O 468 C.S.
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ORDINANCE NO. 468 c.s.
AN ORDINANCE OF THE CITY OF ARROYO GRANDE
AMENDING ORDINANCE NO. 454 C.S.
THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DOES ORDAIN AS
FOLLOWS:
SECTION 1: Arroyo Grande Municipal Code Section 3-3.604(a) is hereby amended to
read in' its entirety as follows:
Sec. 3-3.604 Telephone Users Tax.
(a) There is hereby imposed a tax on the amounts paid for any intrastate,
interstate or international telephone services by every person in the City using
such services. The tax imposed by this section shall be at the rate of three and
eight-tenths percent (3.8%) of the charges made for such services and shall be
paid by the person paying for such services.
SECTION 2: Arroyo Grande Municipal Code Sect~on 3-3.605(a) is hereby amended to
read in its entirety as follows:
Sec. 3-3.605 Electricity Users Tax.
(a) There IS hereby imposed a tax upon every person other than an electric or gas
corporation using electrical energy in the City. The tax imposed by this section
shall be at the rate of three and eight-tenths percent (3.8%) of the charges made
for such energy by an electrical corporation providing service in the City and
shall be billed to and paid by the person using the energy. The tax applicable to
electrical energy provided by a non-utility supplier shall be determined by
applying the tax rate to the equiva1ent charge the service user wou.ld have incurred
if the energy used had been provided by the electrical corporation franchised by
the City. Rate schedules for this purpose shall be available from the City. Non-
utility suppliers shall install, maintain and use an appropriate utility-type metering. .
system which will enable compliance with this section. "Charges," as used in this
section, shall includ~ charges made for: (1) metered energy and (2) minimum
charges for service, including customer charges, service charges, demand charges.,
standby charges and all other annual and monthly charges, fuel or other cost
adjustments, authorized by the California Public Utilities Commission or the
Federal Energy Regulatory Commission.
SECTION 3: Arroyo Grande Municipal Code Section 3-3.606(a) is hereby amended to
read in its entirety as follows:
Sec. 3-3.606 Gas Users Tax.
(a) There is hereby imposed a tax upon every person in the City other than a gas
corporation or electrical corporation, using, in the City, gas which is transported
through mains or pipes or by mobile transport. The tax imposed by this section
shall be at the rate of three and eight-tenths percent (3.8%) of the charges made
for the gas and shall be billed to and paid by the person using the gas. The tax
applicable to gas or gas transportation provided by non-utility suppliers shall be
determined by applying the" tax rate to the equivalent charges the service user
would have incurred if the gas or gas transportation has been provided by the gas
corporation franchised by the City. "Charges," as used in this section, shall
include: (1) that billed for gas which is delivered through mains or pipes; (2) gas
transportation charges; and (3) d.emand charges, service charges, customer
chargeS, minimum charges, annual and monthly charges, and any other charge
authorized by the California Public Utilities Commission or the Federal Energy
Regulatory Commission.
SECTION 4: Arroyo Grande Municipal Code Section 3-3.608(a) is hereby amended to
read in its entirety as follows:
Sec. 3-3.608 Water Users Tax.
(a) There is hereby imposed a tax upon every person in the City using water
which is delivered through mains or pipes. The tax imposed by this section shall
be at the rate of three and eight-tenths percent (3.8%) of the charges made for
such water and shall be paid by the person paying for such water.
SECTION '5: Arroyo Grande Municipal Code Section 3-3.609(a) is hereby amended to
read in its entirety as fol1ows:
Sec. 3-3.609 Sewer Users Tax.
(a)' There is hereby imposed a tax upon every person in the City using sewer
service by which wastewater is carried through pipe or conduit. The tax imposed
by this section shall be at the rate of three and eight-tenths percent (3.8%) of the
charges made for stich sewer service and shall be paid by the person paying for
such sewer service.
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SECTION 6: Arroyo Grande Municipal Code Section 3-3.61O(a) is hereby amended to
read in its entirety as follows:
Sec. 3-3.610 Cable Television Users Tax.
(a) There is hereby imposed a tax upon every person in the City using cable
television service. The tax imposed by this section shall be at the rate of three
and eight-tenths percent (3.8%) of the charges made for such service and shall be
paid by the person paying for such service.
SECTION 7: Arroyo Grande Municipal Code Section 3-3.611 is her~by amended to read
in its enUrety as follows:
Sec. 3-3.611 Hardship Exemptions.
(a) The taxes imposed by this article shall not apply to any individual who
uses telephone, electric, gas, water sewer or cable services in or upon any
residential premises occupied by such individua~, if the combined gross income
of all members of the household in which such individual resided was at or below
California Department of Housing and Community Development Block Grant
income limits for lowest targeted households in San Luis Obispo County for the
calendar year prior to the fiscal year (July 1 through June 30) for which the
exemption provided in this section is applied for.
The exemption avaHable under this section shall not eliminate the duty of
the service supplier to collect taxes from any service user, nor eliminate the duty
of any service user to pay such taxes to the service supplier, unless and until an
exemption is applied for by the service user and granted in accordance with the
provisions of subsection (c) hereof.
(b) Any individual subject to the taxes imposed by this article upon any
residential premises occupied by such individual and separately subject to such
taxes upon any business premises owned or. leased and occupied by such
individual, or by a business entity owned or controlled by such individual, shall
be entitled to apply for an exemption from those taxes imposed by thisarticIe
upon said residential premises or said business premises.
