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2002/08/06 City Council Resolution (7)RESOLUTION NO. 2002- 174 A RESOLUTION OF THE ROHNERT PARK DIR ECTING THE SUBMISSION TO THE QUALIFIED ELECTORS OFL� CITY OF AND COLLECTION OF A TAX MEASURE APPROVING THE E ON TELEPHONE COMMUNICATIONS AND VIDEO SERVICES COMMENCING JANUARY 1, 2003 WHEREAS, pursuant to Election Code Section 9222, the City Council may submit to the qualified electors of the City a ballot measure, without petition therefor, by ordinance or resolution; and WHEREAS, pursuant to Government Code Section 53723, the City Council desires to submit to the qualified electors of the City at a November 5, 2002 general municipal election a measure approving an ordinance (a copy of which is attached to this resolution) enacting and imposing a tax of six percent (6 %), and four percent (4 %), on amounts paid by 'commercial and -- residential users, respectively for telephone communications and video services as further defined by Ordinance No.684 ;and WHEREAS, Ordinance No. 684 is attached to this Resolution as Exhibit A. NOW, THEREFORE, be it resolved by the City Council of the City of Rohnert Park as follows: Section 1. The City Council, pursuant to Government Code Section 53723 hereby orders that the following question be submitted to the qualified electors of the City of Rohnert Park at a general municipal election to be held on November 5, 2002: MEASURE it it: ENACTMENT OF NEW TAX ON TELEPHONE COMMUNICATIONS AND VIDEO SERVICES COMMUNICAT "SHALL A TAX BE IMPOSED ON RATE O O4E FOR RESIDENIOAL AND VIDEO SERVICES AT THE USERS AND 6% FOR COMMERCIAL USERS BEGINNING ON JANUARY 1, 2003? Yes No Section 2. The City Clerk is hereby directed to transmit a copy of the measure set forth in Section 1 above to the City Attorney, who shall prepare an impartial analysis of the measure in accordance with Section 9280 of the Elections Code. 1 Sect_ 3. In the event that the Utility (Telephone) Users Tax Ordinance is not be approved by a majority vote of the electors casting ballots in favor of the adoption of the Utility Users Tax Ordinance on November 5, 2002, then the Utility Users Tax Ordinance shall have no force or effect. Section 4. Provided the imposition, levy and procedures for the administration and collection of the general taxes as set forth in the Utility (Telephone) Users Tax Ordinance are approved by a majority vote of the electors casting ballots in favor of the Ordinance on November 5, 2002, the operative date of the approval, imposition, levy'and procedures for the administration and collection of such taxes shall be January 1, 2003. Section 5. The City Clerk is hereby directed to file a certified copy of this resolution with the Board of Supervisors and the County Election Department of the County of Sonoma. - DULY- - - AND.-- REGULARLY ADO-PTED=by_the._Council_of the. -City of Rohnert Park this 6th day of August, 2002. ATTEST: CITY CITY OF ROHNERT PARK dW / '0 �X;lx -�/,( � &4�xl MAYOR MACKENZIE: AYE REILLY: ABSENT VACANCY: N/A VIDAK- MARTINEZ: AYE FLORES: AYE AYES: (3) NOES: (0) ABSENT: (1) ABSTAIN: (0) Ordinance No. 684 An Urgency Ordinance of the City Council of the City of Rohnert Park Adding Chapter 5.32 to the Rohnert Park Municipal Code Imposing a Tax on the use of Telephone Communications and Video Services The City Council of the City of Rohnert Park does hereby ordain as follows: SECTION ONE. Chapter 5.32 — Telephone Communications and Video Services Tax is hereby added to the Rohnert Park Municipal Code to read as follows: Chapter 5.32 Telephone and Communications and Video Services Tax Section 5.32.010 Title. This chapter imposes a tax on the use of telephone communications and video services in the City of Rohnert Park and shall be known as the Rohnert Park Telephone Communications and Video Services Tax. Section 5.32.020 Definitions. The following words and phrases whenever used in this chapter shall be construed as defined in this section. A. "Billing address" shall mean the mailing address of the service user where the service supplier submits invoices or bills for payment by the customer. B. "City" shall mean the City of Rohnert Park. C. "Intrastate Telecommunication" shall mean all telecommunications regardless of routing that either (1) originate in the City and terminate in the State, or (2) originate in the State and terminate in the City, where, in either instance, the service or billing address of the service user is in the City. D. "Interstate Telecommunications" shall mean all telecommunications that either (1) originate in the City and terminate in another state, or (2) originate in another state and terminate in the City, where, in either instance, the service or billing of the service user is in the City. E. "Month" shall mean a calendar month. F. "Person" shall mean, without limitation, any domestic, non - profit, or foreign corporation; firm; trust; estate; association; syndicate; joint stock company; limited liability company; partnership of any kind; joint venture; club; cooperative; receiver, trustee, guardian or other representative appointed by order of any court; or any natural individual. 