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Home My WebLink AboutCC AG PKT 2006-08-14 #F e AGENDA REPORT DATE: August 14,2006 TO: Honorable Mayor and City Council FROM: Quinn Barrow, City Attorney SUBJECT: Adoption of Ordinance No" 1550, 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 RECOMMENDATION: Waive further reading and Adopt Ordinance No. 1550, Ari 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. e BACKGROUND: At the City Council meeting of July 24, 2006, the City Council conducted a first reading of this ordinance. The City Council simultaneously adopted an urgency ordinance making the same revisions to the Municipal Code. FISCAL IMP ACT: None if adopted. Potential significant loss of tax revenues to City if ordinance not adopted. Attachments: (I) . Attachment 1: Ordinance No. 1550, 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 . Agenda Item 1= 57296.0001.908742 e Consideration of Ordinance Amending the Municipal Code, Related To The Telephone Users Tax, To Clarify Original Intent And Remove Obsolete References . City Council Staff Report AugustI4.1006 ATTACHMENT 1 ORDINANCE NO. 1550, 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 . e S7~96.0001.908742 2 e ORDINANCE NUMBER 1550 AN ORDINANCE OF THE CITY OF SEAL BEACH AMENDING SECflON 4.50.010 OF THE SEAL BEACH MUNICIPAL CODE, RELATED TO THE TELEPHONE USERS TAX, TO CLARIFY ORIGINAL INTENT AND REMOVE OBSOLETE REFERENCES. THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES ORDAIN AS FOLLOWS: Section I. Subsection "B" of Soction 4.50.020 (''Telepbone Users Tax'') of Chapter 4.50 ("Utility Users Tax'') of Title 4 ("Revenue sod Finance'') of the Seal Beach Municioal Code is hereby amended to read as follows: "B. As used in this section, the torm "charges" shall not include charges for services paid for by inserting coins in coin-operated telephones ..cept that where such coin operaled telephone service is furnished for a guaranteed amount, the amounts paid UDder such gusnmtec plus any fixed monthly or other periodic charge shall be iDcluded in the base for computing the amount of tax due; nor shall the tenn "telephone communication services'~ include land mobile services or maritime mobile services as Beaned iR. T-hJe ~7 Cede seFeda Regula1isns SeeKeR 2.1. The term "land mobile services" shall mean a mobile .ervice between base stations and Jand mobile stations. or between land mobile stations. The term -'maritime mobile services'" shall mean a mobile service between coast stations and shin stations. or between shin stations. Dr between associated on-hoard communication stations." . Section 2. Subsection "D" of Section 4.50.020 ("Telephone Users Tax") of Chapter 4.50 ("Utility Users Tax") ofTiUe 4 ("Revenue and FinaDco") of the Seal Beach Munici".l Code is boroby amended t" read as follows: . "D. The lax imposed UDder tbi. ...,!ion shall not be impnsed upon any_ feF ysiRg m.\feBtBte. iftterRB:18i Sf iRtemabBBBl telephs88 eenumIBieatisR5 l5ernssB te t&e enleRt iHl.t 1:ke amoUR. paid. fer &liaB sr.-ius Bfa 8nem:pt. RIB SF are Rei sHjeet 1e the 18u impesed under 'litIs 26 United. S$8tes Ceda SeMieR 12.&1. aCme followin2 oavrnent5: 1. Newl services. EXceDt with resoect to local teleohone service. navrnent received from. 8JlV nMSOn for services used in the collection of news for the DubHe Dress. or a news ticker service fumishfDl! a llenefzl news service similar to that of the nublic Dress. or radio broadcasting. or in the dissemination of news throuRh the DubHe Dress. {fthe chaNa for s.uch service is btued in writing, to such 'Oe1'SOI1. 2. International Or2'anizations and the Red CroSI. pavrnent received for services furnished to an international oTli!:anization. or to the American National Red Cross. 3. Servicemen in combat zone. PaYment received for any toU teleohone service which orisdnates. within a combat zone :from a member of tho Anned Forces of the United States oerfonninll service in such combat zone. orovided a certificate. settinl! forth such facts as the Secretary of the TreasuN may bv re2Ulations orescribe. is furnished to the Denen receivinll such navrnent 4. Common carrlerl aDd communlcatioDs como.Dies. The amount oaid for any toll teleDhone service to the extent that the amount RO aaid is for use bv a common carrier teleohone or tele2r8Dh comOBnv. or radio broadcastinll station or network in the conduct of its business as J!!SIl. S. Installation chal1!es. The amount naid for the installation of any instrument wire. Dole. switchboard. anuaratus. or eauioment as is oroaer]v attributable to such installation. Ordinance Number 1550 e 6. NODorofit bOIDUS.S. The amount naid bv B DODDfDfit hOSDital for ServiCCB furnished to such DrRBJ]ization For nurDOSes of this subsection. the term. Ilnonnrofit hOSDital" means a hosuital that is exem1>l from slale and federal income tax under sr:ction SOlla) of the InternsI Revenue Code. 7. State and local Irovernmeutal exemotlon. Anv DIVIneD! received for services Dr facilities furnished to the I!Ovemm.ent of anv State.. or any oolitical subdivision thereof. or the District of Columbia. 8. NODorofit educational onrBaizadoDs. Anv amount oaid bv a nonnrofit educational O1"I!8Jliution for services or facilities furnished to such ora:aniution. For Dumoscs of this subsection the term '''nonnrofit educational omanization" means an educational orv:anization that is exemnt from income tax under section 501(8) of the Internal Revenue Code. The term also includes a school Doeraled as an activity of an orSlBllization that ex,eInnt from income tax under section 501 (at if such school nonnallv maIntains a l'eR111ar (acult\' and cuniculum and normal1v h8.1 a numlarlv enrolled bodv of mmilR Dr students in attendance at the olace where its educational activities are rem.darlv carried on.'" PASSED, APPROVED AND ADOPTED by the City Council of the Cily of Seal Bosch at S meeting thereof held on the _ day of 2006. MAYOR ATTEST: . CITY CLERK STATE OF CALIFORNIA I COUNTY OF ORANGE I SS CITY OF SEAL'BEACH I I, Linda Devine, City e1orl< of the Cily ofSoal Beach, CsIifomio, do h....hy certifY that the foregoing Ordinance is an original copy of Ordinance Number -ill!!.. on file in the ollice of the City Clerlc, introduced at a meeting held on the..MllL day of...l!!!x.... 2006, and passed, approved and adopted by the City Council of the City of Soal Beach al a meetillJl held on the dsy of . 2006 by the following vote: AYES: Councilmembora NOES: Councilmemb01'll ABSENT: Councilmembora ABSTAIN: CouncilmembOl1l And do h....by further certify thst Ordinance Number 1550 has been published pursuant to the Soal Bosch City Charter and Resolution Number 2836. City Clerk .