HomeMy WebLinkAboutORD NO 1869 ORDINANCE NO. 1869 NEW SERIES
AN ORDINANCE OF THE COUNCIL OF THE CITY OF
BAKERSFIELD AMENDING TITLE 6 OF THE MUNICI-
PAL CODE BY THE ADDITION OF CHAPTER 6.60.
BE IT ORDAINED by the Council of the City of Bakersfield
as follows:
SECTION 1.
That Chapter 6.60 be added to the Municipal Code of the
City of Bakersfield to read as follows:
Chapter 6.60
SERVICE USERS TAX
Sections:
6.60.010 Definitions
6.60.020 Constitutional Exemptions
6.60.030 Revenue Measure
6.60.040 Telephone Users Tax
6.60.050 Gas and Electric Users Tax
6.60.060 Cable Television Users Tax
6.60.070 Water Users Tax
6.60.080 Duty to Collect - Procedure
6.60.090 Rules and Regulations
6.60.100 Due Date - Returns and Payments
6.60.110 Action to Collect
6.60. 120 Penalties and Interest
6.60. 130 Deficiency Determinations
6.60. 140 Redeterminations
6.60.150 Security for Collection of Tax
6.60. 160 -.Appeals
6.60.170 Tax Review Committee
6.60. 180 Severability
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6.60.010 Definitions. Unless the particular provision or the
context otherwise requires, the definitions and provisions contained
in this section shall govern the construction, meaning, and application
of the words and phrases used in this chapter.
(a) "Director" shall mean the Finance Director of the City
of Bakersfield.
(b) "Person" shall mean any individual, corporation, com-
pany, association, firm, copartnership, or any group of individuals
acting as a unit.
(c) "Month" shall mean a calendar month.
(d) "Service User" shall mean a person required to pay a
tax imposed under the provisions of this article.
(e) "Operator" shall mean any person required to collect
and remit a tax imposed under the provisions of this chapter.
(f) "City" shall mean the City of Bakersfield.
6.60.020 Constitutional Exemptions. Nothing in this article 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. The Director shall
prepare a list of the 'persons exempt from the provisions of this chap-
ter by virtue of this section and furnish a copy thereof to each
operator.
6.60.030 Revenue Measure. This chapter is enacted solely to raise
revenues for municipal purposes and is not intended for regulation.
6.60. 040 Telephone Users Tax.
(a) There is hereby imposed a tax upon every person, other
than a telephone corporation, using intrastate telephone coL.-.Lunication
servic~ ih the ~ity. The tax i~6sed by this section shall be at the
rate of five per cent (5%) of the charges made for such services and
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shall be 'paid by the person paying for such services.
(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.
(c) The tax imposed in this section shall be collected
from the service user by the person providing the intrastate tele-
phone communication services. The amount of tax collected in one
month shall be remitted to the Director on or before the last day
of the following month.
(d) Notwithstanding the provisions of Subsection (a),
the tax imposed under this section shall not be imposed upon any
person for use of a marine or land mobile telephone service or for
using intrastate telephone communications services to the extent that
the amounts paid for the latter services are exempt from or not sub-
ject to the tax imposed under Section 4251 of Title 26 of the United
States Code, as such section existed on July 1, 1968.
6.60.050 Gas and Electric Users Tax.
(a) There is hereby imposed a tax upon every person using
gas in the city which is delivered through mains or pipes, and every
person using electrical energy in the city. The tax imposed by this
section shall be at the rate of five 'per cent (5%) of the total charges
made for such gas and electric energy and shall be paid by the person
paying therefor. "Charges" as used in this section shall include
charges made for (1) metered gas and electric energy, and (2) mini-
mum 'charges f~r service, service charges, demand charges and stand-by
charges.
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(b) Notwithstanding the 'provisions of subsection (a), the
tax imposed under this section shall not be imposed upon any person
(1) for the storage of electrical energy in a battery
for use in an automobile or other machinery or device (but this ex-
clusion does not include the receipt of electrical energy for the
purpose of charging batteries),
(2) for the receipt of gas or electrical energy for
resale, by a public utility or governmental agency,
(3) for the use of gas or electric energy to pump
water for resale.