1 G. "Service address" shall mean the residential street address or the business street address of the service user's primary place of telephone communication service usage. H. "Service supplier" shall mean any entity or person that provides telephone communications or video services to a user of such services within the City. The term shall include any entity or person required to collect, or self - collect under Section 5.32.090 of this chapter, and remit a tax imposed by this chapter, including its billing agent in the case of video services suppliers. I. "Service user" shall mean a person required to pay a tax imposed by this chapter. In general, a service user is the person in whose name a service supplier delivers the services and other compensation activities provided by a service supplier and who is responsible to the service supplier for paying for the cost of such services. J. "Tax administrator" shall mean the Finance Director of the City. K. "Telecommunication services" shall mean, in addition to the meaning ordinarily and popularly ascribed to it, without limitation, the transmission of messages or information (including but not limited to voice, data, facsimile, video, text) through the use of the local, toll and wide area telephone service; telegraph, teletypewriter and computer services; cellular telephone services; or any other transmission of messages or information by electronic or similar means through "interconnected service" with the "public switched network" (as those terms are commonly used in the Federal Communications Act and the regulations of the Federal Communications Commission) by wire, cable, fiber- optics, light waves, laser, microwaves, radio waves, switching facilities, satellite or similar facilities, whether such service is provided by a telephone corporation, competitive access provider, private communication service provider, or any other person. "Telecommunication services" shall include access services, and any other services that are an adjunct to the transmission of messages or information described above. "Telecommunication services" shall not include land mobile services or maritime mobile services [as defined in Part 20 of Title 47 of the Code of Federal Regulations], which are not interconnected with the public switched network. L. "Telephone corporation," shall mean a corporation or person as defined in California Public Utilities Section 234. M. "Video services" shall mean any and all services related to the providing of video programming (including origination programming), including any communications that are ancillary, necessary or common to the use and enjoyment of the video programming, regardless of the content of such video programming or communications. "Video services" shall not include services for which a tax is paid under Section 5.32.030 of this chapter. N. "Video service supplier" shall mean any person, company, or service which provides one or more channels of video programming, including any communications that are ancillary, necessary or common to the use and enjoyment of the video programming (including the leasing of channel access to provide such video programming or communications), to or from an address in the City, including to or from a business, 2 home, condominium, or apartment, where some fee is paid, whether directly or included in dues or rental charges for that service, whether or not public rights -of -way are utilized in the delivery of the video programming or communications. A "video service supplier" includes, but is not limited to, multi- channel video programming distributors [as defined in 47 U.S.C.A. Section 522(13)], providers of cabletelevision, open video systems (OVS) suppliers, suppliers of cable television, master antenna television, satellite master antenna television, multichannel multipoint distribution services, direct broadcast satellite (to the extent allowed by federal law), and other suppliers of video programming or communications (including two -way communications), whatever their technology. Section 5.32.030 Video services tax. A. There is hereby imposed a tax upon every person using video services in the City from a video service supplier. The tax imposed by this section shall be at the rate of four percent (4.0/0) of the charges made for such video services to residential customers and six percent (6.0 %) of the charges made for commercial customers. For purposes of this section, "commercial customers" shall include all those customers that are not residential customers and that are not a non - profit corporation (as defined by Internal Revenue Code Section 501(c). The tax shall be collected from the service user by the video service supplier or its billing agent. B. The tax administrator, from time to time, may survey the video service suppliers in the City to identify the various components of video service that are being offered to customers within the City, and the charges therefore. The tax administrator may, thereafter, issue and disseminate to such video service suppliers an administrative ruling identifying those components that are: i) necessary or common to the receipt, use and enjoyment of video service; or, ii) which currently are, or historically have been, included in a bundled rate for video service by a local distribution company. Charges for such components shall be subject to the tax of subsection (A) above. C. As used in this section, the term "charges" shall include the value of any other services, credits, property of every kind or nature, or other consideration provided by the service user in exchange for the video services. If a non - taxable service and a taxable service are billed together under a single charge, the entire charge shall be deemed taxable unless the service supplier can reasonably identify the non - taxable service services based upon its books and records that are kept in the regular course of business, which shall be consistent with generally accepted accounting