Union City puts proposed 5% utility users tax extension on November ballot

Union City voters will decide Nov. 3 whether to extend the city’s existing 5% utility users tax through Dec. 31, 2037.

The City Council voted 5-0 on July 14 to place the proposed extension on the November ballot. The measure would keep the current tax rate unchanged, but voters must approve it before the tax can continue beyond its scheduled expiration on Dec. 31, 2028.

What the measure would do

The utility users tax applies to electricity, natural gas, telecommunications and video services. If approved, the measure would extend the existing tax through the end of 2037.

The proposal does not call for an increase from the current 5% rate. Its effect would be to preserve the existing tax rather than allow it to expire in 2028.

How the city says the money is used

Union City estimates the tax generates approximately $7 million each year for the General Fund. City materials identify public safety, street maintenance, youth activities and senior programming among the services and programs supported by that revenue.

Because the revenue goes into the General Fund, approving the measure would preserve funding for city operations if voters extend the tax. The city’s estimate is an annual projection, not a guarantee of a fixed amount through 2037.

Exemptions for some residents

City information says qualifying low-income residents and residents age 70 and older may be eligible for exemptions from the utility users tax. Eligibility and application requirements apply, so residents seeking an exemption will need to follow the city’s procedures.

The exemption provisions do not change the proposed 5% rate for customers who do not qualify. They provide relief for eligible households while the city asks voters to continue the broader tax.

Election deadlines arrive this week

The city’s election calendar lists Aug. 7 as the deadline for nominations and for submitting direct arguments concerning the measure. It lists Aug. 12 as the deadline for rebuttal arguments.

Separately, the city says candidate filing may extend to 5 p.m. Aug. 12 for an office if an eligible incumbent does not file nomination papers by the Aug. 7 deadline. That conditional extension applies to candidates other than the incumbent and is separate from the ballot-measure argument deadlines.

The measure’s decision point is the Nov. 3, 2026, election, when Union City voters will decide whether to continue the tax through 2037.

The central distinction for voters is unchanged rate versus extended duration: The proposal would not raise the existing 5% tax, but it would keep the tax in place after its current Dec. 31, 2028, expiration date.

Sources

• Union City ballot measure announcement
• Tri-City Voice coverage of the ballot measure