HomeMy WebLinkAboutOrdinance No. 20033ORDINANCE N0. ~ De 3 3
AN ORDINANCE CONCERNING A UTILITY CONSUMPTION TAX FOR
AFFORDABLE-HOUSING; ADDING SECTIONS 3.125, 3.121, 3.729,
3.131, 3.133, 3.135, 3.731, 3.139, 3.141, 3.143, 3.145,
3.141, 3.149, AND 3.999 TO THE EUGENE CODE, 1971; AND
PROVIDING AN EFFECTIVE DATE.
THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS:
Section 1. The following caption, 'and Sections 3.725, 3.121, 3.129, 3.131,
3.133, 3.135, 3.131, 3.139, 3.141, 3.143, 3.145, 3.141, 3.149, and 3.999 are
e
hereby added to the Eugene Code, 1911, to provide:
Affordable-Housin Utilit Consum ti an Tax
3.125 Affordable-Housin Utilit Consum tion Tax - Pur ose. It i s the
intent of the city in imposing a utility consumption tax on~service
users to use the proceeds primarily to fund affordable-housing projects, and
secondarily to provide energy assistance to low income persons within the city.
3.127 Affordable-Housin Utilit Consum tion Tax -Definitions. As used
i n sections 3.125 to 3.149, except where the context otherwise
requires, the following wards and phrases mean:
Cable television services. '{Cable service" as such term i s
defined in section 522~5~ of Title 41 of the United States Code, as
such section existed on the date of adoption of sections 3.125 to
3.149.
Ci t . The City of Eugene.
Ci tY__ Manager. The city manager of the City of Eugene, or
his/her designee.
Month . A cal ender month .
Natural Gas. Fuel gas in a gaseous ar liquid state.
Person. Any individual, partnership, public or private
corparatian, joint stock company, trust, association, municipal
utility or department, or governmental entity.
Service sup~l i er. A publ i c or private utility which supplies
a uti 1 i ty to a~~s~ervice user and therefore i s required to col 1 ect and
remit the taxes imposed by section 3.129.
Service user. A person who consumes uti 1 i ty services and
therefore i s required to pay a tax imposed by section 3.129.
Water. Water in liquid form or steam.
3.729 Affordable-Housin Utilit Consum ti on Tax - Im osed.
Ordinance - 1 11/8195
e ~ 1 } E1 ectri c i t consum ti on tax. Every person within the ci t who
uses el ectr~ cal ever receive ~ ~ Y •
gy d from a publ ~ c, pry vate, or mun ~ c~ pal ut ~ 1 ~ ty
shall pay ,a tax of one percent of all charges made for such ever As used i n
gy
the s sects an, "charges" shall include charges for metered ener and minimum
char es i ncl ud i n c ~~ gy • ~~
g g ustomer charges and demand charges . Uses electrical energy
shall not ~ ncl ude the rece~ v~ ng of such energy by a ubl i c uti 1 i t eo 1 es
util it p y' p p
y d ~ str~ ct, rural el ectr~ c cooperative or municipal ut i 1 i t for resale or
the use of electr Y
~ c ~ ty by these ent ~ t ~ es ~ n the conduct of their bus ~ Hess as a
supplier of electricity.
~2} ,Natural ,,,was consumption tax. Every person within the ci t who
uses natural gas which is del~~~ivered through mains or i es shall a a tax
on p P ~ p y of
e percent of all charges made for such gas. There shall be excluded from the
base on wh ~ ch the tax ~ mposed i n this subsection i s com uteri char es which are
made: p g
~a} For gas which is to be resold and deli
vexed through
mains or pipes;
~ b} For gas to be used i n the generation of electrical or
other energy by a person or governmental agency which sells
electrical or other energy; or
~c} By a gas public utility for gas used and consumed i n the
. conduct of the bus ~ Hess of that gas public uti 1 i ty.
~3} „Water con umpt,i o,n,,, tax. Every person within the ci t who uses
water which ~s su lied thr y
pp ough may ns or p~ pes, shall pay a tax of one percent
of al 1 charges made for such water. There shall be excluded from the base on
which the tax imposed i n this subsection i s computed charges which are: for water
which i s to be resold and delivered through mains ar i es; or char es made b
PP g y
a mun i ci pal water department, public utility or water d i stri ct for water used and
consumed by such department, utii ity or district.
