Additional Definitions. | |
Telephone Users Tax. | |
Electricity Users Tax. | |
Gas Users Tax. | |
Water Users Tax. | |
Steam Users Tax. | |
Additional Exemptions. | |
Utility Users Tax Exemption. | |
Utility Users Tax Rates. | |
Collection of Tax. | |
Refunds. | |
Failure to Pay Tax; Administrative Remedy. | |
Administrative Agreements. | |
Refund Agreements. | |
California Public Utilities Commission Jurisdiction. | |
Purpose. | |
Effect of State and Federal Authorization. | |
Amendment of Ordinance. | |
Severability. | |
When used in this Article, the following terms shall mean or include:
(a) "Ancillary Telephone Communications Services" shall mean services associated with or incidental to the provision, use or enjoyment of telephone communications services, including but not limited to:
(1) Service that link two or more participants in an audio or video conference call and that may include the provisions of a telephone number.
(2) Services that provide telephone number information, and/or address information, or any other information that may assist in contacting another party via a telephone communications service.
(3) Services offered in connection with one or more telephone communications services which offer advanced calling features that allow customers to identify callers and to manage multiple calls and call connections.
(4) Services that enable customers to store, send or receive recorded messages including, without limitation, voice mail services.
(5) Services related to listing telephone communications service customer information in, or excluding such information from, a directory or database.
(6) Services that provide customer billing information in a detailed or alternative format.
(b) "Billing Address" shall mean the mailing address to which a telephone communications service supplier submits invoices or bills for payment by a service user.
(c) "Electrical corporation," "gas corporation," and "telephone corporation" shall have the same meanings as defined in Sections 218, 222 and 234, respectively, of the Public Utilities Code of the State of California.
(d) "Residential Telephone Communications Service" shall mean telephone communications service by a fixed line, wire or cable to a residential service address and includes voice over Internet Protocol (VoIP) service that cannot be used at locations other than the service user's residential service address. Residential telephone communications service excludes mobile telephone communications services including mobile VoIP service.
(e) "Paging Service" shall mean a telephone communications service that provides transmission of coded radio signals for the purpose of activating specific pagers; such transmissions may include messages and/or sounds.
(f) "Service Address" shall mean the street address of a service user's primary place of usage.
(g) "Service User" shall mean a person required to pay a tax imposed under the provisions of this Article.
(h) "Service Supplier" shall mean any person required to collect a tax imposed under the provisions of this Article.
(i) "Steam Corporation" shall mean and include every "heat corporation," as defined in Section 224 of the Public Utilities Code of the State of California, using steam to deliver heat.
(j) "Telephone Communications Services" shall mean the transmission, conveyance, or routing of voice, data, audio, video, or any other information or signals to a point, or between or among points, whatever the technology used, including without limitation wire, fiber optic, coaxial cable, power line transmission, light wave, laser, microwave, radio wave, satellite or any other form of wireless transmission, or any other technology now existing or developed after the adoption of this Section, and whether or not such information is transmitted through interconnected service with the public switched network. Telephone communications service includes such 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 such service is referred to as voice over internet protocol (VoIP) service or is classified by the Federal Communications Compassion as enhanced or value added, and includes video and/or data service that are functionally integrated with telephone communications services. Telephone communications service includes without limitation the for lowing services, regardless of the manner or basis on which such services are calculated or billed; ancillary telephone communications services, mobile telephone communications service; paging service; and 800 service. Telephone communications service does not include; internet access services to the extent they are exempt from taxation under the Internet Tax Freedom Act, 47 U.S.C. 151 note; video programming services, and digital downloads, such as downloads of books, music, video, ringtones, games and similar digital products.
(k) "Telephone communications service supplier" shall mean any person who provides telephone communications service to a user of such service within the City, including, without limitation, use outside the City which is within the City's tax jurisdiction under the Mobile Telecommunications Sourcing Act, 4 U.S.C. § 116 et seq. The term includes any person required to collect or remit the tax imposed by Section 703, including the billing agent of such person.
