Concerned Taxpayers Speak Out Against Measure U
By John and Maureen Kocourek
10/27/09
There was no argument against Measure U on the Voter Information Pamphlet that came with our ballot, and we noticed that the city actually cheated by spending $20K on a glossy flyer. Somebody has to give an argument against, so here's my argument against Measure U, in table form, responding to the City Q & A.
Click HERE for a printable flyer opposing Measure U
In its Q & A, the City says: |
A Concerned Taxpayer Says: |
Due to a recent court ruling and new federal regulations, the City of Vallejo must update and modernize only the telecommunication and video services portion of our UUT ordinance, to fully comply with current federal law. |
The court ruling says the UUT is a tax and as such must be approved by the voters. In its existing form, the tax is no longer legal. This "modernizing" ploy will allow the tax to be approved by a simple majority. |
Approximately 150 California cities use UUT funds to protect and maintain local community services. |
In Solano County, only Vallejo, Benicia, and Fairfield have a UUT
Vacaville, Suisun, Dixon, Rio Vista DO NOT have a UUT |
Communication advances over the past two decades mean that the City must update the telecommunication and video components of the UUT ordinance to match today’s technology, including definitions for new communications technology. To do so, the state’s Constitution requires voter approval. Voter approval of an updated ordinance avoids the lawsuits some cities have faced that have jeopardized funding for City services. |
The tax was NEVER approved by voters, as required by the State Constitution.
Without voter approval, this entire tax can be blown out of the water. |
Updating the ordinance will slightly decrease the existing tax rate on telecommunication and video services, and will ensure that all residents are treated equally, regardless of the type of telecommunication or video services they use now, or in the future. |
This will add new taxes on some services such as paging, texting, and pay-per-view TV programming, meaning residents may end up paying more than they are paying now. Total tax revenue will increase. |
Measure U will reduce the tax on telecommunication and video services from the existing 7.5% tax rate to 7.3%, to ensure that the Measure is revenue neutral. The Measure will clarify what can and cannot be taxed, close unintended loopholes, and ensure that users of similar services or equipment are treated the same.
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The City's wording is dishonest. They say it's a tax reduction, but it could be a much bigger tax reduction if it fails. A NO vote is a vote for the complete disapproval of the tax in its current form, allowing it to be challenged by taxpayer groups.
Measure U will change the rate from 7.5 % to 7.3%, while all other Solano county cities charge less.
Vacaville - zero UUT
Dixon - zero UUT
Rio Vista - zero UUT
Suisun - zero UUT
Benicia: 3.5 to 4%
Fairfield: 2 %
Vallejo: 7.5% (7.3% with Measure U) |
Private communication services (e.g., T-1 business lines), paging, and IP-TV (cable-like services using internet protocol) will be included in the new ordinance. The new definitions will clarify that VoIP and text messaging are also included.
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By taxing new categories of services, the new UUT will bring in more taxes than the existing one, i.e. it will be a new tax and increase the total tax burden for some users |
What happens if you don’t update your UUT?
A: The existing 7.5% tax on telecommunication and video services will continue, instead of the 7.3% tax. People who use different technologies will continue to be taxed differently. If the 40-year old ordinance is successfully challenged in court or threatened by Federal legislation, Vallejo could loose up to $5.2 million in annual revenue. The economic recession and the state budget crisis have already put City service levels and property values at risk. If we were to loose $5.2 million in annual revenue, Vallejo may have to cut more police officer positions in addition to the more than 40 positions that have been cut since last year, or close more fire stations. Maintaining our local UUT is one way that we can continue to stabilize Vallejo’s financial situation and our property values. |
City Hall has failed to properly manage the taxes we have been paying, resulting in deficit spending. They have spent more than they received
By voting NO on this UUT, it sends the message that city council must rethink all of the old spending habits. |
What community services does the UUT fund?
A: Vallejo’s UUT pays for many critical City services. The UUT provides Vallejo with a protected and reliable local revenue source to help maintain police, fire, 9-1-1 emergency response and other essential local services. |
It's a safe bet that the UUT will be used to pay salary increases for some city employees. |
How do we know that funds would be spent responsibly?
A: Measure U will continue to ensure our local control over the current funding generated by this tax, and will include strong fiscal accountability protections such as requiring an annual independent City audit. All funds must be spent on City services, and any rate increases would require voter approval. |
The budget already gets an audit. And funds have not been spent "responsibly". Vallejo owes a QUARTER OF A BILLION DOLLARS for unfunded retirement and health care benefits for city employees.
Looks like they're already thinking about "rate increases" |
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...and the Vallejo citizens are punching back!
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