League of Women Voters of California Education Fund
	San Mateo County, CA November 4, 2008 Election
	Measure R Vehicle Rental Business County of San Mateo Majority Approval Required Fail: 119,618 / 47.1% Yes votes ...... 134,403 / 52.9% No votes See Also: Index of all Measures

Arguments For Measure R

Arguments Against Measure R

The County of San Mateo provides community and safety net services such as law enforcement, medical services and human services to 756,000 residents, and delivers many programs promised to you by the State. Unfortunately the burden of providing these programs and services is expanding dramatically, while funding for these purposes continues to be significantly cut by the State. As a result, the County is projecting a structural deficit of $92.1 million by year 2013, an unsustainable gap that must be closed. The County has taken action to reduce the deficit through measured yet significant cuts to its own budget, but simultaneously the State has made continually more dramatic reductions in reimbursements for services it mandates. We must find new ways to raise revenues while continuing to pursue cost-cutting opportunities. One way to help close the budget gap is the measure before you, a two and one-half percent (2.5%) business license tax on gross receipts of vehicle rental businesses in the unincorporated County area. This measure would raise roughly $7.5 million without significantly impacting the pocketbooks of County residents. The industry subject to this tax generates over $300 million in revenue annually, largely from visitors to the County of San Mateo area, but currently pays taxes of barely 1% of that to the County in which it operates. At the same time these vehicles contribute greenhouse gas emissions to our air and traffic to our roads, affecting our quality of life. This proposal is a necessary part of a strategy that will see the County of San Mateo close its budget deficit in a balanced and fair manner. By voting YES for this measure you are helping to ensure that the County will remain an enjoyable and prosperous place in which to live for many years to come. Rebuttal to Arguments For Measure R would impose one of the highest gross receipts taxes in California, on car rentals. The tax is aimed at companies at the airport, but it is people who would ultimately pay the price: Laid-off rental car company employees would pay with their jobs. Visiting friends and relatives would pay higher rental rates +this tax plus 8.25% sales tax. Outrageous! Local businesses renting cars for clients and employees would pay, or cut trips short, due to the increasing cost of doing business in San Mateo County. The entire hospitality industry would pay in lost business as a result. If you rent a replacement vehicle while your car is in the shop, you would pay higher rates. Taxes are most effective and least objectionable when they are fair, broadbased, and reasonable. Singling out one industry that is so tied into air travel for a huge new tax is outrageous and shortsighted. This tax would increase unemployment and cost-of-living. Measure R has no end date. It is not a temporary tax to cover the County's current budget deficit. Measure R is a permanent tax. If citizens don't stand together and defeat Measure R, what will they tax next? Please vote NO on Measure R.

Record mortgage delinquencies and foreclosures. Soaring food and energy (especially gas) prices. Increased unemployment. Californians are taking a beating, and San Mateo County voters know it. Families are tightening their belts, staying home more, and doing without. There is talk of possible state-wide tax increases to come. These hard times are far from over. What is San Mateo County's proposed answer to this? More tax increases + over $11 Million this time! That is the estimated total take of Measure Q, the 8% parking lot tax, and Measure R, the 2.5% auto rental tax. We'll pay more for airport parking and rental cars, if these taxes pass. Even restaurant valet and paid hotel parking will be taxed, in unincorporated areas. The cost of living is already a huge problem in San Mateo County. Raising it further with new taxes will hurt us all. Measures Q and R are on the ballot because San Mateo County cannot control its spending on employee salaries and benefits. General fund salaries/benefits spending increased 30% in just 3 years ($409 million in 2005-06, to $535 million in 2008-09)! * More taxes on hard-pressed families here WON'T SOLVE this problem. No tax can keep up with that kind of spending! San Mateo County must budget and spend responsibly, before placing more burdens on its citizens! Vote NO on unnecessary taxes in tough times! VOTE NO ON MEASURES Q and R ! http://www.co.sanmateo.ca.us/bos.dir/budget/recommend2008/recommendedbudget2008-10.pdf Rebuttal to Arguments Against Don't Be Misled + Measure R does not tax the consumer Measure R imposes a business license tax on rental vehicle businesses in unincorporated San Mateo County. Measure R simply requires an industry that benefits from serving a largely out-of-county population to pay its "fair share" of the burden of supporting local government. Government works only when all citizens bear their "fair share" of the costs of government services. Rental vehicle businesses in the unincorporated county place thousands of vehicles on our roads, negatively impacting the environment, and requiring additional county resources such as law enforcement, health care and emergency services. The County Has Reduced Costs Measure R supplements an aggressive cost-cutting program undertaken by the county. In the FY 2008-09 budget, the county slashed expenses by $25 million and imposed a hiring freeze. Because of careful planning, the county budget grew less than 2% over the past year, far less than that of neighboring counties. Vote YES on MEASURE R Any economic downturn significantly impacts the county's ability to provide services when they are most critically needed, as revenues decline and the demand for safety net programs increases. Proceeds from Measure R will be used for basic services such as health care, public safety and parks. Proceeds will also be used to protect our most vulnerable populations-- children, seniors and the disabled. Please support Measure R to ensure San Mateo County remains a great place to live, work and raise a family.