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Council advances temporary 4‑month reduction in gas utility users tax; second reading set for Aug. 15
Summary
Council members moved a first‑reading ordinance to cut the gas portion of the utility users tax from 10% to 6% for four billing cycles beginning Dec. 1, 2001, estimating about $10 million in relief. The ordinance was read for the first time and carried over for a second reading amid legal concerns about Prop 218 and past lawsuits.
The Los Angeles City Council on Aug. 8 advanced a first reading of an ordinance to temporarily reduce the gas component of the utility users tax (UUT) from 10% to 6% for four billing cycles, with the reduction scheduled to begin Dec. 1, 2001 and tentatively end April 15, 2002.
Council Member Misakowski said the temporary reduction was intended to return roughly $10 million to city ratepayers in recognition of unusually high natural gas prices earlier in the fiscal year. "It's an estimated $10,000,000 in tax relief that this ordinance is going to help give back to the ratepayers in the City of Los Angeles," she said.
Antoinette Cristobal,…
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