"The City Council on Tuesday directed staff to poll residents on a potential increase to the city's utility users tax, signaling that as the most likely path toward placing a measure on the Nov. 3 election ballot. Officials also considered other revenue generating options, such as increasing the local sales tax or updating the city's business license tax, which hasn't been revised since 1992."
"The city's utility users tax is set at 2.4%. The proposed increase to 4.8% would apply to services such as electricity, gas and telecommunications, though older adults are exempt to protect people on fixed incomes from rising utility costs."
"The move comes as Cupertino grapples with budget concerns, including a proposed increase in its services contract with the Santa Clara County Sheriff's Office, which could go up from about $19 million to nearly $26 million annually."
Cupertino's City Council directed staff to survey residents about potential tax increases to address mounting financial pressures and rising service costs. The utility users tax increase from 2.4% to 4.8% is the most likely measure for the November ballot, though officials also considered raising sales tax or updating the business license tax unchanged since 1992. The city faces significant budget concerns, particularly a proposed sheriff services contract increase from $19 million to nearly $26 million annually. Some councilmembers prefer combining multiple tax increases rather than doubling the utility tax alone, and suggest modernizing the tax base to include newer services. Older adults would remain exempt from utility tax increases to protect fixed-income residents.
Read at San Jose Spotlight
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