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<br /> 5.4A <br /> Page 8 <br /> ORDINANCE NO. <br /> AN URGENCY ORDINANCE AMENDING SeCTIONS 32.501, 32.502, <br /> AND 32.519 OF ARTICLE VII OF CHAPTER 32 OF THE REDWOOD <br /> CITY MUNICIPAL CODe REGARDING THE UTILITY USERS TAX OF <br /> THE CITY OF REDWOOD CITY <br /> This Council hereby finds and declares as follows: <br /> A. Since 1983, the City of Redwood City has imposed a telephone user's tax <br /> on every person in the City using intrastate telephone communication <br /> services; and such revenues are critical to the public peace, health and <br /> safety in that such revenues pay the costs associated with essential <br /> municipal services such as public safety. <br /> B. on May 25, 2006, the Treasury Department announced in Notice 2006-50 <br /> . thatit will no lOnger apply the Federal ExCise Tax (hert3iriafter "FET") to <br /> long distance and bundled long distance and local services provided <br /> under a single plan that does not separately state the charges for local <br /> telephone services. <br /> C. The Treasury Department's May 25 Notice reversed its prior Revenue <br /> Rulings and long-held interpretation of the FET, ignored its own statutory <br /> and administrative bundling rules. and contravened the intent and <br /> purposes of the City's ordinance in imposing a local tax on intrastate <br /> services. <br /> D. City reaffirms that it will continue its long-standing practice of applying its <br /> utility user's tax to intrastate services in a manner consistent with the <br /> intent and purpose of the City's utility user's tax ordinance and consistent <br /> with the Intemal Revenue Service's interpretation of the FET prior to <br /> Notice 2006-50 issued by the Treasury Department on May 25, 2006. <br /> E. The aforementioned conditions constitute an emergency adversely <br /> affecting the public peace, health and safety and therefore requires <br /> enactment of an emergency response. <br /> THE COUNCIL OF THE CITY OF REDWOOD CITY DOES ORDAIN AS FOLLOWS: <br /> SECTION 1. That Sections 32.501,32.502, and 32.519 of Article VII of Chapter <br /> 32 of the Redwood City Municipal Code are hereby amended in their entirety to read as <br /> follows: <br /> Sec. 32.501 Definitions. <br /> Except where the context otherwise requires, the definitions given in this <br /> Section govern the construction of this Article: <br /> Atty/Ord/Ord.267 <br /> 062906 1 <br />