Ordinance 2004-06
ORDINANCE NO. 2004-06
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GILROY
AMENDING SECTION 2.41 OF CHAPTER 2; SECTION 22.27 OF
CHAPTER 22; SECTION 25A.7 OF CHAPTER 25A; AND SECTIONS
26B.25, 26B.26, 26B.28, 26B.30 AND 26B.31 OF CHAPTER 26B OF THE
GILROY CITY CODE, PERTAINING TO THE INTEREST TO BE PAID
ON CERTAIN DELINQUENT TAX AND OTHER PAYMENT
OBLIGATIONS AND CORRECTING TYPOGRAPHICAL ERRORS
WHEREAS, the City of Gilroy ("City") is a charter city empowered under the
California Constitution to levy taxes pursuant to its authority to make and enforce laws
and regulations with respect to municipal affairs; and
WHEREAS, Chapter 2 of the Gilroy City Code sets forth provisions governing
City administration; Chapter 22, Article IV, prescribes cigarette taxes, Chapter 25A
prescribes transient occupancy taxes, and Chapter 26B prescribes utility users taxes; and
WHEREAS, the City Council may set the interest rate to be paid on delinquent
tax and other payment obligations pursuant to its police powers; and
WHEREAS, the City Council has determined that the financial impacts of
delinquent tax payments should be alleviated by collecting interest on both the delinquent
taxes and applicable penalties; and
WHEREAS, the City Council held a duly noticed public meeting on April 19,
2004, and all persons expressing a desire to comment or object were heard; and
WHEREAS, the City Council also desires to correct certain minor and
typographical errors in Chapter 26B of the Gilroy City Code for the purposes of
clarifying the provisions of that chapter.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION I
A new Subsection (e), entitled "Interest," is added to Section 2.41, entitled
"Functions," of Article VI, entitled "Department of Finance" of Chapter 2, entitled
"Administration," of the Gilroy City Code to read:
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Ordinance No. 2004-06
Sec. 2.41 Functions.
( e) Interest. Interest calculated on a monthly basis or any fraction thereof shall be
imposed upon a delinquent obligation from the date such obligation becomes delinquent
to the date it is paid. The rate of interest imposed pursuant to this section shall be
eighteen percent (18%) per annum.
SECTION II
Section 22.27, entitled "Penalties for failure to remit tax when due," of Article N,
entitled "Cigarette Tax," of Chapter 22, entitled "Taxation," of the Gilroy City Code is
hereby amended to revise subsection (d), entitled "Interest," to read:
Sec. 22.27. Penalties for failure to remit tax when due.
(d) Interest. In addition to the penalties imposed, any distributor who
fails to remit any tax imposed by this article shall pay interest at the
rate of eighteen percent (18%) per annum.. The interest shall be
calculated per month or fraction thereof on the amount of the tax and
penalties, from the date on which the remittance first became
delinquent until paid.
SECTION III
Section 25A. 7, entitled "Penalties and interest," of Chapter 25A, entitled
"Transient Occupancy Tax," ofthe Gilroy City Code is hereby amended to revise
subsection (d), entitled "Interest," to read:
Sec. 25A.7. Penalties and interest.
(d) Interest. In addition to the penalties imposed, any operator who fails
to remit any tax imposed by this chapter shall pay interest at the rate
of eighteen percent (18%) per annum. The interest shall be calculated
per month or fraction thereof on the amount of the tax and penalties,
from the date on which the remittance first became delinquent until
paid.
SECTION IV
Chapter 26B, entitled "Utility Users Tax," of the Gilroy City Code is hereby
amended as follows.
1.) Section 26B.24 is amended to read:
Section 26B.24. Service supplier; fraud; penalty.
If the tax collector determines that the non-payment by any service
supplier or nonutility supplier of any remittance due under this chapter is
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due to fraud, a penalty of twenty-five percent (25%) ofthe amount of the
tax shall be added thereto in addition to the penalty imposed by section
26B.23.
