225.1.1 DEFINITIONS.
(Amended by O-3230; Ord. of 6-3-08 [Res. 2008-88])
The following words and phrases whenever used in this Chapter shall be construed as defined in this Section:
a) ‘Ancillary telecommunications services’ means services that are associated with or incidental to the provision, use or enjoyment of telecommunications services including, but not limited to:
(1) Services that link two or more participants of an audio or video conference call, including the provision of a telephone number.
(2) Services that separately state information pertaining to individual calls on a customer’s billing statement.
(3) Services that provide telephone number information, and/or address information.
(4) Services offered in connection with one or more telecommunications services, which offer advanced calling features that allow customers to identify callers and to manage multiple calls and call connections.
(5) Services that enable customers to store, send or receive recorded messages.
b) ‘Billing address’ means the mailing address of the service user to which the service supplier addresses invoices or bills for payment by the customer.
c) ‘City’ shall mean the City of Torrance.
d) ‘Director’ shall mean the Director of Finance of the City of Torrance or his or her designee.
e) ‘Month’ shall mean a calendar month.
f) ‘Non-utility supplier’ shall mean a service supplier, other than an electrical corporation franchised to serve the City, which generates electrical energy in capacities of at least fifty (50) kilowatts for its own use or for sale to others.
g) ‘Person’ shall mean all domestic and foreign corporations, associations, syndicates, joint stock companies, partnerships of every kind, joint ventures, clubs, Massachusetts business or common law trusts, societies, and individuals, and shall include a municipal corporation.
h) ‘Service address’ means the residential street address or the business street address of the service user’s primary place of usage of the service which is subject to tax under this Chapter.
i) ‘Service supplier’ shall mean a person required to collect or self-impose and remit a tax imposed by this Chapter.
j) ‘Service user’ shall mean a person required to pay a tax imposed by this Chapter.
k) ‘Telephone communication services’ includes the transmission, conveyance, or routing of voice, data, audio, video, or any other information or signals to a point, or between or among points, whether or not such information is transmitted through interconnected service with the public switched network, whatever the technology used, whether such transmission, conveyance or routing occurs by wire, cable, fiber-optic, light wave, laser, microwave, radio wave (including, but not limited to, cellular service, commercial mobile service, personal communications service (PCS), specialized mobile radio (SMR), and other types of personal wireless service - see 47 USCA Section 332(c) (7) (C) (i) - regardless of radio spectrum used), switching facilities, satellite or any other technology now existing or developed after the adoption of this ordinance, and includes, without limitation, fiber optic, coaxial cable, and wireless. The term "telephone communication services" includes such transmission, conveyance, or routing in which computer processing applications are used to act on the form, code or protocol of the content for purposes of transmission, conveyance or routing without regard to whether such services are referred to as voice over internet protocol (VoIP) services or are classified by the Federal Communications Commission as enhanced or value added, and includes video and/or data services that are functionally integrated with telecommunications services. "Telephone communication services" include, but are not limited to, the following services, regardless of the manner or basis on which such services are calculated or billed: central office and custom calling features (including, but not limited to, call waiting, call forwarding, caller identification and three-way calling), local number portability, text messaging, ancillary telecommunication services, prepaid and post-paid telecommunications services (including, but not limited to, prepaid calling cards); mobile telecommunications service; private telecommunication service; paging service; 800 service (or any other toll-free numbers designated by the Federal Communications Commission); and value-added non-voice data service. For purposes of this section, "private telecommunication service" means any dedicated telephone communications service that entitles a user to exclusive or priority use of communications channels. Telephone Communication Service does not include charges for access to the internet or digital downloads, such as downloads of books, music, ringtones, games and similar digital products or the provision of television signals by satellite dish or other wireless means.
l) ‘Telephone corporation,’ ‘electrical corporation,’ ‘gas corporation,’ ‘water corporation,’ and ‘cable television corporation’ shall have the same meanings as defined in Section 234, 218, 222, 241, and 215.5, respectively, of the Public Utilities Code of the State of California, as said sections existed on January 1, 1969. Electrical corporation and water corporation, shall be construed to include any City-franchised organization or agency and any municipality or agency engaged in the selling or supplying of electrical power or water to a service user.
