HomeMy WebLinkAboutCity Council - 3354 RESOLUTION NO. 3354
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HUNTINGTON BEACH URGING THAT UTILITY USERS TAXES
BE MADE DEDUCTIBLE FROM ADJUSTED GROSS INCOME FOR
FEDERAL INDIVIDUAL INCOME TAX PURPOSES
RESOLVED BY THE COUNCIL OF THE CITY OF HUNTINGTON BEACH
that :
WHEREAS, the City of Huntington Beach and more than forty
other California cities levy a utility users tax upon users of
intrastate telephone service, gas and electricity; and
The Internal Revenue Service has ruled that under the pro-
visions of the Internal Revenue Code taxes paid under said u-
tility users tax levy are not deductible on the Federal income
tax returns of individual taxpayers , although such taxes are
deductible as a business expense when incurred in the carrying
on of a trade or business; and
The nondeductibility of the utility users tax on individual
returns is a matter of substantial public interest in that tax-
payers now numbering in the millions in California alone are now
paying this tax; and
The Internal Revenue Code specifically permits the deduc-
tion of general sales taxes and state and local taxes on gaso-
line and other motor fuels, and it would appear that the utility
users tax, being similarly imposed on necessities and having the
same final incidence, should also be deductible,
NOW, THEREFORE, this Council, on behalf of the individual
income taxpayers of this city, hereby urges that administrative
or legislative action, as shall be necessary, be taken to author-
ize the deduction of utility users taxes on Federal individual
income tax returns .
1.
RESOLVED FURTHER that certified copies of this resolution
be transmitted by the City Clerk to the Commissioner of Internal
Revenue , Washington, D. C . ; to Congressman B . F . Sisk, 16th
Congressional District; and to California Senators Alan Cranston
and John V. Tunney .
PASSED AND ADOPTED by the City Council of the City of
Huntington Beach at an adjourned regular meeting thereof held
on the 23rd day of August, 1971.
L 2
Mayor
ATTEST:
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City erk
APPROVED AS TO FORM:
City Attor y
2 .
Res. No. 3354
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss :
CITY OF HUNTINGTON BEACH )
I , PAUL C. JONES, the duly elected , qualified and
acting City Clerk of the City of Huntington Beach, and ex-
officio Clerk of the City Council of said City, do hereby
certify that the whole number of members of the City Council
of the City of Huntington Beach is seven; that the foregoing
resolution was passed and adopted by the affirmative vote of
more than a majority of all the members of said City Council
at a regular adjourned meeting thereof held on the 23rd
day of August 19 71 , by the following vote:
AYES: Councilmen:
Shipley, Bartlett, Green, Coen, McCracken
NOES: Councilmen:
None
ABSENT: Councilmen:
Gibbs Matne
City Clerk and -officio Clerk
of the City Council of the City
of Huntington Beach, California