AgdaPkt 2003-06-30 - Laserfiche WebLink

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&3A- I REPORT To the Honorable Mayor and CHy Council From the City Manager June 30, 2003 Subject Utility Users' Tax Ordinance Recomrrendedon It is recommended that the City Council adopt the revised utility users' tax ordinance as presented, which will only update and clarify the current ordinance and will not increase the tax rate. Background At the time the City's original utility users' tax (UUT) ordinance was adopted in 1983, there were relatively few utility providers. Today, due to deregulation and technological changes, there are many providers of utility services in the City. For example, there are over five hundred telecommunication providers licensed by the California Public Utilities Commission. Many are doing business in the City, employing different technologies to provide various telecommunication services. There are also a number of different gas marketers doing business in the City, again due to deregulation of the gas industry. In order to give guidance to the many new utility service providers regarding their UUT collection responsibilities, it is appropriate to update the City's UUT ordinance with needed clarifications regarding the scope of the city's ar/s//nq taxes and the collection responsibilities of a / /providers. To assist you, we have highlighted below the proposed clarifying amendments. Importantly, none of the following clarifying amendments increase the UUT or expand the existing tax base. We are presently collecting UUT covering these changes, but want to make our ordinance clearer. • Clearly worded definitions are used to make clear that the taxis to be collected by all providers of similar taxable services regardless of the technology used; • Clarifications are provided in each taxing section describing the various components of the taxable services, whether "bundled" or separately stated as "line items "; • Inclusion of detailed instructions are given to service providers and self - collectors on how and when to collect and remit the UUT, including the use of electronic payments; • References are made to state and federal laws that apply to the collection or application of the UUT (e.g., federal Wireless Telecommunications Sourcing Act of 2000); • Exempt customers other than federal or state agencies, such as insurance companies, must file an exemption application and include names of service providers (this eliminates "stale" refund claims ");