose shall be available from the city. Nonutility suppliers shall install and maintain an appropriate utility-type metering system which will enable compliance with this section, or may arrange another methodology for determining the tax acceptable to the city manager. “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, standby charges and all other annual and monthly charges, fuel or other cost adjustments.
B. As used in this section, the term “using electrical energy” shall not be construed to mean the receiving of such energy by a person for the purpose of using it in the charging of a battery owned or possessed by him for use in an automobile or other machinery device apart from the premises upon which the energy was received.
C. The tax imposed by this section shall be collected from the service user by any energy service supplier or nonutility supplier. An energy supplier providing wheeling services for delivery of electricity through its distribution system shall collect from the service user based upon the cost of wheeling the electricity. The tax on energy provided by self-production or by a nonutility supplier shall be collected and remitted in the manner set forth in CMC 3.50.080. The amount of tax collected in one month shall be remitted by U.S. Mail to the city manager, postmarked on or before the last day of the following month; or, at the option of the person required to collect or remit the tax, an estimated amount of tax, measured by the tax billed in the previous month or upon the payment pattern of the customers of the service supplier, shall be remitted. [Ord. 93-18 § 1; Code 1990 § 6.14.05.]
3.50.060 Tax on cogenerated electricity.
A. The tax on every person using cogenerated electrical energy in the city shall be at the rate determined by resolution of the city council for CMC 3.50.050. The tax applicable to cogenerated electrical energy used on site shall be determined by applying the tax rate to the equivalent charges the cogenerator would have incurred if the energy used had been provided by the electrical corporation franchised by the city.
B. The cogenerator shall install and maintain an appropriate metering system which will enable compliance with this section.
C. The tax shall be collected and paid by the cogenerator under CMC 3.50.080 if the cogenerator consumes the energy. If the cogenerator sells the energy for consumption in the city, the tax will be imposed by applying the tax rate to the equivalent charges for such service the service user would have incurred if the energy used had been provided by the electrical corporation franchised by the city, and shall be collected from the service user by the energy supplier.
D. The amount of tax collected in one month shall be remitted to the city manager on or before the last day of the following month. [Ord. 93-18 § 1; Code 1990 § 6.14.06.]
3.50.070 Gas user’s tax.
A. There is hereby imposed a tax upon every person using gas in the city, whether transported through a pipeline distribution system or by mobile transport. The tax imposed by this section shall be at a rate determined annually by resolution of the city council and shall be a percentage of the charges made for such gas and shall be paid by the person using the gas. The tax applicable to gas provided by nonutility suppliers shall be determined by applying the tax rate to the equivalent charges the service user would have incurred if the gas or gas transportation had been provided by the gas corporation franchised by the city. “Charges,” as used in this section, shall include:
1. The charge for gas which is delivered through a gas pipeline distribution system or by mobile transport;
2. Gas transportation charges; and
3. Demand charges, service charges, customer charges, minimum charges, annual and monthly charges and other charges authorized by the California Public Utilities Commission or the Federal Energy Regulatory Commission.
B. There shall be excluded from the tax imposed by this section:
1. Charges made for gas which is resold and delivered through a gas pipeline distribution system or mobile transport;
2. Charges made for gas used by a cogenerator as a primary fuel in a fuel cell to generate electricity; and
3. Charges made for natural gas used in the propulsion of a motor vehicle, as that phrase is defined in the California Vehicle Code.
C. The tax imposed by this section shall be collected from the service user by the energy service supplier. An energy supplier providing transportation services for delivery of gas through a pipeline distribution system shall collect the tax from the service user based upon the cost of transporting the gas. The tax on energy provided by self-production or by a nonutility supplier shall be collected and remitted in the manner set forth in CMC 3.50.080. The amount of tax collected in one month shall be remitted by U.S. Mail, to the city manager, postmarked on or before the last day of the following month; or, at the option of the person required to collect or remit the tax, an estimated amount of tax, measured by the tax billed in the previous month or upon the payment pattern of the customers of the service supplier, shall be remitted. [Ord. 93-18 § 1; Code 1990 § 6.14.07.]
3.50.080 Collection of tax from service users receiving direct purchase of gas or electricity.
A. Any service user subject to the tax imposed by CMC 3.50.040, 3.50.050, 3.50.060 or 3.50.070, who produces electricity or gas for self-use or who receives electricity or gas directly from a nonutility supplier not under the jurisdiction of this chapter or otherwise not having the full tax due on the use of gas or electricity in the city directly billed and collected by the service supplier, shall report that fact to the city manager and remit the tax due directly to the city within 30 days of such use.
B. The city manager may require said service user to identify its nonutility supplier and provide, subject to audit, filed tax returns or other satisfactory evidence documenting the quantity of electricity or gas used and the price thereof. [Ord. 93-18 § 1; Code 1990 § 6.14.08.]
3.50.090 Cable television user’s 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 a rate imposed annually by resolution of the city council and shall be a percentage of the charges made for such service and shall be paid by the person paying for such service.
B. The tax imposed by this section shall be collected from the service user by the person furnishing the cable television service. The amount collected in one month shall be remitted to the city manager on or before the last day of the following month. [Ord. 93-18 § 1; Code 1990 § 6.14.09.]
