City Council Approves Taxes
The telecommunications tax will impose a $3.50 charge per month on all land lines and wireless lines and a $0.35 per month charge will apply to centrex lines. The original bill was amended to provide the 90% discount on centrex lines.
The energy tax bill introduced by the Mayor's office would have imposed a 4% tax on the energy provider to be passed on to the consumer. The bill that passed will impose a 2% tax on residents and manufacturers in 2005 and 2006. The energy tax includes a cap linked to the Consumer Price Index to insulate consumers from rapid price fluctuations. The tax on manufacturers expires in 2007 unless renewed by the city council. Nonprofits will pay 0% in 2005 due to the last year of the PILOT payment. Beginning 2006 nonprofits will pay a 6% rate.
A study of the revenues generated and the impact on consumers will be conducted by the City's finance department in October 2005 and every five years thereafter.
