A. There is imposed a tax upon every person in the City using intrastate telephone communication services in the City. The tax imposed by this section shall be at the maximum rate of five percent of the charges made for such services, and shall be paid by the person paying for such services. Effective on July 1, 1979, said maximum rate shall be increased to six percent of the charges made for such services and shall be paid by the person paying for such service.

B. As used in this section, the term “charges” shall not include charges for services paid for by inserting coins in coin-operated telephones, except that where such coin-operated telephone service is furnished for a guaranteed amount, the amounts paid under such guarantee plus any fixed monthly or other periodic charge shall be included in the base for computing the amount of tax due. The term “charges” shall not include charges for services paid for by users of mobile telephone service and marine telephone service. The exclusion in the previous sentence for charges paid for by users of “mobile telephone service” shall only apply to such service as it existed at the time this section was first enacted in 1970, and as then defined in 47 C.F.R. Part 21.1 of the Federal Communications Act.

C. Notwithstanding the provisions of subsection (A) of this section, the tax imposed under this section shall not be imposed upon any person for using intrastate telephone communications services to the extent that the amounts paid for such services are exempt from or not subject to the tax imposed under Sections 4251, 4252 and 4253 of Title 26 of the United States Code (“federal excise tax”). In the event that the federal excise tax is repealed, this reference to such law, including any related federal regulations, private letter rulings, case law and other opinions interpreting these sections, shall refer to that body of law that existed immediately prior to the effective date of such repeal.

D. The tax imposed in this section shall be collected from the service user by the person providing the intrastate telephone communications services. The amount of tax collected in one month shall be remitted to the City Finance Officer on or before the twentieth day of the following month.

E. Any action or proceeding to determine or contest the validity of this section, or any amendment thereto, must be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the California Code of Civil Procedure. (Ord. 3318 § 2, 2014; Ord. 2816 § 1, 2000; Ord. 2423 § 1, 1990; Ord. 2414 § 2, 1990; Ord. 1803 § 1, 1978; Ord. 1690 § 1, 1976; Ord. 1288 § 1, 1970; prior code § 30.503).