2.) Section 26B.25, entitled "Service supplier; interest," is amended to read:
Sec. 26B.25. Service supplier; interest.
In addition to the penalties imposed by section 26B.23 and 26B.24, any
service supplier or non-utility supplier who fails to remit any tax imposed
by this chapter shall pay interest at the rate of eighteen percent (18%) per
annum. The interest shall be calculated per month or fraction thereof, on
the amount of the tax and penalties, from the date on which the remittance
first became delinquent until paid.
3.) Section 26B.26, entitled "Service supplier; penalty and interest part of
tax," is amended to read:
Sec. 26B.26. Service supplier; penalty and interest added to tax.
Every penalty imposed upon a service supplier or non-utility supplier and
such interest as accrues, under the provisions of sections 26B.23 to
26B.25, inclusive, shall be added to the tax required to be remitted.
4.) Section 26B.28, entitled "Service user; fraud; penalty," is amended to
read:
Sec. 26B.28. Service user; fraud; penalty.
If the tax collector determines that the non-payment by any service user of
any tax imposed by this chapter is due to fraud, a penalty of twenty-five
percent (25%) ofthe amount of the tax shall be added thereto in addition
to the penalty imposed by section 26B.27.
5.) Section 26B.29, entitled "Service user; interest," is amended to read:
Sec. 26B.29. Service user; interest.
In addition to the penalties imposed by section 26B.27 and 26B.28, any
service user who fails to remit any tax imposed by this chapter shall pay
interest at the rate of eighteen percent (18%) per annum. The interest shall
be calculated per month or fraction thereof, on the amount of the tax and
penalties, from the date on which the remittance first became delinquent
until paid, and a collection charge often dollars ($10.00) shall be added
for each delinquent account.
6.) Section 26B.30, entitled "Service user; penalty and interest, part of tax," is
amended to read:
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Sec. 26B.30. Service user; penalty and interest added to tax.
Every penalty imposed upon a service user and such interest as accrues
under the provisions of sections 26B.27 to 26B.29, inclusive, shall be
added to the tax required to be paid.
7.) Section 26B.31, entitled "Service user; penalties and interest collected by
city," is amended to read:
Sec. 26B.31. Service user; penalties and interest collected by city.
The penalties, interest and collection charges imposed in sections 26B.27
to 26B.30, inclusive, shall not be collected by the service supplier, but by
the city.
SECTION V
If any section, subsection, subdivision, sentence, clause or phrase of this
Ordinance is for any reason held to be unconstitutional or otherwise void or invalid by
any court of competent jurisdiction, the validity of the remaining portion of this
Ordinance shall not be affected thereby. The City Council hereby declares that it would
have passed this Ordinance and each section, subsection, subdivision, sentence, clause or
phrase thereof, irrespective of the fact that anyone or more sections, subsections,
subdivisions, sentences, clauses or phrases be declared unconstitutional.
SECTION VI
This Ordinance shall be in full force and effect thirty (30) days after the date of its
passage and adoption.
PASSED AND ADOPTED this 3rd of May, 2004, by the following vote:
AYES: COUNCILMEMBERS:
CORREA, DILLON, GARTMAN,
MORALES, VALIQUETTE, VELASCO
and PINHEIRO
NOES: COUNCILMEMBERS:
NONE
ABSENT: COUNCILMEMBERS:
NONE
ATT~'j ,.2
y~~^ l : {.(A.'
Rhollda Pellin, City Clerk
~
~
ert Piriheiro, Mayor
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Ordinance No. 2004-06
I, RHONDA PELLIN, City Clerk of the City of Gilroy, do hereby certify that the attached
Ordinance No. 2004-06 is an original ordinance, or a true and correct copy of a city ordinance,
duly adopted by the Council of the City of Gilroy at a regular meeting of said Council held on the
3rd day of May, 2004, at which meeting a quorum was present, and has been published or posted
pursuant to law.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of
the City of Gilroy this 14th day of May, 2004.
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City lerk of the City of Gilroy
(Seal)