Keeping pace with Technology - Santa Monica’s UUT Update Measure
The Santa Monica City Council voted unanimously to place a UUT Measure on the ballot for the upcoming November 4, 2008 election. The measure updates our current UUT ordinance with no change to the existing rate. The measure will close loopholes, exempt low income seniors and disabled persons, and ensure that users of similar services or equipment are treated the same.
Since 1969, the residents of Santa Monica have paid a UUT on telecommunications services. Like many other California cities, Santa Monica uses this funding to provide services such as educational and school programs, parks and recreation, police, fire and emergency services.
Communication advances of the past four decades the mean that the city must update its UUT law to match today’s technology. To do so, the state’s Constitution requires voter approval. Voter approval avoids the lawsuits some cities have faced that have jeopardized their funding and services.
Under Santa Monica’s existing ordinance, the burden is not being shared equally among all communication service users. In other words, some may not be paying the UUT on communication services at all due to the type of technology they utilize. By modernizing the UUT language – with no rate increase – all taxpayers will be treated the same regardless of the technology used today or in the future.
To be more specific, the updated ordinance will cover private communication services such as T-1 business lines and paging, and add new definitions to clarify that VoIP and text messaging are included.
Most residential customers will not see any substantial change to their monthly bill. However, it really depends on the type of services you use and the package you have with your service provider. For users with traditional hardwire local and long distance service there is likely to be no change. For wireless customers, there may be small increases for things such as text messaging. Some VoIP customers, whose providers are not currently applying the tax, may now pay the tax. Some paging customers will now be subject to the tax as well as businesses that use T-1 lines.
Many residents live in Santa Monica because it offers a higher level of service, programs and quality of life than neighboring cities. The UUT is an important revenue source and preserving it will ensure that our city can maintain and improve the high quality of public safety, parks and recreation programs and progressive programs that we expect.
The telecommunications portion of the UUT provides approximately $12 million of support for programs and services that are important to Santa Monica residents and our community. Revenues from the UUT are used to fund city services like after school and summer programs for Santa Monica youth, neighborhood police patrols, the domestic violence programs and 9-1-1 emergency response and paramedic services, parks and recreation, police, and fire services. Without this measure, the city could lose $8-12 million for essential city programs and services.
For the text of the proposed ballot measure, impartial analysis and arguments for and against, visit the City Clerk's elections page
Click here for information and qualifications for the low-income senior/person with disabilities exemption