Chapter 4.10 SINGLE-USE CUP TAX

This chapter shall be known as the “Single-Use Cup Tax Ordinance.” The ordinance enacts a business tax, as approved by the electorate, the sole purpose of which is to raise revenue for the general governmental purposes of the County and not for purposes of regulation or of raising revenues for regulatory purposes. It is a “gross-receipts” tax that is directed to half of the monies collected from purchasers of single-use, disposable cups under Chapter 5.47 SCCC. All proceeds from the tax imposed by this chapter shall be placed in the County’s general fund and used for the usual current expenses of the County. [Ord. 5408 § 1, 2022].

4.10.020 Definitions.

The definitions set forth in this section shall govern the application and interpretation of this chapter.

(A) “Person,” unless otherwise specifically defined in context, means a person, business, event, food truck, or other entity, including both permanent and temporary facilities, which sells or provides hot or cold beverages in a single use, disposable cup and is required to charge a fee for that service under Chapter 5.47 SCCC.

(B) “Single-use cup tax” means the tax due for providing a single-use, disposable cup to a consumer in the unincorporated area of Santa Cruz County, for which a fee is collected by the seller under Chapter 5.47 SCCC.

(C) “Tax Administrator” or “Administrator” means the Auditor-Controller-Treasurer-Tax Collector or such other administrator designated by the County Administrative Officer to administer this chapter. [Ord. 5408 § 1, 2022].

4.10.030 Tax imposed.

There is established and imposed a business tax related to the sale of single-use, disposable cups at the rate set forth in this chapter. [Ord. 5408 § 1, 2022].

4.10.040 Amount of tax owed.

Every person who collects a $0.25 fee for the provision of a single-use, disposable cup pursuant to Chapter 5.47 SCCC shall pay half of that amount ($0.125) to the County of Santa Cruz. [Ord. 5408 § 1, 2022].

4.10.050 Other licenses, permits, taxes, fees or charges.

Nothing contained in this chapter shall be deemed to repeal, amend, be in lieu of, replace or in any way affect any requirements for any license or permit required by, under or by virtue of any provision of any other title or chapter of this code or any other ordinance or resolution of the County, nor be deemed to repeal, amend, be in lieu of, replace or in any way affect any tax, fee or other charge imposed, assessed or required by, under or by virtue of any other title or chapter of this code or any other ordinance or resolution of the County. Any references made or contained in any other title or chapter of this code to any licenses, license taxes, fees or charges, or to any schedule of license fees, shall be deemed to refer to the licenses, license taxes, fees or charges, or schedule of license fees, provided for in other titles or chapters of this code. [Ord. 5408 § 1, 2022].

4.10.060 Payment—Location.

The business tax imposed under this chapter shall be paid to the Administrator in lawful money of the United States, at the Offices of the County Auditor-Controller-Treasurer-Tax Collector in Santa Cruz, California. “Lawful money” shall mean any coin, currency or negotiable instrument, exchangeable for said coin or currency, which the United States Congress has declared to be a national legal tender. [Ord. 5408 § 1, 2022].

4.10.070 Payment—Time limits.

The business tax imposed by this chapter shall be due and payable as follows:

(A) Each person owing a tax under this chapter shall, on or before the last day of the month following the close of each quarter of the calendar year (March 31st, June 30th, September 30th, and December 31st), prepare a tax statement to the Administrator of the total gross receipts and the amount of tax owed for the preceding calendar months. At the time the tax statement is filed, the full amount of the tax owed for the preceding calendar months shall be remitted to the Administrator.

Quarterly Reporting and Payment Deadlines:

Reporting Period	Period End Date	Report/Payment Due Date
January – March	March 31st	April 30th
April – June	June 30th	July 31st
July – September	September 30th	October 31st
October – December	December 31st	January 31st

(B) All tax statements shall be completed on forms provided by the Administrator.

(C) Tax statements and payments for all outstanding taxes owed to the County are immediately due to the Administrator upon cessation of business for any reason. [Ord. 5408 § 1, 2022].

