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(Added by Ord. No. 123,096, Eff. 12/1/62.)
(a) Definitions. For purposes of this section, the term “motor vehicle” is defined to mean the same as that term is defined in the Motor Vehicle Transportation License Tax Act of California: the term “trailer” and “semi- trailer” are used as those terms are defined in the Vehicle Code of California; the term “tractor” shall mean a “truck tractor” as defined in the Vehicle Code of California.
(b) Tax Imposed. Every person engaged in any business not otherwise specifically taxed by other provisions of this article who uses any motor vehicle over the public streets and highways of this City for hauling or carrying the person’s tools, equipment or supplies, or for delivering or carrying goods, wares or merchandise sold, let or handled by the person in the course of their business, shall pay a business tax as provided in this section.
(c) Measure of Tax Reporting Period. (Amended by Ord. No. 166,204, Eff. 10/11/90, Oper. 1/1/91.) The tax required to be paid by this section shall be reported and paid annually. Every person engaged in the business subject to tax under this section shall pay a minimum tax of $88.69 per year at the beginning of each calendar year which shall be given as a credit against the total tax due for such year. The tax required to be paid under this section shall be measured as follows:
1. For each motor vehicle, other than a tractor, trailer, semitrailer or dolly, the tax shall be as follows:
Where the unladen weight thereof is 4,000 pounds or less, the tax shall be $0.28 for each day or fraction thereof of its operation as specified in Subsection (b);
Where the unladen weight thereof is over 4,000 pounds, and not more than 8,000 pounds, the tax shall be $0.71 for each day or fraction thereof of its operation as specified in Subsection (b); and
Where the unladen weight thereof is over 8,000 pounds, the tax shall be $0.78 for each day or fraction thereof of its operation as specified in Subsection (b).
2. For each tractor which is so used to haul one or more trailers or semitrailers, the tax shall be $0.78 for each day or fraction thereof of its operation as specified in Subsection (b).
(d) Method of Reporting.
1. No person shall engage in such business or perform any act required to be taxed under this section during any tax period without first obtaining a registration certificate and paying a minimum tax for that year in the amount of $88.69. (Amended by Ord. No. 166,204, Eff. 10/11/90, Oper. 1/1/91.)
2. At the close of each tax period such person shall file a statement with the Director of Finance showing the tax due and setting forth a summary of the vehicles of each graduation specified in Subsection (c) above used during such preceding tax period and the number of days or fractions thereof of such use, and shall pay on or before the last day of February in the next subsequent tax period any additional tax that may be due hereunder for such preceding tax period.
3. In making such statement, the person may at their option elect to compute such summary and pay such tax on a “test week” basis, by separately computing the tax which would be due for each of the four test weeks specified in Subsection (d)4 hereof dividing the total of the tax due for the four test weeks by four to ascertain the average weekly tax, and multiplying said average weekly tax by the number of weeks of the tax period during which the person conducted operations subject to tax under this section. If the person elects to compute the tax imposed hereunder on a test week basis, such election shall be irrevocable and conclusive as to the tax period for which such election is made. Any person electing to compute such tax on a test week basis shall retain the records used for such computation for a period of four years from the date of filing such report. Upon the failure of any person electing to compute such tax on a test week basis to retain such records, the Director of Finance may determine the amount of any additional tax estimated to be due from such person in the manner provided by Los Angeles Municipal Code Section 21.16.
4. The test week which may be used by a person in computing the tax imposed under this section are the second full week in January, the second full week in April, the second full week in July and the second full week in October. If a person does not conduct operations subject to tax under this section in any one or more of such test weeks, then the person may use the next succeeding week following such test week in which the person does conduct such operations in the place of such test week; provided, however, that if a person does not conduct operations subject to tax under this section during each of the four test weeks which may, under this subsection, be used in computing the tax, such person may not elect to compute their tax on a test week basis without prior written application to and prior written approval of the Director of Finance as to what alternate test period or periods may be used.
