CHAPTER 18
TAXATION

Article I. Transfer of City Tax Functions to County.

18.1 Transfer generally.

Pursuant to article 1, chapter 2, title 5, division 1, part 2, of the Government Code of the state, the duties of the city treasurer and the assessment and tax collection duties performed by the tax collector of the city, are hereby transferred to the assessor and tax collector of the County of Solano. (Ord. No. 59-2, § 1.)

18.2 Transfer of certain duties of city treasurer.

The duties of the city treasurer are hereby transferred to the county treasurer only to the extent as shall be necessary for the payment by warrant on the county treasury to the city, of the net amount of the taxes of the city, after deduction of the county’s compensation for the services of its treasurer, assessor and tax collector, as provided by section 51513 of the state government code and all duties of the city treasurer, excepting those herein specified, shall remain in the city treasurer and the office of city treasurer is not abolished. (Ord. No. 59-2, § 2.)

18.3 Office of city assessor abolished.

The office of the city assessor is hereby abolished and all the duties of the city assessor, other than the duties of assessing city property, are hereby transferred to and shall be performed by the city clerk. (Ord. No. 59-2, § 3.)

Article II. Sales and Use Tax.

18.4 Short title.

This article shall be known as the uniform local sales and use tax ordinance. (Ord. No. 73-17, § 1.)

18.5 Rate.

The rate of sales tax and use tax imposed by this article shall be one percent. (Ord. No. 73-17, § 2.)

18.6 Operative date.

This article shall be operative on January 1, 1974. (Ord. No. 73-17, § 3.)

18.7 Purpose.

The city council hereby declares this article is adopted to achieve the following, among other, purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:

(a)    To adopt sales and use tax regulations which comply with the requirements and limitations contained in part 1.5 of division 2 of the revenue and taxation code;

(b)    To adopt sales and use tax regulations which incorporate provisions identical to those of the sales and use tax law of the state insofar as those provisions are not inconsistent with the requirements and limitations contained in part 1.5 of division 2 of the revenue and taxation code;

(c)    To adopt sales and use tax regulations which impose a tax and provide a measure therefor that can be administered and collected by the state board of equalization in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from the existing statutory and administrative procedures followed by the state board of equalization in administering and collecting the state sales and use taxes;

(d)    To adopt sales and use tax regulations which can be administered in a manner that will, to the degree possible consistent with the provisions of part 1.5 of division 2 of the revenue and taxation code, minimize the cost of collecting city sales and use taxes and at the same time minimize the burden of record keeping upon persons subject to taxation under the provisions of this article. (Ord. No. 73-17, § 4.)

18.8 Contract with state.

Prior to the operative date, this city shall contract with the state board of equalization to perform all functions incident to the administration and operation of these sales and use tax regulations; provided, that if this city shall not have contracted with the state board of equalization prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract rather than the first day of the first calendar quarter following the adoption of this article. (Ord. No. 73-17, § 5.)

18.9 Sales tax.

For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the city at the rate stated in section 18.5 of the gross receipts of the retailer from the sale of all tangible personal property sold at retail in this city on and after the operative date. (Ord. No. 73.17, § 6.)

18.10 Place of sale.

For the purpose of this article, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out of state destination or to a common carrier for delivery to an out of state destination. The gross receipts from such sales shall include delivery charges when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the state or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the state board of equalization. (Ord. No. 73-17, § 7.)

18.11 Use tax.

An excise tax is hereby imposed on the storage, use or other consumption in this city of tangible personal property purchased from any retailer on and after the operative date for storage, use or other consumption in this city at the rate stated in section 18.5 of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales and use tax regardless of the place to which delivery is made. (Ord. No. 73-17, § 8.)

18.11.1 Adoption of provisions of state law.

Except as otherwise provided in this article and except insofar as they are inconsistent with the provisions of part 1.5 of division 2 of the revenue and taxation code, all of the provisions of part 1 of division 2 of the revenue and taxation code are hereby adopted and made a part of this article as though fully set forth herein. (Ord. No. 73-17, § 9.)

18.11.2 Limitations on adoption of state law.

In adopting the provisions of part 1 of division 2 of the revenue and taxation code, wherever the state is named or referred to as the taxing agency, the name of this city shall be substituted therefor. The substitution, however, shall not be made when the word "state" is used as part of the title of the state controller, the state treasurer, the state board of control, the state board of equalization, the state treasury, or the constitution of the state; the substitution shall not be made when the result of that substitution would require action to be taken by or against the city, or any agency thereof, rather than by or against the state board of equalization, in performing the functions incident to the administration or operation of this article; the substitution shall not be made in those sections, including, but not necessarily limited to, sections referring to the exterior boundaries of the state, where the result of the substitution would be to provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the state under the provisions of part 1 of division 2 of the revenue and taxation code, or to impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under such provisions of that Code; the substitution shall not be made in sections 6701, 6702, except in the last sentence thereof, 6711, 6715, 6737, 6797, or 6828 of the revenue and taxation code; and the substitution shall not be made for the word "state" in the phrase "retailer engaged in business of this state" in section 6203 or in the definition of that phrase in section 6203. (Ord. No. 73-17, § 10.)

18.11.3 When seller’s permit not required.

If a seller’s permit has been issued to a retailer under section 6067 of the revenue and taxation code, an additional seller’s permit shall not be required by this article. (Ord. No. 73-17, § 11.)

18.11.4 Exclusions and exemptions.

(a)    The amount subject to tax shall not include any sales or use tax imposed by the State of California upon a retailer or consumer.

(b)    The storage, use, or other consumption of tangible personal property, the gross receipts from the sale of which have been subject to tax under a sales and use tax ordinance enacted in accordance with part 1.5 of division 2 of the revenue and taxation code by any city and county, county, or city, in this state shall be exempt from the tax due under this ordinance.

(c)    There are exempted from the computation of the amount of sales tax the gross receipts from the sale of tangible personal property to operators of aircraft to be used or consumed principally outside the city in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this state, the United States, or any foreign government.

(d)    In addition to the exemptions provided in sections 6366 and 6366.1 of the revenue and taxation code, the storage, use, or other consumption of tangible personal property purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this state, the United States, or any foreign government is exempted from the use tax. (Ord. No. 73-17, § 12; Ord. No. 83-34, § 1.)

18.11.5 Same Previously taxed sales or use of property.

(a)    The amount subject to tax shall not include any sales or use tax imposed by the state upon a retailer or consumer.

(b)    The storage, use, and other consumption of tangible personal property, the gross receipts from the sale of which have been subject to tax under a sales and use tax ordinance enacted in accordance with part 1.5 of division 2 of the revenue and taxation code by any city and county, county or city in this state shall be exempt from the tax due under this article. (Ord. No. 73-17, § 13.)

18.11.6 Same Applicability of provisions relating to exclusions and exemptions.

(a)    Section 18.11.5 shall become operative on January 1st of the year following the year in which the state board of equalization adopts an assessment ratio for state assessed property which is identical to the ratio which is required for local assessments by section 401 of the revenue and taxation code, at which time section 18.11.4 shall become inoperative.