4.10.080 Payments and communications made by mail—Proof of timely submittal.

Whenever any payment, statement, report, request or other communication received by the Administrator is received after the time prescribed by this chapter for the receipt thereof, but is in an envelope bearing a postmark showing that it was mailed on or prior to the date prescribed in this chapter for the receipt thereof, or whenever the Administrator is furnished substantial proof that the payment, statement, report, request or other communication was in fact deposited in the United States mail on or prior to the date prescribed for receipt thereof, the Administrator may regard such payment, statement, report, request or other communication as having been timely received. If the due day falls on Saturday, Sunday or a holiday, the due day shall be the next regular business day on which the County Building at 701 Ocean Street, Santa Cruz is open to the public. [Ord. 5408 § 1, 2022].

4.10.090 Payment—When taxes deemed delinquent.

Unless otherwise specifically provided under other provisions of this chapter, the taxes required to be paid pursuant to this chapter shall be deemed delinquent if not paid on or before the due date specified in SCCC 4.10.070. [Ord. 5408 § 1, 2022].

4.10.100 Notice not required by County.

The Administrator is not required to send a delinquency or other notice or bill to any person subject to the provisions of this chapter and failure to send such notice or bill shall not affect the validity of any tax or penalty due under the provisions of this chapter. [Ord. 5408 § 1, 2022].

4.10.110 Payment—Penalty for delinquency.

(A) Any person who fails or refuses to pay any business tax required to be paid pursuant to this chapter on or before the due date shall pay penalties and interest as follows:

(1) A penalty equal to 25 percent of the amount of the tax in addition to the amount of the tax, plus interest on the unpaid tax calculated from the due date of the tax at a rate established by resolution of the Board of Supervisors; and

(2) An additional penalty equal to 25 percent of the amount of the tax if the tax remains unpaid for a period exceeding one calendar month beyond the due date, plus interest on the unpaid tax and on the unpaid penalties, calculated at the rate established by resolution of the Board of Supervisors.

Interest shall be applied at the monthly rate on the first day of the month for the full month and will continue to accrue monthly on the tax and penalty until the balance is paid in full. Only payments for the full amount due shall be accepted; partial payments shall not be accepted.

(B) Whenever a check is submitted in payment of a business tax and the check is subsequently returned unpaid by the bank upon which the check is drawn, and the check is not redeemed prior to the due date, the taxpayer will be liable for the tax amount due plus the return check fee, penalties and interest as provided for in this section, and any amount allowed under State law.

(C) The business tax due shall be that amount due and payable from the first date on which single-use, disposable cup fees were collected under Chapter 5.47 SCCC after the effective date of this chapter, together with applicable penalties and interest calculated in accordance with subsection (A) of this section. [Ord. 5408 § 1, 2022].

4.10.120 Waiver of penalties.

The Administrator may waive the first and second penalties of 25 percent each imposed upon any person if:

(A) The person provides evidence satisfactory to the Administrator that failure to pay timely was due to circumstances beyond the control of the person and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, and the person paid the delinquent business tax and accrued interest owed the County prior to applying to the Administrator for a waiver.

(B) The waiver provisions specified in this subsection shall not apply to interest accrued on the delinquent tax and a waiver shall be granted only once during any 24-month period. [Ord. 5408 § 1, 2022].

4.10.130 Refunds—Credits.

(A) No refund shall be made of any tax collected pursuant to this chapter, except as provided in SCCC 4.10.140.

(B) No refund of any tax collected pursuant to this chapter shall be made because of the discontinuation, dissolution or other termination of a business.

(C) Any person entitled to a refund of taxes paid pursuant to this chapter may elect in writing to have such refund applied as a credit against such person’s business taxes for the next payment period. [Ord. 5408 § 1, 2022].

4.10.140 Refunds and procedures.

(A) Whenever the amount of any business tax, penalty or interest has been overpaid, paid more than once, or has been erroneously or illegally collected or received by the County under this chapter, it may be refunded to the claimant who paid the tax; provided, that a written claim for refund is filed with the Administrator within three years of the date the tax was originally due and payable, and the provisions of Chapter 1.05 SCCC are satisfied.

