Agenda Packet_2025-05-06 - Laserfiche WebLink

Home Browse Search

Sec. 35-159. Water user tax. (a) There is hereby imposed a tax upon every person in the City of Santa Ana using water in the city which is delivered through a pipeline distribution system. The tax imposed by this section shall be at the rate of six (6) percent of the charges made for such water and shall be collected from the service user by the service supplier, or its billing agent. (b) As used in this section, the term "charges" shall apply to all services, components and items that are: i) necessary or common to the receipt, use and enjoyment of water service; or, ii) currently, or historically have been, included in a single or bundled rate for water service by a local distribution company to a class of retail customers. The term "charges" shall include, but is not limited to, the following charges: (1) Water commodity charges (potable and non -potable); (2) Distribution or transmission charges; (3) Metering charges; (4) Customer charges, late charges, service establishment or reestablishment charges, franchise fees, franchise surcharges, annual and monthly charges, and other charges, fees and surcharges which are necessary for or common to the receipt, use and enjoyment of water service; and (5) Charges, fees, or surcharges for water services or programs, which are mandated by a water district or a state or federal agency, whether or not such charges, fees, or surcharges appear on a bundled or line item basis on the customer billing. (c) 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 water services. 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 can reasonably identify charges not subject to the utility users tax based upon its books and records that are kept in the regular course of business, which shall be consistent with generally accepted accounting principles. (d) 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 a pipeline distribution system. (e) The tax on water service imposed by this section shall be collected from the service user by the service supplier or its billing agent. The amount of tax collected in one (1) month shall be remitted to the tax administrator on or before the twentieth (20th) day of the following month in accordance with section 35- 163 of this Code. (f) Notwithstanding subsection (e), above, the city, when acting as the service supplier or billing agent, may remit the amount of tax collected to the tax administrator in accordance with any administrative rules established by the tax administrator. (Ord. No. NS-2436, § 2, 8-4-00) Sec. 35-159.1. Reduction in rate. The water user tax imposed under section 35-159 shall be reduced from six (6) percent to five and one-half (5%) percent. ( Ord. No. NS-2860, § 9, 12-9-14 ) City PiNPPAIRgil RFP No. 23-%-5 198 PaN@/?X§ 196