HomeMy WebLinkAboutOrdinance No. 20176ORDINANCE N4. 20176
AN ORDINANCE CGNCERNING NATURAL GAS SUPPLIER
TAX; AMENDING SECTIGNS 3.600, 3.605, 3.610, 3.615, 3.620,
AND 3.625 GF THE EUGENE CGDE,1971; AND PRQVIDING
AN EFFECTIVE DATE.
THE CITY OF EUGENE DGES GRDAIN AS FGLLOWS:
Section 1. Section 3.600 of the Eugene Code,1971 is amended by adding new definitions
for "Public way," and "Facilities," and amending the definition of "Gross revenue" contained therein,
to provide:
3.600 Natural Gas Su Tier Tax -Definitions. For purposes of sections 3.600 to
3.425 of this chapter, the following words and phrases shall have the meanings
ascribed to them by this section:
Facilities. Includes gas mains, pipes, boxes, reducing and regulation stations,
laterals, conduits and connections, including service connections, together with all
of the necessary or useful appurtienances for the transmission and distribution of gas
to the city and its inhabitants and to other customers and territory beyond the limits
of the city.
Gross revenue. Revenues earned by the natural gas supplier from operations
within the city, including but not limited to revenues from the sale andlor
transportation of natural gas consumed within the city and revenues from the use,
rental or lease of operating facilities of the natural gas supplier other than residential-
type space and water heating equipment, less the net writeoff of uncollectible
accounts directly related to such revenues. Gross revenues shall not include:
~a} Revenues paid directly by the United States of America or any of its
agencies;
fib} Proceeds from the sale of bonds, mortgages or other evidence of
indebtedness, securities or stocks; or
~c} Sales at wholesale by one public utility to another when the utility
purchasing the service is not the ultimate customer.
Public wa . Any street, road, alley, right-of way, pedestrian or bicycle
easement or utility easement for public use that is controlled by the city.
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Section 2. Section 3.605 of the Eugene Code,1971, is amended to provide:
3.605 Natural Gas u -
_ S .~p~~er Tax ,,,,,LevX.
~ 1 } Any person engaged in or carrying on the business, occupation or pursuit of
a natural gas supplier or operating a natural gas distribution system during part or all of a calendar
year shall comply with the provisions of sections 3.600 to 3.65 of this chapter and shall pay to the
city for that year a tax of five percent ~5%} of the gross revenues.
~2} Payment shall be made within forty-five X45}days following the end of each
quarter of each calendar year.
Section 3. Subsections ~1}, ~2} and ~3} of Section 3.614 of the Eugene Code, 1971, are
amended to provide:
3.610 Natural, Gas Su~pulier Tax - Admin„station.
~ 1 } The city manager shall administer the tax imposed by section 3.605 of this
code. The city manager may do so in accordance with rules adopted in the manner provided in
section 2.019 of this code. The rules shall include such provisions as are necessary or expedient for
eliciting information needed to administer the tax, inducing prompt and full payment of the tax,
preventing fraud or evasion related to the tax, affording subjects of the tax ample notice of their
obligations regarding the tax, resolving administratively whatever controversies arise in
administration of the tax, and imposing sanctions conducive to compliance with the rules. The city
manager may also prescribe in the rules the types and amounts of insurance that a natural gas
supplier must maintain to protect the city and its inhabitants from financial loss from property
damage and personal injury caused by an accident or other incident involving a natural gas supplier
or its facilities. The rules may include provisions for indemnity or bonding.
~2} Every natural gas supplier shall, at the time of the quarterly payment of the
tax, deliver a statement by an officer of the natural gas supplier showing the amount of gross
revenues of the natural gas supplier for the quarter covered by the payment, including a description
of and the amount for each exclusion and deduction from gross revenues as allowed under the
definition of "Gross revenue" in section 3.600 of this code, the calculation of the tax for the quarter,
computed on the basis set forth in section 3.605 of this code, and such other detailed information as
may be prescribed by rule.
