Bell : Utilities Tax Drops to 5% for '94; Should End in '95

Taxpayers are getting some relief this month from the 10% users tax on gas, electricity and other utility bills.

The tax dropped to 8% Oct. 1, and the City Council approved another reduction to 5% next year. By October, 1995, the tax should be eliminated, said City Administrator Robert Rizzo.

City officials had discussed extending the 10% tax another year, but council members decided to stick to their original plan to phase it out.

"The council made a commitment to the public and found that to be more important than the $300,000 the extra tax would have raised," Rizzo said. "They wanted to live by their word."

The tax raised $2 million last year and will raise about $4.5 million over a three-year period, Rizzo said. The tax decrease should save residents about 72 cents each month.

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