Utility Users Tax
Discussion
October 13, 2026
User Utility Tax Follow-Up
2 • RBMC Title 8, Section 9 Telephone, Gas, Electricity, Water, and Video Users' Tax Law
• Council directed staff to:
• Provide an update on the Disney v City of Santa
Barbara case
• Review the City’s ordinance for potential
modifications to collect tax on video streaming
services
3 Targeted Updates for Video User Tax
• Additional defined terms
• Ancillary Video Services
• Video Programming
• Video Services
• Video Service Supplier
• Removal of language regarding internet streamlining in §8-9.04 to prevent conflict with the addition application for video streaming
• Additional language in §8-9.09 (a) and (b)(5)
4 Comprehensive Updates to UUT
• Alternatively, the City may choose to make a broader
update to the ordinance language addressing:
• Combining video and telephone UT into a combined
Communication Users Tax given the overlap in
technologies
• Revise the language to ensure only constitutional and statutory exemptions remain
• Update the appeals process options and timeline for
notifications
UUT Recommendations
1. Review and provide direction on proposed update to
the City’s User Utility Tax ordinance language
2. Provide direction to the City Attorney’s office for the completion of the ordinance updates
3. Provide direction to the City Clerk’s office to create ballot measures to be placed on the March 2, 2027
election
5