City Council Approves Cut in Utility Tax Rates

The City Council has approved a plan to cut the city’s utility tax rate from 7% to 5.5% in a move that will save about $33 for the average household each year.

The tax cut was approved Tuesday on a 3-2 vote, with council members Thomas O’Leary and Walter Allen dissenting. Covina’s political leaders have fought over the tax for several years. The entire council was recalled after implementing the tax in 1993. New council members, however, fearing that the city could not survive without the revenue source, allowed implementation of the tax to continue, to the indignation of some residents.

Then, in a nonbinding vote in 1995, residents overwhelmingly approved the continuation of the tax.

The latest decision to cut the tax came two weeks after the council had declined to lower the rate. However, Councilman Kevin Stapleton changed his vote, siding with colleagues who wanted to cut the rate.