(b)    In the event that section 18.11.5 becomes operative and the state board of equalization subsequently adopts an assessment ratio for the state assessed property which is higher than the ratio which is required for local assessments by section 401 of the revenue and taxation code, at which time section 18.11.4 shall become operative on the first day of the month next following the month in which such higher ratio is adopted, at which time section 18.11.5 shall be inoperative until the first day of the month in which the board again adopts an assessment ratio for state assessed property which is identical to the ratio required for local assessments by section 401 of the revenue and taxation code, at which time section 18.11.5 shall again become operative and section 18.11.4 shall become inoperative. (Ord. No. 73-17, § 14.)

18.11.7 Amendments to State law.

All subsequent amendments of the revenue and taxation code which relate to the sales and use tax and which are not inconsistent with part 1.5 of division 2 of the revenue and taxation code shall automatically become a part of this article. (Ord. No. 73-17, § 15.)

18.11.8 Enjoining collection prohibited.

No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the state or this city, or against any officer of the state or this city, to prevent or enjoin the collection under this article, or part 1.5 of division 2 of the revenue and taxation code, of any tax or any amount of tax required to be collected. (Ord. No. 73-17, § 16.)

Article III. Transient Occupancy Tax.

18.12 Definitions.

Except where the context otherwise requires, the definitions given in this section govern the construction of this article.

Hotel. "Hotel" means any structure or any portion of any structure which is occupied or intended or designated for occupancy by transients for dwelling, lodging or sleeping purposes, including any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location or other similar structure or portion thereof.

Occupancy. "Occupancy" means the use or possession or the right to the use or possession of any room or rooms or portion thereof in any hotel for dwelling, lodging or sleeping purposes.

Operator. "Operator" means the person who is proprietor of the hotel, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee or any other capacity. Where the operator performs his functions through a managing agent of any type or character other than an employee, the managing agent shall also be deemed an operator for the purposes of this article and shall have the same duties and liabilities as his principal. Compliance with the provisions of this article by either the principal or the managing agent shall, however, be considered to be compliance by both.

Person. "Person" means any individual firm, partnership, joint venture, association, social club, fraternal organization, joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate or any other group or combination acting as a unit.

Rent. "Rent" means the consideration charged, whether or not received, for the occupancy of space in a hotel valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever.

Tax Administrator. "Tax Administrator" means the finance director.

Transient. "Transient" means any person who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license or other agreement for a period of thirty (30) consecutive calendar days or less, counting portions of calendar days as full days. Any such person so occupying space in a hotel shall be deemed to be a transient until the period of thirty (30) days has expired unless there is an agreement in writing between the operator and the occupant obliging the occupant to pay market rate for the occupancy for a period of at least thirty-one (31) consecutive days. The Tax Administrator may develop and promulgate standard forms setting for the minimum substance of such agreements, and may require submission of such forms with the returns required by Section 18.17. In determining whether a person is a transient, uninterrupted periods of time extending both prior and subsequent to the effective date of this article may be considered. (Ord. No. 65-8, § 1, 2004-19, § 1.)

18.13 Imposition; amount; when and where payable.

(a)    For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of ten percent of the rent charged by the operator. Such tax constitutes a debt owed by the transient to the city which is extinguished only by payment to the operator of the hotel at the same time the rent is paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon the transient’s ceasing to occupy space in the hotel. If, for any reason, the tax due is not paid to the operator of the hotel, the Tax Administrator may require that such tax shall be paid directly to the Tax Administrator. The rate of ten percent shall take effect as of October 1, 1984. (Ord. No. 65-8, § 1; Ord. No. 67-25, § 1; Ord. No. 74-28, § 1; Ord. No. 84-35, § 1, Ord. No. 2004-19, § 2.)

(b)    In the event that an agreement exists between the hotel and any person for occupancy, as defined in this article, for a period in excess of thirty (30) days, and in the event that such person allows occupancy by another person for thirty (30) days or fewer as subtenant, guest, licensee, or permittee, the person who has made the agreement with the hotel as aforesaid shall be subject to and shall pay the tax provided for herein. (Ord. No. 2004-19, § 2.)

18.14 Persons deemed exempt from tax.

No tax shall be imposed upon:

(a)    Any officer or employee of the United States of America when traveling on official business.

(b)    Any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.

No exemption shall be granted except upon a claim in writing made at the time rent is collected upon a form complying with subsection (e) of Section 7280 of the Revenue and Taxation Code. The Tax Administrator may require submission of copies of such forms with the returns required by Section 18.17. (Ord. No. 65-8, § 1; Ord. No. 65-16, § 1, Ord. 2004-19, § 3, Ord. No. 2005-09, § 1.)

18.15 Collection by operator: tax to be stated separately from rent; receipt for payment; advertising that payment not required, etc., prohibited.

Each operator shall collect the tax imposed by this article to the same extent and at the same time as the rent is collected from every transient. The amount of tax shall be separately stated from the amount of the rent charged, and each transient shall receive a receipt for payment from the operator. No operator of a hotel shall advertise or state in any manner, whether directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the operator or that it will not be added to the rent or that, if added, any part will be refunded except in the manner hereinafter provided. (Ord. No. 65-8, § 1.)

18.16 Transient occupancy registration certificate.

(a)    Within thirty days after the effective date of this article or within thirty days after commencing business, whichever is later, each operator of any hotel shall register with the Tax Administrator. Upon registration, each hotel operator shall obtain a transient occupancy registration certificate to be at all times posted in a conspicuous place on the premises.

(b)    Such certificate shall, among other things, state the following:

(1)    The name of the operator;

(2)    The address of the hotel;

(3)    The date upon which the certificate was issued.

(c)    In addition, such certificate shall bear the following text:

This transient occupancy registration certificate signifies that the person named on the face hereof has fulfilled the requirements of the uniform transient occupancy tax article by registering with the Tax Administrator for the purpose of collecting from transients the transient occupancy tax and remitting such tax to the Tax Administrator. This certificate does not authorize any person to conduct any unlawful business or to conduct any lawful business in an unlawful manner, nor to operate a hotel without strictly complying with all local applicable laws, including, but not limited to those of this city. This certificate does not constitute a permit. (Ord. No. 65-8, § 1, Ord. No. 2004-19 § 4.)

18.17 Reports and remittances.

(a)    Each operator shall, on or before the last day of the month following the close of each calendar quarter make a return to the Tax Administrator, on forms provided by the Tax Administrator, of the total rents charged and received and the amount of tax collected for transient occupancies.

(b)    The Tax Administrator may establish shorter reporting periods for any certificate holder if, in the Tax Administrator’s discretion, shorter reporting periods for that certificate holder are necessary to ensure collection of the tax. Should the Tax Administrator elect to require shorter reporting periods for any certificate holder, the Tax Administrator shall notify that certificate holder in writing of the certificate holder’s special reporting schedule, and shall serve such notice either personally or by depositing it in the United States mail, postage prepaid, addressed to the operator so assessed at his last known place of address. If the Tax Administrator serves such notice on or before the twentieth day of any month, the first return due from the certificate holder on the special schedule shall be due on the last day of that same month; otherwise, if the Tax Administrator serves such notice on the twenty-first day or later day of any month, the first return due from the certificate holder on the special schedule shall be due on the last day of the next month. The special reporting schedule shall continue until the Tax Administrator cancels it in writing and serves such cancellation either personally or by depositing it in the United States mail, postage prepaid, addressed to the operator so assessed at his last known place of address. Such cancellations shall be effective immediately upon service by the Tax Administrator, and returns thereafter shall be due on the regular schedule established by this Section 18.17.

