The Covina City Council has placed a measure on the March 7, 2017 ballot asking voters to approve an extension of the Utility User Tax (“UUT”) Ordinance, set to expire on March 16, 2019. If approved by a majority vote Measure CC would authorize an amendment to the City’s UUT Ordinance (Covina Municipal Code, Chapter 3.14) to extend the life of the City’s UUT at its current rate of 6% by an additional ten (10) years. If approved by a majority of the voters, the UUT Ordinance would expire on March 16, 2029, unless further extended by the voters.
A UUT is a tax levied on each utility customer within the City’s boundaries. Since 2004, the City has imposed a 6% tax on telephone communication services (including land line telephone and cellular phone services), electricity, water, and gas services. The utility tax is computed based on a customer’s monthly utility usage and certain services charges. Since the tax is levied on the amount of each separate utility bill, the amount of tax varies based on the cost of the utility services provided for that billing period. The tax is collected by each utility provider and conveyed to the City.
Measure CC would not increase the current percentage rate of the tax, but would maintain the 6% tax on telephone communications, electricity, water, and gas services in the City. The UUT is a general tax. UUT revenues are paid into the City’s general fund to finance services such as police, fire, public works, parks, libraries and recreation.
Measure CC requires approval of a majority of voters. A “yes” vote for Measure CC will maintain th e existing UUT in place until March 16, 2029. A “no” vote against Measure CC will allow the City’s existing UUT Ordinance to expire on March 16, 2019.
The above statement is an impartial analysis of Measure CC. If you desire a copy of the ordinance or measure, please call the elections official’s office at (626) 384 - 5430 and a copy will be mailed at no cost to you.
