Residents currently pay a 6.5% Utility User Tax.
There is a Tea-Party funded taxpayer advocacy group that is seeking to get a repeal measure on the upcoming Riverside ballot.
Riverside’s tax dates back to 1970 when new taxes did not require a public vote. In recent years, taxes of this sort have proven difficult to pass in other inland cities. Despite that, municipal finance expert Michael Coleman says that utility user taxes make up a significant portion of most general-purpose revenue funds in the 154 California cities that do have them.
The Riverside repeal campaign is only one in a larger statewide effort that includes roughly 60 cities. The Riverside petition, currently hamstrung by a paperwork issue, will require approximately 11,500 signatures to appear on the June 2016 city election ballot.
Within Riverside’s budget, the tax currently provides 11% of the general fund, making it the city’s fourth-largest revenue stream. Riverside City Councilman Paul Davis fears that while those petitioning are doing so under the presumption that the city is wasting public money, it will actually translate into a substantial reduction in services.
The full story can be found here.
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