(c)    At the time the return is filed, the full amount of the tax collected shall be remitted to the Tax Administrator. Returns and payments are due immediately upon cessation of business for any reason. All taxes collected by operators pursuant to this article shall be held in trust for the account of the city until payment thereof is made to the Tax Administrator. (Ord. No. 65-8, § 1, Ord. 2004-19, § 5.)

18.17.1 Reporting and remitting requirements upon transfer or cessation of business.

(a)    An operator who is transferring, selling, or terminating its business shall notify the Tax Administrator in writing at least thirty (30) days in advance of the date of transfer, sale, or termination. If the decision to sell, transfer, or terminate the business is made fewer than thirty (30) days before the transfer, sale, or termination occurs, the operator shall notify the Tax Administrator immediately upon making that decision and in no event later than the date of transfer, sale, or termination. The operator shall at the same time notify in writing any purchaser or transferee of its Hotel of the purchaser’s or transferee’s potential responsibility for unpaid collected taxes if any, as set forth in this article and in Revenue and Taxation Code Section 7283.5.

(b)    Upon cessation of business, whether by sale, transfer, termination, an operator shall, on or before the same day of the next month following the cessation of business, or on the last day of that month if no corresponding day exists, make a return to the Tax Administrator on approved forms of the total taxable rents charged, the amount of tax collected for the reporting period ending on the cessation date, remittances made if any, and the balance of the tax due. The balance of tax due if any shall be remitted to the Tax Administrator at the time the final return is filed. After filing the final return and remitting the balance due, the operator shall make its records of account available for a closeout audit by the Tax Administrator or his or her designee. Returns filed and taxes remitted and actually received by the Tax Administrator on or before the same day of the next month following cessation of business, or on the last day of that month if no corresponding day exists, shall be timely filed and remitted; otherwise, the taxes are delinquent and subject to the penalties imposed by this article.

(c)    Any person purchasing an ongoing Hotel business may apply to the Tax Administrator for a tax clearance certificate showing the tax due, if any, from the selling operator as of a date specified in the tax clearance certificate request. For purposes of this Section, successive Hotel businesses conducted without substantial interruption at the same Hotel shall constitute an ongoing Hotel business.

(1)    The issuance and effect of such certificates shall be as set forth in Revenue and Taxation Code Section 7283.5.

(2)    Before requesting records and conducting the audit permitted by subdivision (b) of Revenue and Taxation Code Section 7283.5, the Tax Administrator shall proceed in such manner as he or she may deem best to obtain facts and information on which to base an estimate of the tax due. The Tax Administrator shall notify the selling operator of this estimate when requesting records for audit. If the selling operator fails to provide records in response to the request within thirty days after the serving or mailing of the estimate and record request, the Tax Administrator may issue a tax certificate in the amount of the estimate.

(3)    By resolution, the City may set an administrative fee for issuance of any such certificate. (Ord. No. 2005-09, §2.)

(d)    If an operator who is liable for delinquent taxes or penalties under this article sells its business, its successor shall withhold a sufficient portion of the purchase price to satisfy the delinquency, unless the successor is in possession of a valid tax clearance certificate from the Tax Administrator. If the seller does not present such a receipt or notice within thirty (30) days after the successor commences business, the successor shall deposit the withheld amount with the Tax Administrator. If the successor fails to withhold a portion of the purchase price as required, the successor shall be liable to the City for payment of the amount the successor was required to withhold. (Ord. 2004-19, § 6.)

18.18 Penalties and interest for failure to remit tax when due.

(a)    Original delinquency. Any operator who fails to remit any tax imposed by this article within the time required shall pay a penalty of ten percent of the amount of the tax in addition to the amount of the tax.

(b)    Continued delinquency. Any operator who fails to remit any delinquent remittance on or before a period of thirty days following the date on which the remittance first became delinquent shall pay a second delinquency penalty of ten percent of the amount of tax in addition to the amount of the tax and the ten percent penalty first imposed.

(c)    Fraud. If the tax administrator determines that the nonpayment of any remittance due under this article is due to fraud, a penalty of twenty five percent of the amount of the tax shall be added thereto in addition to the penalties stated in subsections (a) and (b) of this section.

(d)    Interest. In addition to the penalties imposed, any operator who fails to remit any tax imposed by this article, shall pay interest at the rate of one half of one percent per month or fraction thereof on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent until paid.

(e)    Penalties merged with tax. Every penalty imposed and such interest as accrues under the provisions of this section shall become a part of the tax herein required to be paid. (Ord. No. 65-8, § 1.)

18.19 Failure of operator to collect and report tax; determination by tax administrator; notice and hearing.

If any operator shall fail or refuse to collect such tax and to make, within the time provided in this article any report and remittance of such tax or any portion thereof required by this article, the tax administrator shall proceed in such manner as he may deem best to obtain facts and information on which to base his estimate of the tax due. As soon as the tax administrator shall procure such facts and information as he is able to obtain upon which to base the assessment of any tax imposed by this article and payable by any operator who has failed or refused to collect the same and to make such report and remittance, he shall proceed to determine and assess against such operator the tax, interest and penalties provided for by this article. In case such determination is made, the tax administrator shall give a notice of the amount so assessed by serving it personally or by depositing it in the United States mail, postage prepaid, addressed to the operator so assessed at his last known place of address. Such operator may within ten days after the serving or mailing of such notice make application in writing to the tax administrator for a hearing on the amount assessed.

If application by the operator for a hearing is not made within the time prescribed, the tax, interest and penalties, if any determined by the tax administrator shall become final and conclusive and immediately due and payable. If such application is made, the tax administrator shall give not less than five days written notice in the manner prescribed herein to the operator to show cause at a time and place fixed in such notice why such amount specified therein should not be fixed for such tax, interest and penalties. At such hearing, the operator may appear and offer evidence why such specified tax, interest and penalties should not be so fixed. After such hearing the tax administrator shall tax administrator shall determine the proper tax to be remitted and shall thereafter give written notice to the person in the manner prescribed herein of such determination and the amount of such tax, interest and penalties. The amount determined to be due shall be payable after fifteen days unless an appeal is taken as provided in section 18.20. (Ord. No. 65-8, § 1.)

18.20 Appeal from decision of tax administrator.

Any operator aggrieved by any decision of the tax administrator with respect to the amount of such tax, interest and penalties, if any, may appeal to the council by filing a notice of appeal with the city clerk within fifteen days of the serving or mailing of the determination of tax due. The council shall fix a time and place for hearing such appeal, and the city clerk shall give notice in writing to such operator at his last known place of address. The findings of the council shall be final and conclusive and shall be served upon the appellant in the manner prescribed above for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of notice. (Ord. No. 65-8, § 1.)

18.21 Operator to keep records for four years.

(a)    It shall be the duty of every operator liable for the collection and payment to the city of any tax imposed by this article to keep and preserve, for a period of four years, all records as may be necessary to determine the amount of such tax as the operator may be liable for the collection of and payment to the city, which records the tax administrator shall have the right to inspect at all reasonable times.

