SR-092496-6D
60
CA:f:\atty\muni\strpts\srtax2d SEP 2 4 1996
city Council Meeting 9-24-96 santa Monica, California
TO: Mayor and City Council
FROM: city Attorney
SUBJECT: Ordinance AII1ending sections 6.72.010, 6.72.070 and
6.72.090 of the Santa Monica Municipal Code
INTRODUCTION
At its meeting on September 10, 1996, the City council introduced
for first reading an ordinance amending Municipal Code sections
6.72.010, 6.72.070 and 6.72.090 relating to the City's utility Users
Tax. The ordinance is now presented to the city Council for
adoption.
RECOMMENDATION
It is respectfully recommended that the accompanying ordinance be
adopted.
PREPARED BY: Marsha Jones Moutrie, City Attorney
60
SEP 2 .. 1996
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A:.ta::::hment to
CuP -- Statement of Plnd1ngs
~5~8 Hll~ Sc~eet
:. The proposed use lS completely conSlstent Wl th, and
perQ~~~ed by, Callfeynla Goveynment Code S 65852 2 and S.K. Zon1ng
Cede S 9 O~.12.08C {except only as to subsections (b), (~i and
J:' See MeMorandum Oplrlon Number 88-2 daced Maych 8, 1980, =yom
~~ber~ M Myers, C.:~y Attorney, a~d ~aurl: ~leberman, ?ep~~Y"Clty
"" --r-~-o\., -,.., -no "" Mayo"- a-..:l 01-}' Counc~; - "'Op'l 0- W!-,lC..... , S
'-'---'-'~-.', ....'-' .... ~ 1 ~ HI..4 '- '- ~_, a ~ .i _ " ~. _
attac:r:ec. heyet.o (herelnafter the rrClty Attorney's OplI:lOn")
2 See G.C. & 65852.2 and Clty Attorney's Opln1on G.C
v 65252 2 was =::,ys"C adopced .oy the Callfo:::-nla Leglslature and
aDDYCVe~ bv :'~e Governor In 1986. In 1994, a dlfferent Leg.:slature
a~c ~~==;rent Governor enacted and approved the followlng
., f~:1~~nqs, declayaClOnS, and lntent II (G C ~ 65852.150), to resolve
a~v co~;t :.hat ::.t lS the publ1c policy of this State to lncrease
a==~riab~e houslng In Callfornia by encouraglng second unlts ln
s~:1g:e-=aTl:Y res::.den:'lal areas: "The Legislature finds and
:.ie::::"ares tha:. second unlts are a valuable form of hous~ng ~n
=a~:'::='rr:~a. Seco:lc units provlde hous1ng for famlly memoers,
S~~8er:~s, ~~e elde~ly, ~n-hoMe health care orovlderr;, the dlsabled
~~~ =:~ers. a~ below-market prlces wlthin exist1ng ne~ghborhoods.
~=-eJ~~e~s ~~= c~ea~e second un1ts beneflt from added 1ncome, and
~u ::.:--::reasec:. se~se of securlt.y [~] IT: 1S the 1ntent of the
~e~:'s_a~~ye ~tat any se::::ond-unlt ordlnances adopced by local
a:J"~:::: ::.es ::ave :r:e a;::ec~ o~ provldlnq fey t.he creat10n of seconll
----~- a:l~ ~~a~ prcvlSlons In t.hese ordlnances relatlng to matters
::'~=~~~::.r:g ~~lt slze, park::.ng, fees and other requlrernents, a~e not
- ",,-r;:'-:"'-arv. cXcess~ve 0"" burdensome so as to un""easonablv
~es:~::.=:. c~e aDl~l~V of homeowne:::-s ~o create second ~n1ts In zones
::.~ ~~::.c~ :~ey are au:horlzed by locai ordlnance ~
~ ~~e s~bJec: parce: lS especlally, and uncommonly,
s~:.~a~~e foy ~h::.s ~ype of use, because of ~he slope of the property
=:-:-::;c- :'r~e ?:.reet down to the alley. Flrst, the slope made it
r::::SS:':::'~e -~, :lave a two-level accessory bU.lldlng, with only one
~e"e~ aD~ve .~~G Wlthout enough slope to permlt thls, such a use
'~.::'...l:i reau::.re a one-level bu::..ldlng next to a garage. That would
~~jes::.ra~ly consume more yard area (Although thls klnd of prOJect
=2~~s De Qone Wlt~ a one-level maln dwelllng buildlng, and a two-
i"",~o- ac=esscry bUl.ldlng/second UnlT:, It lS unllkely that many
proper~y owners would wan~ to so severely restrlct the Slze of the
TaJ.:-~ :C".J.:,:!.cllng, glven the City's prohlb~tlon of two, two-story
~~::.~cJ.=gs en an Rl lot.) Second, on a lot wlth a slope from the
3~~ev QOwc to the stree!, a two-level accessory bUllding, llke the
o:J.e wr..::.cr.:. 1S the sub] ect of thlS CUP, would not be permitted,
Decause Dotr. levels would be above ANG (unless the maln building
was on~y cne-scory) Thlrd,.lt would be proh1bitlvely expensive to
~~~~d tne ga:::-age below ANG on a property wlth a slope any steeper
~ha~ tta:. 0= ~ne subJect property. Fourth, this klnd of project
W:::~~d be J.l'1pract.lcal or undeslrable for propertles without an alley.
