Pasadena : Phone User Tax Considered

The city Finance Committee has recommended that Pasadena approve a 7.9% utility user’s tax on out-of-state and international phone calls that could raise $1 million in revenue annually.

The city now taxes calls within the state at the same rate, but it could not tax other calls because of the potential violation of federal laws prohibiting local regulation of interstate commerce.

In January, however, the U.S. Supreme Court freed local governments to tax interstate and international phone calls.

The utility tax now produces about $11 million a year for the city. The tax is levied on such services as cable television, water and electricity.

The Finance Committee’s recommendation is scheduled to go before the Board of Directors next week. If approved the tax increase could go into effect July 1.