225.1.2 CONSTITUTIONAL EXEMPTIONS.
Nothing in this Chapter shall be construed as imposing a tax upon any person when imposition of such tax upon that person would be in violation of the Constitution of the United States or that of the State of California.
225.1.3 TELEPHONE COMMUNICATIONS SERVICES TAX.
(Amended by O-2372; O-2671; O-2672; O-2841; O-3274; O-3299; O-3332; O-3377; O-3705; Ord. of 6-3-08 [Res. 2008-88])
a) There is imposed a tax upon every person, other than a telephone corporation, who uses telephone communication services in the city, including intrastate, interstate, and international telephone communication services, to the extent permitted by federal and state law. The telephone users tax is intended to, and does, apply to all charges within the city’s tax jurisdiction, such as charges billed to a telephone account having a situs in the city as permitted by the Mobile Telecommunications Sourcing Act of 2000, 4 U.S.C. § 116 et seq. The tax imposed by this section shall be at the rate of 6 1/2 percent. The tax shall apply to all charges made for such telephone communication services and shall be collected from the service user by the telephone communication services supplier or its billing agent. There is a rebuttable presumption that telephone communication services billed to a billing or service address in the city are used, in whole or in part, within the city’s boundaries, and that such services are subject to taxation under this chapter. There is also a rebuttable presumption that telephone communication services sold within the city that are not billed to a billing address or provided to a primary physical location, including, without limitation, calling card services, are used, in whole or in part, within the city’s boundaries and that such services are subject to taxation under this chapter.
b) The tax imposed in this Section shall be collected from the service user by the person providing the telephone communication services. The amount of tax collected in one (1) month shall be remitted to the Director on or before the 20th day of the following month.
c) The following shall be exempt from the tax imposed by this section:
(1) Charges paid for by inserting coins in coin-operated telephones available to the public with respect to local telephone service, or with respect to long distance telephone service if the charge for such long distance telephone service is less than 25 cents; 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 subject to the tax.
(2) Except with respect to local telephone service, on any charges for services used in the collection of news for the public press, or a news ticker service furnishing a general news service similar to that of the public press, or radio broadcasting, or in the dissemination of news through the public press, or a news ticker service furnishing a general news service similar to that of the public press, or by means of radio broadcasting, if the charge for such service is billed in writing to such person.
(3) Charges for services furnished to an international organization or to the American National Red Cross.
(4) Charges for any long distance telephone service which originates within a combat zone, as defined in section 112 of the Internal Revenue Code, from a member of the Armed Forces of the United States performing service in such combat zone, as determined under such section, provided a certificate, setting forth such facts as the Secretary of the U.S. Treasury may by regulations prescribe, is furnished to the person receiving such payment.
(5) Charges for any long distance telephone service to the extent that the amount so paid is for use by a common carrier, telephone or telegraph company, or radio broadcasting station or network in the conduct of its business as such.
(6) Amounts paid by a nonprofit hospital for services furnished to such organization. For purposes of this subsection, the term ‘nonprofit hospital’ means a hospital referred to in Internal Revenue Code section 170(b)(1)(A)(iii) which is exempt from income tax under Internal Revenue Code section 501(a).
(7) Charges for services or facilities furnished to the government of any State, or any political subdivision thereof, or the District of Columbia.
(8) Charges paid by a nonprofit educational organization for services or facilities furnished to such organization. For purposes of this subsection, the term ‘nonprofit educational organization’ means an educational organization described in Internal Revenue Code section 170(b)(1)(A)(ii) which is exempt from income tax under Internal Revenue Code section 501(a). The term also includes a school operated as an activity of an organization described in Internal Revenue Code section 501(c)(3) which is exempt from income tax under Internal Revenue Code section 501(a), if such school normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on.