principles. D. The tax imposed in this section shall be collected from the service user by the video service supplier, its billing agent, or a reseller of such services. In the case of video service, the service user shall be deemed to be the purchaser of the bulk video service (e.g., an apartment owner), unless such service is resold to individual users, in which case the service user shall be the ultimate purchaser of the video service. The amount collected in one month shall be remitted to the tax administrator on or before the last day of the following month and must be received by the tax administrator on or before the last day of the following month. Section 5.32.40 Telephone Communications Services Tax A. There is hereby imposed a tax upon every person using any international, interstate and /or intrastate telephone communications services in the City, other than a telephone corporation. The tax imposed by this section shall be at the rate of four percent (4.0 %) of the charges made for such telephone communications services to residential customers and six percent (6.0 %) of the charges made for commercial customers. For purposes of this section, "commercial customers" shall include all those customers that are not residential customers and that are not a non - profit corporation (as defined by Internal Revenue Code Section 501(c). The tax shall be collected from the service user by the video service supplier or its billing agent. To the extent allowed by law, the tax on telephone communications services shall apply to a service user if the billing or service address of the service user is within the City's boundaries, irrespective of whether a particular telephone communication service originates and /or terminates within the City. If the billing address of the service user is different from the service address, the service address of the service user shall be used. B. The tax imposed under subsection (A) shall not be imposed upon any person for using telephone communication services to the extent that, pursuant to Sections 4252 and 2453 of the Internal Revenue Code, the amounts paid for such communication services are exempt from or are not subject to tax imposed under Section 4251 of the Internal Revenue Code. In the event that the federal excise tax on "communication services" as provided in Sections 4251, 4252 and 4253 of the Internal Revenue Code is subsequently repealed, any reference in this section to such law, including any related federal regulations, private letter rulings, case law, and other opinions interpreting these sections, shall refer to that body of law that existed immediately prior to the date of repeal, as well as to any judicial or administrative decision interpreting such federal excise tax law, which is published or rendered after the date of the appeal. C. The tax administrator may, from time to time, issue and disseminate to telecommunication service suppliers, which are subject to the tax collection requirements of this ordinance, an administrative ruling identifying those telecommunication services that are subject to the tax of subsection (A) above. This administrative ruling shall be consistent with legal nexus and the federal excise tax rules, regulations, and laws pertaining to "communications services," and shall not impose a new tax, revise an existing tax methodology, or increase an existing tax. D. As used in this section, the term "charges" shall include the value of any other services, credits, property of every kind or nature, or other consideration provided by the service user in exchange for the telephone communication services. If a non - taxable service and a taxable service are billed together under a single charge, the entire charge shall be deemed taxable unless the service supplier can reasonably identify charges not subject to the tax based upon its books and records that are kept in the regular course of business, which shall be consistent with generally accepted accounting principles. 4 E. As used in this section, the term "charges" shall not include: 1. Charges for services paid for by inserting coins in coin - operated telephones except that where such coin - operated service is furnished for a guaranteed amount, the amounts paid under such guarantee plus any fixed monthly or other periodic charge shall be included in the base for computing the amount of tax due. 2. Charges for any type of service or equipment furnished by a service supplier subject to public utility regulation during any period in which the same or similar services or equipment are also available for sale or lease from persons other than a service supplier subject to public utility regulation. F. To prevent actual multi jurisdictional taxation of telephone communication services subject to tax under this section, any service user, upon proof to the tax administrator that the service user has previously paid the same tax in another state or city on such telephone communication services, shall be allowed a credit against the tax imposed to the extent of the amount of such tax legally imposed in such other state or city; provided, however, the amount of credit shall not exceed the tax owed to the City under this section. For purposes of establishing. sufficient legal nexus for the imposition and collection of utility users' tax on charges for telephone communication services pursuant to this chapter, "minimum contacts" shall be construed broadly in favor of the imposition and collection of the utility users' tax to the fullest extent permitted by California and federal law, and as