(4) for the use of gas or electric energy by a
public utility owning the gas or electric energy in the conduct of
the business of 'producing or distributing gas or electric energy.
(5) for the use of natural gas energy to propel a
motor vehicle.
(c) The tax imposed by this section shall be collected
from the service user by the person supplying such gas or electricity.
The amount of tax collected in one month shall be remitted to the
Director on or before the last day of the following month.
6.60.060 Cable Television Users Tax.
(a) There is hereby imposed a tax upon every person using
cable television service in the city. The tax imposed by this section
shall be at the rate of five per cent (5%) of the total charges made
for such service.
(b) The tax imposed by this section shall be collected from
the service user by the person supplying cable television service.
The amount of tax collected in one month shall be remitted to the
Director on or before the last day of the following month.
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6.60. 070 Water Users Tax.
(a) There is hereby imposed a tax upon every person using
water supplied by a water company in the city. The tax imposed by
this section shall be at the rate of five per cent (5%) of the total
charges made for such service. "Charges" as used in this section shall
include charges for (a) metered quan.t°it'i.es of water; (b) service, flat
rate or minimum charges and (c) private fire protection service.
(b) The tax imposed by this section shall be collected
from the service user by the person supplying said water. The amount
of the tax collected in one month shall be remitted to the Director
on or before the last day of the following month.
6.60.080 Duty to Collect, Procedures.
(1) The tax shall be collected insofar as practi-
cable at the same time as and along with the charges made in accordance
with the regular billing practice of the operator. Except in those
cases where the service user pays the full amount of said charges but
does not pay any portion of the tax imposed by this chapter, or where
a service user has notified the person supplying the service that he
is refusing to pay the tax imposed by this chapter which said person
is required to collect, 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.
(2) The duty to collect from a service user shall
coL,,,~,ence with the first full billing cycle for services received and
used after the effective date of this chapter.
6.60.090 Rules and Regulations. The Director may make administra-
tive agreements and rules and regulations to vary the strict require-
ments of this chapter so that collection of any tax imposed herein
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may be made in conformance with the billing procedure of a particular
operator so long as the over-all result of said agreement results in
collection of the tax in conformance with the general purpose and
scope of this chapter. A copy of each such agreement and rule shall
be on file, and available for a public examination in the Director's
office.
6.60.100 Due Date~ Returns and Payments.
(a) The tax imposed by this article shall become due as
to the service user when billed by the particular operator and due
as to the operator when required to be remitted. Returns shall be
filed by operators when the tax is required to be remitted.
(b) The return shall show the amount of tax collected or
otherwise due for the related period and such other information as
required by the Director. The Director may require returns to show
the total gross receipt upon which tax was collected or otherwise due;
the gross amount of tax collected and an explanation in detail of any
discrepancy between said amount.
(c) The Operators required to file a~ return shall de-
liver the return together with the remittance of the amount of the
tax due to the Director at his office.
(d) For good cause, the Director may extend for not to ex-
ceed one month the time for making any return or payment of tax. No
further extension shall be granted except by the Tax Review Committee.
Any person to whom an extension is granted who makes returns and 'pays
the tax within the period of such extension shall pay, in addition to
the tax, interest on the amount thereof at the rate of one-half of
one per cent (1%)'per month, or fraction thereof on the unpaid balance
for th~ period of such extension to the time of return and payment, which
interest shall become a part of the tax.
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(e) Whenever the Director determines that a service user
has deliberately withheld the amount of the tax owed by him from the
amounts remitted to an operator, 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 shall relieve the operator of the obligation
to collect taxes due under this Part 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 there-
on, addressed to the service user at the address to which billing was
made by the operator; or should the service user have changed his
address, to his last known address.
6.60.110 Actions to Collect. Any tax required to be paid by the
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 city shall be deemed
a debt owed to the city by the Operators 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.
6.60.120 Penalties and Interest - Operators and Service Users.'
(a) Original Delinquency. Any operator who fails to remit
in
any tax imposed by this ordinance with/~he time required shall pay a
penalty of ten per cent (10%) of the amount of the tax in addition to
the amount of ~he tax.