The exemption available under this subsection shall only apply to the lower
amount of those taxes imposed upon utility services used at both the -individual's
residential premises and business premises. Additionally, the exemption available
under this section shall not eliminate the duty of the service supplier to collect
taxes frQm any service user, nor eliminate the duty of any service user to pay
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such taxes to the service supplier, unless and until an exemption is applied for by
the service user and granted in accordance with the provisions of subsection (c)
hereof.
(c) Any service user who is eligible for an exemption from the taxes imposed
by this articJe may file an application with the Tax Administrator for an
exemption. Such application shall be made upon forms supplied by the Tax
. Administrator and shall, under penalty of perjury, recite facts which qualify the
applicant for an exemption. The Tax Administrator shall review all such
applications and certify as exempt those applications determined to qualify
therefor under subsections (a) or (b) and shall notify all serviCe' suppliers affected
that such exemption has been approved, stating the name of the applicant, the
address to which such exempt service is being supplied, the account number, if
any, and such other information as may be necessary for the service supplier to
remove the exempt service user from its tax billing procedure. Upon receipt of
such notice, the service supplier shall not be required to continue biIIing the
exempt service user for taxes imposed by this article until further notice is given
by the Tax Administrator. The service supplier shall eliminate such exempt .
service user from its tax billing procedure no later than sixty (60) days after
receipt of such notice from the Tax Administrator. .
All exemptions certified by the Tax Administrator shall be effective for a
period of two (2) years and may thereafter be renewed upon application to the
Tax Administrator if the prerequisite facts supporting the previous qualification
for exemption shall continue; provided, however, that the exemption shall
automatically terminate with any change in the service address or residence of the
exempt individual. Such exempt individual may, however, apply for a new
exemption with each change of service address or residence. Any service user
exempt from the tax shall notify the Tax Administrator within ten (10) days of
any change in fact or circumstance which might disqualify said service user from
receiving such exemption. It shall be a misdemeanor for any person to knowingly
receive the benefits of any exemption provided by this section when the basis for
such exemption either does not exist or ceases to exist.
Every service supplier is authorized to bill the tax imposed by this articJe
to any new service user or to any account on which the service user's name has
been changed (excJuding changes attributable to spelling errors or other clerical
errors) until such time as the serVice supplier receives notification from the Tax
Administrator that an exemption has been granted pursuant to this section.
Following receipt of such notification, the service supplier shall eliminate such
exempt service user from its tax billing procedure no later than sixty (60) days
thereafter.
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SECTION 8: Arroyo Grande Municipal Code Section 3-3.622 is hereby amended to read
in its entirety as follows:
Sec. 3-3.622 De-escalation.
(a) The tax rate imposed in sections 3-3.604 through 3-3.610, inclusive, of
this article shall, each fiscal year, automatically decrease by one-tenth of one
percent (.1 %) for each increase of eighteen thousand dollars ($18,000) in City
utiJity users tax revenue over utility users tax revenue for the prior fiscal year.
(b) The tax rate imposed in sections 3-3.604 through 3-3.610, inclusive, of this article
shall, each fiscal year, automatically decrease by one-tenth of one percent (.1 %) for each
increase of $18,000 in actual revenues received by City less actual expenditures paid by
City over actual revenues received by the City less actual expenditures paid by the City
for the prior fiscal year.
(c) As soon as practicable after the close of each fiscal year, the Tax
Administrator shall obtain all information and documentation necessary to
determine the tax rate under subsections (a) and' (b) hereof. The Tax Administra-
tor shall promptly notify all affected 'service suppliers of said tax rate.
SECTION 9: Except as modified and amended herein, Ordinance No. 454 C.S. as
amended shall remain valid and in full force and effect.
SECTION 10: If any section, subsection, subdivision, paragraph, sentence, clause
or phrase of this Ordinance or any part thereof is for any reason held to be inva1id, such decision
shall not affect the validity of the remaining p9rtion of this Ordinance or any part thereof. . The
City Council hereby declares that it would have passed each section, subsection, subdivision,
paragraph, sentence, clause or phrase thereof, irrespective of the fact that anyone or more
section, subsection, subdivision, paragraph, sentence, clause or phrase be declared. invalid.
SECTION.!1: This Ordinance shall become effective immediately upon its
adoption.
SECTION 12: Within fifteen (15) days after passage of this Ordinance, it shall be
published once, together with the names of the Council Members voting thereon, in a newspaper
of general circulation within the City.
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On motion of Council Member Souza , seconded by Council
Member Lady , and on the folJowing roll call vote, to wit:
A YES: Council Members Souza, Lady, Fuller, Brandy and Mayor Dougall
NOES: None
ABSENT: None
, 1995.
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ATIEST:
a.~
, CITY CLERK
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
BY: ~lJLfll L. HLtiJ ~
ROBERT L. HUNT
CITY MANAGER
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OHDINANCE NO. 468 C.S.
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I, NANCY A. DAVIS, city Clerk of the city of Arroyo Grande, County
of San Luis Obispo, state of California, do hereby certify under
penalty of perjury that the foregoing Ordinance No. 468 C.S. is a
true, full and correct copy of said Ordinance passed and adopted at
a regular meeting of the. city Council of t~e city of Arroyo Grande
on the 24th day of October, 1995.
WITNESS my hand and the Seal of the city of Arroyo Grande
affixed this 25th day of' October , 1995.
A. D IS, CITY CLERK
ARROYO GRANDE
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