HomeMy WebLinkAboutOrdinance 11109•,+ a
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ORDINANCE NO
AN ORDINANCE REPEALING THE EXEMPTION FROM
THE MUNICIPAL SALES AND USE TAX ON THE
RESIDENTIAL USE OF GAS AND ELECTRICITY
WITHIN THE CITY OF FORT WORTH, REIMPOSING
THE MUNICIPAL SALES AND USE TAX ON THE
RESIDENTIAL USE OF GAS AND ELECTRICITY
WITHIN THE CITY, DIRECTING THE CITY SECRETARY
TO FORWARD A COPY OF THIS ORDINANCE TO THE
COMPTROLLER OF THE STATE OF TEXAS,
PROVIDING FOR ENGROSSMENT AND ENROLLMENT
OF THIS ORDINANCE, PROVIDING THAT THIS
ORDINANCE ~ iiALL BE CUMULATIVE, AND NAMING
AN EFFECTIVE DATE
WHEREAS, before 1978 an election was held in the City of Fort Worth in
which a majority of the qualified voters approved the adoption of a municipal
sales and use tax as authorized by Article 1066c, V.A.C S ,and
WHEREAS, on September 5, 1978, the City Council of the City of Fort
.,~
Worth adopted Ordinance No 7800, which exempted the residential use of gas
and electricity within the City from the municipal sales and use tax; and
WHEREAS, V T C.A., Tax Code X321 105, authorizes the governing body
of a municipality which adopted a municipal sales and use tax before May 1,
1979, but exempted the residential use of gas and electricity within the
municipality from such t~cx, to reimpose the tax on gas and electricity for
residential use, and
WHEREAS, the City Council finds that it is now necessary to reimpose
the municipal sales and use tax on the residential use of gas and electricity
within the City;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY FORT WORTH, TEXAS
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SECTION 1.
That the City of Fort Worth hereby repeals the exemption granted by
Ordinance No 7800 from the municipal sales and use tax on the sale,
production, distribution, lease or rental of, and the use, storage or other
consumption within the City of, gas and electricity for residential use
SECTION 2.
That pursuant to Chapter 321, subchapter B, V T C.A., Tax Code, the
City of Fort Worth hereby reimposes a municipal sales and use tax at the rate
of one percent on receipts from the sale at retail within the City of gas and
electricity for residential use and on the use, storage or other consumption of
gas or electricity for residential purposes within the City and purchased from
any retailer
SECTION. 3
That the City Secretary is hereby directed to forward a certified copy of
this ordinance to the Comptroller of the State of Texas by United States
registered or certified mail immediately upon its passage, and in no event later
than June ~~, 1992
SECTION 4.
That the reimposition of taxes on the residential use of gas and electricity
takes effect within the City as provided in V T C.A., Tax Code §321 102, except
that the reimposition of taxes shall not apply to sales of gas and electricity for
residential use made during a retailer's regular monthly billing period for a
consumer if the regular monthly billing period for the consumer begins before
the reimposition of taxes takes effect, but the reimposition of taxes shall apply
to each regular monthly billing period beginning on or after the date such
reimposition of taxes takes effect, and it is so ordained
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SECTION 5.
That the City Secretary of the City of Fort Worth is hereby directed to
engross and enroll this ordinance by copying the caption and effective date in
the minutes of the City Council and by filing this ordinance in the ordinance
records of the City
SECTION 6.
That this ordinance shall be cumulative of all provisions of ordinances
and of the Code of the City- of Fort Worth, Texas (1986), as amended, except
where the provisions of this ordinance are in direct conflict with the provisions
of such ordinances and such Code, in which event conflicting provisions of
such ordinances and such Code are hereby repealed
SECTION 7.
That this ordinance shall take effect and be in full force and effect from
and after its passage, and it is so ordained
APPROVED AS TO FORM AND LEGALITY
pE~YCi Attorney
Date 6 - `~"' 4 ~
ADOPTED ~ ' ~` 9
EFFECTIVE ~ 1 % ~ 91
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PIASTER' FILED
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FINANC E'a P
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Q~tl SUBJECT
92
G-9682
REPEAL OF SALES .TAX EXEMPTION ON
RECOMMENDATION:
13REPEAL
loft
AND ELECTRIC RES-IDENTIAL UTILITIES
It is recommended that the City Council adopt the attached ordinance that repeals the
one percent sales tax exemption on residential gas and electricity usage.
DISCUSSION:
In~`1978'~~an~ act was passed by the Texas Legislature which repealed the four percent
State sales tax on residential gas and electric bills. This act also permitted the
exemption of the local sales tax on these same utilities on a local option basis. In
September of 1978, the Fort Worth City Council voted unanimously to follow the State
and repeal the City's one percent sales tax on residential utilities, reducing sales
tax revenues by $616,896. This action was taken during a time of uncertainty regarding
energy costs and was an effort to reduce the burden of increasing energy costs upon
residents of the City. The act also provided that the municipalities could re-impose
the tax at any time by adoption of an ordinance repealing the exemption.
According to TU Electric, 1991 revenues from residential accounts totalled
$170,205,353. During the same period, Lone Star Gas received $42,631,000 in revenue
from residential natural gas sales. If a one percent sales tax were levied, the City
would receive approximately $2,128,364 in new revenue. The average annual electrical
bill in Fort Worth is $1,006 while the average bill for gas is $444. Though amounts
will vary depending upon the equipment and energy usage patterns of each household, the
average annual tax increase would be $14.49, or $1.21 per month.
Almost all of the municipalities in the metroplex, as well as the major cities across
the state, are currently collecting this tax. If the exemption were repealed, the tax
would be effective the first day of the quarter following the date of the City
Council's action.
a~ Printed on recycled paper
City of Fort worth, Texas
Mayor and Council Carrmunication
D TE
06/09/92 REFEREN E NUMBER
x-9682 LO NAME
13REPEAL PA E
2 of 2
SUBJECT REPEAL OF SALES TAX EXEMPTION ON GAS AND .ELECTRIC RESIDENTIAL UTILITIES
FISCAL INFORMATION/CERTIFICATION:
Repeal of the one percent sales tax exemption will result in approximately $2,128,364
in additional City revenue per year or an average $532,091 per quarter.
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Su tte or City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by: t~
APPROVED
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Charles Boswell 8500 _ ~~
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Or g nat ng Depart.ent Nea ~dOpted Qrd~nanc~ N 0. ~
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Judson Bailiff 8185 rom
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For Additional Infor~ation City~ecxetas}roff tho
ContdCt : ~`ity Aff FOxt Wirth, texas
Judson Bailiff 8185
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~~ Printed on recycled paper