Utility Users Tax
In 2010, Newark voters approved a Utility Users Tax (UUT) that would sunset at the end of December 2015. Voters agreed to a three and one-half percent (3.5%) UUT on utility services (electricity, natural gas, telephone/cell phone, and cable T.V., not satellite or internet).
Revenues generated from the tax allowed the City to maintain and restore many important City services and programs that were eliminated due to recessionary budget cuts. This includes restoring programs and service levels in police, parks and landscape maintenance, recreation and community services and community preservation as well as re-opening the Senior Center and restoring funding for the Ash Street Summer Nutrition Program for at-risk youth. Revenues have also provided funding for City-wide capital improvements as well as rebuilding the City’s depleted reserves.
There is an exemption for senior citizens seventy (70) years of age and older and for low-income residents who are enrolled in the PG&E CARE Program. Eligible senior citizens or low-income residents who are interested in filing for an exemption needs to complete an exemption application and submit it to the City’s finance office for approval.
The UUT is a local revenue, which means funds will be spent locally in Newark and that the State cannot touch it to balance its budget. There are annual independent audits and reports to the community.
On November 4, 2014, the City of Newark received voter approval for an amended and extended Utility Users Tax ordinance (#479). The revised ordinance continued the existing 3.5% tax on charges for electric, gas, telecommunication and video/CATV services for the remainder of 2015. Rates however, decreased from 3.5% to 3.25% effective January 1, 2016 and continues at that rate for five (5) years.
Listed below are links to information and reports on the UUT as well as a link to access exemption applications:
|Full text of Utility Users Tax Measure/Ordinance #479|
Utility Service Provider UUT (3.25%) /Prepaid Mobile Telephony Services (MTS) (2.5%) Surcharge Remittance Information
As a utility service provider, you will need to collect the required 3.25% Utility Users Tax and/or 2.5% Prepaid Mobile Telephony Services (MTS) Surcharge and submit it payable to:
City of Newark
Note: For your convenience, we have combined the remittance form to include both the UUT and Prepaid Mobile Telephony Services (MTS) Surcharge. Payments must be received by the City no later than the twentieth (20th) day of the following month (due date). Utility Users Tax (3.25%) & Prepaid Mobile Telephony Services (MTS) Surcharge (2.5%) Remittance Form
|Exemption Information for Senior Citizens and Low Income Residents|
|Newark UUT Financial Statements and Auditor's Report FY ending 6/30/2015|
Residents who already exempt were not required to re-apply to request an exemption on the amended and extended Utility Users Tax Ordinance (#479). The City automatically rolled existing exempt residents to the new revenue Measure.
The revised revenue Measure also continues to require independent financial audits and reports to the community as well as remain a local tax ensuring all of the funds will stay local and are not subject to be taken by the County, State, or Federal government.
Residents who have additional questions regarding the amended and extended Measure may contact Laurie Gebhard at (510) 578-4392 or by email at email@example.com.