(b) Continued Delinquency. Any operator who fails to remit
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any delinquent tax on or before a period of thirty days (30) follow-
ing the date on which the tax first became delinquent shall pay a
second delinquency penalty of ten per cent (10%) of the amount of the
tax in addition to the amount of the tax and the ten per cent penalty
first imposed.
(c) Fraud. If the Director determines that the nonpayment
of any remittance due under this ordinance is due to fraud or intent
to evade the provisions thereof, a penalty of twenty-five pet'.cent (25%)
of the amount of the tax shall be added thereto in addition to the penal-
ties stated in paragraphs (a) and (b) of this section.
(d) Interest. In addition to the penalties imposed, any
operator who fails to remit any tax imposed by this ordinance shall
pay interest at the rate of one-half of one per cent per month or
fraction thereof on the amount of the tax exclusive of penalties from
the date on which the remittance or payment first became delinquent
until paid.
(e) Any service user who fails or refuses to pay the tax or
taxes imposed by this chapter shall be subject to a penalty of twenty-
five dollars ($25.00) or ten per cent (10%) of the tax due whichever
is larger in addition to any interest due as a result of such failure
or refusal. Said penalty would be applicable only in the event that
it becomes necessary for city to commence legal action to collect the
tax.
(f) Penalties merged with tax. Every penalty imposed and
such interest as accrues under the provision of this section shall be
merged with and become a part of the tax herein required to be paid.
6.60.130 Deficiency Determinations.
(a) If the Director is not satisfied with the return or
returns of the tax or the amount of the tax required to be paid to the
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city bM any operator, he may compute and determine the amount re-
quired to be paid upon the basis of the facts contained in the return
~- or returns or upon the basis of any im~formation within his possession
or that may come into his possession. One or more deficiency deter-
minations may be made of the amount due for one or more than one
period.
(b) In making a determination the Director may offset
overpayments, if any, which may have been previously made for a period
or periods together with interest on the overpayments, against any
underpayment for a subsequent period or periods, or against penalties,
and interest on the underpayments. The interest on underpayments and
overpayments shall be computed in the manner set forth in Section
6.60. 120.
(c) The Director shall give to the operator written notice
of his determination. The notice may be served 'personally or by mail;
if by mail, the notice shall be enclosed in a sealed envelope postage
prepaid and addressed to the operator at his address as it appears
in the records of the Director. In case of service by mail of any
notice required by this ordinance the service is complete at the time
of deposit in the United States Post Office.
(d) Except in the case of fraud, intent to evade this
ordinance or authorized rules and regulations, or failure to make a
timely return, every deficiency determination shall be made and notice
thereof mailed within three years after the last day of the month
following the close of the quarterly period for which the amount is
proposed to be determined or within three years after the return is
filed,whichever period expires the latter.
(e) If any operator shall fail or refuse to collect said
tax or to make, with the time provided in this ordinance, any report
and remittance of said tax or any portion thereof required by this
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ordinance or makes a fraudulent return or otherwise willfully attempts
to evade this ordinance, the Director shall proceed in such manner as
he may deem best to obtain facts and information on which to base his
estimate of the tax due. As soon as the Director shall procure such
facts and information as he is able to obtain upon which to base the
assessment of any tax imposed by this ordinance and payable by any
operator who has failed or refused to collect the same and to make
such report and remittance, he shall proceed to determine and assess
against such operator the tax, interest, and penalties, provided for
by this ordinance. In case such determination is made, the Director
shall give a notice in the manner aforesaid of the amount so assessed.
Such determination and notice shall be made and mailed within three
years after discovery by the Director of any fraud, intent to evade
or failure to file return. Any determination shall become final with-
in thirty days after giving notice thereof as herein provided.
(f) If the Director believes that the collection of any
tax or any amount of tax required to be collected and paid to the
City will be jeopardized by delay, or if any determination will be
jeopardized by delay, he shall thereupon make a determination of the
tax or amount of tax required to be collected, noting that fact upon
the determination. The amount determined is immediately due and pay-
able. If the amount specified in the determination is not paid within
ten days after service of notice thereof upon the person against whom
the determination is made, the amount becomes final at the expiration
of the ten days, unless a petition for redetermination is filed with-
in the ten days and the delinquency penalty and the interest 'provided
in 6.60.120 shall attach to the amount of the tax or the amount of the
tax required to be collected.
