League of Women Voters of California Education Fund
	Sonoma County, CA November 4, 2008 Election
	Measure M Utility User Tax City of Sebastopol Majority Approval Required Pass: 2,473 / 59.5% Yes votes ...... 1,684 / 40.5% No votes See Also: Index of all Measures

Arguments For Measure M

Over the past 18 years, the State of California has diverted $3.2 million of local tax dollars to balance their budgets. During this time, the City of Sebastopol has deferred capital maintenance on streets and buildings while maintaining city services. Over time, the ability to compensate for a lower tax revenue has also been eroded to the point that the City needs to ask residents to approve a local tax measure that will be spent locally to pay for deferred capital items and sustain the current level of municipal services. If the voters of Sebastopol approve a utility tax of 4%, it will generate approximately $375,000. The average cost to a residential customer would be $4.48 per month and the average commercial customer will see $25.84 per month increase. This is a small price to pay over the next six years to make improvements to our streets, parks and municipal buildings. These funds will also ensure that the municipal services are maintained during the current economic slump. In order to minimize the impact on our residents, the tax would exempt low income households participating in the PG&E California Alternate Rates for Energy (CARE) program and would no longer be collected on any accounts after six years. Please join us in voting to support our community with this locally controlled revenue that will protect our common safety and community streets and facilities. s/ Craig Litwin, Mayor, SEBASTOPOL CITY COUNCIL s/ Teresa Ramondo, ExecutiveDirector, SEBASTOPOL CHAMBER OF COMMERCE s/ Kim Caruso, Executive Director, SEBASTOPOL COMMUNITY CENTER s/ Terry Kelley, Citizen (No arguments against Measure M were submitted)

Full Text of Measure M

ORDINANCE NUMBER ______________ An Ordinance of the City of Sebastopol Imposing a Utility Users Tax The People of the City of Sebastopol Do Ordain as Follows: Chapter 3.10 UTILITY USERS TAX Sebastopol City Code Title 3 REVENUE AND FINANCE Chapter 3.10 UTILITY USERS TAX 3.10.010 Title. This chapter shall be known as the Utility Users Tax Ordinance of the City of Sebastopol. 3.10.020 Definitions. Except where the context otherwise requires, the definitions given in this section govern the construction of this chapter. (A) "Person" means any domestic or foreign corporation, firm, association, syndicate, joint stock company, partnership of any kind, joint venture, club, business or common-law trust, society, individual or municipal corporation. (B) "City" means the City of Sebastopol. (C) "State" means the State of California. (D) "Electrical corporation" and "gas corporation" have the same meanings as defined in Sections 234, 222, 218 and 215.5, respectively, of the Public Utilities Code of the State of California, as said sections existed on July 21, 1970. "Electrical corporation" also means any organization or municipality or agency engaged in the selling or supplying of electrical power to a service user. (E) "Tax Administrator" means the Administrative Services Director of the City of Sebastopol. (F) "Service supplier" means a person required to collect and remit a tax imposed by this chapter. (G) "Service user" means a person required to pay a tax imposed by this chapter. (H) "Month" means a calendar month. (I) "CPI" means the Bay Area Consumer Price Index for urban workers. (J) "CHARGES" means the total billing of gas and electrical usage of the utility customer. 3.10.030 Rules and regulations. The Tax Administrator shall have power to adopt rules and regulations not inconsistent with the provisions of this chapter for the purpose of carrying out and enforcing the payment, collection and remittance of the tax herein imposed; and a copy of such rules and regulations shall be on file and available for public examination in the Tax Administrator's office. Failure or refusal to comply with any rules and regulations promulgated under this chapter shall be deemed a violation of this chapter. 3.10.040 Records. It shall be the duty of every person required to collect and remit to the City any tax imposed by this chapter to keep and preserve for a period of three years all records as may be necessary to determine the amount of such tax as he may have been liable for the collection of and remittance to the Tax Administrator, which records the Tax Administrator shall have the right to inspect at all reasonable times. 3.10.060 Electricity users tax. (A) There is imposed a tax upon every person in the City using electrical energy in the City. The tax imposed by this section shall be at the rate of four percent of the charges made for such energy and shall be paid by the person paying for such energy. "Charges" as used in this section shall include charges made for: (1) metered energy, and (2) minimum charges for service, including customer charges, service charges, demand charges, standby charges and annual and monthly charges. (B) As used in this section, the term "using electrical energy" shall not be construed to mean the storage of such energy by a person in a battery owned or possessed by him for use in an automobile or other machinery or device apart from the premises upon which the energy was received; provided, however, that the term shall include the receiving of such energy for the purpose of using it in the charging of batteries; nor shall the term include the mere receiving of such energy by an electric public utility or governmental agency at a point within the City for resale. (C) There shall be excluded from the base on which the tax imposed in this section is computed, charges made by a