5. In the event the business is discontinued, dissolved or otherwise terminated before the close of such tax period, the statement required by Subsection (d)2 hereof shall thereupon be filed, and any additional tax due hereunder shall be paid within 45 days following the date of such discontinuance, dissolution or termination.
(a) Imposition and Rate of Sales Tax. (Reenacted, Amended by Ord. No. 137,130, Oper. 10/1/68) For the privilege of selling tangible personal property at retail a tax is hereby imposed, in addition to any other tax imposed under this article or under this chapter, upon all retailers at the rate of one percent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in the City of Los Angeles on or after October 1, 1968, and to and including March 31, 1969.
Notwithstanding the foregoing provisions of this subsection, the tax imposed by this section shall not apply to selling tangible personal property at fixed prices agreed to in contracts executed in good faith prior to October 1, 1968.
For the purposes of this section, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or the retailer’s agent to an out-of-state destination, or to a common carrier for delivery to an out-of-state destination. The gross receipts from sales shall include delivery charges when such charges are subject to the sales and use tax imposed by the State of California, regardless of the place to which delivery is made. In the event a retailer having a place of business within the City also has a place of business outside the City, both of which participate in some degree in a particular sale, the sale shall be deemed to have occurred within the City of Los Angeles if the principal negotiations were carried on there or by personnel normally assigned to that place of business. In the event a retailer has no permanent place of business in the City, but nevertheless engages in selling tangible personal property in the City, the sales shall be deemed to have occurred within the City if the sales were solicited or otherwise promoted by the seller or the seller’s agent within the City and the seller or the seller’s agent delivered the property within the City to a purchaser or to the purchaser’s agent.
(b) Reimbursement. The retailer shall reimburse themself for the tax due from the consumer substantially in accordance with the following table up to the amount specified herein:
1 %
Price | Tax | ||
.01 | - | .49 | .00 |
.50 | - | 1.49 | .01 |
1.50 | - | 2.49 | .02 |
2.50 | - | 3.49 | .03 |
3.50 | - | 4.49 | .04 |
4.50 | - | 5.49 | .05 |
5.50 | - | 6.49 | .06 |
6.50 | - | 7.49 | .07 |
7.50 | - | 8.49 | .08 |
8.50 | - | 9.49 | .09 |
9.50 | - | 10.49 | .10 |
The remainder of the schedule shall show amounts of reimbursement computed by applying the applicable tax rate to the sales price, rounded off to the nearest cent by eliminating any fraction less than one–half cent and increasing any fraction of one–half cent or over to the next higher cent.
(c) Unlawful Advertising. It is unlawful for any retailer to advertise or hold out or state to the public or to any customer, directly or indirectly that the tax or any part thereof will be assumed or absorbed by the retailer or that it will not be added to the selling price of the property sold, or that, if added, it or any part thereof will be refunded.
(d) Tax Levied as State Sales & Use Tax Law. The tax hereby levied, except as otherwise provided, is levied in the same manner, to the same extent and under the same conditions as sales taxes are levied pursuant to Part 1 of Division 2 of the California Revenue and Taxation Code, known as the “Sales and Use Tax Law,” as amended and in force and effect on October 1, 1968.
(e) Extension of Time; Due Date: Penalties. The Director of Finance, for good cause, may extend for not more than 45 days the time for making any return or paying any sum required to be paid hereunder. The extension may be granted at any time provided a written request therefor is filed with the Director of Finance prior to the delinquency date.
All taxes payable monthly and all taxes payable quarterly hereunder shall be deemed delinquent if not paid on or before the close of business on the last day of the month following the monthly or quarterly period for which the tax is payable. Taxes payable hereunder for periods other than monthly or quarterly periods shall be deemed delinquent at the times designated by the Director of Finance in the Director’s rules and regulations. Whenever tax required to be paid by this section is not paid on or before the date on which it becomes delinquent, penalties and interest shall accrue and deficiency determinations shall be made in the manner provided in Sec. 21.05 and Sec. 21.15.
