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City Council Meeting 6-1-93
JUN 1
Santa Monica, California
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STAFF REPORT
TO:
Mayor and city council
FROM:
city Attorney
SUBJECT:
Ordinances Amending the Santa Monica Municipal
Code to Increase the utility User Tax and
to Establish a Parking Facility Tax
At its meeting on May 25, 1993, the city Council introduced
for first reading two ordinances, one increasing the utility user
tax, and the other establishing a parking facility tax. The
ordinances are now presented to the city council for adoption.
RECOMMENDATION
It is respectfully recommended that the accompanying
ordinances be adopted.
PREPARED BY: Joseph Lawrence, Acting City Attorney
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CA:JLD:pkgtax.ord\wp51\pc\df
city Council Meeting 6-1-93
Santa Monica, California
ORDINANCE NUMBER 1683 (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA ADDING CHAPTER 6.70 TO THE
SANTA MONICA MUNICIPAL CODE TO ESTABLISH A
PARKING FACILITY TAX
THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN
AS FOLLOWS:
9
SECTION 1. Chapter 6.70 is added to the Santa Monica
Municipal Code to read as follows:
SECTION 6.70.010. Definitions.
Except where the context otherwise
i
requires, "the definitions in thlS Section
govern the construction of this Chapter.
( a)
Hotor vehicle.
"Motor vehicle"
means every self-propelled vehicle operated or
suitable for operation on the highway.
(b)
occupancy.
"occupancy" means the
use or possession or the right to the use or
possession of any space for the parking of a
motor vehicle or any other purpose in a
parking facility.
1
"'
(c) Occupant. "Occupant" means a person
who, for a consideration, uses, possesses or
has the right to use or possess any space for
the parking of a motor vehicle in a parking
facility under any lease, concession, permit,
right of access, license to use or other
agreement or otherwise, whether voluntarily or
involuntarily.
occupant shall be deemed to
include any person required to pay any valet
or service-labor charge in connection with the
parking of motor vehicles on public or private
property and any person required to pay a
charge for the occupancy of parking space by
another person by means of validation or
otherwise.
ed)
Operator.
"Operator" means the
person who conducts a parking facility,
whether in the capacity of owner, lessee,
mortgage in possession, licensee, valet or
.
other service supplier or any other capacity.
When the operator performs his or her
functions through a managing agent of any type
or character other than an employee, the
managing agent shall also be deemed an
operator for purposes of this article and
shall have the same duties and liabilities as
2
his principal. When the managing agent
collects parking fees and tax on behalf of his
or her principal and deposits the same into
the principal's account in a financial
institution, such principal shall be
responsible for reporting and remitting the
tax to the City. It shall be the duty of the
manag ing agent to provide the Director of
Finance with the name and address of each
principal who will be responsible for
reporting\and remitting the tax to the city.
Compliance with the provisions of this article
by either the principal or the managing agent
shall be considered to be compliance by both.
A person who qualifies as an operator shall
not, by reason of being exempt from the tax
imposed in. this article, be exempt from the
duties and liabilities of an operator imposed
under this article.
(e) Parkinq Heter. nparking meter"
means any device which, when the recording
device thereof is set in motion, or
immediately following the deposit of any coin,
shall register the period of time that any
motor vehicle may be parked adjacent thereto.
3
(f) parkinq Facility. "Parking
facility" means any outdoor space or uncovered
plot, place, street, lot, parcel, yard or
enclosure, or any portion thereof, or any
building or structure, or any portion thereof,
where or in which a motor vehicle may be
parked, stored, housed or kept, for which any
charge is made.
(g) Person. "Person" means any natural
person, partnership, joint venture, joint
stock company, corporation, estate, trust,
business trust, receiver, administrator,
executor, assignee, trustee in bankruptcy,
firm, company, association, club, syndicate,
society, municipal corporation, the state of
California, political subdivision of the state
of California, the United states,
instrumentality of the United states, or any
group or combination acting as a unit, whether
mutual, cooperative, fraternal, nonprofit or
otherwise.