(b)    All tax returns and information furnished by any operator pursuant to this chapter shall be confidential and shall not be open to public inspection nor the specific contents thereof disclosed by any officer or employee except as necessary in the performance of official duty pursuant to this chapter, or in the course of any proceeding, hearing or litigation involving the existence or amount of the tax liability of such operator, or with the written consent of the operator or his or her authorized representative. (Ord. No. 65-8, § 1, Ord. No. 2005-09, § 3.)

18.22 Refunds.

(a)    Whenever the amount of any tax, interest or penalty has been overpaid or paid more than once or has been erroneously or illegally collected or received by the city under this article, it may be refunded as provided in subsections (b) and (c) of this section; provided, a claim in writing therefor, stating under penalty of perjury the specific grounds upon which the claim is founded, is filed with the tax administrator within one year of the date of payment. The claim shall be on forms furnished by the tax administrator. Each operator seeking a refund must file an individual claim; no class claims shall be recognized. (Ord. 2004-19, § 7.)

(b)    An operator 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 established in a manner prescribed by the tax administrator that the person from whom the tax has been collected was not a transient; provided, that neither a refund nor a credit shall be allowed unless the amount of the tax so collected has either been refunded to the transient or credited to rent subsequently payable by the transient to the operator.

(c)    A transient may obtain a refund of taxes overpaid or paid more than once or erroneously or illegally collected or received by the city by filing a claim in the manner provided in subsection (a) of this section, but only when the tax was paid by the transient directly to the tax administrator or when the transient, having paid the tax to the operator, established to the satisfaction of the tax administrator that the transient has been unable to obtain a refund from the operator who collected the tax.

(d)    No refund shall be paid under the provisions of this section unless the claimant established has right thereto by written records showing entitlement thereto. (Ord. No. 65-8, § 1.)

18.23 Enforcement; action by city to collect tax.

(a)    Any tax required to be paid by any transient under the provisions of this article shall be deemed a debt owed by the transient to the city. Any such tax collected by an operator which has not been paid to the city shall be deemed a debt owed by the operator to the city. Any person owing money to the city under the provisions of this article shall be liable to an action brought in the name of the city for the recovering of such amount.

(b)    Failure of an operator to collect tax required to be paid by any transient shall not excuse the operator’s obligation under this article. An operator must pay to the city any tax required to be paid by any transient, whether or not the operator collects such tax from that transient.

(c)    If any amount required to be paid to the city under this article is not paid when due, the Tax Administrator may, within ten years after the amount is confirmed according to the procedure set forth in Section 18.19 of this Article, file for record in the office of the Solano County Recorder a certificate specifying the amount of tax, penalties, and interest due; the name and address, as it appears on the Tax Administrator’s records, of the operator liable for the tax, penalties and interest; and the fact that the Tax Administrator has complied with all provisions of this chapter in the determination of the amount required to be paid. From the time of filing for record, the amount of the tax, penalties, and interest constitutes a lien upon any real property in the county owned by the operator or acquired by the operator thereafter. This lien has the force, effect, and priority of a judgment lien and shall continue for ten years from the time of filing of the certificate, unless sooner released or otherwise discharged, or unless renewed for subsequent periods in the manner prescribed by law. This article does not give the city a preference over any recorded lien that was attached before the date when the amounts required to be paid became a lien.

(d)    The amounts required to be paid by any operator under this chapter with penalties and interest shall be satisfied first in any of the following cases:

(1)    Whenever the operator is insolvent;

(2)    Whenever the operator makes a voluntary assignment of its assets;

(3)    Whenever the estate of the operator in the hands of executors, administrators, heirs, or receivers is insufficient to pay all debts;

(4)    Whenever the estate and effects of an absconding, concealed, or absent operator required to pay any amount under this chapter are levied upon by process of law. (Ord. No. 65-8, § 1, Ord. No. 2004-19, § 8.)

18.24 Violation of article deemed a misdemeanor; penalties.

Any person violating any of the provisions of this article shall be guilty of a misdemeanor and shall be punishable therefor by a fine of not more than five hundred dollars or by imprisonment in the county jail for a period of not more than six months or by both such fine and imprisonment.

Any operator or other person who fails or refuses to register as required herein or to furnish any return required to be made or who fails or refuses to furnish a supplemental return or other data required by the tax administrator or who renders a false or fraudulent return or claim is guilty of a misdemeanor, and is punishable as aforesaid. Any person required to make, render, sign or verify any report or claim who makes any false or fraudulent report or claim with intent to defeat or evade the determination of any amount due required by this article to be made, is guilty of a misdemeanor and is punishable as aforesaid. (Ord. No. 65-8, § 1.)

Article IV. Real Property Transfer Tax.

18.25 Short title; adoption authority.

This article shall be known as the "Real Property Transfer Tax Ordinance of the City of Fairfield." It is adopted pursuant to the authority contained in part 6.7 (commencing with section 11901) of division 2 of the revenue and taxation code of the state. (Ord. No. 67-26, § 1.)

18.26 Imposition.

There is hereby imposed on each deed, instrument or writing by which any lands, tenements or other realty sold within the city shall be granted, assigned, transferred or otherwise conveyed to, or vested in, the purchaser or purchasers, or any other person or persons, by his or their direction, when the consideration or value of the interest or property conveyed (exclusive of the value of any lien or encumbrances remaining thereon at the time of sale) exceed one hundred dollars, a tax at the rate of twenty seven and one half cents for each five hundred dollars or fractional part thereof. (Ord. No. 67-26, § 2.)

18.27 Payment.

Any tax imposed pursuant to section 18.26 shall be paid by any person who makes, signs or issues any document or instrument subject to the tax, or for whose use or benefit the same is made, signed or issued. (Ord. No. 67-26, § 3.)

18.28 Exemptions from tax Instruments to secure debts.

Any tax imposed pursuant to this article shall not apply to any instrument in writing given to secure a debt. (Ord. No. 67-26, § 4.)

18.29 Same Public agencies.

The United States or any agency or instrumentality thereof, any state or territory, or political subdivision thereof, or the District of Columbia shall not be liable for any tax imposed pursuant to this article with respect to any deed, instrument or writing to which it is a party, but the tax may be collected by assessment from any other party liable therefor. (Ord. No. 67-26, § 5.)

18.30 Same Plans of reorganization or adjustment.

Any tax imposed pursuant to this article shall not apply to the making, delivering or filing of conveyances to make effective any plan or reorganization of adjustment:

(a)    Confirmed under the Federal Bankruptcy Act, as amended;

(b)    Approved in an equity receivership proceeding in a court involving a railroad corporation, as defined in subdivision (m) of section 205 of title II of the United States code, as amended;

(c)    Approved in an equity receivership proceeding in a court involving a corporation, as defined in subsection (3) of section 506 of title II of the United States code, as amended; or

(d)    Whereby a mere changed in identity, form or place of organization is effected.

Subdivisions (a) to (d), inclusive, of this section shall only apply if the making, delivery or filing of instruments of transfer or conveyances occurs within five years from the date of such confirmation, approval or change. (Ord. No. 67-26, §6.)

18.31 Same Orders of Securities and Exchange Commission.

Any tax imposed pursuant to this article shall not apply to the making or delivery of conveyances to make effective any order of the securities and exchange commission, as defined in subdivision (a) of section 1083 of the internal revenue code of 1954; but only if:

(a)    The order of the securities and exchange commission in obedience to which such conveyance is made recites that such conveyance is necessary or appropriate to effectuate the provisions of section 79k of title 15 of the United States code, relating to the Pubic Utility Holding Company Act of 1935;

(b)    Such order specifies the property which is ordered to be conveyed;

(c)    Such conveyance is made in obedience to such order. (Ord. No. 67-26, § 7.)

