(A) The City Council, by resolution, may grant a temporary utility users tax rebate to any class of service users for the purpose of easing the tax burden on such customer class, which is due to an unusually large increase in the service charges for a particular utility industry subject to the utility users tax. The City Council may rebate an appropriate percentage of the tax prospectively for a period of no more than 12 months. If applicable, the Tax Administrator shall implement the temporary tax rebate by giving 60 day written notice to all affected service suppliers as required by Cal. Pub. Util. Code § 799.
(B) The City Council shall consider the following factors in determining whether to grant a temporary tax rebate under this section:
(1) The amount of the increase in the average billing for the utility service for which a rebate is being considered;
(2) The severity of the burden that the increased billing and associated tax imposes on the customer class for which a rebate is being considered;
(3) The increased expense to the city as a utility customer, which occurs as a result of the increase in the cost of such utility service;
(4) The estimated time period that the billing increase will likely persist;
(5) The forecasted and historical increases or decreases in the other sources of utility users tax;
(6) The forecasted and historical increases or decreases in municipal tax revenues other than the utility users tax;
(7) The overall inflation rate during relevant time periods, as measured by the Consumer Price Index (CPI);
(8) The cost of administering the rebate; and,
(9) Any other factor that affects the fairness or equity of granting such a temporary rebate.
(C) In a resolution granting a temporary tax rebate, the City Council shall make the following findings:
(1) The temporary tax rebate is necessary to abate a significantly increased tax burden on a class of service users; and,
(2) The temporary tax rebate shall not adversely affect the city’s ability to meet its financial obligations as contemplated in its current budget.
(D) Nothing herein shall prohibit the City Council from granting consecutive temporary rebates, provided that the City Council reconsiders the factors enumerated in division (B), above, for each subsequent temporary rebate, and makes appropriate findings for each resolution. As stated in Cal. Gov’t Code § 9611, the enactment of a temporary tax rebate by the City Council shall not constitute a repeal of one or more of the original provisions of this subchapter. Upon the expiration of the time of the temporary tax rebate, the original provisions of this subchapter shall have the same force and effect as if the temporary tax rebate had not been enacted. Nothing herein is intended to constitute a decrease in a tax, or an increase in a tax requiring an election approval under California Constitution Article XIIIC; and to the extent that any aspect of a temporary tax rebate resolution is found to invoke such a requirement, the entire temporary rebate resolution shall be deemed null and void ab initio, and there shall be no entitlement to a rebate for any service user.
(Ord. Measure A, passed - - )