Fail: 3,601 / 46.80% Yes votes ...... 4,093 / 53.20% No votes

See Also: Index of all Measures

Impartial Analysis from City Attorney Michael W. Webb

The Redondo Beach City Council placed Measure UU on the ballot to seek voter approval for an amendment to the existing Telephone, Gas, Electricity, Water, and Video Users’ Tax (“UUT”).

Background. State law permits cities to raise revenue by imposing taxes on the use of certain utilities. Since 1969, the City of Redondo Beach has collected Utility Users Tax on the use of telephone, natural gas, electricity, water, and video utility services in the City. Most residents and nearly all businesses in the City pay the UUT, which is currently 4.75% of the amount that a user pays for each service. Under current law, utilities used in conducting the business of a utility are excluded from this tax.

The Measure. Measure UU would eliminate the UUT exclusion for natural gas used in conducting the business of a utility. The measure also amends the method of calculating the tax for any affected utility.

Measure UU has no direct effect on the taxes of individual City residents or households, or on the taxes of City businesses, other than a utility that uses gas in conducting utility business.

Measure UU would raise revenue to pay for general governmental services in the City of Redondo Beach. Revenue from the Measure will go to the City’s General Fund and may be used for any governmental purpose.

The new revenue measure has been approved by the City Council. If approved by a majority of the voters voting on the measure, Measure UU would go into effect 10 days after the Redondo Beach City Council declares the results of the November 3, 2009 election.

As with existing revenue from the Utility Users’ Tax, new revenue from this Measure would be subject to annual audit. The City’s independent auditors will annually verify that the Utility Users’ Tax is applied, collected, and paid in accordance with the law’s requirements.

Measure UU does not increase the current UUT rate of 4.75%. Measure UU maintains existing exemptions for low-income seniors and disabled persons.

Any future new taxes or changes to the Utility Users’ Tax rate would require voter approval.

A “Yes” vote on Measure UU would eliminate the UUT exclusion for natural gas used in conducting the business of a utility. A “No” vote is a vote in favor of maintaining the exclusion.

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