- What is a Utility Users tax (UUT)?
In a Special Election on May 19, 2009, the voters in the City of Hayward approved Ballot Measure A, which imposes a 5.5% tax on certain utility services. The utility services subject to the City of Hayward’s UUT includes natural gas, electricity, telecommunications (traditional telephone service, long distance service, cellular phone service ,and data services), and video/cable television services.
- How much is Hayward’s UUT?
The UUT is a 5.5% tax on natural gas, electricity, telecommunications (including traditional telephone service, long distance service, cellular phone service ,and data services), and video/cable television utility charges.
- When will the tax take effect?
The UUT became effective after the Council certified the election results on June 16, 2009. The utility companies must start collecting the tax no later than October 1, 2009.
- Who must pay the UUT?
The UUT will be paid by Hayward residents and businesses that are utility users. The tax will be collected by the utility service providers, and remitted to the City monthly.
- Which other cities in our area have a UUT? How do their rates compare to Hayward’s?
Over 150 cities in California have implemented a utility users tax, as a local revenue source. The cities in Alameda County with a UUT include: Alameda 6.5% Albany 7.0% Berkeley 7.5% Emeryville 5.5% Hayward 5.5% Oakland 7.5% Piedmont 7.5% San Leandro 5.7-6.0%
- How much does the UUT generate annually for the City of Hayward?
The City is uncertain of the annual revenue expected; however, we have estimated collecting $10 to $13 million, which will contribute to the funding of general city services.
- Who is exempt from the UUT?
There are statutory exemptions and low-income exemptions available. Federal and State governments, including public schools and State universities are not required to pay the tax. State law exempts insurance companies and insurance brokers (but not agents) and federal credit unions from the tax. In addition, individuals that qualify and are enrolled in the Lifeline telephone program (ULTS) are exempt from the tax. Lifeline users are defined by the California PUC and customers must be enrolled in the lifeline telephone services program or the universal lifeline telephone services program. The lifeline exemption does not apply to nonresidential service locations. There is also an exemption refund program for qualified low-income households. A qualified low income household is defined as a household in which the annual income is less than 50% of the median family income for the County of Alameda, as established by HUD. Contact the City Finance Department for more details.
- How do I apply for a low-income exemption?
Annually, the City will accept low-income exemption applications. The income verification process will be similar to the process now in place for water customers, and will be administered by the City Finance Department. If a household qualifies for the low-income exemption they will receive a refund for the amount of UUT they paid during the previous year. Verification of the payment of the tax is required. In order to apply for the exemption, you must provide a copy of all utility bills to support the refund request, complete the exemption application, and provide documentation to support the household income information.
- How will residents and businesses get information on Hayward’s UUT?
The City will be working with the utility companies to send out information in the utility bills as soon as possible. Information will be on the City’s website. If you have questions you may also contact Nelson Snook, Revenue Division at 510-583-4610 or make a "Service Request" below.
- Does the tax apply to satellite television services?
No, the UUT does not apply to satellite television services. Current Federal law prevents local and state governments from taxing satellite video services.
- Does the tax apply to internet access?
No, the UUT does not apply to internet services. Current Federal law prohibits local and state governments from taxing access to the Internet.
For more information, please call the Finance Department at 510-583-4010
You may also submit a service request for this item in the 'Make a Service Request' area below.
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