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Home My WebLink AboutRESO 4344• ORIGINAL RESOLUTION NO. 4344 RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO OPPOSING THE ENACTMENT OF AB 908 IMPOSING A TAX ON MUNICIPAL SALES OF ELECTRICITY WHEREAS, Assembly Bill 908 imposes an excise tax on every governmental agency in this State which operates an electric utility business at the rate of 14 percent of the gross revenue derived from the retail sale of electricity, commencing January 1, 1971; and WHEREAS, Assembly Bill 908 provides for a maximum credit of 40 percent of the amount cf the tax for amounts paid into the general fund of a city from revenues of the electric utility; and WHEREAS, if this bill is enacted and City of Palo Alto electric revenues remain the same or increase, it would result in a loss of revenue to the City of Palo Alto in the sum of $626,000, or more, which, in the City of Palo Alto would require an increase in the municipal ad valorem tax rate of $0.22 to cffset; and WHEREAS, the enactment of Assembly Bill 908 would set the dangerous precedent of the State taxing municipalities to the benefit of a group of third -party public agencies; and WHEREAS, Assembly Bill 908 represents basic intrusion into the principle of home rule in that the bill's enactment would require that municipalities either find replacement revenues or reduce the quality and quantity of municipal services; and WHEREAS, Assembly Bill 908 raises serious constitutional questions; and WHEREAS, the proposed bill would provide a substantial revenue increase for local school districts without a requirement sources. for corresponding decreases in the rates assessed against other 2 (4. -4. f'r'�,r - 1 f .; 4 z • • • NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION 1. That it is opposed to the enactment of Assembly Bill 908 and it urges all State Senators and Assemblyman to oppose Assembly Bill 908 for the reasons stated above. SECTION 2. That the City Clerk is hereby authorized to forward copies of this resolution to Palo Alto's representatives in the state legislature, to the members of the Assembly Committee on Revenue and Taxation, and to any other persons or agencies she deems appropriate, or as the Mayor may direct. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ATTEST: /s/ April 6, 1970 Arnold, Beahrs, Berwald, Clark, Dias, Gallagher, Norton, Pearson, Spaeth None Comstock, Wheatley stand y for ey APPROVED: y Mana r AS TO FORM: 2 APPROVED: Mayor - - o. row", `fit . :r yt vv. 17e. *rat .....y,?yartelefrillnapporipiPariripark. !R f 1. F ' The Honorable Clark Bradley California State Senator State Capitol Building Sacramento, California ,_.I— -_---•, �rnr r-T---� ate-•_ gia.do ..ila7..lab-:arir ,.o .,._.....:ir_.' ct..,:.,....�....: ._. The Honorable Bob Monagan California State Assemblyman State Capitol Building Sacramento, California The Honorable Jatk Vasconcellos datifornia State Assemblyman State Capitol Building Sacramento, Cal ifornia The Honorable William T. Bagley California State Assemblyman State Capitol Building Sacramento, California The Honorable Leo T. McCarthy California State Assemblyman State Capitol Building Sacramento, California The Honorable Robert G. Beverly California State Assemblyman ,State Capitol Building Sacramento, California The Honorable John V. Triggs California State Assemblyman State Capitol Building Sacramento, California The Honorable Kenneth Cory California State Assemblyman State Capitol Building Sacramento, California The Honorable Leroy Greene California State Assemblyrnan State Capitol Building Sacramento, California erne --e The Honorable James A. Hayes. ;X California State Assemblyman Stati.Capitot Building $ Sacramento, California The Honorable Ernest N. Mobley California Stag? Assemblyman State Capitol Building Sacramento, California -' The honorable Bob Moretti" California State Assembly SEalr C;rtpiti,1 tinilttin,• Sacrattienlcr, California The Honorable Frank Murphy, Jr. California State Assemblyman State Capitol Building Sacramento, California The Honorable John P. Quimby California State Assemblyman State Capitol Building '` Sacramento, California The Honorable Newton R. Russell - California State Assemblyman State Capitol Building Sacramento, California 3ya��Se� '�3:Syc^ik�a.:: � `•}`-'.s:, er.::.^r �:_.r, The Honorable John Stull California State Assemblyman State Capitol Building Sacramento, California The Honorable Vincent Thomas California State Assemblyman '‘State Capitol Building Sacramento, California The Honorable Pete Wilson California State Assemblyman State Capitol Building Sacramento, California ;;, Mr. Jerome Wainess, President Palo Alto Chamber of Commerce 725 University Avenue Palo Alto, California , rc. '3 ., Mayor of Gridley .1 City Hall I Gridley, California • -:-7 The Honorable John M. Quinby ':. Mayor of Healclshurg City Hall Healdsburg, California ,The Honorable Terry La Croix, Jr. Mayor of Alameda City Hall Alameda, California The Honorable Jim L. Shodd Mayor of Biggs City Hall Biggs, California - The Honorable William G. McMurtry rr. The Honorable Jerald Kirsten Mayor of Lodi II .. City Hall Lodi, California 1111 . 1The Honorable D. MacClure Mayor of Lompoc ; City Hall C Lompoc, California 77 :=10Pr.':- 'n.7,7 rt.: 5,65: "+slur:._. _. . . The Honorable George K. Moty '11,,, Mayor of Redding i i City Hall L ' ,. L�' Redding, California The Honorable H. Dietrich , :�. :"Mayor of Roseville ; City Hall l Roseville, California The Honorable Gary G. Gillmor Mayor of Santa Clara City Hall Santa Clara, California The Honorable H. D. Henderson Mayor of Ukiah City Hall Ukiah, California .v??' ,, Mr. Richard Carpenter • • League of California Cities X1108 "O" Street )Sacramento, California 95814 r. Norman E. Woodbury Executive Director California Municipal Utilities Association =,,A :.r Room 806 -- 11th and L Building =s< Sacramento, California 95814 1 / I �hOrwid Stti + ,/ .