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CC - Adoption of Resolutions (1) Authorizing the City Manager and the City Attorney to Execute Certain Documents Required by the State Board of Equalization to Collect the City's Utility Users' Tax on Prepaid Wireless Services and (2) Authorizing the Examination of Prepaid Mobile Telephony Services Surcharge and Local Charge Records.
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Contact Person/Dept: Jeff Muir/Finance
Phone Number: (310) 253-5865
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [] Attachments: Yes [X] No []
Commission Action Required: Yes [] No [X] Date:
Commission Name:
Public Notification: (E-Mail) Meetings and Agendas - City Council (08/06/15)
Department Approval: Jeff Muir, Chief Financial Officer (08/03/15)
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RECOMMENDATION
Staff recommends the City Council adopt the proposed resolutions (1) authorizing the City Manager and the City Attorney to execute certain documents required by the State Board of Equalization to collect the City's Utility User's Tax (UUT) on prepaid wireless service (Attachment 1) and (2) authorizing the examination of prepaid mobile telephony services surcharge and local charge records (Attachment 2).
BACKGROUND
Traditionally, a city's UUT is collected by wireless service providers which include the charge on their customers' monthly invoices. In contrast to this arrangement, customers who purchase pre-paid wireless services usually avoid paying any UUT due to collection complications. With prepaid wireless, there is no contract, no monthly invoices, and the prepaid wireless services are usually sold by retailers, not service providers themselves. It is estimated that approximately 70% of all prepaid wireless services are sold by retailers. Since these transactions bypass the City's local UUT, the City experiences a s...
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