Pass: 4,387 / 91.8% Yes votes ...... 391 / 8.2% No votes

See Also: Index of all Measures

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In March 2002, the voters of the City of La Palma passed an initiative ordinance confirming and approving a 5% Utility Users Tax that had been in effect since 1993. Under the tax approved in 2002, utility service providers collect from La Palma residents and businesses 5% of the amounts billed for telephone, electricity, gas, and cable television and related cable services, and remit those moneys to the City. All of the proceeds from the tax are placed in the City's general fund and used for the usual current expenses of the City. Certain persons and entities, including persons and families qualifying as "very low income," may be exempted from the tax.

The Utility Users Tax ordinance requires the City Council to review the Utility Users Tax on an annual basis, in conjunction with its consideration of the City's general fund budget for the upcoming year. If it determines that the City's financial condition will not be adversely affected, the City Council may reduce the Utility Users Tax rate by up to 1% (thereby reducing the tax rate from 5% to 4%) for the upcoming fiscal year, after which the tax reverts to 5% unless the City Council acts again to reduce the tax rate for the next fiscal year.

If approved, this Initiative will authorize the City Council annually to reduce the Utility Users Tax rate paid by La Palma utility users from the currently allowed reduction of up to 1% to a new reduction of up to 4.75% . If the Initiative is approved, the La Palma City Council would have the authority to reduce on an annual basis the Utility User Tax rate from 5% to a rate not lower than one quarter of one percent (0.25%). If the Initiative is not approved, the La Palma City Council will continue to have the authority to reduce the Utility Users Tax from a rate of 5% to a rate not less than 4%.

This Initiative will take effect ten days following the date on which the La Palma City Council declares that the Initiative was approved by a majority of the La Palma voters voting on the measure at the November 2, 2010 general municipal election.