Laguna Beach : Hearing Set Tuesday on Sewage Tax Boost

A public hearing and a preliminary vote on an ordinance that could lead to steep increases in sewage taxes for some Laguna Beach condominium dwellers and apartment house owners will come before the City Council Tuesday night.

If the ordinance is approved, the changes would permit Laguna Beach to tax condominium units at the $162-a-year flat rate it charges single-family homes. Under the current system, the first five units of a condominium complex are charged the flat rate, while the rest are taxed at the city’s commercial rate of 90 cents for every 100 cubic feet of water used, said Dick Reese, city finance director.

For apartment buildings, which are currently taxed entirely at the commercial rate, the change would permit the city to collect the flat rate for the first five units and 75% of the commercial rate for the rest.

Although condominium owners might face tax increases of up to 80%, Reese said, some Laguna Beach apartment owners could wind up paying more than triple the present rate. Reese noted that he knows of three eight-unit apartment complexes that could have their yearly tax go from $243, $577 and $602 a year each to $1174 a year.

If the council votes for the ordinance Tuesday, it would still have to come up for a second reading and a final vote May 28. If it is adopted at that time, the ordinance, which would make no changes in the way Laguna Beach taxes single-family residences and businesses, would go into effect 30 days later.