~4} Cabl a tel ev„i s~ on consur~pti o,,n, tax,. Every erson wi thi n the ci t
who uses cab1 a television services steal 1 pay a tax of one extent of all char
p ges
made for such services.
~5}, Sewer services consum tion tax. Every person in the tit who
uses or has available for use y
sanitary sewers and/or stormwater sewers shall pay
a tax of one percent of all charges made for such services. As used herei n
"sanitary sewer" has the meaning provided in section 1,010 of this code and
"stormwater sewer" has the meaning provided i n section fi, 40fi of this code,
3,131 Affordable-Housin Util it Consum tion Tax - Exem bons. Nothin in
sections 3.125 to g
3.149 shall be construed as imposing a tax upon any
person i f i mpos i ti on of such tax upon that person would be i n violation of the
Constitution of the United States or the Cons i tuti on of the State of Ore on .
g
3.133 affordable-Housin Ut i 1 i t Consum ti on Tax -Collection of Tax.
~ 1 } , The taxes imposed by section 3.129 shall be collected from the
serve ce users 1 ~ ab1 a for payment of the tax by the service suppliers . Al l
~}
amounts so collected shat l be deemed trust funds held by the service su 1 i er s
pP ~ }
for the benef ~ t of the c~ ty. The amount of tax co.l l ected i n one month shall be
remitted to the city manager on or before the 20th day of the fol l owi n month.
2 insof g
~ } ar as pract~ cabl e, the tax shall be collected at the same
Ordinance - 2 11 28 95
11
time and along with the collection of charges made for ut i 1 i ty services i n
accordance w~ th the regular b~ l l ~ ng practice of the service supplier. I f the
amount pa ~ d by a servi ce user to a servi ce supplier i s less than the f u11 amount
of the charge for services and the tax ~wh i ch has accrued far the billing pe~ri od,
the amount paid, and any subsequent payments by the service user shall be applied
f ~ rst to the charge for servi ces unto l such charge has been fully satisfied. Any
remaining balance of the payment shall be applied to the taxes due, except in
those cases where a service user pays the full amount of the charge for services
but notifies .the service supplier of his or her refusal to pay the tax i mpased
on such charges,
~3} The service supplier's duty to collect a tax from a service
user shat 1 commence with the beginning of the first regular bi 11 i ng period
applicable to the service user where all charges normally included i n such
regular billing are subject to the provisions of sections 3,125 to 3.149. If a
service user receives more than one bi 11 ing, one or more being for different
periods than another, the duty to col 1 ect shal 1 arise separately far each billing
period.
~4} Each service supplier shall f i 1 e a return with the city manager
on forms provided by the city, stating the amount of taxes billed by the service
suppl ~ er dur~ ng the precede ng month, the amount of taxes cal l ected, and the names
of any service users failing or refusing to pay the taxes billed, and the amounts
due from each. The full amount of the tax cal l ected shat 1 be included with the
return and filed with the city manager. The city manager i s authorized to
require such further information as he or she deems necessary to determine if the
tax is being properly levied and collected in accordance with sections 3.125 to
3.149.. The city manager al sv i s authorized to adopt a rul a which lengthens the
repart~ ng period for servi ce users who fay 1 or refuse to pay the taxes bi 11 ed.
~5} Upon receipt of the information from a service supplier of the
names of servi ce users who have fay 1 ed or refused to pay the required tax the
city may pursue such enforcement action deemed necessary to collect the tax,
including, but not limited to, institution of legal action, or imposition of
civil or administrative penalties.
~6} Taxes collected from a servi ce user by a servi ce supplier which
are not rem tted to the c~ ty manager by the service supplier on or before the due
dates provided in this section shall be delinquent.
3.135 Affordable-Housin Utilit Consum tion Tax - Service Su liers~
Penalties and Interest.
~ 1 } Any service supplier who fails to remit the service user tax
imposed by section 3. l29 and col 1 acted by the service supplier within the time
required by section 3.133, shat 1 pay, i n addi t i an to the amount of the tax due,
a penalty of ten percent ~ 10%} of the amount of the tax, The penalty shall be
added on the last day of each month fvl 1 owi ng the date on which the remittance
was due until the tax and penalties are fully paid. The total amount of the
monthly penalties provided far in this subsection shall not exceed double the
total amount of the tax due.
