(A) There is hereby imposed a tax upon every person in the city who uses intrastate telephone communication services. The tax imposed by this section shall be at the rate of seven percent of all charges made for such telephone communication services. There is a rebuttable presumption that telephone communication services, which are billed to a billing or service address in the city, are used, in whole or in part, within the city’s boundaries, and such services are subject to taxation under this chapter. If the billing address of the service user is different from the service address, the service address of the service user shall be used for purposes of imposing the tax, regardless of where the telephone communication service may originate, terminate, or pass through.
(B) As used in this section, the term
TELEPHONE COMMUNICATION SERVICES shall not include PRIVATE MOBILE RADIO SERVICE, as defined in 47 C.F.R. part 20, or PRIVATE MOBILE SERVICE, as defined in 47 U.S.C. § 332(d)(3), which is not interconnected with the public switched network or is not provided over digital networks by which communications with a substantial portion of the public is available (e.g., voice using internet protocol or VolP). The tax imposed under division (A) above shall not be imposed upon any person for using telecommunication services to the extent that, pursuant to the Internal Revenue Code §§ 4252(d) and 4253, the amounts paid for such communication services are exempt from or not subject to the tax imposed under the Internal Revenue Code § 4251. In the event that the federal excise tax on communication services as provided in the Internal Revenue Code §§ 4251, 4252 and 4253 is subsequently repealed, any reference in this § 5.76.030 and in § 5.76.010 (telephone communication services) to such law, including any related federal regulations, private letter rulings, case, law, and other opinions interpreting these sections, shall refer to that body of law that existed immediately prior to the date of repeal, as well as to any final published decision by the U.S. Supreme Court or by a federal court in the Ninth Circuit Court of Appeals interpreting such federal excise tax law.
(C) 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 telephone communication services. As used in this section, the term CHARGES shall not include charges for services paid for by inserting coins in coin-operated telephones, 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 included in the base for computing the amount of tax due.
(D) The Tax Administrator, from time to time, may issue and disseminate to telecommunication service suppliers which are subject to the tax collection requirements of this chapter, an administrative ruling, pursuant to § 5.76.160(B) of this chapter, identifying those telecommunication services that are subject to the tax of division (A) above and/or identifies the sourcing of such services for tax administration purposes. This administrative ruling shall not impose a new tax, revise an existing tax methodology as stated in this section, or increase an existing tax, except as allowed by Cal. Government Code § 53750(h)(2)(A). An administrative ruling shall not constitute a new tax or an increase in an existing tax if such administrative ruling is:
(1) Consistent with the existing ordinance language; and
(2) Merely reflects a change in, clarification to, or new rendition of:
(a) The definition, interpretation, or application of substantial nexus by a court of competent jurisdiction or by preemptive state or federal law, for purposes of taxation;
(b) The sourcing of taxable transactions based upon industry custom and practice, which furthers administrative efficiency and minimizes multi-jurisdictional taxation; or
(c) The definition, interpretation, or application of the federal excise tax rules, regulations, and laws pertaining to
COMMUNICATIONS SERVICES (26 U.S.C. §§ 4251, 4252 and 4253) by the Internal Revenue Service, or by the Tax Administrator in assuming an interpretative role of those rules, regulations, and laws in the event that the federal excise tax on communications services is repealed.
(E) To prevent actual multi-jurisdictional taxation of telephone communication services subject to tax under this section, any service user, upon proof to the Tax Administrator that the service user has previously paid the same tax in another state or city on such telephone communication services, shall be allowed a credit against the tax imposed to the extent of the amount of such tax legally imposed in such other state or city; provided, however, the amount of credit shall not exceed the tax owed to the city under this section.
(F) The tax imposed by this section shall be collected from the service user by the service supplier. 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.
(G) Notwithstanding the provisions of division (A) herein, the tax imposed under this section shall not exceed the sum of $560 for any one calendar year of service.
(1995 Code, § 5.76.030) (Ord. 05-1958, passed - -2005)