FULLERTON : Judge Rules City’s Utility Tax Legal

A judge has ruled that the city’s 2% utility tax was properly created this summer, though only three of five City Council members approved it.

Former Chamber of Commerce president Thomas J. O’Neill sued the city in August, arguing that the tax was illegal. O’Neill charged that four council members needed to support the tax on telephone, electricity, water, natural gas and cable television services.

But Superior Court Judge Richard W. Luesebrink ruled Dec. 27 that the tax was legally imposed.

Orange County Auditor-Controller Steven E. Lewis, who had also filed a complaint questioning the legality of the tax, said he will not appeal the judge’s decision.

Lewis told the city he might have to withhold property taxes from the city if the utility tax were illegally collected. He said Monday he will not withhold any money.

City Manager James L. Armstrong said he was pleased by the judge’s decision. The tax is expected to add about $1.6 million to the city treasury by the end of June. City officials said it costs the average household about $4.40 a month.

Mayor A.B. (Buck) Catlin and council members Molly McClanahan and Don Bankhead voted to impose the tax. Council members Julie Sa and Chris Norby opposed it.

City Atty. R.K. (Kerry) Fox said the city has spent about $27,000 to defend the utility tax.