(h) Parking Fee. "Parking feell means
the consideration charged, whether or not
received, for the occupancy or use of space in
a parking facility valued in money, whether
received in money, goods, labor or otherwise,
4
....
including all receipts, cash, credits and
property and services of any kind or nature,
without any deduction therefrom. The parking
fee shall be deemed to include the total
charges required to be paid by an occupant,
including, but not limited to, any valet or
service labor charge in connection with the
use or occupancy of parking space on public or
private property. Nothing shall be construed
to mean that a parking fee is charged to the
occupant of space in a parking facility for
the sale 'of petroleum products, automobile
parts or other tangible personal property, the
rendering of services, including car wash
services, ~otally unconnected with the use or
occupancy of parking space, or where parking
space lS provlded to the occupant as a
compliment from the operator and where no
consideration is charged to or received from
any other person.
Section 7.60.020. Parking Facility Tax.
On or after July 1, 1993, there is hereby
imposed a tax upon every person in the city
who occupies a parking facility or who is
obligated to pay a parking fee. The tax
5
...
imposed by this Chapter shall be at the rate
of ten percent (10%) of the total parking fee
charged by the operator for use of the parking
facility.
section 6.70.030. COllection.
(a) On or after the effective date of
this Chapter, every operator or person
receiving any payment for use of a parking
facility shall collect the amount of the tax
imposed by this Chapter from the person paying
the parking fee or who is obligated to pay the
parking fee.
(b) Unless otherwise prohibited by law,
every person occupying a parking space in a
parking facility shall be required to pay the
tax imposed by this Chapter to the operator or
the person collecting the parking fee. If the
parking fee is paid in installments, or if an
amount paid is less than the full amount of
the parking fee and tax accrued at the time of
payment, a proportionate share of the tax
shall be deemed to have been paid with each
such partial payment or installment.
(c) The taxes required to be collected
pursuant to this Chapter shall be deemed to be
6
..
held in trust by the operator or the person
required to collect the tax on behalf of the
City until the taxes are remitted to the city
as required by this Chapter and shall
constitute a debt owed by the operator to the
city.
Section 6.70.040. Reports and Tax
Remittance.
(a) The person or operator collecting or
obligated ~o collect any parking facility tax
pursuant to this Chapter, shall prepare a
report upon such forms and setting forth such
information as the Director of Finance may
prescribe and require to carry out the
purposes of this Chapter.
(b) The person or operator collecting or
obligated to collect any parking facility tax
shall report the amount of parking fees
collected and, the tax required to be
collected along with a remittance of the tax.
(c) The reports and tax remittances of
parking facility taxes shall be due no later
than the twenty-fifth day following the end of
each calendar quarter and shall cover the just
ended calendar quarter. For purposes of this
7
Chapter, the calendar quarters begin January
1, April 1, July 1 and October 1 of each year
and end the last day of March, June, September
and December of each year.
Section
6.70.050.
Interest
and
Penalties.
If any person fails or refuses to remit
to the Director of Finance the tax required to
be collected by this Chapter, there shall be
added to such tax a penalty of ten percent
(10%) of the amount of the tax due for each
thirty days that the tax is unpaid. If the
tax due remains unpaid for a period of ninety
(90) days or longer, in addition to the
penalty prescribed by this section, the person
owing the tax shall pay to the City interest
on the amount due from the date the tax was
due, in the amount determined by the Director
of Finance as equal to the City's actual rate
of return on its invested funds.
Section 6.72.060. Failure to Collect and
Report Tax.
If any person shall fail or refuse to
collect the parking facility tax or to make,
8
.
within the time provided in this Chapter, any
report or remittance required by this Chapter,
the Director of Finance shall proceed in such
manner as he or she may deem best to obtain
facts and information on which to estimate the
tax due. As soon as the Director of Finance
"
shall procure such facts and information as he
or she is able to obtain upon which to base
the assessment of any tax payable by any
person who has failed or refused to collect
the same and to make such report or
remittance, the Director of Finance shall
proceed to determine and assess against such
person the tax and penalties provided for by
this Chapter and shall notify such person by
mail sent to his or her last known place of
address of the total amount of such tax
including interest and penalties, and the
total amount thereof shall be payable within
ten days from the date of such notice.
Section 6.72.070. Records.
It shall be the duty of every person
liable for the collection and payment to the
city of any tax imposed by this Chapter to
keep and preserve, for a period of two years,
9
t
such suitable records as may be necessary to
determine the amount of such tax as he or she
may have been liable for the collection of and
payment to the City, which records the
Director of Finance shall have the right to
inspect at all reasonable times.
Section 6.72.080. Cessation of Business.