municipal light or power department, or electric public utility for electrical energy used and consumed by such department or utility for electrical power in the conduct of the business of such department or utility. (D) Qualified persons who participate in Pacific Gas and Electric's (PG&E) "CARE" program (California alternate rates for energy) or a substantially similar successor program for that same purpose, are exempt from the electricity users tax. 3.10.070 Gas users tax. (A) There is imposed a tax upon every person in the City using in the City gas which is delivered through mains or pipes. The tax imposed by this section shall be at the rate of four percent of the charges made for such gas and shall be paid by the person paying for such gas. (B) There shall be excluded from the base on which the tax imposed in this chapter is computed: (1) Charges made for gas to be used in the generation of electrical energy by an electrical corporation; and (2) Charges made by a gas public utility for gas used and consumed in the conduct of the business of gas public utilities. (C) Qualified persons who participate in PG&E's "CARE" program (California alternate rates for energy) or a substantially similar successor program for that same purpose, are exempt from the gas users tax. 3.10.071 Charges. Should "Charges" total less than $50.00 during any one month billing period, there shall be imposed a minimum Utility Users Tax of $2.00 on that billing. 3.10.090 Exemptions. Nothing in this chapter shall be construed as imposing a tax upon any person if imposition of such tax upon that person would be in violation of the Constitution of the United States or the Constitution of the State of California. 3.10.100 Collection of tax. (A) Every person receiving payment of charges from a service user shall collect the amount of tax imposed by this chapter from the service user. (B) The tax shall be collected insofar as practicable at the same time as and along with the collection of charges made in accordance with the regular billing practice of the service supplier. Except in those cases where a service user pays the full amount of said charges but does not pay any portion of a tax imposed by this chapter, or where a service user has notified a service supplier that he is refusing to pay a tax imposed by this chapter which said service supplier is required to collect if the amount paid by a service user is less than the full amount of the charge and tax which has accrued for the billing period, a proportionate share of both the charge and the tax shall be deemed to have been paid. (C) The duty to collect the tax from a service user shall commence with the beginning of the first regular billing period applicable to that person 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. 3.10.110 Reporting and remitting. Each service supplier shall, on or before the last day of each month, make a return to the Tax Administrator, stating the amount of taxes billed by the service supplier during the preceding month. At the time the return is filed, the full amount of the tax collected shall be remitted to the Tax Administrator. The Tax Administrator is authorized to require such further information as he deems necessary to properly determine if the tax imposed in this chapter is being levied and collected in accordance with this chapter. Returns and remittances are due immediately upon cessation of business for any reason. The Tax Administrator shall deposit all taxes received under the provisions of this chapter in the City's general fund. 3.10.120 Assessment--Administrative remedy. (A) The Tax Administrator may make an assessment for taxes not paid or remitted by a person required to pay or remit. He shall prepare a notice of the assessment which shall refer briefly to the amount of the taxes and penalties imposed and the time and place where such assessment is payable which shall be submitted to the City Council for confirmation or modification. The Tax Administrator shall mail a copy of such notice to the person selling the service and to the service user at least 10 days prior to the date of the hearing and shall post such notice for at least five continuous days prior to the date of the hearing on the official bulletin board of the City. Any interested party having any objections may appear and be heard at the hearing provided his objection is filed in writing with the Tax Administrator prior to the time set for the hearing. At the time fixed for considering said assessment, the City Council shall hear the same together with any objection filed as aforesaid they thereupon may confirm or modify said assessment by motion. 3.10.122 Authorization to Temporarily Suspend Collection of A Portion of Tax for Limited Periods of Time. (A) The Tax Administrator may determine to collect less than the four percent (4%) tax imposed by sections 3.10.060 and 3.10.070 from gas and electric service providers and may temporarily suspend a portion of the 4% tax imposed by sections 3.10.060 and 3.10.070 if the Tax Administrator finds that the total utility users tax collected from all sources increased in a given fiscal year at a rate higher than the CPI, after accounting for the City's population growth (as determined by the increase in City water and sewer accounts) and the City's gas and electric expenses. For purposes of this subsection, "City's gas and electric expenses" shall mean the total payments by the City of Sebastopol its gas and electric providers, for gas and electric services provided to the City. (B) The portion of the 4% UUT rate to be temporarily suspended shall be equal to the increase in total utility users tax, as adjusted in subsection (A) above. If the newly calculated rate is equal to 3.94% or lower, then a rate reduction may occur. If the calculated