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<br />ORIGINAL <br /> <br />UUT REFUND AGREEMENT <br /> <br />The undersigned agree to the following: <br /> <br />1. The City of Redwood City imposes a utility users tax on persons and businesses using <br />telecommunication services in the City, including IP ASS, which is located at 3800 <br />Bridge Parkway, Redwood City, CA 94065. <br /> <br />2. During the period of March 11 to April 10, 2008, Verizon imposed the City's utility <br />users tax on its bills to IP ASS for certain network access services provided to IP ASS, <br />which services enable IP ASS customers to gain remote access to the Internet using, in <br />part, Verizon's telecommunication wireless network. See attached Refund Claim of <br />IP ASS. During that period, IP ASS paid the tax, and Verizon remitted the tax, to the City <br />of Redwood City. The amount paid to the City was twenty five thousand five hundred <br />eleven dollars and sixty two cents ($25,511.62). <br /> <br />3. Both Verizon and IPASS contend that the tax was improperly imposed and paid <br />because the federal Internet Tax Nondiscrimination Act, P.L. 107-75, arguably does not <br />allow the imposition of a local tax on "acquired services", including the services provided <br />by Verizon to IP ASS. <br /> <br />4. In recognition that the federal law is new and has not been interpreted by the courts, <br />and in recognition that the application of this new law to constantly changing <br />technologies and services, makes it difficult for the City to analyze, with certainty, the <br />refund claim of IP ASS for $25,511.62, the parties therefore agree that the City will, <br />without prejudice, refund the amount of $25,511.62 to IP ASS, provided that such refund <br />does not constitute an interpretation of the City's ordinance or federal law. Further, the <br />City may, reassess the tax (for the period of March 11 to April 10, 2008, or any period <br />thereafter), if the City determines in the future that the law or relevant facts have been <br />clarified so as to reasonably conclude (in the opinion of the City) that such tax was <br />properly imposed under the ordinance and applicable federal law. In the event of such <br />reassessment, nothing herein shall constitute a waiver or otherwise prejudice any rights, <br />defenses or legal positions of the respective parties. <br /> <br />5. Notwithstanding the foregoing, the parties agree that the three year statute of <br />limitations on taxes owed, and referred to in the refund claim, shall begin to run as of the <br />date of this Agreement. <br /> <br />PETE C. INGRAM <br />CITY MANAGER <br /> <br />~jm l70o~ <br /> <br />Date I <br /> <br />NAME <br />TITLE <br /> <br />IPASS <br /> <br />)(~~ <br />rrt'/.Illc- V<-(' -I {"'~/I fA <br />uP ~ C FV <br /> <br />~/~/n <br />Date <br /> <br />........_~~._..,--- <br /> <br /> <br />A TTY/ AGR/2008.055 <br />081308 <br />