Seal Beach sends utility-tax cut to voters

Seal Beach will let voters decide whether the city should reduce its utility users tax while updating the list of services it could tax.

City Council members Monday unanimously agreed to place a measure on the Nov. 4 ballot that would decrease the tax rate to 10 percent from 11 percent, a move that could cost the city up to $300,000 in revenue every year, Finance Director Victoria Beatley said.

The measure also would allow Seal Beach to tax telecommunication services like T1 lines, which are used primarily by businesses for data and voice transferring.

Typical utilities taxed by the city include telephone, electric and gas. The revenue is used to fund public safety, sewer and senior services.

"The telecommunications component modernization will allow us to capture revenue and offset the potential loss in telecommunication only, but not in gas and electric," Beatley said.

—Anthony Clark Carpio

Twitter: @acocarpio

Copyright © 2017, Los Angeles Times
EDITION: California | U.S. & World