~ 2 } I f the city manager ,determines that the nonpayment by any
serv ~ ce suppl ~ er of any rem ttance due ~ s wi 1 f ul l , or i s due to fraud, a penal ty
of twenty five percent ~ 25%} of the amount of the tax shall be added thereto, i n
adds t~ on to the penalty set forth i n subsection ~ 1 } above.
Ordinance - 3 11~2g~g5
~ 3 } I n addition to the penalties imposed by subsections ~ 1 } and ~ 2 }
of this sections any service supplier who fails to remit any tax imposed by
section 3 , l29 and collected by the service supplier shal 1 pay interest at the
rate of one percent per month, ar fraction thereof, on the amount of the tax,
excl use ve of penal t ~ es, from the date on which the remittance first became
delinquent unti 1 paid.
~4} Every penal ty imposed upon a servi ce supplier and such interest
as accrues pursuant to this section shall become a part of the tax required to
be rem tted to the c~ ty.
~ 5 } The provisions of this section shall not apply to a mun i c i pal
utility.
3.731 Affordable-Housin Utilit Consum tion Tax -service Users• Penalties
and Interest.
~I} Any service user who fails to pay a tax imposed pursuant to
section 3.129 within thirty X30} days after the date of receipt of a noti ce from
the service supplier of the amount of tax due shall pay, i n addition thereto, a
penalty of ten percent ~ 10%} of the amount of ~ the tax, or one dollar ~~1.OO} ,
whichever i s greater, which penalty shall be added on the 1 ast day of each month
fol 1 owi ng the date on which the payment was due unti 1 the tax and penalties are
fully paid.
~ 2 } I f the city manager ,determines that the nonpayment by any
servi ce user of any tax imposed by sects an 3.129 i s wi 1 ful l , or i s due to fraud,
a penalty of twenty-five percent ~25~} of the amount of the tax shall be added
thereto i n addi ti an to the penalty set forth i n subsection ~ 1 } of this secti an .
~3} In addition to the penalties imposed by subsections ~I} and ~2}.
of this section, any service user who fails to pay any tax imposed by section
3.729 shal 1 pay interest at the rate of one percent ~ 1~} per month, or fraction
thereof, exclusive of penalties, from the date on which the tax first became
delinquent unti 1 paid, and a col 1 ecti on charge of ten dvl l ors x$10.00} for each
delinquent account.
~4} Every penalty impaled and such interest as accrues upon a
servi ce user pursuant to the s section shall become a part of the tax required to
be paid. Collection of the charges imposed by this section shall be the
responsibility of the city, and not the service supplier. The city shall Hat
request a servi ce supplier to terminate ut i 1 i ty service i n the event of non-
payment of these charges.
3.139 Affordable-Housin . Uti l i t Consum ti on Tax -Determination of Tax and
Penalties.
~1} If any service supplier fails to make any report and remit the
taxes collected and due the city, or any porn an thereof, as required by sections
3.125 to 3.149, the city manager ,shall proceed i n such manner as he or she deems
necessary to obtain the facts and information on which to base an estimate of the
amount of taxes collected by the service supplier and due the ci ty.. As soon as
that information i s obtained, the city manager shall proceed to determine and
assess against such service supplier the tax, interest, and penalties provided
by sections 3.725 to 3.149. The city manager shall give native of the assessment
by personal service on the service supplier or by depositing i t i n the mai 1,
Ord i Hance - 4 ~ ~ ~iza~~
postage prepaid, addressed to the service supplier at its 1 ast known address
~ personal or mai 1 service } .
~2} Within ten t la} days after the servi ng -ar mailing of the
assessment notice, the service supplier may ~f i 1 e a wri tten request for a heari ng
on the assessment with the city manager. I f a request for hearing i s not f i 1 ed
within that time, the tax, penalty, and interest as assessed are final and
conclusive and immediately due and payable. if such a request i s f i 1 ed, the city
manager shall give not less than ten ~ 10} days written nati ce by personal or mai 1
service to the service supplier to show cause, at a t i me and place fixed i n the
not ~ ce, why the amount sped f ~ ed therein should not be assessed for the tax,
interest and penalties. At the hearing the service supplier may appear and offer
ev ~ deuce an why the spec ~ f ~ ed tax, interest, and penalties should not be so
fixed.
