File #: 12-1014    Version: 1 Name: Calling for restoration of Energy Tax Revnue.
Type: Resolution Status: Filed
File created: 4/23/2012 In control: Municipal Council and City Clerk
On agenda: 5/2/2012 Final action: 5/2/2012
Title: Dept/ Agency: Offices of Municipal Council/City Clerk Action: ( ) Ratifying (X) Authorizing ( ) Amending Type of Service: Urging/Supporting/Opposing the Restoration of Revenue to the Municipalities Purpose: Calling for the Restoration of the Energy Tax Revenue to Local Governments Additional Information: Sponsor Gonzalez
Sponsors: Carlos M. Gonzalez
Title
Dept/ Agency: Offices of Municipal Council/City Clerk
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Urging/Supporting/Opposing the Restoration of Revenue to the Municipalities
Purpose: Calling for the Restoration of the Energy Tax Revenue to Local Governments
Additional Information:
Sponsor Gonzalez
body


WHEREAS, taxes on gas and electric utilities were originally collected by the host municipalities to be used for local purposes and to compensate the public for the use of their rights of way; and

WHEREAS, when the State made itself the collection agent for these taxes, it promised to dedicate the proceeds to municipal property tax relief; since, just as municipalities collect property taxes for the benefit of school districts, counties and other entities; the State is supposed to collect Energy Taxes for the benefit of municipal governments; and

WHEREAS, for years, though, State budget makers have diverted funding from Energy Taxes to fund the State programs; and instead of being spent on local programs and services and used to offset property taxes, the money has been spent as successive Legislatures and Administrations have seen fit; and

WHEREAS, while the State may need to have the right to over-ride the statutory dedication of these revenues to local governments, in order to deal with emergencies and crisis that may occur; current State policy makers should not exercise that right automatically; and

WHEREAS, while that right should be the exception, it has become the rule; and

WHEREAS, by using tactics such as reducing CMPTRA, which is also comprised of revenues that should be returned to municipalities, State Budget makers have been able to continue collecting Energy Taxes, while keeping additional revenue that should have been returned to provided property tax relief; and
WHEREAS, from $72 million in State Fiscal Years 2005, to $505 million in State...

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