Each retailer shall, on or before the last day of the month following the close of each calendar quarter, make a statement to the Director of Finance on forms provided by the Director, of the total gross receipts received during the preceding quarter. At the time the statement is filed, the full amount of tax due shall be paid to the Director of Finance. Where the Director of Finance determines that efficiency in the administration of the tax would be promoted, the Director of Finance may establish reporting periods greater than quarterly, but not to exceed one year, for retailers who sell tangible personal property only occasionally or seasonally. The Director of Finance may establish shorter reporting periods for any retailer if the Director of Finance deems it necessary in order to insure connection of the tax and the Director of Finance may require further information in the statement. Statements and payments are due immediately upon cessation of business for any reason.
In addition to the powers of the Director of Finance mentioned in the foregoing paragraphs, the Director of Finance may, under circumstances set forth in Subsection (j) of this section require prepayment of taxes.
(f) Registration; Permits. Every person desiring to engage in or conduct business as a seller within the City of Los Angeles shall secure from the Director of Finance of said City a permit for each place of business. Such permits shall be issued by the Director of Finance upon receipt of a written application therefor setting forth the name under which the applicant transacts or intends to transact business, the location of the applicant’s place or places of business and such other information as the Director of Finance may require. A permit is not assignable and is valid only for the person in whose name it is issued and for the transaction of business at the place designated therein. A change of location may be endorsed upon the permit by the Director of Finance. The permit shall at all times be conspicuously displayed at the place for which issued.
(g) Revocation of Permit; Renewal of Permit. Whenever any person fails to comply with any provision of this section or any rule or regulation adopted pursuant hereto, the Director of Finance, upon hearing, after giving such person ten days’ notice in writing specifying the time and place of hearing and requiring the person to show cause why the person’s permit or permits should not be revoked, may revoke or suspend any one or more of the permits held by such person. The notice may be served personally or by mail in the manner prescribed for service of notice in Sec. 11.00(i) or in Sec. 21.16 of this Code. The Director of Finance shall not issue a new permit unless the Director of Finance is satisfied that the former holder of the permit will thereafter comply with the provisions of this section and the rules and regulations adopted hereunder.
(h) Selling Without Permit. A person who engages in business as a seller in the City without a permit or permits, or after a permit has been suspended, and each officer of any corporation which so engages in business is guilty of a misdemeanor.
(i) Violation of Ordinance. The Director of Finance may at the Director’s option accept a State of California Resale Certificate as evidence that any sale is not a sale at retail, or the Director of Finance may in the Director’s discretion require an affidavit from the seller setting forth such information respecting such sale as the Director of Finance deems necessary to determine the nature of such sale.
(j) State Resale Certificate Optional. All provisions of the Sales and Use Tax Law, Part 1, Division 2 of the Revenue and Tax Code of the State of California, as amended and in force and effect on October 1, 1968, except the provisions pertaining solely to the Use Tax and Sections 6051, 6052, 6052.5, 6053, 6066, 6067, 6068, 6069, 6070, 6071, 6072, 6271 to 6292 inclusive, 6451, 6459, 6470, 6481 to 6592, inclusive, 6701 to 6799, inclusive, 6826 to 6828, inclusive, 6901 to 6937, inclusive, 6961 to 6963, inclusive, 6981, 7051 to 7056, inclusive, 7057, 7101 to 7154, inclusive, and 7176 applicable to sales of property at retail, are hereby adopted and made a part of this section as though fully set forth herein and all provisions of this Code conflict therewith are inapplicable to this section and the tax hereby imposed. All of the provisions of the California Sales and Use Tax Law hereby adopted, providing for the performance of official action on the part of the State Board of Equalization shall be performed by the Director of Finance of the City of Los Angeles.
(k) Sections of State Law Adopted by Reference; Suit for Collection of Tax. The term “gross receipts” as used herein does not include (l) the amount of any federal tax imposed upon or with respect to retail sales, whether imposed upon the retailer or upon the consumer, and regardless of whether or not the amount of federal tax is stated to customers as a separate charge; and (2) the amount of any California State or local Sales or Use Tax.