Whenever any person required to collect
and pay to the City a tax under this Chapter
shall cease to operate or otherwise dispose of
his or her business, any tax payable hereunder
to the City shall become immediately due and
payable and such person shall immediately make
a report and pay the tax due.
Section 6.72.090. Exceptions.
No tax shall be payable hereunder in any
of the following instances:
(a) On the parking fee paid by any
federal, State of California, or City of Santa
Monica, official or employees when on official
business provided that a tax exempt
certificate is executed no later than the time
when payment of the parking fee is due, on a
lO
form to be provided by the Director of
Finance.
(b) On the parking fee deposited in any
parking meter owned or operated by the city.
ec) On the parking fee paid for any city
preferential parking permit.
(d) On the parking fee paid as part of
any residential dwelling unit lease, rental
agreement or obligation, including on the
parking fee paid as part of any hotel, motel
or other lodging facility occupancy, but only
when the length of the occupant's stay exceeds
thirty (30) consecutive days in the hotel,
motel or other lOdging facility.
Section 6.72.100. Penalty.
Any person violating or failing to comply
with any of the provisions of this Chapter,
shall upon conviction thereof, be guilty of a
misdemeanor and shall, in addition to any jail
sentence, be fined not more than five hundred
dollars. Each violation of this Chapter shall
constitute a separate offense. Any conviction
for violation of this Chapter shall not
relieve any person from the payment,
11
':'
collection or remittance of the parking
facility tax as provided in this Chapter.
Section 6.72.1~O. Director of Finance--
powers and Duties.
It shall be the duty of the Director of
Finance to ascertain the name of every person
operating a parking facility in the City of
Santa Monica, liable for the collection of the
..
tax levied by this ordinance, who fails,
refuses or neglects to collect the tax or to
make, within the time provided by this
ordinance, the reports or remittances required
herein.
In addition to any other remedy or
proceeding,
the Director of Finance is
authorized to request that the city Attorney
commence any proceeding as may be appropriate
to obtain payment of any tax, including
penalty and interest, as may be due the city
under this Chapter.
SECTION 2. 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,
are hereby repealed or modified to that extent necessary to affect
the provisions of this ordinance.
12
SECTION 3. If any section, subsection, sentence, clause,
or phrase of this Ordinance is for any reason held to be invalid or
unconstitutional by a decision of any court of any 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 4. 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 upon
its adoption pursuant to Santa Monica Municipal Charter section
6l9.
APPROVED AS TO FORM:
~~~_Q~~/w0-
t1~fEP~ LAW~ENCE
i~ing City Attorney
13
Adopted and approved th~s 1st day of June, 1993.
o 4k
fi Mayor
I hereby certlfy that the foregoing Ordinance No. 1683 (CCS)
was duly and regularly ~ntroduced at a meetlng of the City
Council on the 25th day of May 1993j that the said Ordinance was
thereafter duly adopted at a meeting of the C~ty Counc~l on the
1st day of June 1993 by the following Councll vote:
Ayes: CounCllmembers
Abdo, Genser, Olsen, Vazquez
Noes- Councllmembers:
Greenberg, Holbrook, Rosenstein
Absta~n: Councllmembers:
None
Absent: Councllmernbers
None
ATTEST:
j
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City Clerk
BEFORE DISTRIBUTION CHECK CONTENT OF ALL
DISTRIBUTION OF RESOLUTION #
Council Meet~ng Date {, /; /q3
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VOTE: Affirmative: AJ~'" I;'; V
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Agenda Item #
Was lt amended?
FOR CITY CLERK'S ACTION
ORDINANCE # (6 tP Sf( ~J
Introduced: ~~~/q~
Adopted: ~/, / q3
ALWAYS PUBLISH ADOPTED ORDINANCE
Cross out Attorney's approval
Negative:
Abstain:
Absent:
PROOF VOTES WITH ANOTHER PERSON BEFORE ANYTHING
DISTRIBUTION: ORIGINAL to be s~gned, sealed and flIed ~n Vault.
NEWSPAPER PUBLICATION (Date: ) I
Department originating Staff report ( )
Ord~nance only for Attorney (Claudl.a Thompson)
City Manager Lynne Barrette ORDINANCES ONLY
Agency menti~ned in document or staff report
(certlfled? )
SubJect file (agenda packet)
Counter f~le
1
_u _1
1
1
Others: (Review for departments who need to know)
Alrport Parklng Auth.