it may change from time to time. G. The tax on telephone communication services imposed by this section shall be collected from the service user by the service supplier. The amount of tax collected in one (1) month shall be remitted to the tax administrator on or before the last day of the following month; and must be received by the tax administrator on or before the last day of the following month. Section 5.32.50 Exemptions For Residential Customers A. The taxes imposed by this chapter shall not apply to any person sixty -five (65) years of age or over, or to any person whose total personal income, from all sources, for the previous calendar year, does not exceed that level which shall constitute "very low income" as established annually on January 31" by the U.S. Department of Housing and Urban Development. The U.S. Department of Housing and Urban development defines very low income as 50% of the Sonoma County Median Income with income adjustments made for family size. For the purpose of determining income, the income of the entire household from all sources will be evaluated. Very low income applicants must be able to prove financial independence according the most recent U.S. Internal Revenue Service regulations and standards. Any taxpayer claiming the exemption under this section shall be required to demonstrate their entitlement thereto annually by submitting an application, on a form approved by the Tax Administrator, that shall state those facts and provide the supporting documentation that qualify the applicant for this exemption. Such supporting information may include, but is limited to, federal income tax returns and W -2 forms. The Tax Administrator shall publish a written policy explaining the procedure to apply for an exemption and describing the information that must be submitted by the service user. 5 B. Once annually (July), the City Manager, or his or her designee shall receive all applications and certify as exempt those subscribers who are sixty -five years of age or older or whose gross annual income constitutes "very low income" as defined in subparagraph A. Upon completion of the verification process, the City Manager, or his or her designee shall process within thirty days refunds to qualified applicants. The refund is limited to taxes paid over a period of the previous six months prior to the refund application. All exemptions given to individuals sixty -five years or older shall continue and be renewed automatically by the City Manager or his or her designee. Very low income exemptions will expire each year. The very low income applicant will be required to submit an exemption application on an annual basis to continue their exemption. It shall be a misdemeanor for any person to knowingly receive the benefits of the exemption provided by this section when the basis for such exemption either does not exist or ceases. C. If deemed exempt by the Tax Administrator, such service user shall give the Tax Administrator timely written notice of any change in service suppliers so that the Tax Administrator can properly notify the new service supplier of the service user's tax exempt status. A service user that fails to comply with this section shall not be entitled to a refund of taxes collected and remitted to the Tax Administrator from such service user as a result of such non- compliance. Upon request of the Tax Administrator, a service supplier or non - utility service supplier, or its billing agent, shall provide a list of the names and addresses of those customers which, according to its billing records, are deemed exempt from the utility users' tax. With respect to a service user of telephone communication services, a service supplier of such telephone communication services doing business in the City shall, upon request of the tax administrator, provide a copy of the federal exemption certificate for each exempt customer within the City that is served by such service supplier. D. The exemptions in Section 5.32.50 do not apply to commercial customers. Section 5.32.060 Other refunds. A. Whenever the amount of any tax has been overpaid, or paid more than once, or has been erroneously or illegally collected or received by the tax administrator under this chapter, it may be refunded as provided in this section. B. The tax administrator may refund any tax that has been overpaid, paid more than once, or has been erroneously or illegally collected or received by the tax administrator under this chapter, provided that no refund shall be paid under the provisions of this section unless the claimant or his or her guardian, conservator, executor or administrator has submitted a written claim to the tax administrator within one year of the overpayment or erroneous or illegal collection of said tax. Such claim must clearly establish claimant's right to the refund by written records showing entitlement thereto. Nothing herein shall permit the filing of a claim on behalf of a class or group of taxpayers. C. The submission of a written claim as set forth in Chapter 2.44 shall be a prerequisite to a suit thereon. 