City Hall Scoop

South Pasadena News and Updates from City Manager Stephanie DeWolfe

The Utility Users Tax (UUT) Measure (Measure U) is on the November 3rd election ballot. South Pasadena voters will be asked to continue the current 7.5% rate of the City’s Utility Users Tax until otherwise repealed or amended by the voters, in order to generate and stabilize additional municipal revenues.

WHAT IS THE UTILITY USERS TAX?

Since 1983 South Pasadena residents and businesses have paid a Utility Users Tax (UUT) on certain utility services – telephone, cable, gas, water and electricity. The tax rate is currently 7.5% of the amount charged by the utility company for providing the service. The tax is collected by the utility company with its monthly billing and remitted to the City, which uses the revenue to provide services such as public safety, library, parks and recreation, and many programs benefiting school aged children, adults, and seniors.

Why is the renewal measure on the ballot?

The current tax will expire in June 2022.

Since 1983 the UUT has been a source of revenue for the city. Currently, at 12% of the City’s General Fund, it is the second largest revenue source for the City, after property taxes. The UUT generates millions to help pay for integral services that the City provides to its residents on a daily basis. UUT funds help our City maintain public safety staffing levels, street and road maintenance, senior services and recreational programs, all of which make South Pasadena a desirable place to live and do business.

WILL PASSAGE OF MEASURE U INCREASE THE TAX RATE?

No. The current tax rate of 7.5% will remain unchanged.

For more information on the UUT, visit southpasadenaca.gov/UUT

10/22/2020

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