Build~ng Dept. Planning
ClEO Police
Flnance Purchasing
General Servo CARS
Engl.neer~ng Clty Yards
Ll.brary Transportation
Manager Treasurer I
Flre Water
Auditorium
Personnel
SEND FOUR COPIES OF ALL ORDINANCES TO:
Dolores 0' Br.1.en
Santa Monica Municl.pal Court
1725 Maln Street, Room 118
Santa Monl.ca, CA 90401
SEND ONE COPY OF ALL ORDINANCES TO:
Donna Chrlstensen
Book Publ1shing Co.
201 Westlake Avenue North
Seattle, WA 98109-5293
6A-;'L /
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Total Copl.es
1
CA:JLD:usertax.ord\wp51\pc\df
city Council Meeting 6-1-93
Santa Monica, California
ORDINANCE NUMBER l684(CCS)
(City council series)
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA AMENDING SANTA MONICA MUNICIPAL
CODE SECTIONS 6.72.020, 6.72.030, 6.72.040, 6.72.050 AND
ADDING SECTION 6.72.055 TO INCREASE THE UTILITY USER TAX
THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN
AS FOLLOWS:
SECTION 1. Santa Monica Municipal Code Section 6.72.020
is amended to read as follows:
SECTION 6.72.020. Telephone Tax.
(a) There is hereby imposed a tax upon
every person ln the city, other than a
telephone corporation,
using
intrastate,
interstate,
and
international
telephone
communication services in the city. The tax
imposed by this section shall be at the
following rate:
(1) Prior to July 1, 1993, nine
and one-half percent (9.5%) of all charges
made for such services, which tax shall be
paid by the person paying for such services,
1
except that any taxpayer who provides proof
that the taxpayer has properly paid a
telephone communication services tax to a
jurisdiction other than the City of Santa
Monica based on the same transmission as is
taxed by the city shall be entitled to a
refund or credit for any duplicative tax that
the taxpayer has paid to the city.
(2) On and after July 1, 1993, ten
percent (10%) of all charges made for such
services, which tax shall be paid by the
person paying for such services, except that
any taxpayer who provides proof that the
taxpayer has properly paid a telephone
communication services tax to a jurisdiction
other than the city of Santa Monica based on
the same transmission as is taxed by the city
shall be entitled to a refund or credit for
any duplicative tax that the taxpayer has paid
to the city.
(b) As used in this Section, the
following terms are defined as follows:
(1) "Interstate and international
telephone communication services" are those
charges which originate or terminate wi thin
2
the city of Santa Monica and are charged to a
Santa Monica service address.
(2)
"Telephone
communication
services" mean the transmission of any
communications,
messages,
or
information,
whether by fixed, mobile , portable, or any
other form through electronic or other means,
between or among points by wire, cable, fiber
optics, laser, microwave, radio, satellite or
other methods.
(3) "Service address" is the address
where the telephone equipment is located and
to which the telephone number is assigned.
(c) The duty to collect the tax on
~
interstate and international telephone
communication services shall commence with the
first regular billing period of each service
user beginning on or after September l, 1989.
(d) 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
3
included in the base for computing the amount
of tax due; nor except for cellular
telecommunications, shall the term "telephone
conununication 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, 1989.
(e) Notwithstanding the provis10ns of
subsection (a), the tax imposed under this
Section shall not be imposed upon any person
for using intrastate, interstate, and
international 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, 1989, without regard to subsection
(b) thereof.
(f) Any taxpayer who claims to be
entitled to a refund for any tax paid pursuant
to this Section shall file an application for
a tax refund with the Director of Finance. The
application shall be made on a form provided
by the Director and the taxpayer shall prov1de
under penalty of perjury all facts, including
4
all documentary evidence, which supports the
claim for a refund. The Director shall review
all refund applications and shall determine
the amount, if any, of any refund due. The
Director shall notify the taxpayer of his or
her decision in writing by mailing a copy of
the decision to the taxpayer at the taxpayer's
last known address.
All taxpayers claiming a refund must file
their refund applications no later than one
hundred eighty (180) days following payment of
the tax which is the subject of the
application.
The Director's decision shall be final on
the day it is mailed to the taxpayer and shall
not be subject to further appeal, except that
judicial review of the decision may be sought
pursuant to Sections 1094.5 and 1094.6 of the
California Code of Civil Procedure only if
judicial review is commenced no later than the
ninetieth (90th) day following the date on
which the Director's decision is made final.
