Cal City considers annual rate of parcel tax | New

CALIFORNIA CITY – City Council will continue discussions on setting the annual rate of the voter-approved special parcel tax that funds police and fire departments at a special meeting on August 4, after determining that ‘They needed clarification on the tax revenue used to calculate this.

The special meeting will begin at 6 p.m. at City Hall, 21000 Hacienda Blvd.

Voters in the city of California approved a special package tax in July 2018, with the proceeds going to support public safety operations. The tax has been set at a maximum of $ 182.50 per package per year, with provisions to reduce the amount each year according to a formula that takes into account increases in revenue from sales, property and industry taxes. of marijuana.

At the June 22 meeting, council voted 3-2 for a rate of $ 160.60 per plot for 2021-2022, the rate that city accountant Kenny Cooper calculated using the formula prescribed in the special tax measure.

This rate was approved following a long discussion centered on interpretations of the measure and some questions about the numbers used in the calculation of the last rate.

At that time, Council was informed that the deadline for submitting the tax rate to Kern County for collection was in a few days. However, that information was incorrect and the actual deadline for submitting the rate to the county is August 10, Mayor Jeanie O’Laughlin said Tuesday.

Since the initial vote, more data on actual income has been received, changing the calculation. Staff recommended a new rate of $ 156.95 at Tuesday’s meeting.

The Council also questioned the revenue figures used in the second calculation.

Council member Karen Macedonio called for changing the rate, based on a different figure for ad valorem property taxes for 2020-2021. There was a difference of opinion within the Council as to how this figure should be calculated, given what is included in the base year.

“I think we can do a lot better to get to what this package tax really should be,” she said.

Macedonio has also called for the marijuana industry tax figure to be broken down in detail to better determine the estimated revenue for the fourth quarter, which has yet to be finalized.

The council unanimously agreed to postpone a decision until a special meeting on August 4, where staff will provide the latest figures, as well as more details on how those figures were calculated.

If a different value for the special parcel tax is determined at this special meeting, Council will revoke its previous decision to set the rate at $ 160.60 and replace it with the rate calculated using the most recent data. .

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