HomeMy WebLinkAboutCC Ord 1549-U 2006-07-24
ORDINANCE NUMBER 1549-U
AN ORDINANCE OF THE CITY OF SEAL BEACH AMENDING
SECTION 4.50.020 OF THE SEAL BEACH MUNICIPAL CODE,
RELATED TO THE TELEPHONE USERS TAX, TO CLARIFY
ORIGINAL INTENT AND REMOVE OBSOLETE REFERENCES,
AND DECLARING THE URGENCY THEREOF.
THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES ORDAIN AS
FOLLOWS:
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Section 1. Subsection "B" of Section 4.50.020 ("Telephone Users Tax") of
Chapter 4.50 ("Utility Users Tax") of Title 4 ("Revenue and Finance") of the Seal Beach
Municipal Code is hereby amended to read as follows:
"B. As used in this section, the term "charges" shall not include charges for
services paid for by inserting coins in coin-operated telephones except that
where such coin operated telephone 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; nor shall the term "telephone communication services"
include land mobile services or maritime mobile services as defined ifl
Title 47 Cede of Federal Regulatiofls Seetiofl 2.1. The term "land mobile
services" shall mean a mobile service between base stations and land
mobile stations. or between land mobile stations. The term "maritime
mobile services" shall mean a mobile service between coast stations and
ship stations. or between ship stations. or between associated on-board
communication stations."
Section 2. Subsection "D" of Section 4.50.020 ("Telephone Users Tax") of
Chapter 4.50 ("Utility Users Tax") of Title 4 ("Revenue and Finance") of the Seal Beach
Municipal Code is hereby amended to read as follows:
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"D. The tax imposed under this section shall not be imposed upon any person
for l:lsiag intrastate, interstate, or intematioflal telef)hofle eom.m1:H1:ieatiofls
serviees to the exteflt that the amooots paid for saeh serviees Me exempt
from or are flet subjeet to the tax imposed 1:IDder Title 26 URited States
Code Seetiofl4251. of the following payments:
1. News services. Except with respect to local telephone service.
payment received from any person for services used in the collection
of news for the public press. or a news ticker service furnishing a
general news service similar to that of the public press. or radio
broadcasting. or in the dissemination of news through the public press.
if the charge for such service is billed in writing to such person.
2. International Oreanizations and the Red Cross. Payment received
for services furnished to an international organization. or' to the
American National Red Cross.
3. Servicemen in combat zone. Payment received for anv toll telephone
service which originates within a combat zone from a member of the
Armed Forces of the United States performing service in such combat
zone. provided a certificate. setting forth such facts as the Secretary of
the Treasury may bv regulations prescribe. is furnished to the person
receiving such payment.
4. Common carriers and communications companies. The amount
paid for any toll telephone service to the extent that the amount so paid
is for use by a common carrier. telephone or telegraph company. or
radio broadcasting station or network in the conduct of its business as
such.
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Ordinance Number 1549-U
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5. Installation charees. The amount paid for the installation of any
instrument. wire. pole. switchboard. apparatus. or eauipment as is
properly attributable to such installation.
6. Nonprofit hospitals. The amount paid bv a nonprofit hospital for
services furnished to such organization. For purposes of this
subsection. the term "nonprofit hospital" means a hospital that is
exempt from state and federal income tax under section 501(a) of the
Internal Revenue Code.
7. State and local eovernmental exemption. Anv payment received for
services or facilities furnished to the government of any State. or any
political subdivision thereof. or the District of Columbia.
8. Nonprofit educational oreanizations. Any amount paid by a
nonprofit educational organization for services or facilities furnished
to such organization. For purposes of this subsection. the term
"nonprofit educational organization" means an educational
organization that is exempt from income tax under section 501(a) of
the Internal Revenue Code. The term also includes a school operated
as an activity of an organization that exempt from income tax under
section 501(a). if such school normally maintains a regular faculty and
curriculum and normally has a regularly enrolled body of pupils or
students in attendance at the olace where its educational activities are
regularly carried on."
Section 3. This ordinance is adopted as an urgency ordinance under Government
Code section 36937(b), adopted by at least a four-fifths vote of the City Council.
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The facts constituting the urgency are these: The City's Utility Users Tax (Article
4, Chapter 4.50 of the Municipal Code) generates a significant amount of annual revenue
to the City. The Utility Users Tax Ordinance provides an exemption for telephone
services which are not subject to the federal communications services tax under the
Internal Revenue Code. The Internal Revenue Service has recently revised its
interpretation of that section in a manner that was not intended by the City's original
ordinance (IRS Notice 2006-50). That revised IRS interpretation takes effect on August
1,2006.
The effect of the revised IRS interpretation would be to inadvertently invalidate
portions of the City's ordinance. Amending the ordinance is therefore necessary to sever
the link between the City's tax and the IRS interpretation, by inserting the City's own list
of exemptions. Having a new ordinance in effect by July 31, 2006 is necessary to avoid
having the City's tax lapse and to avoid the risk that any later ordinance (after July 31,
2006) would be considered a new tax, subject to voter approval.
For these reasons, the public peace, health, safety and welfare require that this
Ordinance take effect immediately. This is an urgency ordinance within the meaning of
Government Code Section 36937(b) and shall take effect immediately.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Seal Beach
at a meeting thereof held on the 24th day of July ,2006.
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~ J"l<f1.J U-/'lC<}v\
Mayor
ATTEST:
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City lerk
Ordinance Number 1549-U
ST ATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
AYES:
NOES:
ABSENT:
ABSTAIN:
Council Members
And do hereby further certify that Ordinance Number 1549U has been published
pursuant to the Seal Beach City Charter and Resolution Number 2836.
~.
rn.A
City lerk
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Ordinance Number 1549- U
PROOF OF PUBLICATION
(2015.5 C.C.P.)
STATE-OF CALIFORNIA,
County of Orange
This space is for the County
Clerk's Filing Stamp
I am a citizen of the United States
and a resident of the county afore-
said; I am over the age of eighteen
years, and not a party to or inter-
ested in the above-entitled matter.
I am the principal clerk of the printer
of the SEAL BEACH SUN, a
newspaper of general circulation,
printed and published weekly in the
City of Seal Beach, County of
Orange and which newspaper has
been adjudged a newspaper of
general circulation by the Superior
Court of the County of Orange, State
of California, under the date of
2/24/75. Case Number A82583; that
the notice of which the annexed is a
printed copy (set in type not smaller
than nonpareil), has been published
in each regular and entire issue of
said newspaper and not in any
supplement thereof on the following
dates, to-wit:
~Il~ 3
'all in th year 2006.
Proof of Publication of
...............................................
...............................................
I certify (or declare) under penalty of
perjury that the foregoing is true and
correct.
Dated at Seal Be
this.3 day of
10
,2006.
Signature
PUBLICATION PROCESSED BY:
THE SEAL BEACH SUN
216 Main Street
Seal Beach, CA 90740
(562) 430-7555