sr-121410-3qCity Council Meeting: December 14, 2010
Agenda Item:
To: Mayor and City Council
From: Dean Kubani, Director, Office of Sustainability and the Environment
Subject: Resolution to Extend Utility User Tax Exemption for Natural Gas
Recommended Action
Staff recommends that City Council adopt a resolution extending the existing utility user
tax (UUT) exclusion on charges made for natural gas used for the propulsion of a motor
vehicle.
Executive Summary
The City's UUT ordinance includes an exclusion from the tax on the sale of natural gas
that is used to fuel motor vehicles. This exclusion is set to expire on December 31,
2010. Adoption of the attached resolution will extend this exclusion without deadline
until the resolution is amended or appealed.
Discussion
On November 14, 2000 City Council adopted an ordinance amending Santa Monica
Municipal Code Chapter 6.72 regarding. the UUT. That amendment created an
exclusion from the 10 percent UUT on the sale of natural gas used for the purpose of
fueling motor vehicles. The purpose of the amendment was to encourage the use of
reduced emission fuels among community members. The exclusion is set to expire on
December 31, 2010 unless extended by City Council resolution. The attached
resolution extends the tax exclusion for natural gas vehicle fuels without deadline until
such time as the resolution is amended or appealed. By adopting this resolution the
City Council will continue to promote the use of reduced emission fuels in Santa Monica
in support of the Sustainable City Plan goals of reducing greenhouse gas emissions and
improving air quality and public health.
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Financial Impacts & Budget Actions
Staff anticipates that the financial impacts related to the recommended action on
revenue generation will be minimal. No budget revisions are recommended at this time.
Prepared by: Dean Kubani, Director
Approved:
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Dean Kubani
Director, office of Sustainability and the
Environment
Forwarded to Council:
Rod Gould
City Manager
Attachments:
A. Resolution
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Reference Resolution No.
10552 (CCS) .