~3 } The city manager may obtain information necessary or convenient for
administering the tax or to verify any statement or report submitted by a natural gas supplier
pursuant to the provisions of this section, Each person or business subject to the tax shall keep
available and open to inspection by the city manager during regular office hours, all accounts and
books necessary or convenient for ascertaining the tax liability under section 3.605. Any person
operating a natural gas distribution system shall make available upon request the names and
addresses of all persons using or leasing the natural gas distribution system. Every natural gas
supplier shall, upon request, furnish to the city a list of all customers within the corporate limits of
the city who have contracted with the natural gas supplier for transportation and delivery of natural
gas separate from the purchase of natural gas. This report shall include the names of all such
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customers and the volume of gas that was transported by the natural gas supplier on behalf of each
customer for the period covered by the report. All such customers shall, upon written request from
the city, furnish the names of the person or persons from whom they purchased natural gas, separate
from the transportation and delivery of the gas.
Section 4. Subsections ~2}, ~5}, and ~6} of Section 3.615 of the Eugene Code, 1971, are
amended to provide:
3.615 Natural Gas Su lier Tax -Audit.
~2} All tax payments shall be subject to audit by the city and an assessment or
refund if the payment is found to be in error. Any assessment requiring additional payment and all
interest and penalties shall be immediately due and payable. The natural gas supplier shall reimburse
the city for the reasonable costs of such audit if the audit discloses that the natural gas supplier has
paid 95% or less of the fee owing for the period of the audit.
~3} In the event that such audit results in an assessment by and an additional
payment due to the city, such additional payment shall be subject to interest at the rate of eight
percent ~S%} per year from the date the original tax payment was due.
~4} In the event that such audit results in an assessment by and an additional
payment due to the city which the city manager finds to have been the result of intentional acts
seeking to avoid payment of the full amount due the city, the natural gas supplier shall be subject
to an additional penalty of ten percent ~ 10%} of the total amount of the additional tax payments due.
~5} Any amount due the city as reimbursement far audit costs or as a tax, interest
or penalty under section 3.605 or this section shall constitute a debt of the person from whom the
amount is due. The city may bring action in a court of competent jurisdiction to enforce payment
of the debt.
~6} Any amount due the city as reimbursement for audit costs or as a tax, interest
or penalty under section 3.605 of this code or this section may, by declaration of the city manager,
be made a lien on the personal property of the person from whom the amount is due. The city may
enforce payment of the amount by foreclosure of the lien in any manner authorized by law.
Section 5. Subsection ~a} of Section 3.620 of the Eugene Code,1971, is amended to provide:
3.620 Natural Gas Su lier Tax -Other Obli ations Unaffected. Except as provided in
section 3.625, any amount due the city as a tax under section 3.605 of this code is in
addition to any other payment required by law, and shall not be considered as payment in lieu of or
as a credit toward:
(a) Any franchise fee paid to the city for the use of the public ways of the
city,
Section 6. Section 3.625 of the Eugene Code,1971, is amended to provide:
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3.625 Natural Gas Sunnlier,,, Tax - ,,,,Credit .for Franchise Fees. A natural gas supplier
which is required to pay a franchise fee to the city for the use of the public ways of
the city may subtract the amount of the franchise fee paid for the same year or part of the year in
which the tax is in effect from the total amount due as a tax under section 3.6D5 of this code.
Section 7, The City Recorder, at the request of, or with the concurrence of the City Attorney,
is authorized to administratively correct any reference errors contained herein or in other provisions
of the Eugene Code,1971, to the provisions added, amended or repealed herein.
Section $. Notwithstandingthe provisions of the Eugene Charter of 1976 with respect to the
effective date of ordinances, this ordinance shall become effective January 1, ZDDD.
Passed by the City Council this
8th day of November, 1999
City Reco er
Approved by the Mayor this
8th day of November,1999
~, f /%
l
Mayor
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