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City Council rejects request to the state to return part of tax surcharge

The City Council today rejected a resolution 6-3 urging the state to return part of the general excise tax surcharge it is withholding to administer the rail tax. 

City Councilman Tom Berg introduce the resolution to force state lawmakers to return about 10 percent of the rail tax surcharge used to administer the fund. Berg said the 10 percent fee is excessive. 

However, city Managing Director Douglas Chin advised that given the state’s budget crisis, “it doesn’t seem like the right time for this legislative session.” Six Councilmembers agreed. 

The three who voted for the resolution are Berg, Ikaika Anderson and Nestor Garcia. 

Councilmembers pledged to return to the issue next year. 

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