rate is 3.95% or greater, then no adjustment will take place. Pursuant to section 3.10.030, the Tax Administrator may adopt an administrative rule(s) implementing section 3.10.122 in a reasonable manner consistent with the intent of this Section 3.10.122. (C) The Tax Administrator may determine, following the end of the fiscal year, whether a temporary suspension should be made in accordance with this section and any administrative rule(s). If the Tax Administrator determines that a temporary suspension of a portion of the 4% tax rate for gas and/or electric UUT will take place, the Tax Administrator shall instruct the affected gas and electric service providers to implement the temporary suspension on January 1 of the next year. The duration of the temporary suspension shall be one (1) year. (D) Upon expiration of the temporary suspension of a portion of the gas and electric utility users tax, the original provisions of this Chapter shall have the same force and effect as if the temporary suspension had not been enacted. Nothing herein is intended to constitute a decrease in a tax, or an increase in a tax, requiring election approval under California Constitution Article XIIIC; and to the extent that any aspect of a temporary suspension resolution is found to invoke such a requirement, the entire temporary suspension resolution shall be deemed null and void ab initio, and there shall be no entitlement to a suspension for any service user. 3.10.130 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) A person required to collect and remit taxes imposed under this chapter may claim a refund or take as credit against taxes collected and remitted the amount overpaid, paid more than once or erroneously or illegally collected or received when it is established in a manner prescribed by the Tax Administrator that the service user from whom the tax has been collected did not owe the tax; provided, however, that neither a refund nor a credit shall be allowed unless the amount of the tax so collected has either been refunded to the service user or credited to charges subsequently payable by the service user to the person required to collect and remit. (C) No refund shall be paid under the provisions of this section unless the claimant establishes his right thereto by written records showing entitlement thereto. No refund shall be paid unless a claim therefor is made within one year of the date of accrual of the refund. 3.10.140 Termination of Utility Users Tax. (A) The levy of taxes as provided in this Chapter shall expire on January 1, 2015, unless re-enacted by a separate ordinance of the City Council following a majority vote of the electorate. (B) The termination of the levy of taxes as provided herein shall not terminate the obligation to pay taxes levied on services used prior to such date. Taxes levied prior to such date shall remain a debt payable to the City. All provisions in this Chapter, except those relating to the levy of taxes, shall continue in full force and effect after such date. 3.10.150 Penalties. (A) Taxes collected from a service user which are not remitted to the Tax Administrator on or before the due dates provided in this chapter are delinquent. (B) Penalties for delinquency in remittance of any tax collected or any deficiency determination, shall attach and be paid by the person required to collect and remit at the rate of 15 percent of the total tax collected or imposed herein. (C) The Tax Administrator shall have power to impose additional penalties upon a person required to collect and remit taxes under the provisions of this chapter for fraud or negligence in reporting or remitting at the rate of 15 percent of the amount of the tax collected or as re-computed by the Tax Administrator. (D) Every penalty imposed under the provisions of this chapter shall become a part of the tax required to be remitted. 3.10.160 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 persons 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. 3.10.170 Failure to pay tax--Administrative remedy. Whenever the Tax Administrator determines that a service user has deliberately withheld the amount of the tax owed by him from the amounts remitted to pay a service supplier, or 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, he may relieve the service supplier of the obligation to collect taxes due under this chapter, from certain service users for specified billing periods. The Tax Administrator shall notify the service user that he has assumed 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 handing it to him personally 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 service supplier; or should the service user have changed his address, to his last known address. If a service user failed to remit the tax to the Tax Administrator within 15 days from the date of the service of the notice upon him, which shall be the date of mailing if service is not accomplished in person, a penalty of 25 percent of the amount of the tax set forth in the notice shall be imposed, but not less than five dollars. The penalty shall become part of the tax herein required to be paid. 3.10.180 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 portions of this chapter or any part thereof. The City Council declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases is declared unconstitutional. Approved/Not Approved by the Voters of the City of Sebastopol at the November 4, 2008 Election If the majority of qualified electors voting on the initiative measure shall vote in the favor thereof, the initiative measure shall become a valid and binding ordinance of the City of Sebastopol, and shall be considered adopted upon the date that the vote is declared by the City Council of said City and shall go into effect 10 days later.