A. There is hereby imposed a tax upon every person in the City using telecommunications services. The tax imposed by this section shall be at the rate of 3.75 percent of the charges made for such services and shall be collected from the service user by the telecommunications services supplier or its billing agent, or as otherwise provided by law. There is a rebuttable presumption that telecommunications services, which are billed to a billing or service address in the City, are used, in whole or in part, within the City’s boundaries, and such services are subject to taxation under this section. There is also a rebuttable presumption that prepaid telecommunications services sold within the City are primarily used, in whole or in part, within the City and are therefore subject to taxation under this section. If the billing address of the service user is different from the service address, the service address of the service user shall be used for purposes of imposing the tax. As used in this section, the term “charges” shall include the value of any other services, credits, property of every kind or nature, or other consideration provided by the service user in exchange for the telecommunications services.

B. “Mobile telecommunications service” shall be sourced in accordance with the sourcing rules set forth in the Mobile Telecommunications Sourcing Act (4 U.S.C. Section 124). The Tax Administrator may issue and disseminate to telecommunications service suppliers, which are subject to the tax collection requirements of this section, sourcing rules for the taxation of other telecommunications services, including but not limited to post-paid telecommunications services, prepaid telecommunications services, and private telecommunications services; provided, that such rules are based upon custom and common practice that further administrative efficiency and minimize multi-jurisdictional taxation.

C. The Tax Administrator may issue and disseminate to telecommunications service suppliers, which are subject to the tax collection requirements of this section, an administrative ruling identifying those telecommunications services, or charges therefor, that are subject to the tax of subsection A of this section. This administrative ruling shall not impose a new tax, revise an existing tax methodology as stated in this section, or increase an existing tax, except as allowed by California Government Code Section 53750(h)(2)(A).

D. As used in this section, the term “telecommunications services” shall include, but is not limited to, charges for: connection, reconnection, termination or early termination charges; movement or change of telecommunications services; late payment fees; detailed billing; central office and custom calling features (including but not limited to call waiting, call forwarding, caller identification and three-way calling); voice mail and other messaging services; directory assistance; access and line charges; universal service charges; regulatory or administrative fees, charges or surcharges, including charges or surcharges for programs imposed by State or Federal law (whether such charges or surcharges are imposed on the service supplier or the customer); local number portability charges; and text and instant messaging. “Telecommunications services” shall not include digital downloads that are not “ancillary telecommunications services,” such as music, ringtones, games, and similar digital products.

E. To prevent actual multi-jurisdictional taxation of telecommunications services subject to tax under this section, any service user, upon proof to the Tax Administrator that the service user has previously paid the same tax in another state or city on such telecommunications services, shall be allowed a credit against the tax imposed to the extent of the amount of such tax legally imposed in such other state or city; provided, however, the amount of credit shall not exceed the tax owed to the City under this section.

F. The tax on telecommunications services imposed by this section shall be collected from the service user by the service supplier. The amount of tax collected in one month shall be remitted to the Tax Administrator, and must be received by the Tax Administrator on or before the twentieth day of the following month. (Ord. 1072 § 1, 2014)