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Important city revenue source needs protection

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Contributed by: Marie Lakin on 9/11/2007

Venturans will be asked to vote on Measure C7 in the upcoming November election, which will lower the Utility Users Tax on telecommunications to 4.5 percent. It's a complicated subject and already there is some misinformation floating out there, so let me provide a few basics:

- We are already charged a 5 percent Utility Users Tax (UUT) on telecommunications. This includes land lines, cell phones, and cable TV. This money goes into the general fund and helps pay for police and fire services, park maintenance, beach cleanup, etc. The tax generates $2.8 million a year. More than 150 other California cities charge this tax.

- The existing code for the tax is outdated. It was written 40 years ago when there were no cell phones or competing telecommunications companies. What is happening around the state is the telecommunications companies are challenging this tax saying it was written before cell phones were invented and that cities can't apply this old code to new technologies. Los Angeles is currently enmeshed in such a lawsuit.

- Rewriting this code requires that it go before the voters. It requires a 50 percent passage because the money goes straight into the general fund and is not earmarked for a specific purpose as was P6 last fall with police and fire. This measure would apply solely to telecommunications. The city is rewriting its code to include a broader interpretation of "telecommunications" so it doesn't have to go back to the voters when technologies change again. For example, if we some day switch to video phones, this could be taxed as well.

- Under federal law, Ventura's Utility Users Tax be cannot be extended to Internet services.

- To assure passage of this code rewrite and protect this important revenue source, the city decided to lower the tax rate to 4.5 percent. To make sure the measure ends up being revenue neutral and does not lose money for the city, it was extended to include the formerly exempt inter-state and international calls.

- C7 will not boost the taxes of Venturans. It actually might actually end up collecting less money over the years, as the costs of telecommunications fall in the free market.

- If C7 does not pass, Venturans will still be charged the existing higher 5 percent rate, but the city could be involved in a costly lawsuit over the UUT, as Los Angeles currently is.

Our city cannot afford to lose this important revenue resource. Please vote yes on C7.

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Submitted By: Marie Lakin

posted on 9/18/2007 @ 11:01:12 AM

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Dear Mr. Smith, No, I don't work for the City of Ventura. I'm a community volunteer who sits on the City's Cultural Affairs Commission in an unpaid capacity. I'm also the co-president of the Ventura Education Partnership, the secretary of the Serra Cross Conservancy and a board member of San Buenaventura Heritage, Inc. Obviously I care a great deal about my community and don't want to see us lose vital funding that helps us pay for police and fire services, beach cleanup and park maintenance, among other things. My article on C7 was 100 percent accurate and well researched through sources both in and outside the city. It was also verified by our city's CFO, Jay Panzica. Bottom line, C7 will not increase our taxes. It will be revenue neutral.

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Submitted By: Rellis Smith

posted on 9/18/2007 @ 7:40:01 AM

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I don't know if you are an emloyee of the Gang in the Ivory Tower, however you are certainly adapt at spinning the truth. It is true the city will lower the Utility Users Tax to 4.5 from it's present 5% however by adding more items to be taxed the average citizen will be paying more per month. If you truely believe that telecommunications will lower their cost in the future, I have some swamp land I would like to sell you. Another thing the city is not telling the public is that they have the right to vote the entire Utility Users Tax out of exsistence. Rellis

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CONTRIBUTOR INFORMATION

Marie Lakin

Ventura , CA

Marie Lakin has posted 11 stories and 30 comments since joining on 5/29/2007. Marie Lakin 's average story rating is 3.92.

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