SECTION 2. Santa Monica Municipal Code Section
6.72.030 is amended to read as follows:
5
SECTION 6.72.030. Electricity Tax.
(a) There is hereby imposed a tax upon
every person in the city of Santa Monica
using electrical energy in the city of Santa
Monica. The tax imposed by this section shall
be at the following rate:
(1) Prior to July 1, 1993, nine and
one-half percent (9.5%) of all charges made
for such services, which tax shall be paid by
the person paying for such services.
(2) On and after July 1, 1993, ten
percent (lOt) of all charges made for such
services, which tax shall be paid by the
person paying for such services.
(b) As used in this Section, the term
"charges" shall include charges made for: (1)
metered energYi and (2) minimum charges for
service, including customer charges, service
charges, deman~ charges, standby charges, and
annual and monthly charges.
(c) 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 him for use in an automobile or other
mach1nery or device apart from the premises
6
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 t~e City of Santa Monica for
resale.
SECTION 3.
Santa Monica Municipal Code Section
6.72.040 is amended to read as follows:
SECTION 6.72.040. Gas Tax.
ea) There is hereby imposed a tax upon
every person in the city of Santa Monica using
in the City gas which is delivered through
mains or pipes. The tax imposed by this
section shall be at the following rate:
(1) Prior to July 1, 1993, nine and
one-half percent (9.5%) of all charges made
for such gas, which tax shall be paid by the
person paying for such gas.
(2) On and after July l, 1993, ten
percent (10%) of all charges made for such
7
gas, which tax 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.
SECTION 4.
Santa Monica Municipal Code section 6.72.050
1S amended to read as follows:
SECTION 6.72.050. Cable Television.
(a) There is hereby imposed a tax upon
every person in the city of Santa Monica using
in the City a cable television service. The
tax imposed by th1S Section shall be at the
following rate:
(1) Prior to July 1, 1993, nine and
one-half percent (9.5%) of all charges made
for such cable television service, which tax
8
shall be paid by the person paying for such
cable television service.
(2) On and after July 1, 1993, ten
percent (10%) of all charges made for such
cable television service, which tax shall be
paid by the person paying for such cable
television service.
(b) For purposes of this section, cable
television service shall mean a television
signal delivered by cable for a fee or charge.
SECTION 5. Section 6. 72.055 of the Santa Monica
Municipal Code is hereby added to read as follows:
SECTION 6.72.030. Water Usage Tax.
(a) Commenc1ng on July 1, 1993 there is
hereby imposed a tax upon every person in the
city of Santa Monica using the City'S water
service. The tax imposed by this Section
shall be at the following rate:
(1) On and after July 1, 1993, ten
percent (10%) of all charges made for such
water services, which tax shall be paid by the
person paying for such water services.
(b) As used in this Section, the term
tlcharges" shall include charges made for: (1)
9
metered and unmetered water usagej (2) waste
water discharge
including sewer service
...
.
charges; and~(3) minimum, fixed and variable
charges for .service, including all customer
charges, service charges, demand charges,
standby charges, and annual, monthly and bi-
monthly charges.
SECTION 6.
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,
are hereby repealed or modified to that extent necessary to affect
the provisions of this ordinance.
SECTION 7. If any section, subsection, sentence, clause,
or phrase of this Ordinance is for any reason held to be invalid or
unconstitutional by a decision of any court of any 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.
10
~
SECTION 8. 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 upon
its adoption pursuant to Santa Monica Municipal Charter Section
619.
APPROVED AS TO FORM:
~ r'
""'\ r" .
"' f ~
\~cf.l€~~~
JOSEPH\LAwRENCE
,~ing city Attorney
11
Adopted and approved this 1st day of June, 1993.
0~
7~ Mayor
I hereby certify that the foregoing Ordlnance No 1684(CCS)
was duly and regularly introduced at a meeting of the Clty
Councll on the 25th day of May 1993, that the said Ordinance was
thereafter duly adopted at a meetlng of the Clty CounCll on the
1st day of June 1993 by the followlng Councll vote:
Ayes:
Councllmembers:
Abdo, Genser, Olsen, Rosensteln,
Vazquez
Noes: Councllmembers:
Greenberg, Holbrook
Abstain: Councilmembers:
None
Absent' Councilmembers
None
ATTEST:
. Clty Clerk