City Government
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Measure D on February Ballot
Published on Tuesday, January 15 Pasadena voters will go to the polls Tuesday, February 5, to consider Measure D, which would update the local Utility Users Tax (UUT) by providing new definitions for telephone services and affirm the existing tax rate. UUT is a tax on certain utility bills. In Pasadena, UUT was established in 1969 by an ordinance of the city council. Residents of Pasadena pay UUT on electricity, natural gas, water, cable television and telephone services. Like many other California cities, Pasadena's UUT revenues go directly to the general fund, an unrestricted source that pays for public safety, youth recreation programs, park maintenance, community centers, libraries, and many other programs and services. Eligible low-income seniors ages 62 and older and eligible disabled residents are exempt. There is a simple application process for exemptions. Below are answers to frequently asked questions: Q. Why is Utility Users Tax suddenly such a big issue? A. In Pasadena and dozens of other California cities, definitions of telephone services that can be taxed were written when hard-wiring was the only technology available, and UUT ordinances cross-referenced provisions of a federal telephone tax. Changes in the collection of the federal tax and in telephone technology have required all California cities with this type of UUT to seek voter approval to update their ordinances. Q. What is the nature of the proposed change to Pasadena’s UUT? A. The existing UUT text in the Pasadena Municipal Code was written long before anyone could have envisioned how technology related to telephone services would change. Over the past several years, telecommunications companies have introduced many new services and features such as voicemail, caller ID, text messaging, conference calls and more, which did not exist when Pasadena’s UUT was adopted in 1969. Q. Would this change create a new Utility Users Tax? A. No. Although Measure D would update Pasadena’s ordinance to address technological changes in the future and clarify its application to modern telephone services, it does not substantially change the telephone services subject to tax today. Q. Would this change increase the UUT rate that is charged to residents? A. No. Q. Will UUT be charged on Internet access? A. No. Federal law prohibits such a tax and the President has signed a law extending that ban for seven more years. The Pasadena City Council recently adopted an ordinance clarifying that Internet access will not be subject to UUT under Measure D. Q. How can I get more information? A. Visit www.cityofpasadena.net/cityclerk/election for ballot information, including arguments for and against Measure D, or call 626-744-6760. |
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