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7-9-75
ORDINANCE NO. NS-1265
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SANTA ANA ADDING ARTICLE VI, TO
CHAPTER 35 OF THE SANTA ANA MUNICIPAL CODE
TO BE KNOWN AS THE UTILITY USERS TAX CODE
THE CITY COUNCIL OF THE CITY OF SANTA
AS FOLLOWS:
DOES ORDAIN
SECTION 1: That the Santa Ana Munic:
amended by adding Article VI to Chapter 35
of Sections 35-151, 35-152, 35-153, 35-15~
35-157, 35-158, 35-159, 35-160, 35-161,
35-165, 35-166 to read as follows:
Code is hereby
, consisting
35-155, 35-156,
35-163, 35-164,
ARTICLE VI. Utility
Tax Code
Sec. 35-151. Short Title.
This Article shall be
Code." The word "Code," as used
the "Utility Users Tax Code" un
as the "Utility Users Tax
this Article, shall mean
otherwise so indicated.
Sec. 35-152.
This Code is
peace, health, safety
to the City of Santa
sent level of servi~
are essential to tt
vention and
more equitable to
of telephone, ele¢
utility users tax.
income househ
Sec. 3
the preservation of public
reasons that present reven~es
~e insufficient to maintain the pre-
the citizenry, increased revenues
ementation of an expanded crime pre-
ram, and the utility-users tax is
itizens of Santa Ana since every user
ity and gas utilities will share in the
llowances are made herein to exempt low-
iDefinitions.
The
Code shall
words and phrases whenever used in this
nstrued as defined in this section.
(a) "i
~po~ ations
setts
~rson" shall mean all domestic and foreign
assocations, syndicates, joint-stock companies,
)f every kind, joint ventures, clubs, Massachu-
or common-law trusts, -societies, and indivi-
"City" shall mean the City of Santa Ana.
7) "Telephone corporation," "electrical corporation,"
~s corporation" shall have the same meanings as defined
in S~ tions 234, 218 and 241, respectively, of the Public
ties Code of the State of California as said sections
exi on January 1, 1975. "Electrical corporation" shall
be to include any municipality or franchised agency
[ed in the selling or supplying of electrical power to a
vice user.
(d) "Tax Administrator" shall mean the Finance Director
o/of the City of Santa Ana.
(e) "Service supplier" shall mean a person required
collect and remit a tax imposed by this code.
(f) "Service user" shall mean a person required to
pay a tax imposed by this code.
ORDINANCE NO. NS-1265
PAGE TWO
(g) "Month" shall mean a calendar month.
Sec. 35-154. Constitutional Exemptions.
Nothing in this code shall be construed as imp( a
tax upon any person when imposition of such tax upon
person would be in violation of the Constitution of United
States or that of the State of California.
Sec. 35-155. Telephone Users Tax.
(a) There is hereby imposed a tax upon
other than a telephone corporation, in the
using intrastate telephone communication servl~
Santa Ana. The tax imposed by this section s!
rate of five percent (5%) of all charges
vices and shall be paid by the person
person,
Santa Ana
~s in the City of
ill be at the
~or such ser-
such services.
(b) As used in this section, the t~ "charges" shall
not include charges for services paid for inserting coins
in coin-operated telephones except that such coin-
operated telephone service is furnished a guaranteed
amount, the amounts paid under such gua] plus any fixed
monthly or other periodic charge shall s included in the
base for computing the amount of tax d~ nor shall the term
"telephone communication services" .ude land mobile ser-
vices or maritime mobile services as in Section 2.1
of Title 47 of the Code of Federal ulations.
(c) The tax imposed in thil section shall be collected
from the service user by the pers¢ providing the intrastate
telephone communication services The amount of tax collected
in one month shall be remitted the Tax Administrator on or
before the 20th day of the foll month.
(d) Notwithstanding t ~rovisions of subsection (a),
the tax imposed under this s~ shall not be imposed upon
any person for using telephone communications
services to the extent amounts paid for such services
are exempt from or not sub to the tax imposed under Sec-
tion 4251 of Title 26 of e United States Code.
Sec. 35-156. El( Users Tax.
(a) There is imposed a tax upon every person
in the City of Santa using electrical energy in the
City. The tax impo~ by this section shall be at the
rate of five percer (5%) of the charges made for such
energy and shall paid by the person paying for such energy.
"Charges," as use in this section shall include charges
made for (1) red energy, and (2) minimum charges for
service, customer charges, service charges, demand
charges, charges, and annual and monthly charges.
trical
of such
by him
apart
of suc
of b~
of
(b) used in this section, the term "using elec-
," shall not be construed to mean the storage
by a person in a battery owned or possessed
use in an automobile or other machinery or device
the premises upon which the energy was received,
however, that the term shall include the receiving
energy for the purpose of using it in the charging
; nor shall the term include the mere receiving
energy by an electric public utility or governmental
agency at a point within the City of Santa Ana for resale;
or the use of such energy in the production or distribution
of water by a public utility or a governmental agency.
