Chapter 4.36



UTILITY USERS TAX

4.36.010 Definitions.
4.36.020 Telephone users tax.
4.36.030 Electricity users tax.
4.36.040 Gas users tax.
4.36.050 Water users tax.
4.36.060 Cable TV users tax.
4.36.070 Exemptions.
4.36.080 Collection.
4.36.090 Reporting and remitting.
4.36.100 Penalty.
4.36.110 Civil debt.
4.36.120 Failure to pay tax-Administrative remedy.
4.36.130 Records.
4.36.140 Refunds.
4.36.150 Disposition of funds.


4.36.010 Definitions.


For the purposes of this chapter, the following words and phrases shall have the meanings ascribed to them unless otherwise noted:

"Electrical corporation" means as defined in Section 218 of the Public Utilities Code and shall be construed to include any municipality engaged in the selling or supplying of electricity to a service user.

"Gross annual income" means and includes all sources of income including but not limited to social security payments, pensions, welfare payments, interest on tax exempt securities and all income subject to federal and state income tax laws.

"Household" means and includes all persons, both minors and adults, whether related or unrelated by blood or marriage, residing together at the same dwelling unit.

"Month" means a calendar month.

Person. The term "person" is defined in Chapter 1.04 of this code.

"Service supplier" means a person required to collect and remit a tax imposed by this chapter.

"Service user" means a person required to pay a tax imposed by this chapter.

"Tax administrator" means the director of finance and administrative services of the city of Glendale.

"Telephone corporation" and "gas corporation" shall have the meanings ascribed to such corporations by Sections 234 and 222 of the Public Utilities Code of the state of California as such sections existed on January 1, 1969. (Prior code º 5-164.40)

4.36.020 Telephone users tax.


A. There is imposed a tax upon every person in the city, other than a telephone corporation, using intrastate telephone communication services in the city. The tax imposed by this section shall be at the rate of seven percent of all charges made for such services and shall be paid by the person paying for such services.

B. 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; nor shall the term "telephone communication services" include land mobile services or maritime mobile services as defined in Section 2.1 of Title 47 of the Code of Federal Regulations, as such section existed on January 1, 1969.

C. Notwithstanding the provisions of subsection A of this section, the tax imposed under this section shall not be imposed upon any person for using intrastate telephone communication services to the extent that the amounts paid for such services are exempt from or not subject to the tax imposed by Section 4251 of Title 26 of the United States Code, as such section existed on January 1, 1969, without regard to subsection (b) thereof. (Prior code º 5-164.41)

4.36.030 Electricity users tax.


A. There is imposed a tax upon every person using electrical energy in the city. The tax imposed by this section shall be at the rate of seven percent of the charges made for such energy and shall be paid by the person paying for such energy. "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.

B. As used in this section, the term "using electrical energy" shall not be construed to mean the storage of such energy by a person in a battery owned or possessed by such 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. The term shall not include electricity used in water pumping by water corporations; nor shall the term include the mere receiving of such energy by an electrical corporation at a point within the city for resale.

C. There shall be excluded from the base on which the tax imposed in this section is computed, charges made by an electrical corporation for electricity used and consumed in the conduct of the business of electric public utilities. The inclusion of the public service chapter as a service supplier does not imply, and shall not be construed as, the levy of any tax under this chapter upon the taxing body, the city of Glendale. (Prior code º 5-164.42)

4.36.040 Gas users tax.


A. There is imposed a tax upon every person using gas in the city which is delivered through mains or pipes. The tax imposed by this section shall be at the rate of seven percent of the charges made for such gas and shall be paid by the person paying for such gas.

B. There shall be excluded from the base on which the tax imposed in this section is computed (1) charges made for gas which is to be resold and delivered through mains or pipes; (2) charges made for gas to be used in the generation of electrical energy by an electrical corporation; and (3) charges made by a gas public utility for gas used and consumed in the conduct of the business of gas public utilities. (Prior code º 5-164.43)

4.36.050 Water users tax.


A. There is imposed a tax upon every person using water in the city. The tax imposed by this section shall be at the rate of seven percent of the charges for such service and shall be paid by the person paying for such service. "Charges," as noted in this section, shall include charges made for (1) metered service; and (2) minimum charges for services, including customer charges, service charges, meter charges, installation charges, standby charges and annual and monthly charges.