(l) Gross Receipts Defined. In addition to the exemptions contained in Part 1 of Division 2 of the Revenue and Taxation Code of the State of California, there shall be excluded from the computation of the tax gross receipts from;
1. Sales of property which is shipped to a point outside this City pursuant to the contract of sale by delivery by the retailer to such a point by means of (A) facilities operated by the retailer; (B) delivery by the retailed to a carrier for shipment to a consignee at such point; or (C) delivery by the retailer to a customs broker or forwarding agent for shipment outside this City.
(m) Administration of Ordinance; Rules and Regulations. The Director of Finance shall administer and enforce the provisions of this section and, with the approval of the City Attorney, shall prescribe, adopt and enforce reasonable rules and regulations for the purpose of administering and enforcing the section. Each of said rules and regulations which relate to the time, form and manner of making returns and payments of the taxes imposed hereby shall govern, notwithstanding any other provision of this article to the contrary. Such rules and regulations, among other things, require each retailer to keep such records, receipts, invoices and other pertinent papers in the manner therein set forth.
Inasmuch as this section is patterned after the Sales Tax provisions of the Revenues and Taxation Code of the State of California, and the State Board of Equalization has made various rules and regulations pertaining to the interpretation, administration and enforcement of said provisions of the Revenue and Taxation Code, and it may be reasonably assumed that the City of Los Angeles will be confronted with many of the problems dealt with in the state rules and regulations, each such rule and regulation, in so far as applicable, shall apply in the interpretation of this section until specifically abandoned by rules and regulations adopted by the Director of Finance pursuant to the authority of this section.
(n) Inclusion of Portion of State Law. The inclusion of any clause, portion or part of the State Sales and Use Tax Law, Part 1, Division 2 of the Revenue and Taxation Code of the State of California, verbatim in this section shall not in or of itself be deemed to exclude any of the remaining provisions of said Sales and Use Tax Law that are made a part hereof by reference only.
(z) Validity of Ordinance. If any subsection, sentence, clause, phrase or portion of this section, including but not limited to any exemption, is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this section. The Council of this City hereby declares that it would have adopted this section and each subsection, sentence, clause, phrase or portion thereof, irrespective of the fact that any one or more subsections, clauses, phrases or portions be declared invalid or unconstitutional.
(Added by Ord. No. 135,104, Eff. 10/2/67, Operative 11/1/67.)
Section
21.1.1 Definitions.
21.1.2 Constitutional Exemptions.
21.1.3 Communications Users Tax.
21.1.4 Electricity Users Tax.
21.1.5 Gas User Tax.
21.1.6 Interest and Penalty.
21.1.7 Actions to Collect.
21.1.8 Duty to Collect – Procedures.
21.1.9 Additional Powers and Duties of Director of Finance, Etc.
21.1.10 Assessment – Administrative Remedy.
21.1.11 Records.
21.1.12 Exemptions and Refunds.
21.1.13 Amendment or Repeal.
21.1.14 Audit of Communications Users Tax.
21.1.15 Severability.
(Amended by Ord. No. 179,686*, Eff. 3/15/08.)
The following words and phrases whenever used in this article shall be construed as defined in this section:
(a) “Ancillary Telecommunications Services” shall mean services that are associated with or incidental to the provision, use or enjoyment of Communications Services.
(b) “Communications Services” shall mean the transmission, conveyance, or routing of voice, audio, video communications, data or any other communications information or signals to a point, or between or among points, whatever the technology used, and whether or not that information is transmitted through interconnected service with the public switched network, or through fiber optic, coaxial cable, power line transmission, broadband, digital subscriber line or other wireless transmission. The term “Communications Services” includes transmission, conveyance, or routing in which computer processing applications are used to act on the form, code or protocol of the content for purposes of transmission, conveyance or routing without regard to whether those services are referred to as voice over internet protocol (VoIP) services or are classified by the Federal Communications Commission as enhanced or value added, and includes video and/or data services that are functionally integrated with “Communications Services”. “Communications Services” include, but are not limited to the following services, regardless of the manner or basis on which those services are calculated or billed: central office and custom calling features (including but not limited to call waiting, call forwarding, caller identification and three-way calling); local number portability; text messaging; instant messaging; Ancillary Telecommunications Services; prepaid and post-paid telecommunications services (including but not limited to prepaid calling cards); mobile telecommunications services; Private Communications Services; paging services; and 800 services (or any other toll-free numbers designated by the Federal Communications Commission). “Communications Services” does not include either digital downloads, such as downloads of books, music, ringtones, games and similar digital products, or that portion of cable or video television services subject to a cable or video television franchise fee.
