About the Utility Users Tax

The Utility Users Tax is a general tax imposed on the use of utility services, residential and commercial, on any combination of electric, gas, cable television, and telecommunication services.

The tax is levied by the city, collected by the utility as part of its regular billing procedure, and then remitted to the city. In addition the Utility Provider must obtain a Business License Tax Certificate, as a result of conducting business within the city limits.

Documents

·         Business License Tax Application

·          Utility Users Tax Return Form (PDF 251KB)

·          Municipal Code 4.24 (PDF 418KB)
(Go to page 16 in the document.)

Business License Tax

Any person conducting business from or in the City of Santa Barbara is subject to the City’s Business License Tax. Providing utility service to customers located in the City of Santa Barbara constitutes a presence in the City of Santa Barbara and requires a City Business License. This tax is based on Gross Receipts of sales; see section A4 of the tax table.

Santa Barbara's UUT Tax Rate

The tax rate is 6% of the charges billed each month.

Reporting & Remitting

The Utility Users Tax return form is submitted to the Finance Department on or before the 20th of each month that includes the amount of taxes billed by the service supplier during the preceding month. The full amount of the tax collected shall be included at the time the return is filed.

We prefer the remittance filed with the City’s Utility Users Tax Return form, however, service providers/paying agents may use their own or a generic form as long as the appropriate information is included and correct tax rate is applied.

Penalty

Taxes collected from a service user and not remitted to the tax administrator on or before the due dates are delinquent. Penalties for delinquency in remittance of any tax collected or any deficiency determination is 15% of the total tax collected.

No Longer Providing Service

Upon cessation of business for any reason, please notify our office in writing and remit all the collected taxes immediately.