HomeMy WebLinkAbout23904RESOLUTION NO. 23904
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, TEMPORARILY REDUCING
THE 911 ACCESS LINE TAX ON PREPAID WIRELESS
SERVICES FROM $1.21 TO $0.86 FROM JANUARY 1, 2016
TO JANUARY 1, 2020.
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY FIND
AS FOLLOWS:
A. At the November 9, 2009 Regular Municipal Election, the voters passed
Measure "G" imposing an Access Line Tax.
B. Pursuant to Palm Springs Municipal Code §3.39.050, the voters approved
annual adjustments in accordance with the increase of the Consumer Price Index, and
the current tax per access line is $1.21 per month.
C. AB-1717 requires the use of a percentage -based rate to accommodate the
sale of prepaid wireless services for the period of January 1, 2016 and January 1, 2020,
when the program is scheduled to sunset.
D. Since the statutory formula assumes a $50 average prepaid plan, staff
recommends temporarily reducing the current rate of $1.21 to $0.86 to avoid a tax
increase for more expensive prepaid plans. Based on a reduced rate of $0.86 per
access line per month, the calculated tax percentage rate on prepaid wireless sales is
1.7%.
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY
RESOLVE AS FOLLOWS:
SECTION 1. The amount of the Access Line Tax pursuant to Palm Springs
Municipal Code §§ 3.39.050 and 3.39.060 shall be temporarily reduced until January 1,
2020, as follows:
Access Line on prepaid wireless services only shall be $0.86 per access line or
1.7% per Revenue and Tax Code Sec. 42102.5(a)(2).
SECTION 2. The Director of Finance is hereby directed and authorized to
provide written notice of this resolution to the Board of Equalization pursuant to
Revenue and Tax Code § 42000 et seq.
SECTION 3. The provisions of this resolution are effective January 1, 2016.
Resolution No. 23904
Page 2
PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY
COUNCIL THIS 7" DAY OF OCTOBER, 2015.
DAVID H. READY, M AGER
ATTEST:
?IES THOMPSON, CITY CLERK
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS)
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. 23904 is a full, true and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Springs on the 71h day of October, 2015,
by the following vote:
AYES: Councilmember Foat, Councilmember Hutcheson, Mayor Pro Tem Lewin,
and Mayor Pougnet.
NOES: None.
ABSENT: Councilmember Mills.
ABSTAIN: None.
ES THOMPSON, CITY CLERK
ity of Palm Springs, California