O2280Ordinance No. 2280 (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA AMENDING PROVISIONS OF CHAPTER 6.72 OF THE SANTA
MONICA MUNICIPAL CODE RELATING TO THE UTILITIES TAX
SECTION 1. Santa Monica Municipal Code Section 6.72 is hereby amended to
read as follows:
Utilities Tax
6.72.010 Definitions.
The following words and phrases whenever used in this Chapter shall be given
the meaning stated below unless otherwise provided.
(a) "Ancillary telecommunication services" mean services that are associated
with or incidental to the provision, use or enjoyment of telecommunications services,
including but not limited to the following services:
(1) "Conference bridging service" that links two or more participants of an audio
or video conference call and may include the provision of a telephone number.
Conference bridging service .does not include the telecommunications services used to
reach the conference bridge:
(2) Any service which separately states information pertaining to individual calls
on a customer's billing statement.
(3) Any service which provides telephone number information, or address
information.
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(4) Any service offered in connection with one or more telecommunications
services, which offers advanced calling features that allow customers to identify callers
or to manage multiple calls or to call connections, including conference bridging
services.
(5) Any service that enables a service user to store, send or receive recorded
messages.
(b) "Ancillary video services" mean services that are associated with or
incidental to the provision or delivery of video services, including but not limited to the
provision of converters and similar equipment, electronic program guide services,
recording services, search functions, or other interactive services or communications
that are associated with or incidental to the provision, use or enjoyment of video
services.
(c) "Billing address" means the mailing address of the service user where the
service supplier submits invoices or bills for payment by the customer.
(d) "Cable television service" means any and all services related to the providing
of television, video or origination programming or services, including any
communications that are ancillary, necessary or common to the use or enjoyment of the
programming or service, provided to premises located in the City through any cable, or
any other similar medium, in part or exclusively, that is used to transmit television or video
signals, regardless of the content of the video programming or communications.
However, cable television service shall not include services for which a tax is paid under
Section 6.72.020 of this Chapter.
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(e) "Cable television supplier" means any person, company or service which
provides one or more channels or signals of television, video or television programming or
services, including any communications that are ancillary, necessary or common to the
use or enjoyment of the programming' or services, to or from a business, home,
condominium or apartment, where some fee is paid, whether directly or indirectly,
whether or not the public rights-of-way are utilized in the delivery of the video or television
programming or communications and regardless of the content of such video or television
programming or communication. Cable television supplier includes, but is nbt limited to,
multichannel video programming distributors,. as defined in 47 U.S.C. Section 522(13),
open video systems (OVS) suppliers, suppliers of cable television, master antenna
television, satellite master antenna television, multichannel multipoint distribution
services, direct broadcast satellite, and other suppliers of video programming or
communications including two way communications, whatever their technology, to the
extent allowed by law.
(f) "City" means the City of Santa Monica.
(g) "Electrical corporation" has the same meaning as it is defined in Section 218
of the California Public Utilities Code. "Electrical corporation" shall be construed to include
any municipality or franchised agency engaged in the selling or supplying of electrical
power to a service user.
(h) "Exempt wholesale generator" has the same meaning as set forth in the
Federal Power Act, 15 U.S.C. Section 79z-5a, and regulations thereunder.
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(i) "Gas" means natural or manufactured gas or any alternate hydrocarbon fuel,
which may be substituted .therefor.
Q) "Gas corporation" has the same meaning as it is defined in Section 222 of the
California Public Utilities Code.
(k) "Month" means a calendar month.
(I) "Non-utility service supplies" means:
(1) A service supplier, other than a supplier of electric distribution services to all.
or a significant portion of the City, which generates electricity for sale to others, and shall
include, but is not limited to, any publicly-owned electric utility, investor-owned utility, co-
generator, exempt wholesale generator, municipal utility district, federal power marketing
agency, electric rural cooperative, or other supplier or seller of electricity;
(2) An electric service provider (ESP); electricity broker, marketer, aggregator,
pool operators, or other electricity supplier other than a supplier of electric distribution
services to all or a significant portion of the City, which sells or supplies electricity or
supplemental services to electricity users within the City; or
(3) A gas service supplier, aggregator, marketer or broker, other than a supplier
of gas distribution services to all or a significant portion of the City, which sells or supplies
gas or supplemental services to gas users within the City.