(B) The Administrator or the Administrator’s authorized agent shall have the right to examine and audit all the books and business records of the claimant to determine the eligibility of the claimant to the claimed refund. No claim for refund shall be allowed if the claimant refuses to allow such examination of claimant’s books and business records after request by the Administrator to do so.

(C) In the event that the business tax was erroneously paid and the error is attributable to the County, the entire amount of the tax erroneously paid shall be refunded to the claimant. If the error is attributable to the claimant, the County shall retain the amount set forth in the schedule of fees and charges established by resolution of the Board of Supervisors from the amount to be refunded to cover expenses. [Ord. 5408 § 1, 2022].

4.10.150 Enforcement—Duties of Tax Administrator and Sheriff.

It shall be the duty of the Administrator to enforce the provisions of this chapter, and the Sheriff shall render such assistance in the enforcement of this chapter as may from time to time be required by the Administrator. [Ord. 5408 § 1, 2022].

4.10.160 Rules and regulations.

For purposes of apportionment as may be required by law and for purposes of administration and enforcement of this chapter generally, the Administrator, with the concurrence of the County Counsel, may from time to time promulgate administrative rules and regulations. [Ord. 5408 § 1, 2022].

4.10.170 Audit and examination of records and equipment.

(A) The Administrator shall have the power to audit and examine all books and records of persons engaged in collecting single-use, disposable cup fees under Chapter 5.47 SCCC, including both State and Federal income tax returns, California sales tax returns, or other evidence documenting the gross receipts of persons engaged in selling single-use, disposable cups, and, where necessary, all equipment of any person engaged in such sales, for the purpose of ascertaining the amount of business tax, if any, required to be paid by the provisions hereof, and for the purpose of verifying any statements or any item thereof when filed by any person pursuant to the provisions of this chapter. If such person, after written demand by the Administrator, refuses to make available for audit, examination or verification such books, records or equipment as the Administrator requests, the Administrator may, after full consideration of all information within their knowledge concerning the business and activities of the person so refusing, make an assessment in the manner provided in SCCC 4.10.200 through 4.10.220 of any taxes estimated to be due.

(B) It shall be the duty of every person liable for the collection and payment to the County of any tax imposed by this chapter to keep and preserve, for a period of at least three years, all records as may be necessary to determine the amount of such tax as they may have been liable for the collection of and payment to the County, which records the Administrator shall have the right to inspect at all reasonable times. [Ord. 5408 § 1, 2022].

4.10.180 Tax deemed debt to County.

The amount of any tax, penalties and interest imposed by the provisions of this chapter shall be deemed a debt to the County and any person required to pay the tax who does not pay the tax shall be liable in an action in the name of the County in any court of competent jurisdiction for the amount of the tax, penalties, and interest imposed. [Ord. 5408 § 1, 2022].

4.10.190 Deficiency determinations.

If the Administrator is not satisfied that any statement filed as required under the provisions of this chapter is correct, or that the amount of tax is correctly computed, they may compute and determine the amount to be paid and make a deficiency determination upon the basis of the facts contained in the statement or upon the basis of any information in their possession or that may come into their possession within three years of the date the tax was originally due and payable. One or more deficiency determinations of the amount of tax due for a period or periods may be made. When a person stops selling single-use, disposable cups and collecting the fees required under Chapter 5.47 SCCC, a deficiency determination may be made at any time within three years thereafter as to any liability arising from engaging in such business whether or not a deficiency determination is issued prior to the date the tax would otherwise be due. Whenever a deficiency determination is made, a notice shall be given to the person concerned in the same manner as notices of assessment are given under SCCC 4.10.200 through 4.10.220. [Ord. 5408 § 1, 2022].

