In the General Election on November 7, 2006, voters in the City of Menlo Park
passed a ballot measure that imposed a maximum 3.5 percent tax on gas, electrical and water usage,
and a maximum 2.5 percent tax on cable, telephone and wireless services these maximum tax rates became
effective on April 1, 2007. This type of tax, known as a Utility User Tax (UUT), will be paid by Menlo
Park residents and businesses and will be collected and remitted by the utility service providers who
serve them. The utility service providers will then remit the tax payments on a monthly basis to the City’s
Administrative Services Department.
Utility Customers
Utility Providers
UUT Ordinance
Exemptions:
Menlo Park's Utility User Tax provides for certain constitutional
and statutory exemptions, which include Federal, state and
local government departments, bureaus and agencies. State law
also exempts insurance companies, insurance
broker- agents and federal credit
unions.
If you believe you qualify
for an exemption from the City's UUT under any state or federal
law, you must complete the appropriate exemption form and remit
it to the City
so that the City can notify your utility provider of the exemption.
(UUT Customers – Forms - Exemption Forms)
Provisions
of the Electricity and Gas user taxes allow an exemption for individuals
that qualify, and have been accepted, for the California
Alternate Rates for Energy Program (CARE). If you participate
in this program, you are automatically exempt from the City's
UUT for electric and gas usage. Your utility provider will not
assess the tax on your utility bill. http://www.pge.com/care/
Utility
User Tax (UUT) Cap
Notice of
Cap:
The City Council has established a maximum tax payment for electric,
gas and water utility users at $12,000 per year. Therefore, if
you believe your combined electric, gas and water bills will exceed
$1,200,000 annually ($12,000/ 1.0%) you should consider applying
for the UUT Cap.
(UUT Customers – Forms - Exemption Forms)
Pro-rated
Application of the UUT Cap for the Period July 1 - September 30, 2007:
Implementation
of the UUT in the City's current 2007-08 budget year, which calls for a reduction in the UUT tax rate effective October 1, 2007, requires that the Cap be pro-rated for the three-month period 07/01/07 – 09/30/07. A cap of $3,000 is effect for this period. Therefore, if you believe your combined electric, gas and water bills will exceed $85,714 ($3,000/ 3.5%) for this three-month period, you should consider applying for the UUT Cap.
Pro-rated
Application of the UUT Cap for the Period October 1 - June 30, 2008:
Implementation of the UUT in the City’s 2007-08 budget year, which calls for a reduction in the UUT tax rate effective October 1, 2007, requires that the Cap be pro-rated for the nine-month period 10/01/07 – 06/30/08. A cap of $9,000 will be in effect for this period. Therefore, if you believe your combined electric, gas and water bills will exceed $900,000 ($9,000/ 1.0%) for this nine-month period, you should consider applying for the UUT Cap. .
How the Cap
Works:
The $12,000 annual cap is activated through prepayment of the
$12,000 maximum UUT. Note: the prorated
UUT cap for the period 10/01/2007 - 06/30/2008 is $9,000. The
utility user notifies the City of its electric, gas and water
utility providers along with their billing address on the UUT
Customers - Forms - Maximum Tax Prepayment) . The City will notify the utility provider
that these accounts/entities are to be excluded from application
of the tax for the period. It may take one or two billing cycles before the utility stops charging the tax.
Tax Prepayment for July 1, 2007 through Sept 30, 2007
Tax Prepayment for October 1, 2007 through June 30, 2008
For entities which paid the UUT Cap for the initial tax period 04/01/2007 – 06/30/2007 the City will continue the exclusion until July 16, 2007 pending receipt of prepayment of the UUT tax for the tax period beginning July 1, 2007.
An entity that prepays the maximum UUT should monitor their utility bills and immediately contact the City if charges
for the tax appear on any electric, gas or water bill. In addition, the City must be advised of any change in utility providers
so that the entity will not be charged in excess of the maximum tax during the period covered by the prepayment.
Refund Process:
(1) If you apply for and prepay the UUT cap and your water, gas
and electric utility bills do not exceed the amount for which
the cap would apply, ($85,714 for the period
April 1 - June 30, 2007), you may submit a Claim
for Excess Tax Paid to the City. All claims must include a
detailed listing of each utility bill paid by the customer at
the appropriate service address, with supporting documentation
of these payments. Claims for refunds must be made within one
year of the end of the applicable period. For
the period ended June 30, 2007, claims must be submitted to the
City before July 1, 2008.
(2) If you
do not apply for and prepay the UUT cap, and are assessed and
pay the UUT for water, gas and electric use in excess of the UUT
cap amount, you may submit a Claim for
Excess Tax Paid to the City for the excess tax paid. All claims
must include a detailed listing of each utility bill paid by the
entity, with supporting documentation of these payments. Claims
for refunds must be made within one year of the end of the applicable
period. For the period ended June 30, 2007,
claims must be submitted to the City before July 1, 2008.
Forms:
Constitutional/Statutory Exemption
Federal Credit Union Exemption
Insurer and Insurance Broker-Agent Exemption
Remittance Form
Maximum Tax Prepayment (Cap) Form
Claim for Excess Tax Paid Form
FAQs: Menlo
Park's Utility User Tax
Exemptions:
The City's UUT Ordinance acknowledges
several constitutional and statutory exemptions to assessments
of the UUT. In addition, the procedure for applying the cap associated
with this tax will require that a number of customer accounts
be excluded from the of electric, gas and water bills. The City
will notify utility/service providers of customer accounts to
be exempted from the tax 30 days prior to the tax period.
Compliance and Audit:
The City's UUT
Ordinance requires an annual verification that the UUT owed
has been properly applied, exempted, collected and remitted in
accordance to the ordinance. The City has retained and authorized
the firm of MBIA MuniServices (MMC)
to provide compliance review services for the new Utility Users
Tax Ordinance.
Forms: Letter of Authorization
FAQs:
Menlo Park's
Utility User Tax
FAQs:
Menlo Park's
Utility User Tax