ORDINANCE NO. NS- 1265
PAGE THREE
(C) The tax imposed in this section shall be collected
from the service user by the person supplying such energy.
The amount of tax collected in one month shall be remitted
to the Tax Administrator on or before the 20th day of the
following month. Remittance of tax may be predicated on
formula based upon the payment pattern of the supplier's
tomers.
Sec. 35-157. Gas User Tax.
(a) There is hereby imposed a tax upon every
in the City of Santa Ana, other than a gas corpor~ or
electrical corporation, using in the City gas is deli-
vered through mains or pipes. The tax imposed this section
shall be at the rate of five percent (5%) of charges made
for such gas and shall be paid by the person for such
gas.
(b)
the tax imposed in this section is comput~
for gas which is to be resold and deliveI
pipes; (2) charges made for gas sold
of electrical energy or for the product
water by a public utility or
made by a gas public utility for gas
conduct of the business of gas publi~
There shall be excluded from the on which
(1) charges made
through mains or
in the generation
or distribution of
agency; and (3) charges
and in the
(c) The tax imposed in this
from the service user by the pers.
amount collected in one month sh~
Administrator on or before the
month.
shall be collected
selling the gas. The
be remitted to the Tax
day of the following
Sec. 35-158. Penalty.
(a) Taxes collected
remitted to the Tax Admini
provided in this code are
a service user which are not
on or before the due dates
uent.
Sec. 35-159. Acti, to Collect.
Any tax required
provisions of this
service user to the
vice user which ha!
shall be deemed a
to collect and
the provisions
in the name of
be paid by a service user under the
shall be deemed a debt owed by the
Any such tax collected from a ser-
been remitted to the Tax Administrator
owed to the City by the person required
Any person owing money to the City under
this code shall be liable to an action brought
City for the recovery of such amount.
Sec. 35-
to Collect - Procedures.
The
code shall
to collect and remit the taxes imposed by this
performed as follows:
(a)
at the
dance
The tax shall be collected insofar as practicable
time as and along with the charges made in accor-
the regular billing practice.
The duty to collect tax from a service user shall
with the beginning of the first full regular billing
applicable to that person which starts on or after the
date of this code. Where a person receives more
than one billing, for different periods, the duty to collect
shall arise separately for each billing period.
ORDINANCE NO. NS- 1263
PAGE FOUR
Sec. 35-161. Additional Powers and Duties of Tax
Administrator, etc.
(a) The Tax Administrator shall have the power
duty, and is hereby directed to enforce each and all
provisions of this code.
/
the
Sec. 35-162. Assessment - Administrative
(a) The Tax Administrator may make an
taxes not paid or remitted by a person re¢
for
pay.
(b) Whenever the Tax Administrator dete that a
service user has deliberately withheld the of the
tax owed by him from the amounts remitted a person required
to collect the tax, or that a service user failed to pay
the amount of the tax to such person for period of two or
more billing periods, or whenever the Administrator deems
it in the best interest of the City, he hall relieve such person
of the obligation to collect taxes due this code from
such service users for specified
Administrator shall notify the servi(
assumed responsibility to collect th
periods and demand payment of such
served on the service user by handJ
or by deposit of the notice in
prepaid thereon, addressed to
to which billing was made by
the tax; or, should the service
to his last known address. If
the tax to the Tax Adminis
periods. The Tax
user that he has
taxes due for the stated
The notice shall be
it to him personally
States mail, postage
user at the address
required to collect
have changed his address,
service user fails to remit
within fifteen (15) days from
the date of the service of notice upon him, which shall
be the date of mailing if se is not accomplished in
person, a penalty Of twenty percent (25%) of the amount
of the tax set forth in notice shall be imposed, but not
less than $5.00. The pen~ ty shall become part of the tax
herein required to be paJ
Sec. 35-163.
It shall be the
and remit to the
preserve, for a per:
necessary to
been liable for
Administrator, wh
the right to ins
of every person required to collect
tax imposed by this code to keep and
of three years, all records as may be
the amount of such tax as he may have
collection of and remittance to the Tax
records the Tax Administrator shall have
at all reasonable times.
Sec. 35-11
Refunds.
(a) the amount of any tax has been overpaid
or paid once or has been erroneously or illegally
collected o received by the Tax Administrator under this code
it may be funded as provided in this section. No refund will
be consid( by the Tax Administrator for a period in excess
of twel~ (12) months prior to the date application is
receive~
A person required to collect and remit taxes im-
posed this code may claim a refund or take as credit
aga~ it taxes collected and remitted the amount overpaid,
pa~. than once or erroneously or illegally collected or
re~ when it is established in a manner prescribed by the
T~ Administrator that the service user from whom the tax has
collected did not owe the tax; provided, however, that
ORDINANCE NO. NS- 1265
PAGE FIVE
neither a refund nor a credit shall be allowed unless th~ amount
of the tax so collected has either been refunded to the
vice user or credited to charges subsequently payable the
service user to the person required to collect and
(c) No refund shall be paid under the provis
this section unless the claimant establishes his
by written records showing entitlement thereto.
of
;ht thereto
Sec. 35-165. Low Income Household
(a) The utility users tax imposed by code shall
not apply to any service user who uses tel )hone, electric
or gas services, in or upon any premises Died by such
service user, provided the combined gros income of all mem-
bers of the household in which such use~ resl~ was less than
Seven Thousand Five Hundred Dollars ($ ) for the calen-
dar year prior to the fiscal year 1 through June 30) for
which the exemption provided in this ~ection is applied for.