(c) “Month” shall mean a calendar month.
(d) “Person” shall mean all individuals, domestic and foreign corporations, associations, syndicates, joint stock companies, partnerships of every kind, joint ventures, clubs, Massachusetts businesses or common law trusts, societies, and, shall include municipal corporations.
(e) “Private Communications Services” shall mean any dedicated Communications Services that entitle the user to the exclusive or priority use of communications channels.
(f) “Service User” shall mean a Person required to pay a tax imposed under the provisions of this article.
* Note: Pursuant to the passage of Proposition S in a Special Election held on February 5, 2008, Ordinance No. 179,686 was adopted by the Council of the City of Los Angeles at its meeting of March 5, 2008.
(Amended by Ord. No. 135,276, Eff. 10/30/67.)
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.
(Title and Section Amended by Ord. No. 179,686*, Eff. 3/15/08.)
(a) There is hereby imposed a tax upon every Person with a billing or service address in the City of Los Angeles who uses Communications Services, including services for intrastate, interstate or international Communications Services, to the extent permitted by state and federal law. The tax imposed by this section shall be at the rate of nine percent of the charges made for those Communications Services and shall be paid by the Person paying for those services. However, as to the charges made for services to any independent telemarketing agency, as defined in Section 21.47(b) of this Code, incurred solely in performing the functions of an independent telemarketing agency, the tax imposed by this section shall be at the rate of five percent of the charges made for those services.
(b) The tax imposed in this section shall be collected from the Service User by the Person providing the Communications Services. The amount of tax collected from the 26th day of each Month through the 25th day of the following Month shall be remitted to the Director of Finance on or before the 26th day of the following Month, or, at the option of the Person required to collect and remit the tax, an estimated amount of tax collected, measured by the billings of the previous Month, shall be remitted to the Director of Finance on or before the 20th day of each Month.
(c) Charges subject to the Communications Users Tax include, but are not limited to, the following: connection, reconnection, termination, movement, or change of telecommunications services; late payment fees; detailed billing; voice mail and other messaging services; directory assistance; access and line charges; universal service charges; and regulatory, administrative and other cost recovery charges.
(d) Exemptions. Except as otherwise provided in this article, Communications Services shall include all Communications Services for which there is a charge, regardless of the means or technology used to provide those services. Notwithstanding the provisions of Subsection (a), the tax imposed under this section shall not be imposed upon any Person for using Communications Services under the circumstances set forth below:
1. News services. No tax shall be imposed under this section, except with respect to local telephone service, on any payment received from any Person for services used in the collection of news for the public press, or a news ticker service furnishing a general news service similar to that of the public press, or radio broadcasting, or in the dissemination of news through the public press, or a news ticker service furnishing a general news service similar to that of the public press, or by means of radio broadcasting, if the charge for that service is billed in writing to that Person.
2. International, etc., organizations. No tax shall be imposed under this section on any payment received for services furnished to a public international organization in which the United States participates pursuant to treaty or Act of Congress, or to the American National Red Cross.
3. Service members in combat zone. No tax shall be imposed under this section on any payment received for any toll telephone service, which originates within a combat zone, as defined in Section 112 of Title 26 of the United States Code, from a member of the Armed Forces of the United States performing service in the combat zone, as determined under Section 112 of Title 26 of the United States Code.
4. Items otherwise taxed. Only one payment of tax under this section shall be required with respect to the tax on any service.
5. Common carriers and communications companies. No tax shall be imposed under this section on the amount paid for any Communications Services to the extent that the amount so paid is for use by a common carrier, telephone or telegraph company, or radio broadcasting station or network in the conduct of its business.