~3} The city manager sha11 i ssue a wri tten decision wi thi n ten da s
. y
of the hears ng date and del ~ ver the wri tten deco s ~ on to the serv ~ ce suppl ~ er by
personal or mai 1 service. The decision of the city manager after the hearing i s
final. The amounts so assessed sha11 be immediately due and payable.
3.141 Affordable-Housin Util it Consum tion Tax -Determination of Service
User Tax and Penalties.
~ 1 } Upon a determi not i on by the city manager that a servi ce user
has del ~ berately withheld or refused to pay the tax owed to a servi ce supplier,
ar that a service user has failed to pay the amount of the tax to a service
supplier for ~ a, peri od~ of three or more bi 11 i ng periods, ar whenever the city
manager deems ~t ~n the best interest of the city, the city manager may relieve
a service supplier of the obligation to col 1 ect taxes due under sections 3,125
to 3.149 from that service user for spec~i f i ed bi 11 i ng periods . The service
supplier shall provide the city manager with the name, address and reasons given
by the service user for refusing to pay the tax imposed by section 3.129.
~2} The, city manager shall notify -the service user that the city
has assumed respons~b~l~ty for collection of the taxes due far the stated periods
and demand; payment of the taxes, interest -and penalties then due.. This notice
shall be ,g~ ven by .personal or mai 1 service, wi th a copy of the notice mai 1 ed to
the service suppler. if the service user fails to pay the assessed amount or
f i 1 e a wri tten request for a heari ng within ten ~ la} days after the serving or
mailing of the assessment notice, the amounts assessed sha11 be final and
conclusive and immediately due and payable.
~3} If the service user requests a hearing, the hearing shall be
conducted and the tax, ~ nterest and penalties assessed as provided i n section
3.139.
3.143 Affordable-Housin Uti 1 t Consum ti on Tax -Actions to Collect. Any
tax required to be paid by a serv i ce user imposed pursuant to section
3.129 shall be deemed a debt owed by the service user to the city. Any such tax
collected f rom a servi ce user by a servi ce supplier which has not been paid to
the city manager shall be deemed a debt owed to the city by the service supplier.
Except for a mun i ci pal utility, any person owing money to the city under sections
3.125 to 3.149 shat 1 be 1 i abl e i n an acti an brought by the city for the recovery
of such amount,
Ordinance • 5 ~ ~~iag~~
3.745 Affordable-Hausin Uti l i t Consum ti on Tax -Records, 1t shall be
the duty of every service supplier to keep and preserve for three
years al 1 records as may be necessary to determine the amount of taxes that the
service supplier i s required to collect and remit to the city. The city manager
shall have the right to inspect those records at all reasonable times,
3.141. Affordable-Hausin Uti 1 i t ~ Consum ti an Tax - Pa meat of
Administrative Ex enses. The city shall pay al 1 reasonabl e
administrative expenses related to bi 11 i ng service users for the taxes imposed
by. section 3.729. The procedures for claiming this compensation., the maximum
amount of payment, and the method of payment shall be set by administrative rules
of the city manager. - _
3.149 Affardabl a-Housi n Uti 1 it Consum ti an Tax -Powers of Ci t Mana er.
~ 1 } The city manager shall have the power to adopt rules consistent
with the provisions of sections 3.125 to 3.149, for the purpose of carrying out
and enforc ~ ng .the payment, collection and remittance of the taxes imposed by
section 3.129 of this code. Rulemaking procedure shall be ~as provided in section
2.019 of this code. The rules may address, but are not 1 invited to:
~a} Hearings fees for the remittance or tax determination
hearings;
fib} The procedures to be followed and information required
tv obta~ n a refund of a rem ttance or tax;
r ~c} The process for obtaining exemptions from taxation under
.~ section 3.131 of this code.