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6.60. 140 Redeterminations.
(a) Any person against whom a determination is made under
Section 6.60. 130 or any person directly interested may 'petition for
a redetermination within thirty days after service upon the person
of notice thereof. If a 'petition for redetermination is not filed
within the th£rty-day period, the determination becomes final at the
expiration of the period. Provided, however, a petition for redeter-
mination under subsection (f) of Section 6.60. 130 shall be filed with-
in ten days after notice.
(b) If a petition for redetermination is filed within the
allowable period, the Director shall reconsider the determination, and,
if the person has so requested in his petition, shall grant the person
an oral hearing and shall give., him ten days notice of the time and
place of the hearing. The Director may continue the hearing from time
to time as may be necessary.
(c) The Director may decrease or increase the amount of
the determination before it becomes final but the amount may be in-
creased only if a claim for the increase is asserted by the Director
at or before the hearing.
(d) The order or decision of the Director upon a petition
for redetermination becomes final fifteen days after service u'pon the
petitioner of notice thereof, unless appeal of such order or decision
is filed with the Tax Review Committee within fifteen days after ser-
vice of such notice.
(e) No 'petition for redetermination or appeal therefrom
shall be effective for any purpose unless at or before the filing
thereof the amount found due in the original determination is paid or
a bond or other securit~y sari's-factory to the Director is filed with
him guaranteeing 'payment of any amount finally determined to be due.
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6.60.150 Security for Collection of Tax.
(a) The Director, whenever he deems it necessary to in-
sure compliance with this ordinance, may require any operator subject
thereto to deposit with him such security in the form of cash, bond,
or other security as the Director may determine. The amount of the
security shall be fixed by the Director but shall not be greater than
twice the 'person's estimated average liability for the 'period for
which he files returns, determined in such manner as the Director deems
proper, or ten thousand dollars ($10,000), whichever amount is lesser.
The amount of the security may be increased by the Director subject to
the limitations herein provided.
(b) If any operator is delinquent in the payment of the
amount required to be paid by him or in the event a determination has
been made against him which remains unpaid, the Director may, not later
than three years after the payment becomes delinquent, give notice
thereof by registered mail to all persons in the county having in
their-possession or under their control any credits or other personal
property belonging to the delinquent or owing any debts to the delin-
quent. After receiving the notice the 'persons so notified shall neither
transfer nor make any other disposition of the credits, other personal
property, or debts in their possession or under their control at the
time they receive the notice until the Director consents to a transfer
or disposition or until twenty days (20) elapse after the receipt of
the notice. All persons so notified shall within five (5) days after
the receipt of the notice advise the Director of all such credits,
other 'personal property, or debts in their ·possession, under their
control, or owing by them.
(c) At any time within t~ree (3) years after-any tax or any
amount of tax required to be collected becomes due and payable or at
any time within three years after any determination becomes final, the
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Director may bring an action in the courts of this State, or any
other state, or of the United States in the name of the city to
collect the amount delinquent together with penalties and interest.
(d) If any operator liable for any amount under this ordi-
nance sells out his business or quits the business, his successors or
assigns shall withhold sufficient of the purchase price to cover such
amount until the former owner 'produces a receipt from the Director
showing that he has been paid or a certificate stating that no amount
is due. If the purchaser of a business fails to withhold the tax from
the purchase price, as required, he becomes personally liable for the
payment of the amount required to be withheld by him to the extent of
the purchase price, valued in money. Within thirty days (30) after
receiving a written request from the purchaser for a certificate, the
Director shall either issue the certificate or mail notice to the
· purchaser at his address as it appears on the records of the Director
of the amount that must be paid as a condition of issuing the certifi-
cate. Failure of the Director to mail the notice will release the
purchaser from any further obligation to withhold the purchase price
as above provided. The time within which the obligation of a successor
may be enforced shall start to run at the time the operator sells out
his business or at the time that the determination against the operator
becomes final, whichever event occurs the latter.
6.60.160 Appeal. Any person aggrieved by any decision of the
Director may appeal to the Tax Review Committee by filing a notice of
appeal with the Director within fifteen days of the serving or mailing
of the notice of the decision. The Director shall fix a time and place
for hearing such appeals as prescribed by the Tax Review Coum~ittee in
its rules a~' regulations and shall give' the appellant ten days
written notice of the time and place of hearing.