B. 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; charges made by a municipal water department, water public utility or a county or municipal water district for water used and consumed by such department, utility or district in the conduct of the business of such department, utility or district; and charges made for water used in the generation of electrical energy by an electrical corporation. (Prior code º 5-164.43.1)

4.36.060 Cable TV users tax.


There is imposed a tax upon every person using cable TV in the city. The tax imposed by this section shall be at the rate of seven percent of the charges for such service and shall be paid by the person paying for such service. "Charges," as noted in this section, shall include all charges made for cable television service. (Prior code º 5-164.43.2)

4.36.070 Exemptions.


A. Eligibility. Any service user who is sixty-two years of age or older shall be eligible for an exemption from the taxes imposed by this chapter on service supplied to the service user's residential living quarters if the gross annual income of the household in which such individual resides is less than thirteen thousand nine hundred fifty dollars per calendar year.

B. Application. Applications for exemptions shall be filed with the tax administrator on such forms as the tax administrator may provide.

C. Time to File. Applications may be filed at any time.

D. Contents of Application. Applications shall be verified by declaration under penalty of perjury and shall contain such information as may be required by the tax administrator.

E. Review and Certification. The tax administrator shall review each application and shall certify the service user as exempt if the eligibility requirements of subsection A of this section are met, except that no exemption shall be granted to a service user who is receiving service from a service supplier through a master meter and no exemption shall be granted with respect to any tax imposed by this chapter which is or has been paid by a public agency or where the service user receives funds from a public agency specifically for the payment of such tax.

F. Notice to Service Supplier. If a service user is certified as exempt, the tax administrator shall promptly notify service user's service suppliers, stating the name of the service user, 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 user from its tax billing procedure.

G. Discontinuance of Billing. Upon receipt of such notice, the service supplier shall within sixty days discontinue billing service user for taxes imposed by this chapter, except as otherwise provided in subsection H of this section.

H. Prior Taxes to be Collected. Taxes billed by the service supplier to the service user prior to removing the service user from its tax billing procedure, shall be collected from the service user and the service user shall pay such taxes to the service supplier. Taxes billed to and paid by the service user between the time that the application for exemption is filed and the service supplier removes the service user from its taxing procedure will not be refunded to the service user.

I. Duration of Exemption. Exemptions certified by the tax administrator shall continue as long as the facts supporting the qualification for exemption shall exist; provided, however, that the exemption shall automatically terminate with any change in the service address or residence of the exempt individual; and provided further, that such individual may nevertheless apply for a new exemption with each change of address or residence.

J. Duty to Disclose Disqualification.

1. Any service user who has been exempted under this section shall notify the tax administrator within ten days of any change in fact or circumstance which might disqualify such individual from receiving such exemption. It shall be a misdemeanor for any person to knowingly receive the benefits of the exemption provided by this section when the basis for such exemption does not exist or ceases to exist.

2. Any service supplier, who determines by any means that a new or nonexempt service user is receiving service through a meter or connection exempt user of the same meter or connection, shall immediately notify the tax administrator of such fact and the tax administrator shall conduct an investigation to ascertain whether or not the provisions of this section have been complied with, and where appropriate, order the service supplier to commence collecting the tax from the nonexempt service user.

K. Audit by Tax Administrator. The tax administrator shall have the power and right to demand evidence of continued eligibility of a service user for exemption under the provisions of this section. Such evidence may include, but need not be limited to, copies of business records, letters or statements from the Social Security Administration and state, county, city and private pension administrators or unemployment and welfare agencies, copies of income tax returns, and such other evidence concerning the service user or other members of the service user's household as may tend to prove or disprove such eligibility. Failure to provide such evidence as is within the control of a service user to so provide, either directly by the service user or by the service user's consent or the consent of a member of the service user's household when such evidence is requested of the service user in writing by the tax administrator, shall be grounds for the immediate discontinuance of the service user's eligibility for exemption under the provisions of the section. Evidence provided to the tax administrator at the tax administrator's request, or voluntarily provided to the tax administrator by the service user without the tax administrator's request, may not be used against such service user as evidence of violation of the provisions of this section. Such evidence may only be used as grounds for termination of the exemption provided by this section.

L. Constitutionality. Nothing in this chapter shall be construed as imposing a tax upon any person if imposition of such tax upon that person would be in violation of the Constitution of the United States or the Constitution of the state of California. (Prior code º 5-164.44)

4.36.080 Collection.


A. Every person receiving payment of charges from a service user shall collect the amount of tax imposed by this chapter from the service user.

B. The tax shall be collected insofar as practicable at the same time as and along with the collection of charges made in accordance with the regular billing practice of the service supplier.

