FULLERTON : Some Can Claim Utility Tax Relief

Low-income residents and businesses with large utility bills may now apply for an exemption from the 2% utility users tax adopted in July by the City Council.

The tax covers gas, electricity, water, telephone and cable television bills. The 2% surcharge will begin appearing on bills in October, according to the city. It is estimated to add about $5 to a resident’s total utility bills. Applications for the exemptions are available at City Hall.

Poor residents--for example a family of four with an income below $28,250--will be exempt from the tax after providing satisfactory proof to the city.

The council also approved a limit for businesses of $10,000 in taxes per utility.

The resident exemption is based on combined gross income, made up of wages, Social Security and welfare benefits, pensions, interest income and gifts and inheritances.

For one person, the gross income must be lower than $19,800; two people, $22,600; three people, $25,400; five people, $30,500. A family of eight can make no more than $37,300 to qualify.

To apply, residents must bring their 1992 income tax forms, Social Security benefit statement and other documents that show income. They must also bring all their most recent utility bills.

Businesses that have yearly bills of more than $500,000 for any single utility will be able to pay the city a flat fee of $10,000 for that utility.

Revenue Manager Ed Paul said there are about 15 businesses in the city that he expects will ask to pay $10,000 for an exemption from the electricity tax.

Paul said 1,000 to 3,000 households could be eligible for the low-income exemption, based on census data.

Exemption applications are available at the business registration office, Room 104B, City Hall, 303 W. Commonwealth Ave.