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CI"" OF SAN BERNARIAO - REQU.T FOR COUNCIL AdtlON
From: Ralph H. Prince
Subject: utility Tax Refunds by Service
Providers
Dept: City Attorney
Date: March 27, 1986
Synopsis of Previous Council action:
3/20/86
Legislative Review Committee recommended adoption of
ordinance adding section 3.44.135 to the San Bernardino
Municipal Code to provide for utility tax refunds by
service providers.
Recommended motion:
waive further first reading of ordinance and layover for final
adoption.
/!:~) W~~~
Signature
Contact person: _.
Warren Knudson
Phone:
5252
FUNDING REQUIREMENTS:
Amount:
None
Sou rce:
N/A
N/A
Supporting data attached:_
Yes
Ward:
Finance:
Council Notes:
75-0262
Agenda Item No.
77,
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~ITY OF SAN BE~AROINoe- MEMORANOLA
To RALPH H. PRINCE
City Attorney
Subject Refunds of Service Users Taxes I.;ade By Service
Supplier (Municipal Code 3.44)
Froln
W^RREIl A. KtiUDSOI.
Director Of Finance
11a rch 7, 198(.
Datr
Appruved Date
Background: Service suppliers such as the Southern California Gas COlnpan.v
have occasion to give refunds to their customers based upon
Public Utility Commission decisions. These refunds are not
likely to occur more than one or two times a year. When
these refunds take place, the service user will also .refund
the amount of the service users tax (utility users tax) to
service users within the City.
Presently, these refunds are taken to the ~ayor and Comr:lon
Council for approval before they can be accomplished. The
time avai lable for f1ayor and Common Counci 1 approval is
very short, as the service suppliers makes the refund on
the next billin~ cycle after PUC notification. Furthermore,
the service provider does not know the amount of the tax
refund for each jurisdiction until after the amount of the
total refund has been determined.
Request: The Southern California Gas Company has requested that they
and any other service provi der rece ive "Bl anket" approva 1
to make such refunds without prior individual approval of
each refunding process. Several months ago the Gas Company
brought su~gested language to the Legislative Review
Committee for approval. The language of the request was
not acceptable to staff and the Gas Company has now
presented revised language for consideration. The Gas
Company has coordinated this effort with other service
suppl iers.
Discussion: The underlined portion of Section "d" has been revised from
the i nit i a 1 proposa 1. The purpose of thi s sentence is to
state that if the City adopts the refunding process and
later repeals it, any tax refund that is in process at
the time of repeal would be the responsibility of the City.
The City would be responsible for the refunding process and
for the amount of the over-collected tax to be refunded.
The initial proposal did not I'equire notification to the
City of the amount of the total refund or the amount of
the tax to be refunded. Section "e" as revised, calls
for submitted to the City of the refunding documents and
other information as required. This information would be
provided prior to a refund taking place. The City would
request that the amount of the Utility Tax refund be
identified.
ClfY ON fHI~DV~
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RALPH H. PKINU
MEI~ORANDUM
PAGE - 2
t1M~CH 3, 1986
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Conclusion: The revised language thiJt hi)', be('() r,re',pntcd see,,:
acceptable and your office is req~e5t0d tu reflect the
chan<res in the Municipill Code. The Code revisior, would
then-be presented to the Lpgislative Revievi Coml'littee
for refErral totl1e I~ayor and (('ITlWn Council.
The contact wi th thE Souther'r: Cal i fomia Gas Company
is Jim King, District Manager (798-7941).
~~"_f
~-[N A. KNUDSON
Director Of Finance
WNJvm
Attachment
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Option A
proposed Revision to Section 15 (dl -- The Refunds Section of
the previously approved Model Utility Users Tax Ordinance.
(d) Notwithstandinq other provisions of this section,
whenever a service supclier, pursuant to an order of the
California Public Utilities Commission or a court of competent
jurisdiction, makes a refund to service users of charges for past
utility services, the taxes paid pursuant to this Code on the
amount of such refunded charges shall also be refunded to service
users, and the service supplier shall be entitled to claim a
credit for such refunded taxes against the amount of tax which is
due upon the next monthly returns. In the event this Code is
repealed prior to the time that the service supplier has received
credit for such refunded taxes then, in such event, the City shall
pay the amount of the refunded taxes due.
(e) Prior to makinq any refund pursuant to subdivision (d) of,
this section, the service supplier shall provide in the time and
manner rescribed b the Cit (1) a co of the order of
the Callfornia Public Utiliti s CommlSSlon (or 'ud ment of the
court of com etent 'urisdict'on) mandatin the refund and (2) an
other r~levant material or ' formation.
It ......"":"....,,~....
2/11/86
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ORDINANCE NO.
ORDINANCE OF THE CITY OF SAN BERNARDINO ADDING SECTION
3.44.135 TO THE SAN BERNARDINO MUNICIPAL CODE TO PROVIDE FOR
UTILITY TAX REFUNDS BY SERVICE PROVIDERS.
4 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO
DO ORDAIN AS FOLLOWS:
5
6 SECTION 1. Section 3.44.135 is added to the San Bernardino
7 Municipal Code to read:
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"3.44.135 Refunds by service provider.
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A. Notwithstanding any other provision of this chapter,
10 whenever a service supplier, pursuant to an order of the
11 California Public Utilities Commission or a court of competent
12 jurisdiction, makes a refund to service users of charges for past
,
13 utility services, the taxes paid pursuant to this chapter on the
14 amount of such refund charges shall also be refunded to service
15 users, and the service supplier shall be entitled to claim a
16 credit for such refunded taxes against the amount of tax which is
17 due upon the next monthly returns. In the event this chapter is
18 repealed prior to the time that the service supplier has received
19 credit for such refunded taxes then the City shall pay the amount
20 of refunded taxes due.
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B. Prior to making any refund pursuant to subsection A of
22 this section, the service supplier shall provide in the time and
23 manner prescribed by the City Administrator a copy of the order
24 of the California Public Utilities Commission (or judgment of a
25 court of competent jurisdiction) mandating the refund, and any
26 other relevant material or information."
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I HEREBY CERTIFY that the foregoing ordinance was duly
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] adopted by the Mayor and Common Council of the City of San
2 Bernardino at a Ileeting thereof, held on
3 the day of , 1986, by the
4 following vote, to wit:
5 AYES:
6
7 NAYS:
8 ABSENT:
~l
10
City Clerk
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12 The foregoing ordinance is hereby approved this day
13 of , 1986.
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Mayor of the City of San Bernardino
Approved as to form:
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19 City A''ttorney
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