The City of Huntington Beach has hired MuniServices LLC to provide discovery, compliance, and audit services. Through the contract, MuniServices will oversee and assist the City in protecting its utility user tax (UUT) base, a source of more than $20 million in critical funds that generates 10% of the City’s revenue.
“MuniServices was a critical partner with the City when we implemented our prepaid wireless process with the Board of Equalization. We expect that engaging MuniServices will yield an additional 15-20% in new telecommunications revenue for the City,” said Lori Ann Farrell, Director of Finance for the City of Huntington Beach.
In California, more than 145 cities have passed a utility user tax, a 1-11% tax imposed on billed purchases of electric, gas, communications and water resources. In an average year, cities can generate up to 25% of their revenue from the UUT. However, UUT revenues have been under pressure with changing consumer purchasing habits, particularly as residents transition to mobile phones from landlines. To address this, MuniServices worked with client cities, the State Legislature and Governor Jerry Brown to pass AB 1717, which included prepaid wireless services under local UUTs.
“UUT is a complex area of law, and MuniServices is the recognized expert in this field with financial, legal and legislative expertise to advise cities. The MuniServices team is excited to partner with the City of Huntington Beach and looks forward to working closely with the City’s staff in protecting these revenues,” stated Julia Erdkamp, MuniServices’ Client Services Manager for Southern California.
MuniServices is a leading provider of revenue recovery services. With over 900 cities, counties, special districts, and states as clients, MuniServices is the only firm in California and throughout the United States to offer proprietary revenue recovery, audit and administration services encompassing all general sources of municipal tax revenue. www.muniservices.com