(9) Charges for maritime mobile services as defined in Section 2.1 of Title 47 of the Code of Federal Regulations as such section existed on October 1, 1967.
d) As used in this section, the term ‘charges’ shall include the value of any other services, credits, property of every kind or nature, or other consideration provided by the service user in exchange for the telephone communication services.
e) The Director may, from time to time, issue and disseminate to telecommunication service suppliers which are subject to the tax collection requirements of this chapter administrative rulings identifying those telecommunication services that are subject to the tax of subsection A of this section. Such administrative rulings shall be consistent with legal nexus and laws pertaining to telephone communications services and shall not impose a new tax, revise an existing tax methodology, or increase an existing tax, except as permitted by California Government Code Section 53750(h)(2) and (3) or other law. The Director may consider state-wide interpretive rules and guidelines promulgated by any government agency or association of government agencies as a factor in determining the intent of voters adopting this section. To the extent that the tax administrator determines that the tax imposed under this section shall not be collected in full for any period of time, such an administrative ruling falls within the tax administrator’s discretion to settle disputes. The tax administrator’s exercise of prosecutorial forbearance under this Chapter does not constitute a change in taxing methodology for purposes of Government Code section 53750(h), and the city does not waive or abrogate its ability to impose the telephone users’ tax in full as a result of issuing such administrative rulings and may suspend such rulings and recommence collection of the tax without additional voter approval.
225.1.4 ELECTRICITY USERS’ TAX.
(Amended by O-2671; O-2672; O-2841; O-3230; O-3332; O-3377)
a) There is hereby imposed a tax upon every person in the City using electrical energy in the City. The tax imposed by this Section shall be at the rate of six (6) percent of the charges made for such energy; provided, however, that effective July 1, 1991, the tax imposed by this Section shall be at the rate of six and one-half (6 1/2) percent of the charges made for such energy by an electrical corporation franchised to serve the City and shall be paid by the person using such services. The tax applicable to electrical energy provided by a nonutility supplier shall be determined by applying the tax rate to the equivalent charges the service user would have incurred if the energy used had been provided by the electrical corporation franchised by the City. Nonutility suppliers shall install and maintain an appropriate utility-type metering system which will enable compliance with this Section. 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 annual and monthly charges.
b) As used in this Section, the term "using electrical energy" shall not be construed to apply to the storage of such energy in a battery, or the use thereof in a motor vehicle or other device apart from the premises where the battery was charged; nor shall the term include the mere receiving of such energy by an electric public utility or governmental agency at a point within the City for resale.
c) There shall be excluded from the base on which the tax imposed in this Section is computed, charges made for electricity used in the production or distribution of water.
d) There shall be excluded from any tax imposed in this Section, an amount equal to the amount of any Utility User’s Tax paid by the nonutility supplier for natural gas used as fuel in the production of electricity.
e) The tax imposed in this Section shall be collected from the service user by the person supplying such energy. The tax shall be self-imposed by nonutility suppliers as to their own use. The amount of tax collected or self-imposed in one (1) month shall be remitted to the Director on or before the 20th day of the following month.
225.1.5 GAS USERS’ TAX.
(Amended by O-2518; O-2671; O-2672; O-2841; O-3332; O-3377; O-3395)
a) There is hereby imposed a tax upon every person using in the City gas that is transported through a gas pipeline distribution system or by mobile transport. The tax imposed by this Section shall be at the rate of six and one-half (6 1/2) percent of the charges made for such gas, including all services related to the transportation and delivery of such gas, and shall be paid by the person paying for such gas.
"Charges" as used in this Section shall include: (1) the commodity charges for purchased gas, or the cost of gas owned by the service user, that is delivered through a gas pipeline distribution system or by mobile transport; (2) gas transportation charges (including interstate charges to the extent not included in commodity charges); and (3) capacity or demand charges, service charges, customer charges, minimum charges, annual and monthly charges, and any other charges authorized by the California Public Utilities Commission or the Federal Energy Regulatory Commission. "Charges" shall also include the value of any other services, credits, property of every kind or nature, or other consideration provided by the service user in exchange for the gas or services related to the delivery of such gas.
