(A) There is hereby imposed a tax upon every person using water in the city which is delivered through a pipeline distribution system. The tax imposed by this section shall be at the rate of six percent of the charges made for such water and shall be collected by the water service supplier or its billing agent.
(B) (1) As used in this section, the term
CHARGES shall apply to all services, components and items that are:
(a) Necessary or common to the receipt, use and enjoyment of water service; or
(b) Currently, or historically have been, included in a single or bundled: rate for water service by a local distribution company to a class of retail customers.
(2) The term
CHARGES shall include, but is not limited to, the following charges:
(a) Water commodity charges (potable and non-potable);
(b) Distribution or transmission charges;
(c) Metering charges;
(d) Customer charges, late charges, service establishment or reestablishment charges, franchise fees, franchise surcharges, annual and monthly charges, and other charges, fees and surcharges which are necessary for or common to the receipt, use and enjoyment of water service; and
(e) Charges, fees, or surcharges for water services or programs, which are mandated by a water district or a state or federal agency, whether or not such charges, fees, or surcharges appear on a bundled or line item basis on the customer billing.
(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 water services.
(D) (1) The Tax Administrator, from time to time, may survey the water service suppliers in the city to identify the various unbundled billing components of water retail service that they commonly provide to residential and commercial/industrial customers in the city, and the charges therefore, including those items that are mandated by a water district or a state or federal agency as a condition of providing such water service. The Tax Administrator, thereafter, may issue and disseminate to such water service suppliers an administrative ruling identifying those components and items which are:
(a) Necessary or common to the receipt, use or enjoyment of water service; or
(b) Currently, or historically have been, included in a single or bundled rate for water service by a local distribution company to a class of retail customers.
(2) Unbundled charges for such components and items shall be subject to the tax of division (A) of this section.
(E) There shall be excluded from the base on which the tax imposed in this section is computed charges made for water which is to be resold and delivered through mains or pipes and charges made by a water corporation for water used and consumed by such water corporation in the conduct of its business.
(F) The tax imposed by this section shall be collected from the service user by the 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.
(G) Notwithstanding the provisions of division (A) hereinabove, the City Council may, by Resolution, to be adopted on or before May 15 of each year, reduce the tax rate of division (A) and/or adopt a maximum tax for certain classes of customers, for the ensuing fiscal year as set forth in said Resolution. Unless the City Council re-adopts said Resolution by May 15 of the subsequent year, the tax percentage reduction and any other actions taken (e.g. establishment of a maximum) shall automatically expire and be discontinued, and the original voter-approved tax percentage shall apply, without the necessity of a vote of the people.
(1995 Code, § 5.76.070) (Ord. 09-04, passed 12-1-2009; Ord. 05-1958, passed - -2005)