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South Pasadena : 5% Utility Tax Approved

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The City Council granted final approval Monday to the city’s new utility tax, a 5% levy on telephone, gas, electricity and water bills, effective immediately.

Officials said the levy will add as much as $1 million annually to city coffers, hard hit by budget shortfalls over the past two years.

The threat of severe revenue cuts by the state also played a role in the decision to enact South Pasadena’s second utility tax in the past five years.

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