(A) Nothing in this subhapter shall be construed as imposing a tax upon:
(1) 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;
(2) The city; or
(3) Any federal or state government entity, including any public school district.
(B) (1) Any service user that is exempt from the tax imposed by this subchapter, pursuant to division (A) of this section, 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 or subdivision with a commonly recognized name for such service. 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. If deemed exempt by the Tax Administrator, such service user shall give the Tax Administrator timely written notice of any change in service suppliers so that the Tax Administrator can properly notify the new service supplier of the service user's tax exempt status. A service user that fails to comply with this section shall not be entitled to a refund of a users' tax collected and remitted to the Tax Administrator from such service user as a result of such noncompliance.
(C) Any service user who is enrolled in the CARE ("California Alternate Rates for Energy") Program administered by any service supplier shall be exempt from the tax imposed by this subchapter with respect to the charges imposed by such service supplier. The Tax Administrator shall request that each service supplier that operates a CARE Program refrain from assessing and collecting the tax imposed by this subchapter from such enrolled service users.
(D) The maximum annual tax per fiscal year (July 1 through June 30) for any service user using gas services shall be $20,000; for electricity services shall be $20,000; and, for communication services shall be $20,000. The Tax Administrator is hereby empowered and directed to prorate such maximum annual tax amounts for Fiscal Year 2010-11, based upon the number of months that such taxes are paid during that fiscal year. On July 1 of each fiscal year, beginning on July 1, 2012, such maximum annual tax amounts shall be increased by a percentage equivalent to any increase in the Consumer Price Index for All Urban Consumers for the Los Angeles/Orange/ Riverside County area, from March of the prior year to March of the current year, as published by the Bureau of Labor Statistics. For purposes of calculating the maximum annual tax for electric service, a service user with multiple electric meters or invoices at a single or at multiple locations within the city may combine all billings for such locations. For purposes of calculating the maximum annual tax for gas service, a service user with multiple gas meters or invoices at a single or at multiple locations within thecity may combine all billings for such locations. The Tax Administrator shall adopt forms, rules, and regulations for implementing the maximum tax in a manner that is administratively efficient.
(E) The City Council may, by resolution, establish one or more classes of persons or one or more classes of utility service otherwise subject to payment of a tax imposed by this subchapter and provide that such classes of persons or service shall be exempt, in whole or in part from such tax for a specified period of time.
(Ord. 1015, passed 11-2-10)