2 D. Notwithstanding other provisions of this section, whenever a service supplier, 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 services, the taxes paid pursuant to the ordinance on the amount of such refunded service 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 return. Section 5.32.70 Interest and penalty. A. Taxes collected from a service user, or owed by a service user subject to the taxes imposed by this chapter are delinquent if not received by the tax administrator on or before the due dates provided in this chapter. Should the due date occur on a weekend or legal holiday, the return must be received by the tax administrator on or before the first regular working day following the weekend or legal holiday. A direct deposit, including electronic fund transfers and other similar methods of electronically exchanging monies between financial accounts, made by a service supplier in satisfaction of its obligations under this subsection shall be considered timely if the transfer is initiated on or before the due date, and the transfer settles into the City's account on the following business day. B. 1. Original Delinquency. If the person required to collect and /or remit the tax fails to collect the tax (by failing to properly assess the tax on one or more services or charges on the customer's billing) or fails to remit the tax collected, or, in the case of a service user that fails to properly self - collect and remit the tax under Section 5.32.110 of this chapter; the tax administrator shall attach a penalty for such delinquencies or deficiencies at the rate of ten percent (10 %) of the total tax that is delinquent or deficient in the remittance. 2. Continued Delinquency. Any person who fails to remit any delinquent remittance within a period of thirty days following the date on which the remittance first became delinquent shall pay a second delinquency penalty of ten percent (10 %) of the amount of the tax in addition to the amount of the tax and the ten percent penalty first imposed. 3. The tax administrator shall have the power to impose additional penalties upon persons required to collect and /or remit taxes pursuant to the provisions of this chapter for fraud or gross negligence in reporting or remitting at the rate of fifteen percent (15 %) of the amount of the tax collected and /or required to be remitted, or as recomputed by the tax administrator. 4. Each penalty amount imposed pursuant to the provisions of this section, shall become a part of the tax amount required to be remitted to the Tax Administrator. C. Interest. In addition to any other penalties imposed by this chapter, any person required to collect and /or remit any tax imposed by the provisions of this chapter who fails to collect the tax (by failing to properly assess the tax on one or more services or charges on the customer's billing) or fails to remit the tax collected, or, in the case of a service user that fails to properly self - collect and remit the tax under this Chapter, shall pay interest at the rate of three- quarters of one percent (3 /a %) per month, or any fraction thereof, on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent, until paid. 7 Section 5.32.80 Actions to collect. Any tax required to be paid by a service user under the provisions of this chapter shall be deemed a debt owed by the service user to the City. Any such tax collected from a service user which has not been remitted to the tax administrator shall be deemed a debt owed to the City by the person required to collect and remit. Any person owing money to the City under the provisions of this chapter shall be liable to an action brought in the name of the City for the recovery of such amount, along with any collection costs incurred by the City as a result of the person's noncompliance with this chapter, including, but not limited to, reasonable attorneys' fees, plus interest and penalties as herein provided. Section 5.32.90 Duty to collect and remit -- Procedures. The duty of service suppliers to collect and remit the taxes imposed by this chapter shall be performed as follows: A. The tax shall be collected insofar as practicable at the same time as and along with the charges made in accordance with the regular billing practices of the service supplier. Where the amount paid by a service user to a service supplier is less than the full amount of the charge and tax which was accrued for the billing period, a proportionate share of both the charge and the tax shall be deemed to have been paid except in those cases where a service user pays the full amount of the charges but notifies the service 'supplier of his refusal to pay the tax imposed on said charges. In those cases where a service user has notified the service supplier of refusal to pay the tax imposed on said charges, Section 5.32.110 of this chapter shall apply. B. The duty of a service supplier to collect tax from a service user shall commence with the beginning of the first full regular billing period applicable to the service user which starts on or after the operative date of this chapter. Where a person receives more than one billing, one or more being for different periods than another, the duty to collect shall arise separately for each billing period. C. Each person required by this chapter to collect and remit a tax shall file a return with the tax administrator on forms approved by the tax administrator on or befoe the due date. The full amount of the tax owed shall be included with the return and filed with the tax administrator. The tax administrator is authorized to require such additional information as he or she deems necessary to determine if the tax is being levied, collected and remitted in accordance with this chapter. Returns are due immediately upon cessation of business for any reason. Pursuant to Revenue and Tax Code §7284.6, the tax administrator, and its agents, shall maintain such filing returns as confidential information, and not subject to the Public Records Act. If the person subject to this section unreasonable