April 14, 2013

San Leandro City Council Looks to Suspend Utility Tax Rebate Progam

At a work session on balancing the budget on April 8, 2013, the San Leandro City Council indicated its desire to suspend San Leandro's utility tax rebate program for two years.

The City of San Leandro charges a tax of 5.7% on telephone services, including cell phone service, and cable television service and 6% on electricity and natural gas. Most nearby cities charge a utility tax and San Leandro's is lower than most. Alameda, Berkeley and Oakland charge 7.5%, Alameda County charges 6.5% and Hayward charges 5.5%.

The City of San Leandro's rebate program, however, appears to be unique, among nearby cities. According to the City of San Leandro web site, the City of San Leandro “rebates 50 percent of all utility tax dollars spent in excess of $25,000.”

In 2012, the City of San Leandro paid rebates totaling $360,440 to six companies:

  • Georgia-Pacific, $135,888
  • Ghirardelli, $61,452
  • Safeway, $58,888
  • Coca Cola, $48,590
  • Kraft, $43,269
  • Otis Spunkmeyer, $12,353

Suspension of the utility tax rebate program is intended to help reduce San Leandro's budget deficit, estimated at $2 million for fiscal year 2013-14 and $4 million in 2014-15.

Posted by Mike Katz-Lacabe at April 14, 2013 10:51 PM | TrackBack
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