Department of Finance
Reference: Revenue Code Updates
To: Mayor Gregory Mills and Members of City Council
Through: Michael P. Martinez, City Manager
Prepared By: Ana Le Scoezec, Revenue Manager
Date Prepared: November 10, 2026
PURPOSE
To propose updates to sections of the City’s Municipal Code regarding sales and use tax, business licensing and utility billing.
BACKGROUND
Staff periodically review portions of the City’s Municipal Code to identify areas where updates may be needed to address changes in policy or practice or to improve efficiency. The Revenue Division within the Finance Department, which oversees Tax & Licensing and Utility Billing, has identified and is recommending the following updates:
Sales Tax (Section 3-28-75)
Taxability of City-provided Utilities
The City’s Municipal Code includes a list of goods and services that are specifically exempt from sales and use tax. This section does not currently address or include reference to City provided utilities. Without a specific exemption, the provision of water would be considered taxable to the purchaser.
The City does not tax these purchases and does not intend to. Therefore, staff recommends updating the Municipal Code to list City-provided utilities as exempt from sales tax. This would bring code into alignment with current practice by clarifying that this item is exempt from sales tax.
Licenses (Section 5-4-60)
Hearing process for denial, suspension or revocation of a license
Under the current code, if a license is denied, suspended or revoked, the applicant is notified and given the opportunity to respond. The changes will allow for notification and opportunity to respond, prior to setting the matter for a hearing if the license is being suspended or revoked. If it is a license denial, the applicant may submit an appeal.
Pawnbrokers (Article 5-44)
Removal of special requirements for pawn broker licensing
Municipal code lists a number of requirements for the licensing of pawn brokers t...
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