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HomeMy WebLinkAbout19- Finance CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: BARBARA PACHON,DIRECTOR OF FINANCE Subject: REDUCTION OF THE UTILITY USERS TAX RATE FROM 8.5% TO 8.0% Dept: FINANCE r EFFECTIVE JULY 1, 1998 Date: MARCH 10 1998 ;7 � L 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 30, 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 ALe- " rte_ Signature Contact person: Barbara Pachon,Director of Finance Phone : ext. 5242 Supporting data attached: Ward: FUNDING REQUIREMENTS: Amount: Source: (Acct.No.) (Acct.Description) Finance: Council Notes: Agenda Item No. _1q gi4Jge 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-820, 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 1, 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. ORDINA NCE NO. v ©� AN ORDINANCE OF THE CITY OF SAN BERNARDINO AMENDING j CHAPTER 3.44 OF THE SAN BERNARIDNO MUNICIPAL CODE REDUCING THE AMOUNT OF SERVICE USERS TAX TO EIGHT PERCENT. 2 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN 3 BERNARDINO DO ORDAIN AS FOLLOWS: 4 SECTION 1. Subsection A of section 3.44.030 of the San Bernardino 5 Municipal Code is hereby amended to read as follows: 6 "A. A tax is imposed upon every person in the City using telephone 7 communication services, including services for intrastate, inter-state, or international 8 9 calls, and using any teletypewriter exchange services in the City. The tax imposed by 10 this section shall be at the rate of eight percent (8.0%) of the charges made for such 11 services and shall be paid by the person paying for such services. Interstate calls 12 shall be deemed to include calls to the District of Columbia." 13 SECTION 2. Subsection A of section 3.44.050 of the San Bernardino 14 Municipal Code is hereby amended to read as follows: 15 "A. A tax is imposed upon every person in the City using electrical energy 16 in the City. The tax imposed by this section shall be at the rate of eight percent 17 (8.0%) of the charges made for such energy and shall be paid by the person paying 18 for such energy." 19 20 SECTION 3. Subsection A of section 3.44.060 of the San Bernardino 21 Municipal Code is hereby amended to read as follows: 22 "A. A tax is imposed upon every person in the City using gas which is 23 delivered through mains or pipes. The tax imposed by this section shall be at the rate 24 of eight percent (8.0%) of the charges made for such gas and shall be paid by the 25 person paying for such gas. 26 SECTION 4. Section 3.44.065 of the San Bernardino Municipal Code is 27 hereby amended to read as follows: 28 "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, 1 on electrical service pursuant to section 3.44.050, and on gas service pursuant to 2 3 section 3.44.060 shall be imposed only upon charges made for consumer services. 4 The eight percent (8.0%) users tax shall not be levied upon any state or federal tax, 5 fee or surcharge which is separate from the users service charges. This section is 6 intended to clarify existing law; it does not propose any change in the amount or 7 method of calculation of the utility users tax. 8 This ordinance shall take effect on July 1, 1998." 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 //// 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. 1 2 3 I HEREBY CERTIFY that the foregoing ordinance was duly adopted by the 4 Mayor and Common Council of the City of the City of San Bernardino at a 5 meeting thereof, held on the day of 1998, by the 6 following vote to wit: 7 COUNCIL MEMBERS AYES NAYS ABSTAIN ABSENT 8 ESTRADA 9 LIEN 10 ARIAS 11 SCHNETZ 12 DEVLIN 13 ANDERSON 14 15 MILLER 16 17 Rachel G. Clark, City Clerk 18 The foregoing resolution is hereby approved this day of 19 1998. 20 21 Judith Valles, Mayor City of San Bernardino 22 Approved as to form and legal content: 23 JAMES F.PENMAN 24 City Attorney 25 26 By: -- 'L 27 28