(m) "Person" means, without .limitation, any natural individual, firm, trust,
common law trust, estate, partnership of any kind, association, syndicate, club, joint
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stock company, joint venture; limited liability company; corporation (including foreign,
domestic, and non-profit), municipal district or municipal corporation, other than the City,
cooperative, receiver, trustee, guardian, or other representative appointed by order of
any court.
(n) "Service address" means the residential street address or the business
street address of the service user's primary place of usage. As determined by the Tax
Administrator "service address" may include the location of the service user's
communication equipment from which the communication originates or terminates,
regardless of where the communication is billed or paid. For prepaid telecommunication
service, "service address" means the location associated with the service number.
(o) "Service supplier" means any entity or person, including the City, that is
required to collect, self-collect or self-impose and remit a tax subject to this :Chapter
including any billing agent. Service supplier includes any person that provides
telecommunication, electric, gas, cable, water or wastewater service to a user of such
services within the City.
(p) "Service user" means a person required to pay a tax imposed under the
provisions of this Chapter.
(q) "Tax Administrator" means the City's Director of Finance or his or her
designee.
(r•) "Telecommunication service" means the transmission, conveyance, or
routing by any method or mean of any voice, data, audio, video, or any other information
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or signals to a point, or between or among points, regardless of the technology or
method br mean of transmission, conveyance or routing that may be used.
Telecommunication service includes, without any limitation whatsoever, any
transmission, conveyance, or routing in which computer processing, or any other
technology or application of any kind, may be used to act on any form, code or protocol
of content for purposes of transmission, conveyance or routing, without regard to
whether such service is described or otherwise referred to as voice over Internet
protocol (VoIP) service or is classified by the Federal Communications Commission, or
any other successor entity, as enhanced or value added. Telecommunication service
includes video or data or any other service that is functionally integrated, in whole or in
part, with any telecommunication service. Telecommunication service further includes,
but is not limited to, the following services, regardless of the manner or basis on which
such services are calculated or billed: ancillary telecommunication services; intrastate,
interstate and international telecommunication service; mobile telecommunications
service; prepaid or post-paid telecommunication service; private telecommunication
service; paging service; "800" or "900" numbers or any other similar numbers
designated by the Federal Communicatiohs Commission or any other successor entity;
ancillary video services and video services. Telecommunication service also includes,
but is not. limited to, any charge however calculated or billed for: connection,
reconnection, termination, movement, or change of service; late payment fees; detailed
billing; central office; custom features; directory assistance; access, line or universal
service; regulatory, administrative or other cost recovery fees; local number portability;
text and instant messaging; video programming; equipment leases; service calls;
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service protection plans; and special or other services of any kind. Telecommunication
service does not include digital downloads that are not "ancillary telecommunication
services", such as music, ringtones, games, and similar digital products.
(s) "Telephone corporation" has the same meaning as defined in Section 234 of
the California Public Utilities Code.
(t) "Video programming" means programming services provided to service
users by a "video service supplier" including but not limited to basic services, premium
services, audio services, video .games, pay-per-view services, video on demand,
origination programming, or any other similar services; regardless of the content of such
video programming, or the technology used to deliver such services, and regardless of
the manner or basis on which such services are calculated or billed.
(u) "Video services" means any and all services and equipment related to the
providing, recording, delivering, use or enjoyment of video programming, including but
not limited to, origination programming and programming using Internet Protocol, e.g.,
IP-N and IP-Video, using one or more channels by a video service supplier, regardless
of the technology used to deliver, store or provide such services, and regardless of the
manner or basis on which such services are calculated or billed, and includes ancillary
video services, data services, telecommunication services, or interactive communication
services that are functionally integrated, in whole or in part, with video services.
