August 3, 2018 • EPE Related News
KFOX: City of El Paso proposed sales tax could increase residential electric and gas bills
EL PASO, Texas (KFOX14) — The city of El Paso is proposing a utility tax bill that could raise your electric and gas bill.
In 1978, the city of El Paso passed an exemption that prevents them from collecting a 1 percent sales tax on residential gas and electric bills.
There are currently 915 cities eligible to collect sales tax in Texas.
There are 774 that currently do and 41 cities that do not, including San Antonio and El Paso.
On Monday, City Council proposed to reverse that ordinance.
"During the budget process, we know that there is a lot of needs throughout the city," said Chief Financial OfficerRobert Cortinas.
The city says the proposed tax is needed in order to provide funding for public safety on an annual basis.
“The money will be used for our fire department equipment, so that's our ambulances, fire trucks, so that we can continue to fund that on an ongoing basis," Cortinas said.
KFOX14 called El Paso Eectric and Texas Gas Service about the proposed sales tax.
El Paso Electric said:
This proposed sales tax is separate from the additional 1 percent increase in franchise fees paid to the City of El Paso that will be reflected in bills starting October 1, 2018.
Texas Gas Services said:
We have not had the opportunity to discuss the proposed utility sales tax ordinance and therefore are unable to evaluate the impact this proposed ordinance would have on our customers.
Some El Pasoans say it's already difficult to pay their electric and gas bill.
"Please consider us EL Pasoans that are barely making a living for ourselves. We're trying our hardest and I think raising taxes will only make it harder," said Daniel Chaves from East El Paso.
The ordinance will be taken to City Council on Aug. 7 and possibly again Aug. 21.
If approved, El Pasoans could start to see an increase in their electric and gas bill 90 days from the approval date.
"The citizens of El Paso need to come to these board meetings and speak their minds," said Sonny Stockton from Downtown El Paso.
https://kfoxtv.com/news/local/city-of-el-paso-proposed-sales-tax-could-increase-residential-electric-and-gas-bills
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