denies the Tax Administrator, or the Tax Administrator's designated representative, access to such records, then the Tax Administrator may impose a penalty of $500 on such person for each day following the initial date that the person refuses to provide such access. Section 5.32.100 Additional powers and duties of tax administrator. A. The tax administrator shall have the power and duty, and is hereby directed to enforce each and all of the provisions of this chapter. B. The tax administrator shall have power to adopt rules and regulations not inconsistent with provisions of this chapter for the purpose of carrying out and enforcing the payment, collection and remittance of the taxes herein imposed. A copy of such rules and regulations shall be on file in the office of the tax administrator. C. Upon a proper showing of good cause, the tax administrator may make administrative agreements to vary the strict requirements of this chapter and thereby: i) conform to the billing procedures of a particular service supplier or service user so long as said agreements result in collections of the tax in conformance with the general purpose and scope of this chapter; or, ii) to avoid a hardship where the administrative costs of collection and remittance greatly outweigh the tax benefit. A copy of each such agreement shall be on file in the office of the tax administrator, and such agreements are voidable by the tax administrator or the City at any time. D. The tax administrator alone shall be authorized to determine the eligibility of any person who asserts a right to exemption from or a refund of, the tax imposed by this chapter. Section 5.32.110 Assessment -- Administrative remedy. A. Whenever the tax administrator determines that a service user has deliberately withheld the amount of the tax owed by the service user from the amounts remitted to a service supplier required to collect the tax, that a service user has failed to pay the amount of the tax for a period of two or more billing periods, or whenever the tax administrator deems it in the best interest of the City, the tax administrator may relieve said service supplier of the obligation to collect the taxes due under this chapter from certain named service users for specific billing periods. The service supplier shall provide the City with the names and addresses of such service users and the amounts of taxes owed under the provisions of this chapter. B. The tax administrator shall notify the non - paying service user that he or she has assumed the responsibility to collect the taxes due for the stated periods and demand payment of such taxes. The notice shall be served on the service user by personal delivery or by deposit of the notice in the United States mail, postage prepaid thereon, addressed to the service user at the address to which billing was made by the person required to collect the tax; or, should the service user have changed his or her address, to his or her last known address. If the service user fails to remit the tax to the tax administrator within fifteen (15) days from the date of the service of the notice upon him or her, which shall be the date of mailing if service was not accomplished in person, a penalty of twenty -five (25 %) percent of the amount of the tax set forth in the notice shall be imposed, along with interest at the rate of three - quarters of one percent (3/4 %) per month, or any fraction thereof, on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent, until paid, but not less than five dollars ($5.00). E C. The tax administrator may make an assessment for taxes not paid or remitted by a person required to pay or remit. A notice of the assessment shall refer briefly to the amount of the taxes and penalties imposed and the time and place when such assessment shall be submitted to the City Manager for confirmation or modification, who shall appoint a hearing officer. The hearing officer shall mail a copy of such notice to the service supplier and to the service user at least ten (10) days prior to the date of the hearing and shall post such notice for at least five (5) continuous days prior to the date of the hearing. Any interested party having any objections may appear and be heard at the hearing provided his or her objection is filed in writing with the hearing officer prior to the time of the hearing. At the time fixed for considering such assessment, the hearing officer shall hear the same, together with any objections filed as provided in this subsection, and thereupon may confirm or modify such assessment. Upon confirmation or modification of the assessment, the City may seek to recover the amount of the assessment by any lawful means, including but not limited to the bringing of an action against the person responsible for payment of the amount. Section 5.32.120 Appeals. If a service user or service supplier is aggrieved by any assessment, decision or administrative ruling of the tax administrator, or with the failure to grant a refund or exemption as provided for under this chapter, he or she may appeal to the City Manager. Section 5.32.130 Temporary Reduction in the Rate of Tax Each of the taxes approved, imposed and levied by this Chapter on the operative date of this Ordinance may be temporarily reduced and levied at a lesser rate by resolution of the City Council. Each such temporary reduction of the tax rate shall be in effect and may be levied at a reduced rate only for the period of time authorized in the City Council resolution. At the conclusion of that period of time, the tax shall be levied