Pasadena Measure D (2008)
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Measure D appeared on the February 5, 2008 citywide ballot in Pasadena, California, where it won with 53.7% of the vote.[1] Measure D is also known as the "Phone and Internet Tax" measure. The Pasadena City Council voted to place the measure on the ballot--it is a legislative referral, not a citizen initiative.
The primary issues at stake surrounding Measure D are:
- Does the city of Pasadena need the income (approximately $10 million) it will raise from this tax?
- Is the 8.28% rate of taxation too high, too low or just right?
- Do residents of the fair city of Pasadena open themselves up to an internet tax down the road if they vote for this measure?
The election was conducted by the election department of Los Angeles County.
Background
Pasadena had a "utility users tax" (UUT) since 1969. Taxes collected by imposition of the UUT went into Pasadena's general fund. Local utility taxes such as Pasadena's were made invalid by a federal ruling in 2007.
In addition to taxing telephone use, as the old law did, Measure D also covers newer technologies: cell phones and, in general, any transmission of "voice, data, audio, video or any other information".
Measure D enables Pasadena to collect approximately $10 million/year in additional taxes.
Controversy over internet tax
Measure D is similar to phone-and-internet tax measures considered in neighboring cities. However, unlike those neighboring cities, when the Pasadena City Council prepared the language of their bill, they removed words saying that "digital downloads" would not be taxed. This led to concerns that the city council eventually intends to start taxing internet use--when and if the federal government's ban on such taxes expires.
Arguments in favor of the new tax
- Pasadena will have to cut vital services without this tax.
Opposition to and arguments against the new tax
A "Committee to Stop Measure D" is officially organized to defeat Measure D. The group is sponsored by FreedomWorks.
In their campaign materials opposing the new tax, they argue:
- Pasadena families' taxes will go up!
- Pasadena has enjoyed a budget surplus of over $150 million over the past decade, and doesn't need the money that would be raised by this tax.
- California already has some of the highest telephone taxes in the U.S.
- This law could allow the City of Pasadena to tax Internet use when the federal ban (on taxing internet use) expires.
- "This new tax will tax many services never taxed before, that are NOT utility services, like text messaging, digital downloads, prepaid services, and other. The net result is that taxes on wireless services are likely to double for many wireless consumers."
Public opinion
Larry Wilson, public editor for the Pasadena Star News, predicts a loss[2]:
The infamous telephone tax only needs 50 percent plus 1. But I predict that thanks to City Hall staff bungling and the effective No campaign, which got a huge influx of cash at the last minute and got scary postcards out to at least frequent voters in Monday's mail -- "Need to text your kids? You'll get taxed" -- Measure D will fail. As it should.
Election Results
According to early election results, Measure D appears to be winning with a commanding majority.
See also
- Los Angeles Proposition S (2008)
- California city and county ballot initiatives
- Local utility taxes in California
External links
- Measure D Mayhem
- Measure D Day
- Measure D is good for the city and won't tax the internet
- Taxes without end
- Measure D(umb) in Pasadena
- Pasadena Pundit
- West Coast Grrlie Blather
- Voters okay tax, bond measures Pasadena Star News
