The utility users tax, or UUT, is a tax on utility services. In Scotts Valley, the UUT is applied only to gas and electric utilities, and at a rate of 4%. This tax provides 6% of the City’s total budget, about $770,000.
In contrast, in Santa Cruz, the UUT rate is 8.5% and applies to a broader scope of utilities, including gas, electric, sewer, water, garbage and some communications. This tax raises $12 million for Santa Cruz. In Watsonville, the rate is 6% and raises about $4 million. The County and Capitola have no UUT in place.