at the full amount of the rate in effect on the operative date of this chapter. Voter approval shall not be required at the conclusion of the temporary reduction when the tax rate is again levied at the rate provided for on the operative date of this chapter. Section 5.32.140 Records. A. It shall be the duty of every person required to collect and /or remit to the City any tax imposed by this chapter to keep and preserve, for a period of at least three (3) years, all records as may be necessary to determine the amount of such tax as he or she may have been liable for the collection of and /or remittance to the tax administrator, which records the tax administrator or his /her authorized representative shall have the right to inspect at a reasonable time. B. The City may issue an administrative subpoena to compel a person to deliver, to the tax administrator, copies of all records deemed necessary by the tax administrator to establish compliance with this chapter, including the delivery of records in a common electronic format on readily available media if such records are kept electronically by the person in the usual and ordinary course of business. As an alternative to delivering the subpoenaed records to the tax administrator on or before the due date provided in the 10 administrative subpoena, such person may provide access to such records outside the City on or before the due date, provided that such person shall reimburse the City for all reasonable travel expenses incurred by the City to inspect those records, including travel, lodging, meals, and other similar expenses, but excluding the normal salary or hourly wages of those persons designated by the City to conduct the inspection. C. The tax administrator, or the tax administrator's designated representative, is authorized to execute a non - disclosure agreement approved by the City Attorney to protect the confidentiality of customer information pursuant to California Revenue and Tax Code Sections 7284.6 and 7284.7. D. If a service supplier uses a billing agent or billing aggregator to bill, collect, and /or remit the tax, the service supplier shall: i) provide to the tax administrator the name, address and telephone number of each billing agent and billing aggregator currently authorized by the service supplier to bill, collect, and /or remit the tax to the City; and, ii) upon request of the tax administrator, deliver, or effect the delivery of, any information or records in the possession of such billing agent or billing aggregator that, in the opinion of the tax administrator, is necessary to verify the proper application, calculation, collection and /or remittance of such tax to the City. E. If any person subject to record - keeping under this section unreasonably denies the tax administrator, or the tax administrator's designated representative, access to such records, or fails to produce the information requested in an administrative subpoena within the time specified, the tax administrator or the tax administrator's designated representative may impose a penalty of five hundred dollars ($500) on such person for each day following: i) the initial date that the person refuses to provide such access; or, ii) the due date for production of records as set forth in the administrative subpoena. This penalty shall be in addition to any other penalty imposed under this chapter. Section 5.32.150 Notice of changes to ordinance: If a tax under this chapter is repealed or reduced, or the tax base is changed, the tax administrator shall follow the notice requirements of Public Utilities Code Section 799. Prior to the effective date of the ordinance change, the service supplier shall provide the tax administrator with a copy of any written procedures describing the information that the service supplier needs to implement the ordinance change. If the service supplier fails to provide such written instructions, the tax administrator, or its agent, shall send, by first class mail, a copy of the ordinance change to all collectors and remitters of the City's taxes according to the latest payment records of the tax administrator. Section 5.32.160 Construction This chapter shall be construed and interpreted, at all times, in a manner that is consistent with state and federal law. 11 Section 5.32.170 Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this chapter or any part thereof is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portion of this chapter or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrases thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases be declared unconstitutional. SECTION TWO. This ordinance shall take effect immediately upon its adoption as an ordinance relating to an election and relating to taxes for the urdinary and usual expenses of the City, pursuant to Gov't Code Section 36937. This chapter shall become effective on the first day after the general municipal election in November, 2002 if the taxes imposed by this chapter are approved by a majority vote of those voting at that election. The tax imposed under this chapter shall be applied to bills issued for billing periods beginning the first day of January 2003. DULY AND REGULARLY PASSED AND ADOPTED by the City Council of the City of Rohnert Park this 6t' day of August, 2002 by the following vote: AYES: Three (3) Councilmembers Mackenzie, Vidak- Martinez and Mayor Flores NOES: None (0) ABSENT: One (1) Councilmember Reilly ABSTAIN: None (0) VACANCY: One (1) CITY Approved as to form: ity Atto ey Betsy Strauss CITY OF ROHNERT PARK Mayor Armando F. Flores 12