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Chula Vista may seek to lower telecom tax rate


UNION-TRIBUNE

7:19 a.m. July 23, 2008

CHULA VISTA: The City Council tonight will decide whether to place a measure on the November ballot asking voters to decrease a utility users tax rate on telecommunications but include more ratepayers.

The measure would be written to include taxes on long distance phone calls, private communication services (T1 lines), paging and toll-free numbers. Currently it applies only to in-state calls. By lowering the rate, but including more ratepayers, the City Council hopes to keep revenue about the same. Revenue is about $4.6 million a year.

Chula Vista has had a utility users tax since 1970, which is applied to gas, electricity and telecommunications. The measure would drop the 5 percent rate that is charged now on telecommunications to 4.75 percent. Gas and electricity is taxed less than 1 percent and would not be affected.

Utility carriers collect the tax on monthly bills and pay the city.

However, officials say that about 20 percent of telecommunications customers, represented by various carriers, are not being charged now.

The meeting begins at 8 tonight in the City Council chambers at 276 Fourth Ave. –T.S.


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