(a) Consistency with State and Federal law. Nothing in this chapter shall be construed as imposing a tax upon any person or service when the imposition of such tax upon such person or service would be in violation of a Federal or State statute, the Constitution of the United States or the Constitution of the State of California. Any service user who has been exempted under this subsection shall comply with the notification requirements of subsection (k) of this section if any change in fact or circumstance disqualifies the individual from receiving this exemption.
(b) The City. Nothing in this chapter shall be construed as imposing a tax upon the City.
(c) Exemption application. Any service user that is exempt pursuant to subsection (a) of this section from any tax imposed by this chapter shall file an application with the Tax Administrator for an exemption; provided, however, this requirement shall not apply to a service user that is a State or Federal agency. Said application shall be made upon a form approved by the Tax Administrator and shall state those facts, declared under penalty of perjury, which qualify the applicant for an exemption, and shall include the names of all service suppliers serving that service user.
(d) Application processing. The application shall be approved or denied by the Tax Administrator within 75 days of receipt.
(e) Notice to service supplier. If the application is approved, the Tax Administrator shall promptly notify the service user's service suppliers, stating the name of the service user, 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.
(f) Discontinuance of tax. Upon receipt of the notice of service user exemption, the service supplier shall within 60 days discontinue billing the service user for taxes imposed by this chapter.
(g) Duration of exemption. All exemptions under this section shall continue and be renewed automatically by the Tax Administrator for as long as the requisite facts supporting the initial qualification for exemption shall continue. The exemption shall automatically terminate with any change in service address or residence of the exempt individual. The individual may apply for a new exemption with each change of service address or residence. The Tax Administrator shall have the power and right to demand evidence of continued eligibility. Failure to provide such evidence as is within the control of a service user to provide may be the basis for immediate discontinuance of the service user's eligibility for exemption under this section.
(h) Denial–Appeal. If the Tax Administrator determines that an application for exemption is faulty, that the applicant has failed to truthfully set forth facts, or that the facts do not support the application for exemption, the application shall be denied in writing to the applicant. The applicant shall thereafter have a right to file an amended application, or to appeal the Tax Administrator's decision to the City Council within a ten-day period after the mailing date of the Tax Administrator's notification.
(i) Duty to disclose disqualification– Investigation. Any service user who has been exempted under this section shall notify the City within ten days of any change in facts or circumstances that might disqualify the person from receiving such exemption. Any service supplier that 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, shall immediately notify the Tax Administrator of such fact, and the Tax Administrator shall conduct an investigation to ascertain whether or not the provisions of this section have been complied with, and when appropriate, order the service supplier to commence collecting the tax from the nonexempt service user.
(j) Penalty. It shall be a misdemeanor for any person to knowingly receive the benefit of the exemption provided by this section when the basis for such exemption does not exist or ceases to exist.
(k) Exemption list. Upon request of the Tax Administrator, a service supplier, or its billing agent, shall provide a list of the names and addresses of those service users that, according to its billing records, are deemed exempt from the taxes imposed by this chapter.
(Ord. 177, passed 11-6-2018)