TITLE
Recommendation to request City Manager and City Attorney to provide a briefing to the City Council within thirty days regarding the impact of pending litigation challenging telephone taxes and fees currently imposed by the City of Long Beach and steps to be taken should the Courts rule that such taxes and fees are illegal and a violation of Proposition 218.
DISCUSSION
Recently, the League of California Cities held a conference on the impact of pending litigation filed by plaintiffs alleging that cities and counties are illegally assessing certain taxes on telephone services and fees on hotels. Verizon has taken the lead among them and has begun to litigate to reduce the utility taxes on their services.
I am attaching an overview prepared for this conference that outlines the potential impact if these litigants are successful.
Should those parties attempting to reduce such fees succeed, a loss of these funds would deal a serious blow to the City of Long Beach. The City of Los Angeles has already taken steps to protect itself should the decision regarding its imposition of a utility user tax on telephone services be invalidated by the court. The City of Long Beach also should be prepared and ensure that we are in proper legal standing with regards to the challenges to these taxes and fees.
Attachment: CURRENT DEVELOPMENTS UNDER PROPOSITION 218 Bighorn, Utility Fees, and More
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
Councilwoman Gerrie Schipske, Fifth District