The "cost of gas owned by the service user" shall include the actual costs attributable to drilling, production, lifting, storage, gathering, trunkline, pipeline, and other operating costs associated with the production and delivery of such gas.
b) There shall be excluded from the base on which the tax imposed in this Section is computed charges made for gas which is to be resold and delivered through mains or pipes; charges made for gas sold for use in the generation of electrical energy by a public utility or a governmental agency; charges made from gas used in the production or distribution of water; and charges made by a gas public utility for gas used and consumed in the conduct of the business of gas public utilities.
c) The tax imposed in this Section shall be collected from the service user by the person selling the gas. The amount collected in one (1) month shall be remitted to the Director on or before the 20th day of the following month.
d) As used in this Section, the term "using gas" shall not be construed to include the use of natural gas in the operation of motor vehicles.
225.1.6 WATER USERS’ TAX.
(Amended by O-2671; O-2672; O-2841)
a) There is hereby imposed a tax upon every person in the City using water in the City which is delivered through mains or pipes. The tax imposed by this Section shall be at the rate of five and one-half (5 1/2) percent of the charges made for such water and shall be paid by the person paying for such water; provided, however, that effective January 1, 1979, the tax imposed in this Section shall be at the rate of six (6) percent of the charges made for such water and shall be paid by the person paying for such water. Charges, as used in this Section, shall include charges for 1) metered quantities of water, 2) service or minimum charges, and 3) private fire protection service.
b) There shall be excluded from the base on which the tax imposed in this Section is computed, charges made for water which is to be resold and delivered through mains or pipes; charges made by a municipal water department, public utility or a county or municipal water district for water used and consumed by such department, utility or district in the conduct of the business of such department, utility or district; and water used in the production of electrical energy.
c) The tax imposed in this section shall be collected from the service user by the person selling the water. The amount collected in one (1) month shall be remitted to the Director on or before the 20th day of the following month.
225.1.7 CABLE TELEVISION USERS’ TAX.
(Amended by O-2671; O-2672; O-2841; O-3332; O-3377)
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 six (6) percent of the charges made for such service and shall be paid by the person paying for such service; provided, however, that effective July 1, 1991, the tax imposed in this Section shall be at the rate of six and one-half (6 1/2) percent of the charges made for such service and shall be paid by the person paying for such service.
b) The tax imposed in this Section shall be collected from the service user by the service supplier. The amount of the tax collected in one (1) month shall be remitted to the Director on or before the 20th day of the following month.
225.1.8 POWERS AND DUTIES OF DIRECTOR.
The Director shall have the power and duty and is hereby directed to enforce each and all of the provisions of this Chapter.
225.1.9 DUTY TO COLLECT; PROCEDURE.
The duty to collect and remit the taxes imposed by this Chapter shall be performed as follows:
a) The tax shall be collected insofar as practicable at the same time as and along with the charges made in accordance with the regular billing practice. If the amount paid by a service user is less than the full amount of the charge and tax which has accrued for the billing period, a proportionate share of both the charge and the tax shall be deemed to have been paid.
b) The duty to collect tax from a service user shall commence with the beginning of the first regular billing period applicable to the person which starts on or after the operative date of this Chapter. Where a service user 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.
c) Where the remittance of taxes collected under this Chapter is based upon the estimated percentage of the total amount billed, less uncollectibles and delinquents, the service supplier may submit a payment plan to the Director for his approval. If the Director determines after examining the plan that it is reasonable based on prior systemwide bill collection experience he shall approve the plan. If there is indication to the Director that the payments made are less than ninety-five (95) percent of the actual taxes due he is authorized to investigate and determine whether the service supplier shall submit a new plan.
225.1.10 FAILURE TO REMIT; PENALTY AND INTEREST.
a) Original Delinquency. Any service supplier who fails to remit any tax imposed by this Chapter on or before the due dates provided in this Chapter is delinquent and shall pay a penalty of ten (10) percent of the total tax collected or imposed herein in addition to the amount of the tax.
b) Continued Delinquency. Any service supplier who fails to remit any delinquent remittance on or before a period of thirty (30) days following the date on which the remittance first became delinquent shall pay a second delinquency penalty of ten (10) percent of the amount of the tax due in addition to the amount of the tax and the ten (10) percent penalty first imposed.
c) Fraud. If the Director determines that the nonpayment of any remittance due under this Chapter is due to fraud, a penalty of twenty-five (25) 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 service supplier who fails to remit any tax imposed by this Chapter shall pay interest at the rate of one-half (1/2) of one (1) 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.