C. The duty to collect tax from a service user shall commence with the beginning of the first regular billing period applicable to that person which starts on or after the operative date of the ordinance codified in this chapter. Where a person receives more than one billing, one or more being for different periods than another, the duty to collect shall arise separately for each billing period. (Prior code º 5-164.45)

4.36.090 Reporting and remitting.


Each service supplier shall, on or before the twentieth day of each month, make a return to the tax administrator, on forms approved by the tax administrator, stating the amount of taxes billed by the service supplier during the preceding month. At the time the return is filed, the full amount of the tax collected shall be remitted to the tax administrator. The tax administrator is authorized to require such further information as the tax administrator deems necessary to properly determine if the tax here imposed is being levied and collected in accordance with this chapter. Returns and remittances are due immediately upon cessation of business for any reason. (Prior code º 5-164.46)

4.36.100 Penalty.


A. Taxes collected from a service user which are not remitted to the tax administrator on or before the due dates provided in this chapter are delinquent.

B. Penalties for delinquency in remittance of any tax collected or any deficiency determination, shall attach and be paid by the person required to collect and remit at the rate of fifteen percent of the total tax collected and not remitted on or before the due dates provided in this chapter.

C. The tax administrator shall have power to impose additional penalties upon persons required to collect and remit taxes under the provisions of this chapter for fraud or negligence in reporting or remitting at the rate of fifteen percent of the amount of the tax collected or as recomputed by the tax administrator.

D. Every penalty imposed under the provisions of this section shall become a part of the tax required to be remitted. (Prior code º 5-164.47)

4.36.110 Civil debt.


Any tax required to be paid by a service user under the provisions of this chapter shall be deemed a civil debt owed by the service user to the city. Any such tax collected from a service user which has not been remitted to the tax administrator shall be deemed a civil debt owed to the city by the person required to collect and remit. Any person owing money to the city under the provisions of this chapter shall be liable to an action brought in the name of the city for the recovery of such amount. (Prior code º 5-164.48)





4.36.120 Failure to pay tax- Administrative remedy.


Whenever a service user has failed to pay the amount of the tax for a period of two or more billing periods, or whenever the tax administrator deems it in the best interest of the city, the tax administrator may relieve the service supplier of the obligation to collect taxes due under this chapter from certain named service users for specified billing periods. The tax administrator shall notify the service user that the tax administrator has assumed responsibility to collect the taxes due for the stated periods and demand payment of such taxes. The notice shall be served on the service user by handing it to the service user personally or by deposit of the notice in the United States mail, postage prepaid thereon, addressed to the service user at the address to which billing was made by the service supplier; or should the service user have changed his or her address, to the service user's last known address. If a service user fails to remit the tax to the tax administrator within fifteen days from the date of the service of the notice upon the service user, which shall be the date of mailing if service is not accomplished in person, a penalty of twenty-five percent of the amount of the tax set forth in the notice shall be imposed, but not less than five dollars. The penalty shall become part of the tax required to be paid by this chapter. (Prior code º 5-164.49)

4.36.130 Records.


It shall be the duty of every person required to collect and remit to the city any tax imposed by this chapter to keep and preserve, for a period of three years, all records as may be necessary to determine the amount of such tax as such person may have been liable for the collection of and remittance to the tax administrator, which records the tax administrator shall have the right to inspect at all reasonable times. (Prior code º 5-164.50)

4.36.140 Refunds.


A. Whenever the amount of any tax has been overpaid or paid more than once or has been erroneously or illegally collected or received by the tax administrator under this chapter, it may be refunded as provided in this section.

B. A person required to collect and remit taxes imposed under this chapter may claim a refund or take as credit against taxes collected and remitted the amount overpaid, paid more than once or erroneously or illegally collected or received when it is established in a manner prescribed by the tax administrator that the service user from whom the tax has been collected did not owe the tax; provided, however, that neither a refund nor a credit shall be allowed unless the amount of the tax so collected has either been refunded to the service user or credited to charges subsequently payable by the service user to the person required to collect and remit.

C. No refund shall be paid under the provisions of this section unless the claimant establishes his or her right thereto by written records showing entitlement thereto. (Prior code º 5-164.51)

4.36.150 Disposition of funds.


One percent (currently one-seventh) of the utility users tax collected under and pursuant to the provisions of this chapter shall be deposited in the capital improvement fund of the city to be used only for capital expenditures. The balance shall be deposited and paid into the general fund of the city. (Prior code º 5-164.52)