After a court determined last fall that the city of Canyon Lake’s utility users tax imposed on water and sewer customers is unconstitutional, the city is issuing refunds, officials said earlier this month.
The tax, which voters approved in 2014 and 2018, applied to customers of the Elsinore Valley Municipal Water District and Eastern Municipal Water District.
In Beck v. City of Canyon Lake a panel from the California Court of Appeal, 4th District, found that the city’s water and sewer UUT was unconstitutional under Article XIII D of the California Constitution, a law voters established under Proposition 218. The court held that the tax was imposed “as an incident of property ownership” and used for general governmental purposes beyond the cost of providing water and sewer services, according to a Canyon Lake ordinance passed in November.
“Based upon this decision, the City of Canyon Lake will pay refunds to all customers of these districts who have paid the water and/or sewer tax and submit a valid, timely claim,” according to the city’s announcement of the refunds.
All customers who have paid a utility users tax on water and sewer service between Sept. 7, 2023, and May 29, 2025, are entitled to submit a request for a refund.
“Because the City does not provide this utility service directly, the City does not have access to your utility bills,” officials advised refund seekers. “Accordingly, you will have two options for the claim form. One option is to elect the “default” refund of $4.00 per month during the Claim Period. You can also elect to calculate your individual refund more specifically by reviewing your monthly billing statements, calculating the amount you paid, and providing sufficient records to support your claim.”
The claim form must be fully completed, signed and dated no later than Feb. 4, 2027.
Claim forms are available at Canyon Lake City Hall, 31516 Railroad Canyon Road, or on the city’s website via tinyurl.com/5y5wjws7. City Hall is open Monday through Thursday 8 a.m. to 5 p.m.
Legible copies of utility bills for the period of refunds must accompany claim forms, officials said.