6. Installation charges. No tax shall be imposed under this section on any amount paid for the installation of any instrument, wire, pole, switchboard, apparatus, or equipment as is properly attributable to the installation.
7. Nonprofit hospitals. No tax shall be imposed under this section on any amount paid by a nonprofit hospital for services furnished to that organization. For purposes of this exemption, the term “nonprofit hospital” means a hospital referred to in Section 170(b)(1)(A)(iii) of Title 26 of the United States Code, which is exempt from federal income tax under Section 501(a) of Title 26 of the United States Code.
8. State and local governments. No tax shall be imposed under this section upon any payment received for services or facilities furnished to the government of any State, or any of its political subdivisions, or the District of Columbia.
9. Nonprofit educational organizations. No tax shall be imposed under this section on any amount paid by a nonprofit educational organization for services or facilities furnished to that organization. For purposes of this exemption, the term “nonprofit educational organization” means an educational organization described in Section 170(b)(1)(A)(ii) of Title 26 of the United States Code, which is exempt from federal income tax under Section 501(a) of Title 26 of the United States Code. The term also includes a school operated as an activity of an organization described in Section 501(c)(3) of Title 26 of the United States Code, which is exempt from federal income tax under Section 501(a) of Title 26 of the United States Code, if that school normally maintains a regular facility and curriculum and normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on.
(e) To prevent actual multiple taxation of any Communications Services that are subject to tax under Subsection (a) of this section, any Service User, upon proof that the Service User owed and has paid a tax in another taxing jurisdiction on the Communications Services, shall be allowed a credit against the tax imposed in Subsection (a) to the extent of the amount of the tax properly due and paid in the other taxing jurisdiction. However, no credit may be allowed for any tax paid to another taxing jurisdiction on any call to the extent that the call may not, under the Constitution and statutes of the United States, be made the subject of taxation by the other taxing jurisdiction. Nor shall the amount of credit exceed the tax owed to the City under this section.
(f) Any person claiming to be an independent telemarketing agency, which has charges subject to tax at the five percent rate, shall file an application for rate adjustment with the Director of Finance. This application shall be made on forms provided by the Director of Finance and shall recite facts under oath which qualify the applicant for the five percent tax rate. Notwithstanding any other provision of this article, the five percent rate shall apply only to charges for services that were necessarily incurred solely and exclusively for telemarketing activities. The burden of maintaining records and establishing that this charge is subject to tax at the five percent rate shall be on the applicant. Charges for all other services shall be subject to tax at the nine percent rate.
(g) For purposes of imposing a tax or establishing a duty to collect and remit a tax under this section, “substantial nexus” and “minimum contacts” shall be construed broadly in favor of the imposition, collection and/or remittance of the communications users tax to the fullest extent permitted by state and federal law, and as it may change from time to time by judicial interpretation or by statutory enactment. Any Communications Services used by a Person with a service or billing address in the City shall be subject to a rebuttable presumption that “substantial nexus / minimum contacts” exists for purposes of imposing a tax, or establishing a duty to collect and remit a tax, under this section. For communications services for which there is no billing address or primary physical location for the provision of services, the service address shall mean the point of sale of the services.
(h) 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 or taxpayer reasonably identifies actual charges for services not subject to the tax. The service supplier or taxpayer seeking a reduction has the burden of proving the proper valuation and apportionment of taxable and non-taxable charges based upon books and records that are kept in the regular course of business and in a manner consistent with generally accepted accounting principles.
* Note: Pursuant to the passage of Proposition S in a Special Election held on February 5, 2008, Ordinance No. 179,686 was adopted by the Council of the City of Los Angeles at its meeting of March 5, 2008.
(Amended by Ord. No. 142,333, Eff. 9/30/71, Oper. 10/1/71.)
