Pomona : Businesses OK Tax Increase

Business leaders have informed City Administrator A. J. Wilson that they will accept a gradual 1% increase in the utility tax to facilitate a 2% reduction in the tax for residents.

Under the plan, announced by Wilson at a City Council budget session last week, the utility tax for businesses would increase from 11% to 11 1/2% on July 1. The limit on the utility tax paid by large industrial utility customers in a single year would also be raised from $36,000 to $54,000.

The business utility tax would be increased to 12% in July, 1989. The tax limit for large industries would rise to $72,000 at that time.

The residential tax would remain at 11% until next Jan. 1, when it would be cut to 10%. The tax would be cut another 1% in January, 1990.

The reduction in the residential utility tax will apply only to natural gas, electric and water bills. Because the telephone company balked at charging different utility tax rates, the phone tax will remain at 11% for both business and residential customers.