225.1.11 RECORDS.
(Amended by O-3230)
It shall be the duty of every service supplier to keep and preserve for a period of three (3) years all records as may be necessary to determine the amount of such tax as he may have been liable for the remittance to the Director, which records the Director shall have the right to inspect at all reasonable times.
225.1.12 FAILURE TO PAY; PENALTY AND INTEREST.
a) Whenever the Director determines that a service user has deliberately withheld the amount of the tax owed by him from the amounts remitted to a person required to collect the tax; or that a service user has failed to pay the amount of the tax to such person for a period of two (2) or more billing periods, or whenever the Director deems it in the best interest of the City, he may relieve such person of the obligation to collect taxes due under this Chapter from certain named service users for specified billing periods. The Director shall notify the service user that he has assumed responsibility to collect the taxes due for the stated periods and demand payment of such taxes. The notice shall be served on the service user by handing it to him personally or by deposit of the notice in the United States mail, postage prepaid thereon, addressed to the service user at the address to which billing was made by the person required to collect the tax; or, should the service user have changed his address, to the last known address. If a service user fails to remit the tax to the Director within fifteen (15) days from the date of the service of the notice upon him, which shall be the date of mailing if service is not accomplished in person, a penalty of twenty-five (25) percent 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 part of the tax herein to be paid.
b) In addition to the penalties imposed, any service user who fails to pay any tax imposed by this Chapter shall pay interest at the rate of one-half (1/2) of one (1) percent per month or fraction thereof on the amount of the tax, exclusive of penalties from the date on which the payment first became delinquent until paid.
225.1.13 ASSESSMENT.
a) The Director may make an assessment for taxes not paid or remitted by a person required to pay or remit. A notice of the assessment which shall refer briefly to the amount of the taxes and penalties imposed and the time and place when such assessment shall be submitted to the City Council for confirmation or modification. The Director shall mail a copy of such notice to the service supplier and to the service user at least ten (10) days prior to the date of the hearing and shall post such notice for at least five (5) continuous days prior to the date of the hearing on the chamber door of the City Council. Any interested party having any objection may appear and be heard at the hearing provided his objection is filed in writing with the Director prior to the time set for the hearing.
b) At the time fixed for considering said assessment, the City Council shall hear the same together with any objection filed as aforesaid and thereupon may confirm or modify said assessment by motion.
225.1.14 ACTIONS TO COLLECT.
Any tax required to be paid by a service user under the provisions of this Chapter shall be deemed a debt owed by the service user to the City. Any such tax collected from a service user which has not been remitted to the Director shall be deemed a debt owed to the City by the person required to collect and remit. Any person owing money to the City under the provisions of this Chapter shall be liable to an action brought in the name of the City for the recovery of such amount.
225.1.15 REFUNDS.
(Amended by O-3160; O-3230; O-3692)
(a) Whenever the amount of any tax has been overpaid, paid more than once, or has been erroneously or illegally collected or received by the Finance Director under this Chapter, it may be refunded as provided in this section.
(b) The Finance Director may refund any tax that has been overpaid, paid more than once, or has been erroneously or illegally collected or received by the Finance Director under this Chapter, provided that no refund shall be paid under the provisions of this section unless the claimant or his or her guardian, conservator, executor or administrator has submitted a written claim, under penalty of perjury, to the Finance Director within one year of the overpayment or erroneous or illegal collection of said tax. The claim must clearly establish the claimant’s right to the refund by written records demonstrating the claimant’s entitlement to a refund. Filing of a refund claim on behalf of a class or group of taxpayers is prohibited, unless each member of the class has submitted a written claim under penalty of perjury as provided by this subsection.
