SR-212-004 (2)
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CA:RMM:rmd501/hpca
City council Meeting 6-16-87
Santa Monica, California
STAFF REPORT
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JUN 1 6 1987
TO:
Mayor and City council
FROM:
city Attorney
SUBJECT:
Ordinance Amending Santa Monica Municipal Code
sections 6621, 6622, 6623, and 6623A to Increase
the utility User Tax
In connection with the adoption of the 1987-88 Budget, the
Ci ty Manager has requested that the City Attorney prepare an
ordinance amending Santa Monica Municipal Code Sections 662l,
6622, 6623, and 6623A to increase the utility users tax. The
accompanying ordinance provides for an increase in the city I s
utility user tax from five percent (5%) to six and one-half
percent (6-1/2%) starting on August 1, 1987, and an increase to
eight percent (8%) starting on July l, 1988.
RECOMMENDATION
It is respectfully recommended that the accompanying
ordinance be introduced for first reading.
PREPARED BY: Robert M. Myers, city Attorney
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JUN 1 6 1987
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cA:RMM:rmd502/hpca
City council Meeting 6-16-87
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Santa Monica, California
ORDINANCE NUMBER
(city council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA AMENDING SANTA MONICA MUNICIPAL
CODE SECTIONS 662l, 6622, 6623, AND 6623A 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 6621 is
amended to read as follows:
SECTION 6621. Telephone Tax.
(a) There is hereby imposed a tax
upon every person in the city, other than
a telephone corporation, using instrastate
telephone communication services in the
city.
The tax imposed by this section
shall be at the following rate:
(1) Prior to August 1, 1987,
five percent (5%) of all charges made for
such services, which tax shall be paid by
the person paying for such services.
(2) Between August 1, 1987,
and June 30, 1988, six and one-half
percent (6-1/2%) of all charges made for
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such services, which tax shall be paid by
the person paying for such services.
(3) On and after July 1,
1988, eight percent (8%) 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 ncharges" 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), the tax imposed under
this section shall not be imposed upon any
person for using intrastate telephone
communication services to the extent that
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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 l, 1969, without regard
to subsection (b) thereof.
SECTION 2.
Santa Monica Municipal Code Section 6622 is
amended to read as follows:
SECTION 6622. 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 August 1, 1987,
five percent (5%) of all charges made for
such services changed to energy, which tax
shall be paid by the person paying for
such services changed to energy.
(2) Between August 1, 1987,
and June 30, 1988, six and one-half
percent (6-1/2%) of all charges made for
such services changed to energy, which tax
shall be paid by the person paying for
such services changed to energy.
(3) On and after July I,
1988, eight percent (8%) of all charges
made for such services changed to energy,
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which tax shall be paid by the person
paying for such services changed to
energy.
(b) As used in this Section, the
term "charges" 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.
(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 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 of Santa Monica for
resale.
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SECTION 3.
Santa Monica Municipal Code Section 6623 is
amended to read as follows:
SECTION 6623. Gas Tax.
(a) 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 August 1, 1987,
five percent (5%) of all charges made for
such gas, which tax shall be paid by the
person paying for such gas.
(2) Between August 1, 1987,
and June 30, 1988, six and one-half
percent (6-1/2%) of all charges made for
such gas, which tax shall be paid by the
person paying for such gas.
(3) On and after July 1,
1988, eight percent (8%) of all charges
made for such 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
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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 6623A is
amended to read as follows:
SECTION 6623A. Cable Television.
(a) Commencing on January l, 1984,
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 this section shall be
at the following rate:
(1) Prior to August 1, 1987,
five percent (5%) of all charges made for
such cable television service, which tax
shall be paid by the person paying for
such cable television service.
(2) Between August 1, 1987,
and June 30, 1988, six and one-half
percent (6-1/2%') of all charges made for
such cable television service, which tax
shall be paid by the person paying for
such cable television service.
(3) On and after July l,
1988, eight percent (8%) of all charges
made for such cable television service,
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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.
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 6.
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.
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SECTION 7. 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 l5 days after its adoption. This Ordinance shall become
effective after 30 days from its adoption.
APPROVED AS TO FORM:
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ROBERT M. MYERS
City Attorney
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