HomeMy WebLinkAboutMINUTES - 12011987 - 1.67 TO: Board of Supervisors
FROM: Sara Hoffman, Energy Coordinator
DATE: November 24, 1987
SUBJECT: Support HR 3250
Specific Request(s) or Recommendations(s) & Background & Justification
RECOMMENDATION
Authorize Chair to sign letters of support for HR 3250 (Repeal of Section
824 of the Tax Reform Act of 1986) to the County' s legislative delegation
and members of the House Ways and Means Committee.
FINANCIAL IMPACT
None
REASONS FOR RECOMMENDATION/BACKGROUND
On November 10, 1987, the Board referred to the County Administrator a
letter from the Board of Supervisors of Kern County requesting that Contra
,Costa County join them in supporting passage of HR 3250 to repeal Section
824 of the Tax Reform Act of 1986 .
Section' 824 requires utilities to pay Federal taxes on contribution in aid
of construction (CIAC) . CIAO are payments made to a utility by a developer
or utility customer for additions to the utility system, for example,
installation of an electric utility line from the street to a new home. As
may be expected, the utility company passes its tax burden onto the
developer or customer.
Section 824 also has a negative impact on the availability of residential
time-of-use rates, a program which the Board of Supervisors has actively
supported over the past five years . To increase PGandE' s availability of
capital and so expand the program at a faster rate, PGandE will be offering
customers the. option of prepaying their time-of-use meter charge. Section
824 will increase the cost of meter from approximately $180 to $240. Some
families may not be able to afford the inflated price.
HR 3250 would reestablish the taxing regulation in place prior to adoption
of Section 824.
Continued on attachment: yes Signature: c�
Recommendation of Re-commendati of
County Administrator Board Committee
Approve Other:
Signature(s) :
Action of Board on: Approved as Recommended Other
Vote of Supervisors I HEREBY CERTIFY THAT THIS IS A TRUE
z_ AND CORRECT COPY OF AN ACTION TAKEN
X Unanimous (Absent ) AND ENTERED ON THE MINUTES OF THE
Ayes: Noes: BOARD OF SUPERVISORS ON DATE SHOWN.
Absent: Abstain:
-- Attested
Orig.. Div. : CAO(Energy) Phil Batchelor �-
cc: Clerk of the Board of Supervisors
and County Administrator
hr3250.bo By /`1 �1��.8 DEPUTY
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