§ 5.122. Rate of utility users’ tax; termination, reduction or suspension of utility users’ tax.

(a) The City Council may, by ordinance or resolution, adjust any of the rates of the Utility Users’ Tax; provided, however, that such rate shall not exceed 7.0% unless approved by the voters.

(b) The rates established by this article shall be revised annually based upon changes in the Consumer Price Index for All Urban Consumers (CPI-U), All Items Index, Los Angeles-Anaheim-Riverside Area (1982-84=100) (herein-after “CPI”) published by the United States Department of Labor, Bureau of Labor Statistics. In the event said CPI for the twelve-month period ending March 31 of each year (the “adjustment date”) is higher than said CPI for the twelve-month period ending March 31, 2018, the tax rates set forth in this article shall be increased by multiplying said tax rates by a fraction, the numerator of which is the CPI on the adjustment date and the denominator of which is the CPI for the twelve-month period ending March 31, 2018. The resulting adjusted tax rates shall then be the tax rates for the fiscal year commencing the next July 1st. There shall be no reduction in rates by operation of this provision. If, in the future, said CPI shall be changed so that the base year differs from that used as of the effective date of this article, it shall be converted in accordance with the conversion factor published by the United States Department of Labor, Bureau of Labor Statistics. The City Clerk shall submit a written report to the City Council setting forth the adjustments to the tax rates required by this subsection, which the City Council shall approve by resolution.

(c) Upon any such adjustment in tax rate, the Tax Administrator shall submit, as soon thereafter as reasonably practicable, written notification to the Service Suppliers, in accordance with procedures established by the Service Suppliers, of such adjustment in tax rate. The Service Suppliers responsible for collecting and remitting the Utility Users’ Tax shall have a reasonable period of time to implement such change in tax rate, but in no event to exceed sixty (60) days from the date of receipt of such written notification or, if 60 days from the date of receipt of such written notification is not on the first day of a month, then the first day of the month following the month in which such 60th day occurs.

(d) The City Council may, by ordinance or resolution, terminate or suspend the Utility Users’ Tax. Upon any such termination or suspension, the Tax Administrator shall submit, as soon thereafter as reasonably practicable, written notification to the Service Suppliers, in accordance with procedures established by the Service Suppliers, of such termination or suspension. The Service Suppliers responsible for collecting and remitting the Utility Users’ Tax shall have a reasonable period of time to implement such termination or suspension, but in no event to exceed sixty (60) days from the date of receipt of such written notification or, if 60 days from the date of receipt of such written notification is not on the first day of a month, then the first day of the month following the month in which such 60th day occurs.

(Ord. No. 1210, § 1; Ord. No. 1251, § 8.)