Santa Ana puts tax on prepaid cellphones on Nov. ballot
Article from OCRegister:
Santa Ana residents who communicate using a prepaid wireless phone could soon be levied a Utility Users Tax if voters approve a measure this November that would also lower the tax.
On Tuesday, the City Council unanimously voted in favor of adding an initiative to the November ballot that would reduce the Utility Users Tax from 6 percent to 5.5. percent. That tax would also be levied on prepaid wireless services.
“It’s one of those rare occasions where you can actually reduce the tax for everybody, but because everybody is paying it … that means nobody gets a waiver,” said City Manager David Cavazos.
“If they’re (residents) doing prepaid that we’re not capturing now, they would pay the reduced rate,” Cavazos added.
The Utility Users Tax measure would also eliminate the maximum tax cap of $ 11,000.
Santa Ana receives about $ 24 million in Utility Users Tax revenue, the third-largest revenue source for the city, according to a staff report. The tax, at the rate of 6 percent, is applied to four categories: electricity, telephone, water and gas.
According to the staff report, a statewide survey of Utility Users Tax showe…………………continues on OCRegister
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