18.32 Same Partnerships.

(a)    In the case of any realty held by a partnership, no levy shall be imposed pursuant to this article by reason of any transfer of an interest in a partnership or otherwise, if:

(1)    Such partnership (or another partnership) is considered a continuing partnership within the meaning of section 708 of the internal revenue code of 1954; and

(2)    Such continuing partnership continues to hold the realty concerned.

(b)    If there is a termination of any partnership within the meaning of section 708 of the internal revenue code of 1954, for purposes of this article, such partnership shall be treated as having executed an instrument whereby there was conveyed, for fair market value (exclusive of the value of any lien or encumbrance remaining thereon), all realty held by such partnership at the time of such termination.

(c)    Not more than one tax shall be imposed pursuant to this article by reason of a termination described in subdivision (b), and any transfer pursuant thereto, with respect to the realty held by such partnership at the time of such termination. (Ord. No. 67-26, § 8.)

18.33 Administration.

The county recorder shall administer this article in conformity with the provisions of part 6.7 of division 2 of the revenue and taxation code and the provisions of any county ordinance adopted pursuant thereto. (Ord. No. 67-26, § 9.)

18.34 Refunds.

Claims for refund of taxes imposed pursuant to this article shall be governed by the provisions of chapter 5 (commencing with section 5096) of part 9 of division 1 of the revenue and taxation code of the state. (Ord. No. 67-26, § 10.)

18.35 Operative date.

This article shall become operative upon the operative date of any ordinance adopted by the county, pursuant to part 6.7 (commencing with section 11901) of division 2 of the revenue and taxation code of the state, or upon the effective date of this article, whichever is the later. (Ord. No. 67-26,§ 11.)

Article V. Utility Users Excise Tax.

18.36 Purpose.

The purpose of this chapter is to impose a utility users excise tax as a revenue measure necessary to pay the usual and current expenses of conducting the municipal government of the City, the proceeds of which shall be deposited into the general fund of the City. (Ord. 2002-27, § 1.)

18.37 Definitions.

The following words and phrases whenever used in this Article shall have the following meanings:

(a)    "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 individuals.

(b)    "City" shall mean the City of Fairfield.

(c)    "Gas" shall mean natural or manufactured gas or any alternate hydrocarbon fuel which may be substituted therefore, used for light, heat or power.

(d)    "Telephone corporation," "electrical corporation," "gas corporation" and "cable television corporation" shall have the same meanings as defined in Sections 234, 218, 222, 241, and 215.5, respectively, of the California Public Utilities Code except, "electrical corporation" and "gas corporation" shall also be construed to include any municipality or other public agency engaged in the selling or supplying of electrical power or gas to a service user.

(e)    "Tax Administrator" shall mean the Finance Director of the City of Fairfield.

(f)    "Service supplier" shall mean a person required to collect or self-impose and remit a tax as imposed by this chapter.

(g)    "Service user" shall mean a person required to pay a tax imposed by this chapter.

(h)    "Month" shall mean a calendar month.

(i)    "Non-utility supplier" shall mean: (a) a service supplier, other than an electrical corporation serving within the City, which generates electrical energy in capacities of at least 50 kilowatts for its own use or for sale to others; or (b) a gas supplier other than a gas corporation, that sells or supplies gas to users within the City.

(j)    "Tax" shall mean the utility users excise tax imposed by this Article through Sections 18.38, 18.39, 18.40 and 18.41.

18.38 Telephone Users Tax.

(a)    There is hereby imposed a Tax upon every person, other than a telephone corporation, using Telephone

Communication Services in the City when the person using the Telephone Communication Services has a service address in the City. The Tax imposed by this section shall be at the rate of two percent (2%) of all charges made for Telephone Communications Services and shall be paid by the person paying for such Services. The telephone users Tax is intended to, and does, apply to all charges billed to a telephone account having a service address in the City. For the purposes of this section, a person is using Telephone Communication Services in the City if the person has a service address in the City even if a particular Communication Service neither originates nor terminates within the City.

(b)    As used in this section, the following terms are defined as follows:

(1)    "Interstate and international telephone communication services" are those charges which originate or terminate within the City and are charged to a Fairfield service address. Interstate calls shall be deemed to include calls to the District of Columbia.

(2)    "Telephone Communication Services" means the transmission of any communications, messages, or information, whether by fixed, mobile, portable, or any other form through electronic or other means, between or among points by wire, cable, fiber-optics, laser, microwave, radio, satellite or other methods; and including services for intrastate, interstate, or international calls, any teletypewriter or facsimile exchange services and mobile or cellular telephone communication.

(3)    "Service address" is the address(es) where the bill for Telephone Communication Services is received.

(4)    "Charges" shall not include charges for services paid for by inserting coins in coin-operated telephones except where such coin-operated service is furnished for a guaranteed amount, the amounts paid under such guarantee plus any fixed monthly or other period 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 supplier which is 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.

(c)    The person providing the Telephone Communications Services, or the person receiving payment for such services, shall collect the tax imposed by this Section from the service users and remit payment to the Tax Administrator in the manner prescribed by Section 18.42.

(d)    Upon written documentation in a form acceptable to the Tax Administrator submitted by any taxpayer of payment of a tax in another state on the same interstate telephone communication services taxed and paid for pursuant to this section, that taxpayer shall be eligible for a tax credit in the amount previously paid to the other jurisdiction.

(e)    The Tax imposed by this section shall not be imposed upon any person for using intrastate, international, and interstate communications services, including teletypewriter or facsimile exchange services, to the extent that the amounts paid for such services are exempt from or not subject to the tax imposed under California Revenue and Taxation Code Section 41001, et seq., or Sections 4251 of Title 26 of the United States Internal Revenue Code, as said sections existed on January 1, 1994.

18.39 Electricity Users Tax.

(a)    There is hereby imposed a Tax upon every person, other than an electric or gas corporation, using electrical energy in the City. The tax imposed by this section shall be at the rate of two percent (2%) of the charges made for such energy by an electrical corporation providing service in the City and shall be billed to and paid by the person using the energy.

The Tax applicable to the use of electrical energy imposed by this section, is applicable to electrical energy provided by a non-utility supplier, and electrical corporation and a gas corporation. Non-Utility Suppliers shall install, maintain and use an appropriate utility-type metering system which shall verify compliance with this section.

(b)    As used in this section, the following terms shall be defined as follows:

(1)    "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, authorized by the California Public Utilities Commission or the Federal Energy Regulatory Commission.

(2)    "Using electrical energy" shall not be construed to mean the storage of such energy by a person in a battery owned or possessed by that person for use in an automobile or other machinery device apart from the premises upon which the energy was received, provided, 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 electrical public utility or governmental agency at a point within the City for resale.

(c)    The service supplier or non-utility supplier shall collect from the service user the Tax imposed by this section and remit the amounts collected to the Tax Administrator in the manner prescribed by Section 18.42.

