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(9) <br />EXHIBIT V <br />CITY OF SANTA ANA GENERAL UTILITY USERS' TAXATION OVERVIEW <br />City of Santa Ana <br />Utility Users' Tax Monthly Tax Remittance Procedures <br />I. Monthly Tax Remittance: <br />1. Utility Users' Tax (UUT) is a 5.5% tax charged by all utility service providers (electric, gas, <br />telecommunications and water) and remitted to the City on a monthly basis. UUT remittance is <br />due on the 20th day of every month. <br />2. Monthly remittance tax forms are automatically generated based on the active UUT utility service <br />providers registered in the UUT database (UUT system). Currently, there are 353 active utility <br />service providers registered in the UUT system. <br />3. Monthly remittance tax forms are mailed to each service provider or designated tax preparer (see <br />attached sample). <br />4. Persons or businesses excluded from UUT assessment by operation of state or federal law <br />include: <br />a. Insurance companies, their direct agents and the active investments (other businesses <br />or commercial rental properties) directly owed by insurance companies. <br />b. Government agencies, public corporations, public schools, state universities and college <br />districts. <br />II. Remitting and Processing Payments: <br />1. Most UUT payments are remitted via check, which is mailed in along with the completed <br />remittance tax form; however, some utility service providers will email the form and remit payment <br />electronically via ACH. <br />2. When the monthly remittance tax form is received, the reported revenue figures are verified for <br />accurate reporting and calculation and recorded into the UUT system. The check is processed <br />by Treasury Services remittance processor or can also be processed at the cashier counter with <br />an accompanying billing statement. <br />3. Any discrepancies (overages, shortages, calculation errors, missing/wrong tax remittance form, <br />etc.) will result in a letter to the service provider or tax preparer requesting to resolve the issue. <br />Shortages and calculation errors or late payments that are postmarked after the 20th day of the <br />month are subject to penalty and interest charges. <br />a. Penalty charges are calculated at 15% of the tax amount owed <br />b. Interest charges are calculated at 0.75% of the tax amount owed per month <br />III. Remittance Tracking: <br />1. The revenues reported on the monthly tax remittance form are recorded into the UUT system. <br />Once the revenue figures have been entered, the UUT system will calculate the fees to verify the <br />information entered was accurate. If the calculations match, the revenue is recorded and a charge <br />for the tax amount due is created. If the revenues do not match, the system will indicate the <br />correct calculations in red. The revenue may still be saved as was reported by the hotel operator <br />or tax preparer, but the charge created will be based on the correct calculations. <br />2. Once the revenues have been recorded, the monthly tax remittance form is scanned into <br />LaserFiche in the Utility Users' Tax folder, then into the corresponding sub -folder for the reporting <br />period being remitted. Each service provider is assigned an account number; the scanned reports <br />are saved into the folder for the corresponding reporting period and sorted by account number. <br />City of Santa Ana RFP No. 23-165 Page 53 of 196 <br />