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Redondo Beach Chamber of Commerce

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November 10, 2009

On Going Dispute Ends With Measure UU Defeat
Measure UU was rejected by voters on November 4. The measure, placed on the ballot by the Redondo Beach City Council, if passed would have raised revenue to pay for general governmental services in the City of Redondo Beach by taxing the AES power plant.

Presently, AES is able to avoid paying the 4.75 percent utility-users' tax on natural gas due to an exemption in the city ordinance for companies "conducting the business of a utility." Measure UU would have changed the tax ordinance to eliminate this provision. AES makes electricity under a contract with J.P. Morgan, which sells it to Southern California Edison to distribute to its customers.

Opponents say a tax on AES would ultimately force Edison to request a rate hike from the California Public Utilities Commission - meaning it would eventually trickle down to residents. City officials say the code was meant to exclude Southern California Edison - the former plant owner - from paying the tax on natural gas. But they argue the exemption shouldn't extend to AES because the company does not supply power directly to the public as Edison does.

The measure’s defeat should settle a long time dispute that has been on-going since 2004. The Redondo Beach Chamber did not take a position Measure UU.

 

October 21, 2009

Remember To Vote On November 3!

 

The following is the Official Ballot Language and NOT the opinion of the Redondo Beach Chamber of Commerce & Visitors Bureau:

 

The Redondo Beach City Council placed Measure UU on the November 3, 2009 ballot to seek voter approval for an amendment to the existing Telephone, Gas, Electricity, Water, and Video Users’ Tax (“UUT”).

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.

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.
 

Click here to view the entire sample ballot.

 

Click here to contact the Redondo Beach Chamber for more information

 

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