The exemption granted by this :ction shall not elimi-
nate the duty of the service to collect taxes
from such exempt individual or duty of such exempt
individual to pay such taxes to service supplier unless
an exemption is applied for by service user and granted in
accordance with the provisions subsection (b) hereof.
(b) Any service user
this code because of the pro
may file an application
partment of Finance, City
cation shall be made upon
trator and shall recite f~
cant for an exemption.
such applications and ce
mined to qualify theref~
affected that such
)t from the taxes imposed by
.sions of subsection (a) above,
Tax Administrator at the De-
for an exemption. Such appli-
supplied by the Tax Adminis-
~ts under oath which qualify the appli-
Tax Administrator shall review all
as exempt those applicants deter-
and shall notify all service suppliers
has been approved, stating the
name of the applicant ~he address to which such exempt ser-
vice is being supplie, the account number, and such other
information as may b~ necessary for the service supplier to
remove the exempt se ,ice user from its tax billing procedure.
Upon receipt of suc] notice, the service supplier shall not
be required to
code from such
Tax
nate such exempt
upon receipt of
later than
the Tax Admini
%ue to bill any further tax imposed by this
)t service user until further notice by the
The service supplier shall elimi-
user from its tax billing procedure
ich notice from the Tax Administrator, no
(60) days after receipt of such notice from
Ail
cally by
facts
shall
automatic,
or
each
from
(10)
disq~
It
~lons shall continue and be renewed automati-
Administrator so long as the prerequisite
the initial qualification for exemption
provided, however, that the exemption shall
terminate with any change in the service address
of the exempt individual; further provided such
may nevertheless apply for a new exemption with
of address or residence. Any individual exempt
tax shall notify the Tax Administrator within ten
of any change in fact or circumstance which might
said individual from receiving such exemption.
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.
ORDINANCE NO. NS- 1265
PAGE SIX
Notwithstanding any of the provisions of this sub
section, however, any service supplier who determines any
means that a new or nonexempt service user is re( ser-
vice through a meter or connection exempt by virtu of an
exemption issued to a previous user or exempt usc of the same
meter or connection, such service supplier shal
notify the Tax Administrator of such fact and Tax Admin-
istrator shall conduct an investigation to as whether
or not the provisions of this section have complied with
and, where appropriate, order the service ~lier to commence
collecting the tax from the nonexempt user.
Sec. 35-166. Violation; Misdemean~
Any person violating any of the of this code
shall be guilty of a misdemeanor and be punishable there-
after by a fine of not more than Hundred Dollars ($500.00)
or by imprisonment in the Orange Jail for a period of
not more than six months or by bo such fine and imprisonment.
SECTION 2: If any
paragraph· sentence, clause ox
part thereof is for any
such decision shall not
portions of this ordinance
Council hereby declares
subsection, subdivision,
thereof, irrespective of
subsections,
phrases be declared un.
subsection, subdivision,
~hrase of this ordinance or any
held to be unconstitutional,
the validity of the remaining
any part thereof. The City
it would have passed each section,
sentence, clause or phrase
fact that any one or more sections,
· paragraphs, sentences, clauses or
SECTION 3:
rate of taxation
immediately upon
its posting,
by this ordinance
October 1, 1975
period on or afi
hereof,
date.
Thi ordinance, inasmuch as it fixes the
utility users tax, shall take effect
date of its publication or on the date of
occurs first, except that the tax imposed
become operative and be imposed on
at the beginning of the first regular billing
October 1, 1975, as provided in Section 35-160
is later, and shall not apply prior to said
the passage
same to be
Santa Ana
The Clerk of the Council shall certify to
adoption of this ordinance and shall cause the
in the official newspaper of the City of
fifteen (15) days after its adoption.
Santa
AND ADOPTED by the City Council of the City of
at its regular meeting held on the day of
, 1975.
ATTE~
MAYOR
CLERK OF THE COUNCIL
ORDINANCE NO. NS-1265
PAGE SEVEN
STATE OF CALIFORNIA)
COUNTY OF ORANGE )
CITY OF SANTA ANA )
ss.
I, FLORENCE I. MALONE, do hereby cer
Clerk of the Council of the City of Santa
going ordinance was introduced to said
meeting held on the day of
and was again considered by said
held on the day of
said meeting passed and adou
that I am the
that the fore-
at its regular
, 1975
regular meeting
1975 and was at
vote, to wit:
AYES;
NOES:
ABSENT:
Councilmen:
CLERK OF THE COUNCIL
APPROVED AS TO FO]
CITY