(d)    A service user who receives electricity without having the full tax due, billed and collected by the supplier of electricity, or who receives electricity by self-generation or cogeneration, shall report said fact to the Tax Administrator and shall remit directly to the Tax Administrator the amount of the tax due pursuant to this Section 18.39 within 30 days of said use.

18.40 Gas Users Tax.

(a)    There is hereby imposed a Tax upon every person in the City other than a gas corporation or electrical corporation, using, in the City, gas which is transported through mains or pipes or by mobile transport or by rail. The Tax imposed by this section shall be at the rate of two percent (2%) of the charges made for the gas and shall be billed to and paid by the person using the gas.

The tax applicable to gas or gas transportation provided by non-utility suppliers shall be based on the sale price of the gas or gas transportation.

(b)    "Charges," as used in this section, shall include:

(1)    Those billed for gas which is delivered through mains or pipes or by motor vehicle or by rail;

(2)    Gas transportation charges; and

(3)    Demand charges, service charges, customer charges, minimum charges, annual and monthly charges, and any other charge authorized by the California Public Utilities Commission or the Federal Energy Regulatory Commission.

(c)    The Tax imposed by this section is not applicable to:

(1)    Charges made for gas which is to be resold and delivered through mains and pipes or by motor vehicle or by rail;

(2)    Charges made for gas sold by a public utility or governmental agency for use in the generation of electrical energy or for the production or distribution of water;

(3)    Charges made by a gas public utility for gas used and consumed in the course of its public utility business; and

(4)    Charges made for gas used in the propulsion of a motor vehicle, as authorized in the Vehicle Code of the State of California.

(d)    The person selling or transporting the gas shall collect the Tax imposed by this section from the service user and remit those amounts to the Tax Administrator in the manner prescribed by Section 18.42. A person selling only transportation services to a user for delivery of gas through mains or pipes or by motor vehicle or by rail shall collect the tax from the service user based on the transportation charges.

(e)    A service user receiving gas directly from a non-utility supplier, or a non-utility supplier not under the jurisdiction of this chapter, or otherwise not having the full tax due, billed and collected by the service supplier, shall report said fact to the tax administrator within thirty days of said use; and shall remit directly to the Tax Administrator the amount of said tax due.

(f)    The Tax Administrator may require from a person who is a service user pursuant to subsection (e), the filing of tax returns or other satisfactory evidence documenting the sale price, or fair market value in the absence of a sales price, and quantity of gas used.

18.41 Cable Television Users Tax.

(a)    There is hereby imposed a Tax upon every person in the City using cable television service in the City. The Tax imposed by this section shall be at the rate of two percent (2%) of the charges made for such cable television service and shall be paid by the person paying for such service.

(b)    The person furnishing the cable television service shall collect the Tax imposed in this section from the service user and remit those amounts to the Tax Administrator in the manner prescribed by Section 18.42.

(c)    For purposes of this section, cable television service shall mean a television signal delivered by cable for a fee or charge.

18.42 Remittance of Tax and Penalties.

(a)    Every person required to collect the Tax by Sections 18.38, 18.39, 18.40 and 18.41 shall remit the Tax collected monthly to the Tax Administrator postmarked on or before the last day of the following month. At the option of the person required to collect and remit the tax, an estimated amount of tax collected which shall be measured by the tax billed in the previous month shall be remitted to the Tax Administrator postmarked on or before the last day of each month.

If estimated tax payments are remitted to the Tax Administrator, the person required to collect and remit the tax shall reconcile the difference between the amount of the tax actually due and the amount of the estimated tax paid to the Tax Administrator every third month after the date that the tax is first imposed. Any additional tax due to the city shall immediately be paid to the Tax Administrator. The amount of any overpaid tax may be deducted from the next payment due to the City.

In the event of a tax overpayment, documentation establishing such overpayment shall be provided to the City along with the tax payment for the month in which the overpayment is claimed.

(b)    Taxes collected from a service user which are not remitted to the Tax Administrator on or before the due dates provided in this chapter are delinquent. Should the due date occur on a weekend or legal holiday, the return may be postmarked on the first regular working day following a Saturday, Sunday, or legal holiday.

(c)    Penalties for delinquency in remittance of any tax collected or any deficiency determination shall attach and be paid by the person required to collect and remit the tax at the rate of fifteen percent (15%) of the total tax collected or imposed herein.

(d)    Every penalty imposed under the provisions of this chapter shall become part of the amounts required to be remitted by the person who is required to collect the Tax and on whom the penalty has been imposed.

18.43 Actions to Collect.

(a)    The 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.

(b)    The Tax collected from a service user by a service supplier or non-utility supplier which has not been paid to the Tax Administrator shall be deemed a debt owed to the City by the person required to collect and remit.

(c)    Any person owing money to the City under the provisions of this chapter shall be liable to the City for the amounts owed, including penalties, as well as for the costs and expenses incurred by the City, including collection fees, attorney’s fees and court costs, resulting from the failure to pay said amounts.

18.44 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 at the same time as, and along with, the charges made in accordance with the regular billing practice of the service supplier. Where the amount paid by a service user to a service supplier is less than the full amount of the charge for utility service and the Tax which accrued for the billing period, a proportionate share of both the charge and the Tax shall be deemed to have been paid except in those cases where a service user pays the full amount of the charge for utility service, but notifies the service supplier of her/her refusal to pay the tax imposed on said charge for utility service.

(b)    The duty to collect the 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 the ordinance codified in 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 period.

18.45 Additional Powers and Duties of the Tax Administrator.

(a)    The Tax Administrator shall have the power and duty to enforce each and all of the provisions of this chapter.

(b)    The Tax Administrator shall have the power to adopt rules and regulations consistent with the provisions of this chapter for the purpose of carrying out and enforcing the payment, collection and remittance of the taxes herein imposed. A copy of such rules and regulations shall be on file in the Tax Administrator’s office.

(c)    The Tax Administrator may make administrative agreements to vary the strict requirements of this chapter so that collection of any tax imposed herein may be made in conformance with the billing procedures of a particular service supplier so long as said agreements result in collection of the tax in conformance with the general purpose and scope of this chapter.

(d)    The Tax Administrator shall determine the eligibility of any service user who asserts a right to exemption from the tax imposed by this ordinance. The Tax Administrator shall provide the service supplier with the name of any person who the Tax Administrator determines is exempt from the tax imposed hereby, together with the address and account number to which service is supplied to any such exempt person. The Tax Administrator shall notify the service supplier of termination of any person’s right to exemption hereunder, or the change of any address to which service is supplied to any exempt person.

(e)    The Tax Administrator shall provide notice to all service suppliers, at least 90 days prior to any annexation or other change in the city’s boundaries. Said notice shall set forth the revised boundaries by street and address, along with a copy of the final annexation order from the Local Agency Formation Commission. Failure to make this notice in a timely fashion relieves the service supplier from obligation to collect the tax but such obligation to collect the tax shall commence 90 days after said notice is received.

18.46 Service Supplier Relief From Duty to Collect Assessment on Service User.

(a)    The Tax Administrator may make an assessment for taxes not remitted by the person required to remit such taxes.

(b)    The service supplier shall provide the City with names and addresses of the service users failing to pay the tax imposed under the provisions of this chapter, and the amounts of any delinquent taxes due and owing to the City.

