(a) Establishment of electricity users' tax. There is hereby imposed a tax upon every person in the City using electricity. The tax imposed by this section shall be at the rate of 3.95% of the charges made for such electricity, and for any supplemental services or other associated activities directly related to and/or necessary for the provision of electricity to the service users that are provided by a service supplier or non-utility service supplier to a service user.
(b) Electricity charges. As used in this section, the term “charges” shall include, but is not limited to, the following charges:
(1) Energy charges.
(2) Distribution or transmission charges.
(3) Metering charges.
(4) Stand-by, reserves, firming, ramping, voltage support, regulation, emergency or other similar minimum charges for services.
(5) Customer charges, service establishment or reestablishment charges, demand charges, fuel or other cost adjustments, power exchange charges, independent system operator charges, stranded investment or competitive transition charges, trust transfer amounts, bond financing charges, franchise fees, franchise surcharges, which are necessary or common to the receipt, use and enjoyment of electric service.
(6) Charges, fees, or surcharges for electric services or programs, which are mandated by the California Public Utilities Commission or the Federal Energy Regulatory Commission, whether or not such charges, fees, or surcharges appear on a bundled or line item basis on the customer billing.
(c) Electricity charges further defined. 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 electricity or services related to the provision of such electricity.
(d) Using electricity further defined. As used in this section, the term “using electricity” shall not be construed to mean the storage of electrical energy by a person in a battery that said person owns or possesses for use in an automobile or other machinery or device apart from the premises upon which the electricity was received; provided, however, the term shall include the receiving of such electricity for the purpose of using it in the charging of batteries; nor shall the term include the mere receiving of such electricity by an electrical corporation or governmental agency at a point within the City for resale.
(e) Survey of electricity service suppliers— Authority for administrative rulings. The Tax Administrator shall, from time to time, survey the electric service suppliers in the City to identify the various unbundled billing components of the electric retail service that are being offered to customers within the City, and the charges therefor, including those items that are mandated by State or Federal regulatory agencies as a condition of providing such electric service. The Tax Administrator may, thereafter, issue and disseminate to such electric service suppliers an administrative ruling identifying those components and items that are: (1) necessary or common to the receipt, use and enjoyment of electric service; or (2) currently, or historically have been, included in a single or bundled rate for electric service by a local distribution company to a class of retail customers. Unbundled charges for such components and items shall be subject to the tax of subsection (a) above.
(f) Collection of electricity users' tax. The tax on electricity that is provided by a non-utility service supplier not subject to the jurisdiction of this section shall be collected and remitted in the manner set forth in this chapter, including but not limited to, Sections 3.26.120 et seq. All other taxes on charges for electricity imposed by this section shall be collected from the service user by the electric service supplier or its billing agent. The amount of tax collected in one month shall be remitted to the Tax Administrator, and must be received by the Tax Administrator, on or before the twentieth day of the following month; or, at the option of the person required to collect and/or remit the tax, such person shall remit an estimated amount of tax, measured by the tax billed in the previous month or upon the payment pattern of the service user, which must be received by the Tax Administrator on or before the twentieth day of the following month.
(g) Tax on co-generated electricity. Notwithstanding and in addition to the provisions of this section, and except as set out here or otherwise provided by State or Federal law, there is hereby imposed a tax upon every person using cogenerated electricity in the City, to the extent such cogenerated electricity is not clean energy generated only for personal use or included within electricity provided by the service provider. The tax imposed by this section shall be at the rate of 3.95% of the actual charges made for such service and shall be collected from the service user by the co-generator/non-utility supplier. In addition to the tax provided in this section, the service user shall pay a tax on all charges for supplemental services as described in subsections (b) and (c) of this section.
(1) Metering system. The co-generator shall install and maintain an appropriate metering system that will enable compliance with this section.
(2) Collection of tax. The amount of tax collected in one month shall be remitted to the Tax Administrator, and must be received by the Tax Administrator, on or before the twentieth day of the following month; or, at the option of the person required to collect and/or remit the tax, such person shall remit an estimated amount of tax, measured by the tax billed in the previous month or upon the payment pattern of the service user, which must be received by the Tax Administrator on or before the twentieth day of the following month. The tax on cogenerated electricity provided by a non-utility supplier not under the jurisdiction of this chapter shall be collected and remitted in the manner set forth herein.
(Ord. 177, passed 11-6-2018)