(c) It is the intent of the City that the one year written claim requirement of this section be given retroactive effect; provided, however, that any claims which arose prior to the enactment of the one year claims period of this section, and which are not otherwise barred by a then-applicable statute of limitations or claims procedure, must be filed with the Finance Director as provided in this subsection within 90 days following the effective date of this ordinance.
(d) The Finance Director or his or her designee must act upon the refund claim within 45 days of its receipt. The decision of the Finance Director is final. The Finance Director will give notice of the action in a form which substantially complies with that set forth in Government Code Section 913.
If the Finance Director fails or refuses to act on a refund claim within the 45 day period, the claim will be deemed to have been rejected on the 45th day. An appeal may be taken from the decision of the Finance Director, in accordance with the provisions of Article 11.5 of the Torrance Municipal Code.
(e) The filing of a written claim pursuant to Government Code Section 935 is a prerequisite to any suit for refund. Any action brought against the City pursuant to this section is subject to the provisions of Government Code Sections 945.6 and 946.
(f) Notwithstanding the notice provisions of subsection (a) of this section, in the event that a service supplier, or a person required to self-impose a tax imposed by this Chapter, remits a tax to City in excess of the amount of tax imposed by this Chapter, the service supplier, or a person required to self-impose a tax imposed by this Chapter, may claim credit for such overpayment against the amount of tax which is due upon any other monthly returns to the Finance Director, provided the credit is claimed in a return dated no later than one year from the date of overpayment of tax. The Finance Director must first determine the validity of the service supplier’s claim of credit, and the underlying basis for the claim.
(g) Notwithstanding the notice provisions of subsection (a) of this section, a service supplier that has collected any amount of tax in excess of the amount of tax imposed by this Chapter and actually due from a service user (whether due to overpayment or erroneous or illegal collection of said tax), may refund the amount to the service user, or credit to charges subsequently payable by the service user to the service supplier, and claim credit for the overpayment against the amount of tax which is due upon any other monthly returns to the Finance Director, provided the credit is claimed in a return dated no later than one year from the date of overpayment or erroneous or illegal collection of the tax. The Finance Director must first determine the validity of the service supplier’s claim of credit, and the underlying basis for the claim.
225.1.16 TENANT USERS.
(Added by O-2398)
a) All persons who are tenants, lessees, or who are the actual consumers of any telephone, electrical, gas, water or cable television service as defined in this Chapter but who have these services provided at no cost or in accordance with provisions of any lease or other agreement by another person shall be a service user for the purposes of this Chapter.
b) Any person who provides any telephone, electrical, gas, water or cable television service to any person defined as a service user in subsection a) of this Section shall either collect the taxes as required by this Chapter from any such service user and remit the amounts collected to the service supplier or remit an equal amount to the service supplier in lieu of the collection of such taxes from the service user. Any person responsible for collection of taxes required under this Section shall be liable for the penalties and shall be subject to the same penalties as set forth in Sections 225.1.9. and 225.1.10. of this Chapter.
225.1.17 UTILITY USERS’ TAX EXEMPTION.
(Added by O-2542; O-2543; Amended by O-2563; O-2671; O-2672; O-3089; O-3335;O-3513)
a) The tax imposed by this Chapter shall not apply to any individual taxpayer sixty-two (62) years of age or older or any permanently disabled individual who uses telephone, electric, gas, cable television or water services in or upon any premises occupied by such taxpayer which is the principal residence of such taxpayer, provided the combined gross income for the most recently completed calendar year of all members of the household residing in such principal residence does not exceed two and one-half (2.5) times the Federal Poverty Guidelines for a Family Unit size of one (1) in the forty-eight (48) contiguous states and D.C. For calendar year December 2001 the exempted amount totals Twenty-Two Thousand One Hundred and Fifty Dollars ($22,150). Proof of permanent disability shall be deemed sufficient if the applicant receives permanent disability insurance from social security or furnishes a statement signed by a licensed physician attesting to the applicant’s permanent disability.