(l) "Water Corporation" shall mean and include every corporation or person including the City and County owning, controlling, operating or managing any water system for compensation within the State of California.
(m) "800 Service" shall mean a telephone communications service that allows a caller to dial a toll-free number without incurring a charge for the call, "800 service" includes without limitation services marketed as "800," "855," "866," "877," and "888" toll-free calling, and any subsequent numbers designated by the Federal Communications Commission.
(Added by Ord. 287-70, App. 8/28/70; amended by Ord. 262-93, App. 8/10/93; Ord. 324-93, App. 10/15/93; Ord. 21-98, App. 1/16/98; Amended by Proposition O, § 4, 11/4/2008)
(Added by Ord. 224-06, File No. 061142, Effective without the signature of the Mayor; Repealed by Proposition O, § 4, 11/4/2008)
(a) There is hereby imposed a tax upon every person, other than a telephone communications service supplier, who uses telephone communications service in the City, including intrastate, interstate, and international telephone communications service, to the extent permitted by Federal and State law. The telephone users tax shall apply to all charges for telephone communications service within the City's tax jurisdiction, such as charges billed to a telephone account having a situs in the City as permitted by the Mobile Telecommunications Sourcing Act of 2000, 4 U.S.C. § 116 et seq. There is a rebuttable presumption that telephone communications service billed to a billing address or provided to a service address in the City is used, in whole or in part, within the City's boundaries and that such service is subject to taxation under this Article. There is also a rebuttable presumption that a telephone communications service sold within the City that is not billed to a billing address or provided to a primary physical location in the City is used, in whole or in part, within the City's boundaries and that such service is subject to taxation under this Article.
(b) As used in this Section, the term "charges" shall include without limitation: charges for activation, connection, reconnection, termination, movement, or change of telephone communications service; late payment fees; access and line charges, whether or not imposition of such charges is mandated or authorized by a regulatory agency; universal service charges and any other charges designed to assist in expanding access to telephone communications service; and regulatory, administrative and other cost recovery charges. 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 telephone communications service.
(c) The tax imposed by this Section shall be collected from the service user by the telephone communications service supplier.
(d) The following shall continue to be exempt from the tax imposed by this Section:
(1) Residential telephone communications service;
(2) Any person or entity that is exempt from the tax imposed by this Section under Article 6 or its successor;
(3) Service paid for by inserting coins in coin-operated telephones available to the public with respect to local telephone service, or with respect to long distance telephone service if the charge for such long distance telephone service is less than 25 cents; 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 subject to the tax.
(4) 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 ticket 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.
(5) 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.
(6) Servicemen in combat zone. No tax shall be imposed under this Section on any payment received for any roll 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.
(7) Items otherwise taxed. Only one payment of tax under this Section shall be required with respect to the tax on any service, provided, however, that a person claiming exemption under this Section shall bear the burden to prove the City actually received the earlier payment of tax on that service.
(8) Common carriers and telecommunications companies. No tax shall be imposed under this Section on the amount paid for any telephone communications service to the extent that the amount so paid is for use by a common carrier, telephone or telegraph company, or radio broadcasting station or not work in the conduct of its business.
(9) 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.
(10) 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.
(11) 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.
(12) 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 telephone communications service subject to tax under this Section, any service user, upon proof that the service user owed and has paid a tax in another taxing jurisdiction on the telephone communications service, shall be allowed a credit against the tax imposed by this Section to the extent 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 to the extent that the telephone communications service may not legally 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) 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 telephone communications service supplier or taxpayer reasonably identifies actual charges for services not subject to the tax. The telephone communications 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.
(Amended by 529-82, App. 11/5/82; Ord. 138-87, App. 4/27/87; Ord. 262-93, App. 8/10/93; Ord. 21-98, App. 1/16/98; Ord. 224-06, File No. 061142, Effective without the signature of the Mayor; Amended by Proposition O, § 4, 11/4/2008)
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