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HomeMy WebLinkAbout2816_CCv0001.pdf RESOLUTION NO. 2816 A RESOLUTION OF THE CITY C5JNCIL OF THE CITY OF REDLANDS OPPOSING ASSEMBLY BILL NO, 908 AND SENATE BILL NO. 688 WHEREAS , Assembli Bill No. 908, introduced by Assemblyman Bagley, and Senate Bill No. 688, introduced by Senator Burgener, would impose on every local governmental agency wlich operates an elec- tric utility business in this State an excise tax of 14 percent of the gross revenue derived from the retail sale of electricity, the tax receipts to be used for the benefit of local schoolsr and WEE REAS , these bills are sponsored solely by private utility in- terests as part of a nationwide concerted effort to eliminate competition from public power and make it financially impractical for people of any area to exercise their constitutional right to provide for their own power needs; and WHEREAS , these bills would provide financial assistance to only the few school districts located in areas served by public power agencies , would not solve the basic problems of school financing and would further distort the equalization concept that legisla- tors and educators wish to establish in California; and WEEREAS , these bills are an obvious attempt to circumvent the constitutional immunity from taxation now provided for all public agencies by Article XITI of the California Constitution; and WHEREAS , these bills would establish a dangerous precedent by allowing the State to tax one local government agency for the benefit of another; and WHEREAS , a gross receipts tax is regressive in nature affecting those in low income brackets more severely than high income brackets; and WHEREAS , the possibility is great that if these bills are enacted they would serve as precedent to justify taxation of all other municipal utility services , such as water, sewer and disposal; NOW TnEREPORE, BE 1T RESOLVED by the City Council of the City of Redlands: Section 1. That this Council by this resolution expresses its opposition to the enactment of either Assembly Bill No. 908 or Senate Bill No. 688, Section 2. That the City Clerk be directed to send a copy of this resolution to each Assemblyman and Senator representing the residents of this District and to Assemblyman. Bagley and to Senator Ergenerm ADOPTED, Sl.GIN ED AND APPROVED this -1 ,21t! day of May - 3 19-70. 'Mayor of the Cit; ofr edl ands ?ATTEST: APPROVED FOR FORMI ,sZ Edward F . Tavlor City Att'o-rney Resolution Ngo. 2816 Page two