(c)    Whenever the Tax Administrator determines that a service user has failed to pay the tax due and owing under this chapter, or that a service user has failed to pay the amount of the tax for a period of two (2) or more billing periods, or whenever the Tax Administrator deems it in the best interest of the City, he may relieve the service supplier of the obligation to collect taxes due under this chapter from said service user for the specified billing periods in which the service user’s taxes are delinquent.

(d)    The Tax Administrator shall notify the service user that the Tax Administrator has assumed responsibility to collect the delinquent taxes due for the stated periods and demand payment of such taxes. The notice shall be served on the service user personally or by deposit of the notice in the United States mail, postage pre-paid, addressed to the service user at the address to which billing was made by the person required to collect the tax. If the service user fails to remit the tax to the Tax Administrator within fifteen (15) days from the date of the mailing or personal service of the notice, a penalty of twenty-five percent (25%) of the amount of the tax set forth in the notice shall be imposed, but not less than five dollars ($5.00). The penalty shall become a part of the tax herein required to be paid. In the event the city commences a collection action as provided for in Section 18.43, the service user shall also be responsible for the payment of the City’s collection fees, attorney’s fees and court costs.

18.47 Records.

(a)    It shall be the duty of every person required to collect and remit to the City the Tax imposed by this chapter to keep and preserve, for a period of three (3) years, all records as may be necessary to determine the amount of such tax such person may have been liable for according to this chapter. The Tax Administrator shall have the right to inspect these records at all reasonable times.

(b)    Unless in compliance with judicial order or as may be required for the proper administration of this chapter, the Tax Administrator, his agents or employees shall not divulge facts or information, as hereinabove described, obtained in the administration hereof.

18.48 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 Tax Administrator, it shall be refunded as provided in this section.

(b)    A service supplier may claim a refund; or take as a credit against taxes remitted, the amount overpaid, paid more than once, or erroneously or illegally collected or received, when it is established that the service user from whom the tax has been collected did not owe the tax; provided however, that neither a refund or 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. A service supplier that has collected and paid to the Tax Administrator 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 the right thereto by written records showing entitlement thereto.

(d)    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 or credited to service users, and the service supplier shall be entitled to claim a credit for such refunded taxes against the amount of tax which is due upon the next monthly returns. In the event the ordinance codified in this chapter is repealed, the amounts of any refundable taxes will be borne by the City.

(e)    A service supplier may refund the taxes collected from the service user as required by this section in accordance with this section or by the service supplier’s customary practice.

18.49 Major Service Users Tax Limitation.

(a)    The purpose of this section is to mitigate the tax burden imposed on large users of gas, electricity and telephone services, to avoid adversely affecting economic development and job creation in Fairfield.

(b)    No service user need pay more than the "major service users tax limitation amount" in combined electricity users tax, gas users tax and telephone users tax, in a single fiscal year.

(c)    For purposes of this section, the "major service users tax limitation amount" for the 1994/95 fiscal year shall be $6,500, which amount shall be increased by two percent (2%) annually effective with the 1995/96 fiscal year.

(d)    A service user must select one of the following means of obtaining relief under this section:

(1)    The affected service user elects to pay the "major service user tax limitation amount" to the City up-front, and be exempted from payment of the tax on future gas, electricity and telephone utility billings. On or before July 1 of each fiscal year, the affected service user shall transmit to the Tax Administrator the amount of the "major service users tax limitation amount" applicable to the fiscal year starting on July 1, and shall direct the Tax Administrator to notify the gas, electricity and telephone service providers to exempt the service user from the tax on subsequent billings for gas, electricity and telephone services. Once this option is initiated, the service user shall continue to transmit to the Tax Administrator annually before July 1 of each fiscal year the "major service users tax limitation amount" applicable to that fiscal year. Failure to transmit the required amount by July 1 shall result in the Tax Administrator notifying the gas, electricity and telephone service providers to reinstate the application of the gas users tax, the electricity users tax, and the telephone users tax to the utility billings of that service user. This option is available only once annually; the Tax Administrator will not otherwise change the service users status from "taxable" to "non-taxable" during the course of the fiscal year.

(2)    The affected service user elects to pay the gas users tax, electricity users tax and telephone users tax to the service provider as billed, and at the conclusion of each fiscal year, transmit to the Tax Administrator a copy of all gas, electricity and telephone billings for which the service user made payment during said fiscal year, together with proof acceptable to the Tax Administrator that the gas, electricity and telephone users taxes applied to said billings were paid by the service user. If the taxes paid exceed the "major service users tax limitation amount" applicable to that fiscal year, the Tax Administrator shall within 30 days of receipt of appropriate documentation from the service user transmit payment to the service user in the amount of the difference between the gas, electricity and telephone users taxes actually paid, and the "major service users tax limitation amount" applicable to that fiscal year.

18.50 Confidentiality.

Information furnished or secured pursuant to the provisions of Section 18.49, the disclosure of which to other persons would result in unfair competitive disadvantage, shall not be subject to public inspection, and shall be kept so that the contents thereof shall not become known except to the persons charged with the administration of this chapter.

18.51 Exemptions.

Nothing in this chapter shall be construed as imposing a tax upon any person if imposition of such tax upon that person would be in violation of the Constitution of the United States or the Constitution of the State of California.

No Tax shall be imposed on utility charges with respect to property or facilities or equipment owned and operated by a governmental entity for governmental purposes, including the City, Solano County, school districts, special districts, the State of California and the United States government.

18.52 Low Income Senior and Disabled Exemption.

Any person who meets he eligibility requirements of this section may apply for an exemption from the Tax required to be paid under this Article. The Tax Administrator shall approve an exemption if the applicant meets all of the following requirements:

(a)    The applicant is (1) over 62 years of age; or (2) is disabled and receives Social Security Supplemental Income due to such disability, or (3) is a veteran receiving a Veterans Administration disability pension.

(b)    The applicant is a head of household. As used herein, "head of household" means the person filing or who would file a federal income tax return as a head of household, or a single individual, or the husband or wife if a joint return is filed, but in such case, the individual applying for the exemption must additionally declare that his or her spouse has not also applied for the exemption.

(c)    The applicant’s household income is less than the United States Housing and Urban Development eligibility limit for a family of two with very low income or meets such other income test that is approved by resolution of the City Council.

The Tax Administrator may establish rules and regulations for the administration and implementation of this exemption.

18.53 Annual Audit.

By no later than October 31 of each year, the City’s independent auditors shall complete a Utility Users Tax Ordinance Compliance and Internal Control Audit Report. Such report shall review whether the Tax revenue is collected, managed and expended in accordance with this Article.

18.54 Benefit to All Persons.

The City Council has found and determined and declares that all persons using utility services in the City enjoy the privilege of using and benefit from the providing, by the City, of municipal services and facilities.

18.55 Limitation of Action.

The validity of this chapter or of any tax levied pursuant to this chapter shall not be contested in any action or proceeding or defense unless such action or proceeding or defense shall have been brought or raised in a court of competent jurisdiction within sixty days from the date of the adoption of the ordinance codified in this chapter. Unless an action or proceeding is commenced or such defense raised within said period, this chapter and any tax levied pursuant to this chapter shall be held valid and in every respect legal and incontestable.

18.56 Severability.

If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this ordinance or any part thereof is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portion of this ordinance or any part thereof. The City Council hereby declares that it would have been passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, clause or phrases be declared unconstitutional. (Ord. No. 94-8, § 1.)