(a) There is hereby imposed a tax upon every person in the City of Los Angeles using electrical energy in the City of Los Angeles. The tax imposed by this section shall be at the rate of 10 percent of the charges made for such energy and shall be paid by the person paying for such energy, provided, however, that commercial or industrial users of electrical energy shall be subject to tax and a tax is hereby imposed upon them at the rate of 12.5 percent of the charges made for such energy, but as to any non-profit educational institution, as defined in Subdivision 3 of Subsection (c) of Section 21.190 of this Code, the tax imposed by this section shall be at the rate of 10 percent of the charges made for such energy. (Second Sentence Amended by Ord. No. 171,436, Eff. 1/10/97.) “Charges” as used in this section, shall include charges made for (1) metered energy, and (2) minimum charges for service, including customer charges, service charges, demand charges, standby charges, and annual and monthly charges.
The term “commercial or industrial users” as used in this section, is intended to include, but shall not be limited to, any person who qualifies as a “commercial or industrial” consumer of electrical energy within the electric rate schedules of the Department of Water and Power of the City of Los Angeles or the tariff schedules of the Southern California Edison company, provided however, a user of electrical energy shall not be considered a “commercial or industrial user” of any electrical energy supplied to a single family accommodation separately metered or for energy to two or more individual family accommodations supplied as a unit, upon application under the provisions of the Department’s Domestic Service Schedule D–1, devoted primarily to domestic, residential, household and related purposes, as distinguished from commercial, professional, and industrial purposes.
(b) As used in this section, the term “using electrical energy” shall not be construed to mean that storage of such energy by a person in a battery owned or possessed by the person for use in an automobile or other machinery or device apart from the premises upon which the energy was received, provided however, that the term shall include the receiving of such energy for the purpose of using it in the charging of batteries, nor shall the term include the mere receiving of such energy by an electric public utility or government agency at a point within the City of Los Angeles for resale. (Amended by Ord. No. 135,276, Eff. 10/30/67.)
(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 from the 26th day of each month through the 25th day of the following month shall be remitted to the Director of Finance on or before the 26th day of such following month, or, at the option of the person required to collect and remit the tax, an estimated amount of tax collected in each month shall be remitted to the Director of Finance on or before the 26th day of such month. (Amended by Ord. No. 156,573, Eff. 5/10/82)
(a) (Amended by Ord. No. 169,245, Eff. 1/15/94.) There is hereby imposed a tax upon every person in the City of Los Angeles using in the City gas which is delivered through mains or pipes. The tax imposed by this section shall be at the rate of 10 percent of the charges made for such gas and shall be paid by the person paying for such gas, provided, however, that as to any non-profit educational institution, as defined in subdivision 3 of Subsection (c) of Section 21.190 of this Code, the tax imposed by this section shall be at the rate of 5 percent of the charges made for such gas. (Second Sentence Amended by Ord. No. 171,436, Eff. 1/10/97.) When gas is transported by, but not purchased from, a transporter, the charges subject to tax shall be measured by (1) the transportation cost and (2) the cost of the transported gas, which shall be based on the volume of gas transported multiplied by the core subscription weighted average cost of gas for the calendar month immediately preceding the calendar month in which the billing period terminates.
Notwithstanding the foregoing, the tax on the cost of transported gas may be determined by applying the tax rate to the actual purchase cost, either by the service user applying to the Director of Finance for a refund or the Director of Finance billing the service user, for the amount which represents the difference between the tax paid by the service user to the transporter and the tax determined by the actual purchase cost of the gas. In a claim for refund, the service user shall provide the Director of Finance with satisfactory evidence of the quantity and cost of the gas purchased from a party other than the transporter. When the Director of Finance believes that direct collection of the tax from the service user is in the best interest of the City, as provided in Subsection (b) of Section 21.1.10 of this Code, the transporter, upon request from the Director of Finance, shall furnish the Director of Finance, with respect to each service user for whom gas is transported, the name, mailing address, service address, gas meter number, transportation cost, volume of gas transported and the core subscription weighted average cost of gas for the calendar month immediately preceding the calendar month in which the billing period terminates. This information shall be confidential and shall be used only for the purpose of administering the tax.
