Pass: 15,704 / 73.39% Yes votes ...... 5,694 / 26.61% No votes

See Also: Index of all Measures

Official Sources of Information

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As the existing tax ordinance was written in 1984, the language in the telephone and cable television portions of the ordinance is outdated and do not reflect significant advances in technology since 1984. Therefore, the tax is not imposed on many communication services and devices that have since come into existence, such as voiceover- internet protocol. Furthermore, recent federal court decisions in other states have cast doubt on whether the ordinance, as currently written, can be imposed on long distance, cellular and bundled telephone services. Several California cities with almost identical ordinances to Hawthorne's are currently embroiled in litigation on this issue. Should the City be sued, or an adverse decision be reached that is controlling in California, the revenues collected from the current ordinance could be reduced substantially. The City's revenues from the telephone portion of the tax were approximately $2.3 million in 2006-2007. This accounted for 5% percent of the City's overall general fund revenue.

Measure V would update the existing telephone and cable television taxes to a modem communications users' tax applicable to all types of communication and video services, regardless of the technology used. The rate of the tax would remain 5%. It would also retain the existing exemptions for seniors and the disabled and ratify past application of the tax. The tax cannot be increased in the future without a vote of the people. The measure has no effect on the existing utility user tax applied to electrical, gas and water servIces.

A "yes" vote is in favor of adopting the updated communications tax ordinance summarized above. A "no" vote is against adopting the ordinance. A majority of "yes" votes is required for the ordinance to be enacted.

City of Hawthorne

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