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'CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
-,-rom: BARBARA PACHON, DIRECTOR OF FINANCE Subject:
Dept: FINANCE
Date: MARCH 10, 1998
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REDUCTION OF THE UTILITY USERS
TAX RATE FROM 8.5% TO 8.0%
EFFECTIVE JULY 1, 1998
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Synopsis of Previous Council action:
February 17, 1992, the Mayor and Common Council approved ordinance amendment MC-820.
(Increasing the UUT by .5% to expire June 3D, 1995.)
June 5,1995, the Mayor and Common Council approved ordinance amendment MC-939.
(Change of the .5% expiration date from June 30,1995 to June 30, 1998.)
Recommended motion:
Approve Ordinance Amendment
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Signature
Contact person:
Barbara Pachon. Director of Finance
Phone:
exl. 5242
Supporting data attached:
Ward:
FUNDING REQUIREMENTS:
Amount:
Source: lAcer. No.)
(Ace!. Desen"ti"n)
Council Notes:
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Finance:
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Agenda Item No. / tJ
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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
STAFF REPORT
On February 17, 1992, the Mayor and Common Council approved an Ordinance (MC-820) amending
Chapter 3.44 of the San Bernardino Municipal Code which increased the amount of the Service Users
Tax (Utility Users Tax) by .5%. This increase brought the tax rate from 8.0% to 8.5% with the .5% to
expire on June 30, 1995.
June 5,1995, the Mayor and Common Council approved an Ordinance (MC-939) amending, Section
6 of Ordinance No. MC-810, which extends the expiration date of the .5% increase to June 30, 1998.
In order for the City to keep the additional .5% of the tax after the expiration date of June 30, 1998,
the City would have had to put this to a public vote under the new Proposition 218 guidelines. Since
the City opted not to do this, the Mayor and Common Council must now amend Municipal Code
Chapter 3.44, to reduce the Utility Users Tax rate from 8.5% to 8.0% effective July I, 1998.
The Public Utilities Commission Code Sec. 799(a)(5), reads ..."The public utility or other service
supplier shall not be required to implement the changes any earlier than 60 days from the date on
which the public utility or other service provider receives the written notification and all other
information required by the public utility or other service supplier..."
Since the Public Utilities require a 60 day notification, the Mayor and Council must approve an
ordinance that amends Chapter 3.44 of the San Bernardino Municipal Code so that staff can send the
Public Utilities proper and timely notification.
Once the City notifies all the service providers, we can expect that they will apply the 8.0% tax rate to
their July 1998 billings.
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ORDINANCE NO.
AN ORDINANCE OF TIlE CITY OF SAN BERNARDINO AMENDING
CHAPTER 3.44 OF THE SAN BERNARIDNO MUNICIPAL CODE REDUCING
TIlE AMOUNT OF SERVICE USERS TAX TO EIGHT PERCENT.
TIlE MAYOR AND COMMON COUNCIL OF TIlE CITY OF SAN
BERNARDINO DO ORDAIN AS FOLLOWS:
SECTION I. Subsection A of section 3.44.030 of the San Bernardino
Municipal Code is hereby amended to read as follows:
"A. A tax is imposed upon every person in the City using telephone
communication services, including services for intrastate, inter-state, or international
calls, and using any teletypewriter exchange services in the City. The tax imposed by
this section shall be at the rate of eight percent (8.0%) of the charges made for such
services and shall be paid by the person paying for such services. Interstate calls
shall be deemed to include calls to the District of Columbia."
SECTION 2. Subsection A of section 3.44.050 of the San Bernardino
Municipal Code is hereby amended to read as follows:
"A. A tax is imposed upon every person in the City using electrical energy
in the City. The tax imposed by this section shall be at the rate of eight percent
(8.0%) of the charges made for such energy and shall be paid by the person paying
for such energy."
SECTION 3. Subsection A of section 3.44.060 of the San Bernardino
Municipal Code is hereby amended to read as follows:
"A. A tax is imposed upon every person in the City using gas which is
delivered through mains or pipes. The tax imposed by this section shall be at the rate
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of eight percent (8.0%) of the charges made for such gas and shall be paid by the
person paying for such gas.
SECTION 4. Section 3.44.065 of the San Bernardino Municipal Code is
hereby amended to read as follows:
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"The eight percent (8.0%) users tax imposed on telephone communication
services pursuant to section 3.44.030, on CATV service pursuant to section 3.44.040,
on electrical service pursuant to section 3.44.050, and on gas service pursuant to
section 3.44.060 shall be imposed only upon charges made for consumer services.
The eight percent (8.0%) users tax shall not be levied upon any state or federal tax,
fee or surcharge which is separate from the users service charges. This section is
intended to clarify existing law; it does not propose any change in the amount or
method of calculation of the utility users tax.
This ordinance shall take effect on July I, 1998."
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AN ORDINANCE OF THE CITY OF SAN BERNARDINO AMENDING
CHAPTER 3.44 OF THE SAN BERNARIDNO MUNICIPAL CODE REDUCING
THE AMOUNT OF SERVICE USERS TAX TO EIGHT PERCENT.
I HEREBY CERTIFY that the foregoing ordinance was duly adopted by the
Mayor and Common Council of the City of the City of San Bernardino at a
meeting thereof, held on the _ day of
following vote to wit:
COUNCIL MEMBERS
ESTRADA
LIEN
ARIAS
SCHNETZ
DEVLIN
ANDERSON
MILLER
. 1998, by the
AYES NAYS
ABSTAIN ABSENT
Rachel G. Clark, City Clerk
The foregoing resolution is hereby approved this
day of
1998.
Approved as to form
and legal content:
JAMES F. PENMAN
City Attorney
Judith Valles, Mayor
City of San Bernardino
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