(b) There shall be excluded from the base on which the tax imposed in this section is computed charges made for gas which is to be resold and delivered through main or pipes, charges made for gas sold for use in the generation of electrical energy by a public utility or a governmental agency; and charges made by a gas public utility for gas used and consumed in the conduct of the business of as public utilities. (Amended by Ord. No. 135,276, Eff. 10/30/67.)
(c) The tax imposed in this section shall be collected from the service user by the person selling gas or, when gas is purchased from and transported by separate persons, the tax shall be collected by the transporter. (1st Sentence Amended by Ord. No. 169,245, Eff. 1/15/94.) The amount of tax collected from the 26th day of each month through the 25th day of the following month shall be remitted to the Director of Finance on or before the 26th day of such following month, or, at the option of the person required to collect and remit the tax, an estimated amount of tax collected, measured by the billings of the previous month, shall be remitted to the Director of Finance on or before the 26th day of each month. (Amended by Ord. No. 156,573, Eff. 5/10/82.)
(d) There shall be exempt from the base on which the tax imposed in this section is computed charges made for gas used for non-utility purposes. For the purposes of this subsection, the term “gas used for non-utility purposes” shall mean gas used as a raw material in a manufactured product, and shall exclude gas used to produce light, heat or power. Any service user claiming an exemption under this subsection shall file an application with the Director of Finance for such exemption. Such application shall be made upon forms supplied by the Director of Finance and shall recite under oath facts which qualify the applicant for an exemption. The Director of Finance shall review each such application, certify as exempt such service determined to qualify therefor and notify each affected service supplier that such exemption has been approved, stating the name of the applicant, 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 from the tax billing procedure. Upon receipt of such notice, the service supplier shall not be required to continue to bill any further tax imposed by this section for such exempt service until given further notice by the Director of Finance. (Added by Ord. No. 171,119, Eff. 7/21/96, Oper. 1/1/96.)
(e) Notwithstanding the provisions of Subsection (a) of this section and Section 21.1.8(b) of this article, the collection rate of the tax imposed in Subsection (a) of this section at the rate of 10 percent shall be reduced temporarily for residential users to 6 percent for the first four regular billing periods ending on or after December 1, 2001, and on or before April 15, 2002. For all subsequent regular billing periods, the collection rate for residential users shall revert to the 10 percent rate imposed in Subsection (a) of this section. (Added by Ord. No. 174,205, Eff. 9/29/01.)
(f) Notwithstanding the provisions of Subsection (a) of this section and Section 21.1.8(b) of this article, the collection rate of tax imposed in Subsection (a) of this section shall be reduced temporarily to abate a total amount of gas user taxes of $24,174,176.69. To effectuate this abatement, the rate set forth in Subsection (a) of this section shall be lowered temporarily to a rate of 9.91% of the charges made within the meaning of Subsection (a); provided, however, that as to any non-profit educational institution, as defined in Section 21.49(c)3.(iii) of this Code, the collection rate of tax imposed by this section shall be lowered temporarily to a rate of 4.46%. The amount abated is the difference between the taxes that would be collected pursuant to the rates set forth in Subsection (a) and the taxes that would be collected pursuant to the rates set forth in this Subsection (f). The rates set forth in this Subsection (f) shall apply to all charges for gas within the meaning of Subsection (a) of this section collected, following the completion of the abatement attributable to Lavinsky v. City of Los Angeles, through the earlier of July 1, 2026, or the first day of the first month after which the City has abated taxes equal to or exceeding $24,174,176.69, whichever date occurs first (Abatement Period). Should this subsection fail to abate an amount equal to $24,174,176.69 in taxes by July 1, 2026, the Abatement Period shall be extended until the first month after July 1, 2026 after which the City has abated taxes equal to or exceeding $24,174,176.69. The rates set forth in Subsection (a) of this section shall apply to all periods except for the Abatement Period described under this Subsection (f). The person selling gas or transporter shall not be liable for failing to collect the difference between the tax rate set forth in Subsection (a) of this section and the tax rate set forth in this Subsection (f) until 60 days after the required notice is provided. (Added by Ord. No. 188,223, Eff. 6/16/24.)
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