4.10.200 Tax assessment—Authorized when—Nonpayment—Fraud.

(A) Under any of the following circumstances, the Administrator may make and give notice of an assessment of the amount of tax owed by a person under this chapter:

(1) If the person has not filed any statement required under the provisions of this chapter;

(2) If the person has not paid any tax due under the provisions of this chapter;

(3) If the person has not, after demand by the Administrator, filed a corrected statement, or furnished to the Administrator adequate substantiation of the information contained in a statement already filed, or paid any additional amount of tax due under the provisions of this chapter.

(B) If the Administrator determines that the nonpayment of any business tax due under this chapter is due to fraud, a penalty of 25 percent of the amount of the tax shall be added thereto in addition to penalties and interest otherwise stated in this chapter.

(C) The notice of assessment shall separately set forth the amount of any tax known by the Administrator to be due or estimated by the Administrator, after consideration of all information within the Administrator’s knowledge concerning the business and activities of the person assessed, to be due under each applicable section of this chapter, and shall include the amount of any penalties or interest accrued on each amount to the date of the notice of assessment. [Ord. 5408 § 1, 2022].

4.10.210 Tax assessment—Notice requirements.

The notice of assessment shall be served upon the person either by delivering it personally, or by a deposit of the notice in the United States mail, postage prepaid thereon, addressed to the person at the address of the location of the business or to such other address as they shall register with the Administrator for the purpose of receiving notices provided under this chapter; or, should the person have no address registered with the Administrator for such purpose, then to such person’s last known address. For the purposes of this section, a service by mail is complete at the time of deposit in the United States mail. [Ord. 5408 § 1, 2022].

4.10.220 Tax assessment—Hearing—Application and determination.

Within 10 days after the date of service the person may apply in writing to the Administrator for a hearing on the assessment. If application for a hearing before the County is not made within the time herein prescribed, the tax assessed by the Administrator shall become final and conclusive. Within 30 days of the receipt of any such application for hearing, the Administrator shall cause the matter to be set for hearing before them not later than 35 days after the receipt of the application, unless a later date is agreed to by the Administrator and the person requesting the hearing. Notice of such hearing shall be given by the Administrator to the person requesting such hearing not later than five days prior to such hearing. At such hearing said applicant may appear and offer evidence why the assessment as made by the Administrator should not be confirmed and fixed as the tax due. After such hearing the Administrator shall determine and reassess the proper tax to be charged and shall give written notice to the person in the manner prescribed in SCCC 4.10.210 for giving notice of assessment. [Ord. 5408 § 1, 2022].

4.10.230 Conviction for chapter violation—Taxes not waived.

The conviction and punishment of any person for failure to pay the required tax shall not excuse or exempt such person from any civil action for the tax debt unpaid at the time of such conviction. No civil action shall prevent a criminal prosecution for any violation of the provisions of this chapter or of any State law requiring the payment of all taxes. [Ord. 5408 § 1, 2022].

4.10.240 Violation deemed misdemeanor—Penalty.

Any person violating any of the provisions of this chapter or any regulation or rule passed in accordance herewith shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punishable by a fine of not more than $500.00 or by imprisonment for a period of not more than six months, or by both such fine and imprisonment. [Ord. 5408 § 1, 2022].

4.10.250 Severability.

Should any provision of this chapter, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable, or otherwise void, that determination shall have no effect on any other provision of this chapter or the application of this chapter to any other person or circumstance and, to that end, the provisions hereof are severable. [Ord. 5408 § 1, 2022].

4.10.260 Remedies cumulative.

All remedies and penalties prescribed by this chapter or which are available under any other provision of law or equity, including but not limited to the California False Claims Act (Government Code Section 12650 et seq.) and the California Unfair Practices Act (Business and Professions Code Section 17070 et seq.), are cumulative. The use of one or more remedies by the County shall not bar the use of any other remedy for the purpose of enforcing the provisions of this chapter. [Ord. 5408 § 1, 2022].

4.10.270 Amendment or repeal.

This chapter of the Santa Cruz County Code may be repealed or amended by the Board of Supervisors without a vote of the people. However, as required by Article XIIIC of the California Constitution, voter approval is required for any amendment provision that would increase the rate of any tax levied pursuant to this chapter. [Ord. 5408 § 1, 2022].