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6.60.170. Tax Review Committee. The Business Tax Appeals Board
of the City of Bakersfield is hereby designated to be the Tax Review
Committee. The CoLmL~ittee shall have power and it shall be its duty:
(1) To hear and determine appeals of orders or
decisions of the Director made upon petition for redetermination of
tax. The co~m~ittee may affirm, modify or reverse such orders or decisions
or dismiss the appeal therefrom, as may b~'just and shall prescribe such
forms, rules and regulations relating to appeals as it may deem necessary.
In the review of the Director decision or order, the committee may take
such evidence and make such investigation as it may deem necessary. It
shall give notice of its determinations in the manner prescribed for
service of notice of a Director's decision and shall file a copy of
each such determination with the Director with certification thereon
of the date of service thereof. Such determination shall become final
ten days (10) thereafter and shall thereupon become due and payable,
subject to interest and penalties, and enforceable by the Director
in like manner as an order or decision of the Director.
(2) To approve, modify, or disapprove all forms,
rules, and regulations prescribed by the Director in the administration
and enforcement of this ordinance and such forms, rules, and regulations
shall be subject to, and become effective only on, such approval.
(3) To hear and determine in such manner as shall be
just, any protest whichmay be made by any person who may be interes~ed,
to any form, rule, or regulation approved or prescribed by the coLm~ittee.
(4) To grant for good cause, applications for ex-
tentions of time in excess of one month, for making any return or pay-
ment of tax, and to prescribe rules therefor.
(5) To mak~ such investigations as it deems advisable
regarding the imposition and administration of the Utility Tax.
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6.60.180 Severability. If any section, subsection, paragraph,
sentence, clause, or phrase of this ordinance, or any 'part thereof,
is for any reason held to be unconstitutional (or otherwise invalid),
such decision shall not affect the validity of the remaining portions
of this ordinance or any part thereof. The legislative~ body hereby
declares that it would have passed each section, subsection, subdivi-
sion, paragraph, sentence, clause, or phrase, thereof, irrespective
of the fact that any one or more sections, subsections, subdivisions,
paragraphs, sentences, or clauses be declared unconstitutional (or
likewise invalid).
SECTION 2.
This ordinance shall take effect and be in full force from
and after thirty (30) days from its final adoption and the tax imposed
shall become operative and effective on August 1, 1970.
o0o
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I HEREBY CERTIFY that the foregoing Ordinance was passed
and adopted by the Council of the City of Bakersfield at a regular
meeting thereof held on the 22nd day of June, 1970, by the following
vote:
AYES, COUNCILMEN B~R, HEISEY, REES, RUCKER, STIERN, VETTER,
I',IOES, COUNCILMEN, ,~,,4,~. " -
ABSTAINING COUNCILMEN~
CITY '-CLERK ~ - erk of
the Council of the City of Bakersfield
AP
APPROVED:
gITY--ATTORNEY '- ~
Af av ! of j os ng r na=es
STATE O1~ C.~,TJ~ORNIA,~ ss.
· CoUnty of Kern J
MARIAN S. IRVIN, being dUly sworn, deposes and says:
That she is the duly appointed, acting and qualified City Clerk of the City of Bakersfield; and
that June 23
on .................................................................................... 19..7..0.... she posted on the Bulletin Board
at the City Hall, a full, true and correct copy of an ordinance passed by the Council of said City
at a meeting thereof duly held on ...............J_u...n...e.....2..2.. .................................. , 19..7..0..., which ordinance
was numbered ......... .1...8...6..9.. .................... New Series, and entitled:
AN ORDINANCE OF THE COUNCIL OF THE CITY OF
BAKERSFIELD AMENDING TITLE 6 OF THE MUNICIPAL
CODE BY THE ADDITION OF CHAPTER 6.60.
Subscribed and sworn to before me this
Notarx Public in aud for the County o/ Keru~ State ~/ Califo~nla
'ff.~.,~ DON LD F. ST AR
41%~ PRINCIPAl OFFICE IN 1~
~J ~Y COOl.iON EXPIRES JUNE ~. 1~74 J