b) The exemption granted by this Section shall not eliminate the duty of the service supplier from collecting taxes from such exempt individuals or the duty of such exempt individuals from paying such taxes to the service supplier unless an exemption is applied for by the service user and granted in accordance with the provisions of Section 225.1.18
225.1.18 PROCESSING OF EXEMPTION.
(Added by O-2563)
Any service user exempt from the taxes imposed by this Chapter because of the provisions of Section 225.1.17. above, may file an application with the Finance Director for an exemption. Such application shall be made upon forms supplied by the Finance Director and shall recite facts under oath which qualify the applicant for an exemption. The Finance Director shall review all such applications and certify as exempt those applicants determined to qualify therefor and shall notify all service suppliers affected that such exemption has been approved, stating the name of the applicant, the address to which such exempt service is being supplied, the account number, if any, and such other information as may be necessary for the service supplier to remove the exempt service user from its tax billing procedure. Upon receipt of such notice, the service supplier shall not be required to continue to bill any further tax imposed by this Chapter from such exempt service user until further notice by the Finance Director is given. The service supplier shall eliminate such exempt service user from its tax billing procedure for bills dated no later than sixty (60) days after receipt of such notice from the Finance Director.
225.1.19 CONTINUANCE OF EXEMPTION.
(Added by O-2563; Amended by O-3513)
a) All individuals that are exempted shall sign and file an affidavit bi-annually with the Finance Director stating that the prerequisite facts supporting the initial qualification for exemption remains true and unchanged provided, however, that the exemption shall automatically terminate with any change in the service address or residence of the exempt individual; and provided further that such individual may nevertheless apply for a new exemption with each change of address or residence.
b) Any individual exempt from the tax shall notify the Finance Director within ten (10) days of any change in fact or circumstance which might disqualify said individual from receiving such exemption. It shall be a misdemeanor for any person to knowingly receive the benefits of the exemptions provided by this Section when the basis for such exemption either does not exist or ceases to exist.
225.1.20 NOTIFICATION RE: NONEXEMPT USER.
(Added by O-2563)
Notwithstanding any other provision of this Chapter, any service supplier who determines by any means that a new or nonexempt service user is receiving service through a meter or connection exempt by virtue of an exemption issued to a previous user or exempt user of the same meter or connection, such service supplier shall immediately notify the Finance Director of such fact and the Finance Director shall conduct an investigation to ascertain whether or not the provisions of this Chapter have been complied with, and where appropriate, order the service supplier to commence collecting the tax from the nonexempt service user.
225.1.21 RIGHT OF APPEAL.
(Added by O-2563; Amended by O-2822)
In the event the Finance Director shall grant or reject any claim for exemption, an appeal may be taken pursuant to the provisions of Article 5, Chapter 1, Division 1 of this Code, commencing at Section 11.5.1.
225.1.22 BUNDLING TAXABLE AND NONTAXABLE CHARGES.
(Added by O-3705)
If a non-taxable service and a taxable service are billed together under a single charge, the entire charge shall be deemed taxable unless the Service Supplier or taxpayer reasonably identifies actual charges not subject to the utility users tax based upon books and records that are kept in the regular course of business, in a manner consistent with generally accepted accounting principles. The Service Supplier or Taxpayer has the burden of proving to the reasonable satisfaction of the Director the proper apportionment of taxable and nontaxable charges.
225.1.23 EFFECT OF STATE AND FEDERAL AUTHORIZATION.
(Added by Ord. of 6-3-08 [Res. 2008-88])
To the extent that the City’s authorization to impose or collect any tax imposed under this chapter is expanded or limited as a result of changes in state or federal law, no amendment or modification of this chapter shall be required to conform the tax to those changes, and the tax shall be imposed and collected to the full extent of the city’s authorization up to the full amount of the tax imposed under this chapter.
225.1.24 INDEPENDENT AUDIT.
(Added by Ord. of 6-3-08 [Res. 2008-88])
The City shall annually verify that the taxes owed under this chapter have been properly applied, exempted, collected, and remitted in accordance with this chapter, and properly expended according to applicable law. The annual verification shall be performed by a qualified independent third party and the review shall employ reasonable, cost-effective steps to assure compliance, including the use of sampling audits. The verification shall not be required of as to a service supplier where the cost of the verification is expected to exceed the tax revenues to be reviewed.