3.50.100 Duty to collect – Procedures.
The duty to collect and remit the taxes imposed by this chapter shall be performed as follows:
A. The tax shall be collected by the service supplier 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 is less than the full amount of the energy charge and the tax which has accrued for the billing period, such amount and any subsequent payments by the service user shall be applied first to the utility charge until such charge has been fully satisfied. Any remaining balance shall be applied to the taxes due. In those cases where a service user has notified the service supplier of refusal to pay the tax imposed, CMC 3.50.130 and 3.50.140 shall apply.
B. The duty to collect the 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. [Ord. 93-18 § 1; Code 1990 § 6.14.10.]
3.50.110 Interest and penalties.
Taxes collected from a service user which are not remitted to the city manager on or before the due dates provided in this chapter are delinquent. Should the due date fall on a Saturday, Sunday or a legal holiday, the return may be postmarked on the next following regular business day. [Ord. 93-18 § 1; Code 1990 § 6.14.11.]
3.50.120 Records.
A. It shall be the duty of every person required to collect and remit to the city any tax imposed by this chapter to keep and preserve, for a period of three years, all records as may be necessary to determine the liability for the remittance to the city manager, which records the city manager shall have the right to inspect at all reasonable times.
B. A person providing transportation services of natural gas to a user for delivery through a gas pipeline distribution system shall make available to the city manager records of the names and addresses of service users for whom only transportation services are provided by such persons. All information provided to the city manager pursuant to this section shall be used solely for the purposes of this chapter. [Ord. 93-18 § 1; Code 1990 § 6.14.12.]
3.50.130 Assessment – Administrative remedy.
A. Whenever the city manager determines that a service user has deliberately withheld the amount of the tax owed by the service user from the amounts remitted to a service supplier required to collect and remit the tax, or that a service user has refused to pay the amount of the tax, the city manager may relieve the service supplier of the obligation to collect taxes under this chapter from certain named service users for specified billing periods.
B. The service supplier shall provide the city with the names and addresses of the service users who have failed and refused to pay the tax imposed by this chapter and the amount of the unpaid tax. Whenever the service user has failed and refused to pay the amount of the tax imposed by this chapter for a period of two or more billing periods, the service supplier shall be relieved of the obligation to collect and remit the tax.
C. The city manager shall notify the service user that the city manager has assumed the responsibility to collect the unpaid taxes and demand payment thereof. The notice required by this section shall be served on the service user by personal delivery or by deposit of the notice in the United States Mail, postage prepaid, addressed to the service user at the address to which billing was made by the service supplier; or, should the service user have changed addresses, to the last known address. If the service user fails to remit the tax to the city manager within 15 days from the date of the service of the notice, which shall be the date of mailing if service is not accomplished in person, a penalty of 25 percent of the amount of the tax set forth in the notice shall be imposed, but not less than $5.00. The penalty shall be added to and become a part of the tax imposed by this chapter. [Ord. 93-18 § 1; Code 1990 § 6.14.13.]
3.50.140 Actions to collect.
Any tax required to be paid by a service user under the provisions of this chapter shall be deemed a debt owed by the service user to the city. Any such tax collected from a service user which has been willfully withheld from the city manager by the service supplier shall be deemed a debt owed to the city by the person required to collect and remit the tax. Any person owing money to the city under the provisions of this chapter shall be liable to an action brought in the name of the city for the recovery of the amount due and owing plus all administrative and court costs. [Ord. 93-18 § 1; Code 1990 § 6.14.14.]
3.50.150 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 city manager under this chapter, it may be refunded by the city manager.
B. Notwithstanding the provisions of subsection (A) of this section, a service supplier may claim a refund or take as a credit the amount overpaid, paid more than once, or erroneously or illegally collected or received when it has been 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 erroneously or illegally collected has either been refunded to the service user or credited to charges subsequently payable by the service user to the service supplier required to collect and remit the tax. A service supplier that has collected and remitted any amount of tax in excess of the amount of tax imposed by this chapter 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 is due upon any other monthly returns, provided such credit is claimed in a return dated no later than three years from the date of overpayment.
C. No refund shall be paid under the provisions of this section unless the claimant establishes a right thereto by written records showing proof thereof.
D. Notwithstanding any 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 services, the taxes paid pursuant to this chapter on the amount of such refunded charges shall also be refunded to the service users and the service supplier shall be entitled to a claim of credit for such refunded taxes against the amount of tax which is due upon the next monthly returns. In the event this chapter is repealed, the amounts of any refundable taxes shall be borne by the city.
E. A service supplier may refund the taxes to the service user in accordance with this section by the service supplier’s customary practice. [Ord. 93-18 § 1; Code 1990 § 6.14.15.]
3.50.160 Miscellaneous provisions.
A. The city manager shall provide written notice to all service suppliers of any change in the city’s boundaries as soon as practicable.
B. Service suppliers shall, upon notification, terminate or suspend any utility user’s tax commencing with the first full billing period which occurs after the effective date of such action by the city council. [Ord. 93-18 § 1; Code 1990 § 6.14.16.]