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Council members press staff to clarify local option vs. municipal gas-tax calculations
Summary
Councilors asked staff to explain why the local option gas-tax line shows a large projected drop while municipal gas-tax receipts rise; staff and the city attorney said the two are based on different computations and recommended verifying franchise-fee and utility records.
Council members pressed staff for clarity after noticing a projected decline in the local option gas-tax line while a municipal gas-tax line showed an increase.
A council member asked, “Why is there two?” and staff and council explored the distinctions: local option motor-fuel sales taxes are levied on motor-fuel sales at the pump, while municipal gas taxes or public-service taxes may apply to metered or…
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