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<br />services for intrastate, interstate or international calls. The tax imposed by this section <br />shall be at the rate of six (6) percent of all charges made for such services and shall be <br />collected from the service user by the telephone communication services supplier or its <br />billing agent. To the extent allowed by law, the tax on telephone communication <br />services shall apply to a service user if the billing or service address of the service user <br />is within the city's boundaries. If the billing address of the service user is different from <br />the service address, the service address of the service user shall be used. <br /> <br />(b) The tax imposed under subsection (a), above, shall not be imposed upon any <br />person for using Telephone Communication Services to the extent that the amounts <br />paid for such services are exempt from or are not subject to the Federal <br />Communications Excise Tax as it was interpreted by the Internal Revenue Service prior <br />to May 25, 2006. In the event that the Federal Communications Excise Tax is repealed, <br />any reference in this section to such law shall refer to that body of law, that existed <br />immediately prior to the date of repeal. <br /> <br />(c) The tax administrator, from time to time, may issue administrative rulings clarifying <br />those Telephone Communication Services that are subject to the tax of subsection (a) <br />above. These administrative rulings shall be for the purpose of ensuring that despite <br />changes in communications technologies and practices, or changes in body of federal <br />law referred to in this Article, the tax remains applicable to all of those services intended <br />by this Article, to the extent not preempted by the State of California or the United <br />States of America. In no event, shall such administrative rulings be interpreted or have <br />the effect of imposing a new tax, revising any existing tax methodology, or increasing an <br />existing tax. <br /> <br />(d) As used in this section, the term "charges" shall include the value of any other <br />services. credits, property of every kind or nature, or other consideration provided by the <br />service user in exchange for the telephone communication services. If a non-taxable <br />service and a taxable service are billed together under a single charge, the entire <br />charge shall be deemed taxable unless the service supplier can reasonably identify <br />charges not subject to the utility users tax based upon its books and records that are <br />kept in the regular course of business, which shall be consistent with generally accepted <br />accounting principles. The term "charges" shall not include charges for services paid for <br />by inserting coins in coin-operated telephones except that where such coin-operated <br />telephone service is furnished for a guaranteed amount, the amounts paid under such <br />guarantee plus any fixed monthly or other periodic charge shall be included in the base <br />for computing the amount of tax due. <br /> <br />(e) To prevent actual multi-jurisdictional taxation of telephone communication services <br />subject to tax under this section, any service user, upon proof to the tax administrator <br />that the service user has previously paid the same tax in another state or city on such <br />telephone communication service, shall be allowed a credit against the tax imposed to <br />the extent of the amount of such tax legally imposed in such other state or city; <br />provided, however, the amount of credit shall not exceed the tax owed to the city under <br />this section. For purposes of establishing sufficient legal nexus for the imposition and <br />collection of utility users tax on charges for telephone communication services pursuant <br />to this code, "minimum contacts" shall be construed broadly in favor of the imposition <br /> <br />Ordinance No. NS-2721 <br />Page 3 of 4 <br />