League of Women Voters of California Education Fund
	San Joaquin County, CA November 4, 2008 Election
	Measure U Modernization of Communications Users Tax City of Stockton Majority Approval Required Pass: 44193 / 61.54% Yes votes ...... 27617 / 38.46% No votes See Also: Index of all Measures

Arguments For Measure U

Arguments Against Measure U

Stockton's current Utility User's Tax on telecommunication and video services pays for City services, such as police and fire protection, maintenance of streets, parks and libraries. The City voluntarily phased in a reduction of the Utility User's Tax from 8% to 6%, which was completed in fiscal year 2006-07. New telecommunication technologies have been introduced since the existing ordinance was written in 1969. The ordinance includes outdated definitions, resulting in some telecommunication services being taxed and others not being taxed. Since there is litigation in other jurisdictions over outdated ordinances, the approval of Measure U would also eliminate the risk of losing a vital revenue source that provides essential City services, such as police and fire protection, parks, libraries, and street maintenance. Measure U would continue the existing 6% tax rate and apply it to all types of telecommunication and video services, unless precluded by federal statute. Currently, federal law precludes local taxation of direct broadcast satellite, internet services, including email, and broadband services providing access to the internet. The proposed ordinance would not apply to digital downloads, such as music, games, and ringtones. A YES vote means you want to modernize the tax on communications. It revises the method for calculating and collecting the tax to reflect changes in technology. It is a solution that taxes all telecommunication and video users equitably and fairly and protects approximately $11.65 million in revenue in order to continue funding essential City services. A NO vote means you do not want to modernize the tax on communications users that leaves open loopholes, including the possibility of losing a revenue base of approximately $11.65 million due to lawsuits and technology shifts. Loss of tax revenues would result in significant reductions in City services presently provided to residents and businesses. Please vote YES ON U. Submitted by: /s/ Leslie B. Martin, Vice Mayor, City of Stockton /s/ Rebecca G. Nabors, Councilmember /s/ Susan Eggman, Councilmember /s/ Dan J. Chapman, Councilmember Rebuttal to Arguments For IF you were being paid a thousand dollars a week and your wages were cut twenty dollars, would your household still be able to function? There are over 200 city employees making over TWO thousand dollars a week. Some of those city workers want a 15% pay increase to keep up with other cities. Let's get real. Stockton has been in the news for the past eight months as a leader in the nation's foreclosure rate. Increasing taxes to pay for fewer city services and more raises is not a real priority. The vast majority of our seniors and working families do not have an income of one or two thousand dollars a week. The city budget is over 450 million dollars. Measure U is an opportunity for the taxpayers of this community to stop the wasteful spending at City Hall. Please vote NO on measure U. Can you afford another Tax? It is your decision. Submitted by: /s/ Rosalio Estrada

A tax by any name is still a tax. Telephones have been used in Stockton for the past 100 years. Unfortunately, the first tax on this service was called a luxury tax. Since telephones required wires and poles, local entities began charging taxes of different names on this communication system. Today, cell phones don't require poles or wires (in other words no maintenance is required) to function. However the City of Stockton has decided that in addition to the tax on and based lines (look on your telephone bill), the city wants to tax cell phones (it is unclear if the tax can be applied to Internet service). There are a number of problems in starting a new tax on an old tax. Old taxes were designed to usher in new technology (the federal government called the first telephone tax, a luxury tax). Today with a very mobile population, (working families having 2 or 3 cell phones and a land based line for the internet-resource information for students), another tax on working families is hard to imagine. This tax is especially confrontational from city leaders that are losing 2 or 3 million dollars a year on a white table cloth restaurant, a luxury hotel subsidy, a ball park for minor league baseball players, etc. etc. now ask us, the taxpayers, to pay another tax called a "modernization" user tax. A few of us old timers can still remember A TAX by any name is still A TAX. VOTE NO on Measure U. Common sense is still a good smell test. Let the new city council face the public with a new agenda, no new taxes. P.S. The Federal Government has repealed the Luxury tax and does not tax cell phones. Submitted by: /s/ Rosalio Estrada Rebuttal to Arguments Against Measure U is NOT a new tax, as this tax already applies to land line, cell phone and cable (or video) services. Measure U does NOT raise the tax rate. In fact, the City has already voluntarily lowered the tax from 8% to 6%. Measure U will continue to protect existing Utility User's Tax (UUT) revenues. It will do that by removing outdated language, and updating Stockton's existing ordinance to close technology loopholes, and treating taxpayers the same regardless of the technology used to deliver the service. However, Measure U will NOT tax internet services, such as email, and will NOT tax digital downloads, like music, games and ringtones. Federal law prohibits a local tax on direct broadcast satellite, DSL, and cable modem service. This tax is NOT a luxury. Measure U is a critical source of revenue for essential city services such as, police, fire, graffiti removal, street maintenance, libraries, and recreation programs for youth and seniors. These services are already at-risk, due to the recent downturn in the economy that has reduced other sources of revenue, such as sales tax and property tax. If Measure U were not passed, the City could lose up to $11.65 million a year, and a reduction of some of these vital services would be necessary. Vote YES for tax fairness and protection of essential City revenues and services. Submitted by: /s/ Edward J. Chavez, Mayor, City of Stockton /s/ Susan Eggman, Councilmember /s/ Leslie B. Martin, Vice Mayor, City of Stockton /s/ Rebecca G. Nabors, Councilmember /s/ Dan J. Chapman, Councilmember