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6.72.020 Telecommunication Services Tax
(a) There is hereby imposed a tax upon every person using telecommunication
services in the City, other than a telephone corporation, including intrastate, interstate,.
and international telephone communication services. The 'tax imposed by this Section
shall be at the rate. of ten percent of all charges made for such telecommunication
services and shall be collected from the service user by the telecommunication services
supplier or its billing agent. To the extent allowed by law, the tax on telecommunication
services shall apply to a service user if the billing or service address of the service user is
within the City's boundaries. If the billing address of the service user is different from the
service address, the service address of the service user shall be used.
(b) 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 telecommunication services. If any nontaxable
service or charge is combined with and not separately stated from taxable service
charges on the bill or invoice of a service supplier, the combined charge is subject to tax
unless the service supplier can reasonably identify the portions of the combined charge
that are nontaxable and taxable through the service supplier's books and records that
are kept in the regular course of business, and in accordance with generally accepted
accounting principles. The service supplier has the burden of proving the proper
apportionment of taxable and non-taxable charges. If the service supplier offers a
combination of taxable and non-taxable services, and the charges are separately
stated, then for taxation purposes, the values assigned the taxable and non-taxable.
services shall be based on its books and records kept iri the regular course of business
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and in accordance with generally accepted accounting principles, and not created and
maintained for tax purposes. The service supplier has the burden of proving the proper
valuation of the taxable and non-taxable services. As used in this Section, the term
"charges" shall not include charges for services paid for by inserting coins or other
forms of payment in coin or payment operated telephones, except that where such coin
or payment. 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.
(c) To prevent actual multi-jurisdictional taxation of telecommunication 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
telecommunication 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. For purposes of establishing a sufficient legal basis for the imposition and
collection of utility users tax for telecommunication services pursuant to this Chapter,
"minimum contacts" shall be construed broadly in favor of the imposition and collection
of the utility users tax to the fullest extent permitted by California and federal law, and as
it may change from time to time.
(d) The tax on telecommunication service imposed by this Section shall be
collected from the service user by the service supplier or its billing agent. The amount of
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tax collected in one month shall be remitted to the Tax Administrator, and is due to the
Tax Administrator on or before the20th day of the following month.
(e) Any natural person, who satisfies the special exemption requirements
established by Section 6.72.150, shall be exempt from. the tax imposed by this Section.
Nothing in this Chapter shall be construed as imposing a tax upon 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 of California. The City Council may, in its discretion and in accordance with
applicable law, create by ordinance exemptions from the telecommunication services
tax.
(f) The Tax Administrator is authorized to enforce the provisions of this Chapter
and may adopt administrative rules and regulations and may issue determinations as
appropriate for the proper administration and interpretation of this Chapter and that are
cohsistent with provisions and intent of this Chapter. The Tax Administrator may also
issue and disseminate to service suppliers sourcing and other administrative rules or
determinations for the taxation of telecommunication services, including but not limited
to post-paid communication services, prepaid communication services, and private
communication services.
SECTION 2. The terms of this ordinance measure may be repealed or amended
by-the City Council of the City of Santa Monica through duly enacted ordinance .unless
Chapter XIIIC of the Constitution of the State of California provides otherwise.
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SECTION 3. Severability. If any section, subsection, sentence, clause, phrase,
or portion of this Ordinance is for any reason held to be invalid or unenforceable by a
court of competent jurisdiction, the remaining portions of this Ordinance shall
nonetheless remain in full force and effect. The people hereby declare that they would
have adopted each section, subsection, sentence, clause, phrase, or portion of this
Ordinance; irrespective of the facf that any one or more sections, subsections,
sentences, clauses, phrases, or portions of this Ordinance be declared invalid or
unenforceable.
SECTION 4. Ratification of Prior Tax: The People of the City of Santa Monica
ratify and approve the tax practices and collection activities under Chapter 6.72 of the
Santa Monica Municipal Code as occurred prior to the adoption of this Ordinance.
SECTION 5. Any provision of the Santa Monica Municipal Code or appendices
thereto inconsistent with the provisions of this Ordinance, to the extent of such
inconsistencies and no further, is hereby repealed or modified to that extent necessary
to effect the provisions of this Ordinance.
APPROVED AS TO FORM:
'/„
A SHA J~O tES OU IE
Cit Attorne
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