A. Nothing in this chapter shall be construed as imposing a tax upon any person or service when the imposition of such tax upon such person or service would be in violation of a federal or state statute, the Constitution of the United States or the Constitution of the state.

B. Any service user that is exempt from the tax imposed by this chapter pursuant to subsection A of this section shall file an application with the tax administrator for an exemption; provided, however, this requirement shall not apply to a service user that is a state or federal agency or subdivision with a commonly recognized name for such service. Said application shall be made upon a form approved by the tax administrator and shall state those facts, declared under penalty of perjury, which qualify the applicant for an exemption, and shall include the names of all service suppliers serving that service user. If deemed exempt by the tax administrator, such service user shall give the tax administrator timely written notice of any change in service suppliers so that the tax administrator can properly notify the new service supplier of the service user’s tax exempt status. A service user that fails to comply with this chapter shall not be entitled to a refund of a users’ tax collected and remitted to the tax administrator from such service user as a result of such noncompliance.

The decision of the tax administrator may be appealed pursuant to Section 3.16.200. Filing an application with the tax administrator and appeal to the city administrator, or designee, pursuant to Section 3.16.200 is a prerequisite to a suit thereon.

C. The city council may, by resolution, establish one or more classes of persons or one or more classes of utility service otherwise subject to payment of a tax imposed by this chapter and provide that such classes of persons or service shall be exempt, in whole or in part, from such tax for a specified period of time.

D. If a billing for utility services includes charges for two or more households situated within nonprofit retirement facilities which (1) are operated solely for the accommodation of persons with low incomes and (2) which qualify for the welfare exemption set forth in the California Revenue and Taxation Code, and if the charges for such services are paid by the operators of the retirement facilities, the operators shall be entitled to an annual refund of all taxes paid under the provisions of this chapter. The procedure for obtaining such refunds shall be established by the tax administrator, including the requirement for whatever proof he or she deems necessary to establish qualification for refund. (Ord. 1586 § 1 (part), 2012)