Title
Discussion and Possible Recommendation Regarding the Utility Tax on Cable
Recommended Action
The Council Finance Committee directed that the Preliminary 2015-2020 Capital Facilities Plan (CFP) include a 6% utility tax on cable TV, effective January 1, 2015.
Report
Issue:
The City Council is considering applying a utility tax up to 6% to cable TV. The proposal is included as part of the Preliminary CFP.
Staff Contact:
Jane Kirkemo, Administrative Services Director, jkirkemo@ci.olympia.wa.us
Presenter(s):
Jane Kirkemo
Roger Horn
Background and Analysis:
See Attachments
The Preliminary CFP includes applying the Utility Tax to cable TV. This does not apply to DISH Network or other internet providers. It will increase the average Comcast customer's bill by approximately $5 per month. Following the Planning Commission public hearing on the CFP, staff will take an ordinance to the Council applying the able Utility Tax. If Council adopts the ordinance it would go into effect in January 2015.
The City Council has not specifically asked for a recommendation from the Planning Commission regarding whether or not to impose the utility tax on cable; however Ms. Kirkemo has indicated it would be helpful. The Commission does not ordinarily make recommendations regarding tax increases, however may so in this case since the utility tax is part of the proposed CFP. Any such recommendation would need to be made tonight, as the Council's public hearing on the proposed tax will occur on August 12.
Neighborhood/Community Interests (if known):
None known at this time
Options:
Discuss the proposed utility tax on cable, and either:
1. Recommend to the City Council that they impose the 6% utility tax on cable, as recommended by the Council Finance Committee;
2. Recommend to the City Council that they do not impose a 6% utility tax on cable.
3. Decline to provide a recommendation to Council on the matter.
Financial Impact:
The prop...
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