~ 2} The city manager may enter into admi n i strat i ve a reements to
g
vary the str~ ct requ~ rements of sects ons 3.125 to 3.149 sa that the col 1 ect~ on
of any tax imposed may be i n conformance with the bi 11 i ng procedurres of a
party cul ar serve ce supplier so long as said agreements result i n collection of
the tax i n conformance with the general purpose and scope of those sections . A
copy of each such agreement shall be f i 1 ed with the city recorder and a copy
may nta~ ned ~ n the c~ ty manager's office.
3.999 .Affordable-Housin Utilit Consum tion Tax -Penalties.
~ 1 } Any service supplier who refuses to bi 11 and cal l ect the taxes
due under sect i an 3.125 to 3.149 of this code shall be 1 i ab1 a for a f i ne of up
to ~ 1, o0a per day for each day the f a i 1 ure cant i Hues .
~ 2 } Any person , firm, corporation or as soc i at i an who knowi ng l y
f urn ~ shes any false. ~ of ormat i on to. the city as al 1 or part of any information
requ~ red to be furs ~ shed under any of the . pravi s i a~ns of sections 3.125 to 3.149
shall , upon canvi cti on, be fined not 1 ess than X5.00 nor more than $500 for each
offense, A separate offense shall be deemed committed wi th ~ the f i 1 i ng of each
f ai se document. The penalty provided i n .this subsection i s i n addition to any
interest, late charge or other penalty that may be imposed.
~ 3 } In add i t i an to any other penatty that may be imposed, f ai 1 ure
to comply with the provisions of sections 3.125 to 3.149 by a. service supplier
or service user shat l be punishable by a c~ vi 1 penalty not to exceed $500 for
Ord i Hance - 6 ~ ~ ~~~s~~
each such violation, or imposition of an administrative civil penalty pursuant
to section 3.045 of this code. Each day that the violation continues to exist
shall constitute a separate violation.
~ 4 } The .provisions of this section do not apply to ~ a municipal
utility.
Section 2. 4 erat i ve Date . The .affordable -housing ut i 1 i ty can sumpt i on tax
imposed pursuant to Section 3.129 set forth herein shall apply to services
furnished from the beginning of the first regular bi 11 i ng period commencing July
1, 1996. In the event service suppliers are unable to make the necessary changes
i n their bi 11 i ng practices to implement the provisions of Sections 3.125 to
3.149, the City Manager may delay the effective date for bi 11 i ng and collecting
the taxes due hereunder far a period of up to six months.
Section 3. Sever,a,b,l t_y. It is hereby declared to be the intention of the
Council that the sections, paragraphs, sentences, c1 auses and phrases of Sections
3.125 to 3.749 are severable, and if any phrase, clause, sentence, paragraph or
section thereof is declared unconstitutional or invalid by the vat id judgment or
decree of a court of competent jurisdiction, such unconstitutionality or
invalidity shall not affect any of the remaining phrases, clauses, sentences,
paragraphs and Sections 3.125 to 3.149 of the Eugene Code, 1911.
Section ~4. Notwithstanding the provisions of Section 2 above, this
Ordinance, and the previsions contained herein shall become effective only upon
approval by the electors of the City of the Charter Amendment attached as Exhi bi t
A hereto.
Passed by the City Council this Approved by the Mayor this
day of ~ 1995 ~~` day of ~~c~e.,.~,~.~.~t 1995
City Recor r Mayor
Ordinance - 7 ~~i2si~
Measure No,
An Amendment to the Eugene Charter of 1976
Referred to the Electors by the City Council of the City of Eugene
The City of Eugene does ordain as follows:
Be it enacted by the electors of the City of Eugene, that the Eugene Charter of 176
is hereby amended by adding a new Section 54 thereto that provides:
Section 54. Amendment N.
In order to fund affordable-housing and energy assistance projects, the city council
shall impose a utility consumption tax on Consumers of electricity, natural gas, water, cable
TV, and sewer services within the city, except those consumers exempted by ordinance of
the council, subject to the following limitations:
~a} The total percentage of the city's utility consumption tax shall not
exceed 1% of the charges for the utility service;
fib} 9d% of the tax proceeds are dedicated to funding affordable-housing
projects and lo% of the tax proceeds are dedicated to providing energy assistance
to low income persons within the city; and
~c} The tax shall terminate after ten years, unless a majority of electors in
a city-wide election authorise a continuation of the utility consumption tax,
Exhibit A