-~." 033~
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(e) Telephone Corporation, Electrical corporation,
and Gas Corporation. "Telephone corporation,lI
"electrical corporation," and "gas corporation" shall
have the same meanings as defined in section 234, 218,
222, 241 and 215.5, respectively, of the Public Utilities
Code of the state of California, as said sections existed
on January I, 1969. "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.
(d) Tax Administrator. "Tax Administrator"
shall mean the Director of Finance-City Controller
of the City of Santa Monica.
(e) Service supplier. "Service Suppl1.er" shall
mean a person required to collect and remit a tax imposed
by thlS Chapter.
(f) Service User. "Service User" shall mean a
person required to pay a tax imposed by this Chapter.
(g) Month. "Month" shall mean a calendar month.
SECTION 2. Section 6.72.070 of the Santa Monica Municipal
Code is hereby amended to read as follows:
6.72.070 Collection of tax.
(a) Every person receiving payment of charges
from a Service User shall collect the amount of tax
lmposed by this Chapter from the Service User.
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(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 July 1, 1969. Where a
person receives more than one (1) billing, one or
more being for different periods than another, the
duty to collect shall arise separately for each
billing period.
(d) Notwithstanding the foregoing, the Tax
Administrator shall have the power both to waive
the duty of the person required to collect tax from
a Service User, and to impose such duty on a
prospective basis only, so long as such waiver or
such prospective appllcation is in writing and
complies with any Administrative Rules adopted by
Resolution of the city Council to facilitate the
implementation of this Chapter. Except as
otherwise permitted by ordinance or Administratlve
Rules adopted by Resolution of the city Counc1l,
the dec~sion of the Tax Administrator shall be
f1nal and not appealable to the City Council, but
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subject to judicial review pursuant to CCP section
1094.5.
SECTION 3. section 6.72.090 of the Santa Monica Municipal
Code is hereby amended to read as follows:
6.72.090 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 ordinance 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 (15%) of the total tax collected or
1mposed herein.
(c) The Tax Administrator shall have power to
impose additional penalties upon persons required
to collect and remit taxes under the provisions of
this ordinance for fraud or negligence in reporting
or remitting at the rate of fifteen percent (15%)
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.
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(e) The Tax Administrator shall have the
power to reduce or to waive any penalty upon
persons required to collect and remit taxes under
the provisions of this Chapter so long as such
reduction or waiver is in writing and complies with
any Administrative Rules adopted by Resolution of
the city council to facilitate the implementation
of this Chapter. Any request for reduction or
waiver of any penalty assessed pursuant to this
section shall be made in writing no later than
thirty {3 O} days following the assessment of the
penalty. Except as otherwise permitted by
ordinance or Administrative Rules adopted by
Resolution of the city council, the decision of the
Tax Administrator shall be final and not appealable
to the City Council, but subJect to judlcial review
pursuant to CCP section 1094.5.
SECTION 4. Any provision of the Santa Monica Municipal Code
or appendices thereto inconsistent with the provisions of this
Ordlnance, to the extent of such inconsistencies and no further, is
hereby repealed or modified to that extent necessary to effect the
prov1sions of this Ordinance.
SECTION 5. If any section, subsection, sentence, clause, or
phrase of this ordinance is for any reason held to be invalid or
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unconstitutional by a decision of any court of competent
jurisdiction, such decision shall not affect the validity of the
remaining portions of this Ordinance. The City Council hereby
declares that it would have passed this Ordinance and each and
every section, subsection, sentence, clause, or phrase not declared
invalid or unconstitutional without regard to whether any portion
of the Ordinance would be subsequently declared invalid or
unconstitutional.
SECTION 6. The Mayor shall sign and the City Clerk shall
attest to the passage of this Ordinance. The City Clerk shall
cause the same to be published once in the official newspaper
within 15 days after its adoption. This Ordinance shall become
effective 30 days from its adoption.
APPROVED AS TO FORM:
(~~--i0
MARSHA JONE$ MOUTRIE
City Attor'ney
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dJ7~ ~~
Mayor
State of Caltfonua )
County of Las Angeles) S5
CIty of Santa MOnIca )
I. Mana M. Stewart_ CIty Clerk of the Clly of Santa MOnIca. do hereby certIfy that the foregomg
Ordmance Ko 1863 (CCS) had Its first readmg on September 10. 1996, and had Its second
readmg on September 24. 1996 and ,vas passed by the follov\'lng vote
Ayes CouncIl members Abdo, Ebner. Genser. Greenberg, Holbrook. O'Connor,
Rosenstem
?\oes CouncIl members None
Abstam CounCIl members Kone
Absent CouncIl members None
ATTEST
'-- ~~
.(}~'~-~!~
CIty Clerk