Adoption of an Urgency Ordinance and Introduction of an Ordinance for First Reading Amending Chapter 3.08 of the Culver City Municipal Code Utility Users Tax relating to application of the Telephone Users Tax. City of Culver City California City Council Agenda Item Report Item Number: A 9 Meeting Date: 07/24/06 AGENDA ITEM: Adoption of an Urgency Ordinance and Introduction of an Ordinance for First Reading Amending Chapter 3.08 of the Culver City Municipal Code Utility Users Tax relating to application of the Telephone Users Tax. Contact Person/Dept.: Crystal C. Alexander City Treasurer Fiscal Impact: Yes Public Hearing: Public Notification: Master Notification List (07/21/06) General Fund: Yes X No Attachments: X Phone Number: 310 253 5865 X No Action Item: X Department Approval: Crystal C. Alexander (07/21/06) City Manager Approval: Jerry B. Fulwood (07/21/06) City Controller Approval: RECOMMENDATION: That the City Council adopt an urgency ordinance and introduce an ordinance for first reading amending Chapter 3.08 of the Culver City Municipal Code Utility Users Tax clarifying the City's application of the telephone users tax to telephone communications services. BACKGROUND: Since 1969 the City of Culver City has imposed a telephone users' tax on every person (including businesses) in the City. As of 1988 the tax applied to intrastate calls and as of 1994 the tax applied to wireless telephone communication services. Presently the tax is imposed at a rate of 11% of the charges billed. Some exemptions are given as provided by law including to low income seniors and certain persons with disabilities. For the ease of administration and for the convenience of the telephone communication services providers the City has generally looked to federal interpretation of the Federal Excise Tax for guidance on the scope and application of the City s utility users tax with respect to telephone communication services. The City's tax has been applied consistent with the applicatio...
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