UTILITY USER TAX FAQs
WHAT IS THE UTILITY USER TAX (UUT)?
The UUT is authorized under State Revenue and Taxation Code Section 7284.2 and Sacramento County Ordinance chapter 3.40. The tax of two and a half percent (2.5%) is an additional source of non-property tax revenue to local government. UUT is a usage tax on service charges billed to a billing address in the unincorporated areas of Sacramento County for:
- Natural Gas
WHO IS REQUIRED TO PAY UUT?
All residential and business customers with a billing or service address in the unincorporated areas of Sacramento County.
WHO IS RESPONSIBLE FOR THE COLLECTION OF UUT?
The utility service supplier (i.e. your gas, electric, telephone, cable provider) is responsible for the collection of the UUT and remittance of the UUT to Sacramento County. This includes persons or entities that provide utilities but are non-utility suppliers, such as those that have master-metered accounts with the utility supplier and have sub-metered tenants. The ordinance requires non-utility suppliers to install, maintain and use appropriate utility-type metering system for their sub-metered tenants.
WHAT IS THE UUT RATE?
2.5% of the amount charged to the customer using the service. Refer to the
Rate Schedule for additional information and exemptions.
WHOSE RESPONSIBILITY IS IT TO DETERMINE IF A SERVICE USER IS SUBJECT TO UUT?
The service provider is responsible for determining that a service user is subject to the UUT.
WHAT RECORD KEEPING IS REQUIRED?
Each utility service provider is required to keep and preserve, for a period of three years, all records as may be necessary to determine the amount of tax liable for the collection and remittance to the County. The Tax Collector or his or her delegated representatives shall have the right to inspect such records at all reasonable times for audit purposes.
HOW OFTEN IS UUT PAID?
Each service provider is required to submit a UUT return together with payment for the tax collected to the Tax Collector on or before the last day of the month following the last day of the month for which the tax was collected. Example: The last day to file a UUT return for the reporting period of March is by April 30.
If the last day of the reporting period falls on a Saturday, Sunday or holiday, then your return must be postmarked or delivered to the Tax Collector's office on or before 5:00 p.m. of the next business day.
Note: Special Agreements have been established with many UUT providers for alternative reporting periods. For more information regarding an Administrative Agreement to vary the strict requirement of remitting a monthly UUT return, please contact Report and Account Services at: 700 H Street, Room 1710, Sacramento, CA 95814, or by telephone at (916) 874-8744.
The full amount of the tax collected shall be remitted to the Tax Collector at the time the return is filed.
I AM NO LONGER A UTILITY PROVIDER IN SACRAMENTO COUNTY, WHAT DO I NEED TO DO?
Blank returns are available for download under
I MISPLACED MY UUT RETURN AND NEED A REPLACEMENT, WHAT SHOULD I DO?
Blank returns are available for download under
WHERE DO I MAIL MY RETURN?
Sacramento County Tax Collector
700 H Street, Room 1710
Sacramento, CA 95814
WHAT HAPPENS IF THERE IS A LATE PAYMENT, NO PAYMENT OR INSUFFICIENT PAYMENT?
Any service supplier who fails to remit the UUT by the due date will pay a penalty of five percent (5%) in addition to the amount of the UUT. The UUT is not considered paid if payment is not made for the entire amount owed. Partial payments may be returned or held in a suspense account until payment in full is received. Partial payments are not credited to the UUT and all penalties and interest will accrue as if no payment had been received.
In addition to the penalties imposed, interest at the rate of one and one-half percent (1.5%) per month or fraction thereof is imposed on the amount of the unpaid tax, exclusive of penalties, from the date on which the payment first became delinquent until paid.
If the delinquency is not paid within two working days, an additional fifteen percent (15%) will be imposed, in addition to the amount of tax and the five present (5%) penalty first imposed.
The Code does not allow the Tax Collector to waive, cancel or reduce penalties and interest.
FOR MORE INFORMATION ON UUT
Please contact the Report and Account Services Unit of the Tax Collection and Licenses Division at 700 H Street, Room 1710, Sacramento, CA 95814 or phone (916) 874-7844.
For more details concerning UUT see
Sacramento County Ordinance 3.40.
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