Article VI. License Tax for Construction Dwelling Units.

18.60 Definitions.

(a)    As used herein, the term "person" includes every person, firm, or corporation constructing a dwelling unit itself, or through the services of an employee, agent, or independent contractor.

(b)    As used herein, the term "dwelling unit" includes each single-family dwelling, mobile home or trailer and each unit of an apartment, duplex or multiple dwelling structure designed as a separate habitation for one or more persons. (Ord. No. 64-6, §3; Ord. No. 69-10, §3.)

18.61 Park and recreation facilities.

All the sums collected pursuant to this article shall be deposited in the Bedroom Tax Fund and shall be used solely for the acquisition, improvement, repair and expansion of public parks, playground or recreation facilities for the use by occupants of such dwelling unit. (Ord. No. 72-27, §1.)

18.62 Tax rate.

Every person constructing any dwelling unit in the city shall pay to the city the following tax: The sum of five hundred ten dollars for each dwelling unit containing not more than one bedroom, and the sum of one hundred sixty dollars for each additional bedroom contained therein.

For the purposes of this section, each new mobile home park pad shall be considered as a potential two-bedroom home and shall be assessed at six hundred seventy dollars. Such tax shall be paid prior to the issuance of a building permit by the authority enforcing the codes.

On March 1, 1979, and each March 1 thereafter, the dwelling unit charge shall increase to equal increases in construction costs as set forth by the Engineering News Record construction cost index. The twelve-month average for the previous year shall determine the percent of increase. (Ord. No. 72-27, §1; Ord. No. 78-29, §2.)

18.63 Tax to be assessed solely for purpose of producing revenue.

The city council hereby declares that the tax required to be paid hereby are assessed pursuant to the taxing power of the city and solely for the purpose of producing revenue. The continued increase in the development of dwelling units in the city with the attendant increase in the population of the city has created an urgency for the planning, acquisition, improvement, repair and expansion of public parks, playgrounds and recreation facilities to serve the increasing population of the city and urgency for additional revenues with which to finance such public facilities. (Ord. No. 64-6, §5.)

18.64 Tax declared to be a license tax.

The city does herewith, under the authority of Government Code §37101, set the tax as aforesaid as a license tax on the business covered by this article. Such Government Code §37101 being the general authority under which the city imposes licenses under chapter 10 of this code. (Ord. No. 65-9, §1, Ord. No. 95-12, §3.)

Article VII. Transactions and Use Tax.

18.70 TITLE.

This ordinance shall be known as the Fairfield Transactions and Use Tax Ordinance. The City of Fairfield hereinafter shall be called "City." This ordinance shall be applicable in the incorporated territory of the City. (Ord. No. 2012-20, § 1; Ord. No. 2016-18, § 1.)

18.71 OPERATIVE DATE.

"Operative Date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance, the date of such adoption being as set forth below. (Ord. No. 2012-20, § 1; Ord. No. 2016-18, § 1.)

18.72 PURPOSE.

This ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:

A.    To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose.

B.    To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code.

C.    To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the State Board of Equalization in administering and collecting the California State Sales and Use Taxes.

D.    To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance. (Ord. No. 2012-20, § 1; Ord. No. 2016-18, § 1.)

18.73 CONTRACT WITH STATE.

Prior to the operative date, the City shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the City shall not have contracted with the State Board of Equalization prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract. (Ord. No. 2012-20, § 1; Ord. No. 2016-18, § 1.)

18.74 TRANSACTIONS TAX RATE.

For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of 1.0% of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this ordinance. (Ord. No. 2012-20, § 1; Ord. No. 2016-18, § 1.)

18.75 PLACE OF SALE.

For the purposes of this ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the State Board of Equalization. (Ord. No. 2012-20, § 1; Ord. No. 2016-18, § 1.)

18.76 USE TAX RATE.

An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption in said territory at the rate of 1.0% of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made. (Ord. No. 2012-20, § 1; Ord. No. 2016-18, § 1.)

18.77 ADOPTION OF PROVISIONS OF STATE LAW.

Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein. (Ord. No. 2012-20, § 1; Ord. No. 2016-18, § 1.)

18.78 LIMITATIONS ON ADOPTION OF STATE LAW AND COLLECTION OF USE TAXES.

In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:

A.    Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made when:

1.    The word "State" is used as a part of the title of the State Controller, State Treasurer, Victim Compensation and Government Claims Board, State Board of Equalization, State Treasury, or the Constitution of the State of California;

2.    The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this Ordinance.

3.    In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to:

a.    Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or;

b.    Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code.

4.    In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.

B.    The word "City" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203. (Ord. No. 2012-20, § 1; Ord. No. 2016-18, § 1.)

18.79 PERMIT NOT REQUIRED.

If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by this ordinance. (Ord. No. 2012-20, § 1; Ord. No. 2016-18, § 1.)

18.80 EXEMPTIONS AND EXCLUSIONS.

A.    There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax.

B.    There are exempted from the computation of the amount of transactions tax the gross receipts from:

1.    Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government.

2.    Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the City shall be satisfied:

a.    With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of-City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and

b.    With respect to commercial vehicles, by registration to a place of business out-of-City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.

3.    The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance.

4.    A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this ordinance.

5.    For the purposes of subparagraphs (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

C.    There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this City of tangible personal property:

1.    The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance.

2.    Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California.

3.    If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance.

4.    If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this ordinance.

5.    For the purposes of subparagraphs (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

6.    Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer.

7.    "A retailer engaged in business in the City" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City.

D.    Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax. (Ord. No. 2012-20, § 1; Ord. No. 2016-18, § 1.)

18.81 AMENDMENTS.

All amendments subsequent to the effective date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance. (Ord. No. 2012-20, § 1; Ord. No. 2016-18, § 1.)

18.82 ENJOINING COLLECTION FORBIDDEN.

No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. (Ord. No. 2012-20, § 1; Ord. No. 2016-18, § 1.)

18.83 SEVERABILITY.

If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. (Ord. No. 2012-20, § 1; Ord. No. 2016-18, § 1.)

18.84 INDEPENDENT FINANCIAL AUDIT.

By no later than December 31 of each year, the City’s independent auditors shall complete a Transactions and Use Tax Ordinance Compliance and Internal Control Audit Report. Such report shall review whether the tax revenues collected pursuant to this ordinance are collected, managed and expended in accordance with the requirements of this ordinance. (Ord. No. 2012-20, § 1; Ord. No. 2016-18, § 1.)

18.85 FAIRFIELD TAXPAYERS COMMITTEE.

The City Council shall continue the Fairfield Taxpayers Committee established in 2013 to review the expenditure of revenues collected pursuant to this ordinance. The Committee shall consist of at least five members appointed by the City Council. The Committee members shall be residents and taxpayers in the City. The terms of the Committee members and their specific duties established by Resolution No. 2013-31 on February 19, 2013 shall continue in full force and effect; provided, however, that the City Council may amend Resolution No. 2013-31 by resolution of the City Council. (Ord. No. 2012-20, § 1; Ord. No. 2016-18, § 1.)

18.86 TERMINATION DATE.

The authority to levy the tax imposed by this ordinance shall expire on March 31, 2033, at 11:59 p.m. (Ord. No. 2012-20, § 1; Ord. No. 2016-18, § 1.)