What is Measure U and How Does it Affect You?
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The Utility User’s Tax (UUT) is a tax on utilities including electricity, water, natural gas, cable television and telephones. Since 1969 Glendale, like many cities throughout California, has used its 7 percent UUT as revenue to assist in funding a variety of important community services.
The Glendale City Council placed the UUT Measure on the April 2009 ballot to update the existing UUT ordinance. The Measure would reduce the existing UUT from 7 percent to 6.5 percent and apply it equally to all communication technologies. Listed below are some frequently asked questions about the Measure:
If approved by the voters, how will this measure modernize Glendale’s UUT?
This Measure will allow the City to treat users of communications and video services in a uniform and equitable manner. It will ensure that users of “traditional” technologies such as landlines, cell phones and cable, do not bear a greater tax burden than users of newly developed technologies such as Voice over Internet Protocol (VoIP).
What does the UUT fund?
Last year, the City of Glendale’s telecommunication portion UUT provided over $8.9 million for vital city services such as police, fire, paramedics, parks and recreation, libraries, street and public facility maintenance.
Is this a new tax?
No, UUT has been collected since 1969. This measure adjusts the City’s existing UUT ordinance to comply with recent changes in Federal law
Is the City updating the UUT for the sole purpose of generating additional revenue?
No. This measure is designed to be revenue neutral. In fact, if this measure is approved by voters, it will reduce the existing UUT on cable, video and telecommunications services from 7 percent to 6.5 percent while applying the reduced rate to certain long distance and VoIP services not currently taxed.
Will this measure tax Internet access?
No, the Measure will not tax Internet access. Under Federal law, Internet access is not taxable. In addition, this Measure would not tax digital downloads such as music, games and ring tones.
Will the community be able to see how this money is spent?
The Measure has a provision that allows for annual audits to confirm that the tax is properly collected and spent by the City. The audit will be performed by a qualified independent third party, with the results made available to the public.
What will happen to the existing UUT if this measure is defeated by the voters?
The UUT will remain at 7 percent; however, the $8.9 million would be subject to legal challenge. Vital City services such as police, fire, paramedic services, parks and recreation, libraries, street and public facility maintenance may be impacted.
Qualified low-income residents are currently exempted from paying the UUT. If the measure is passed, will the exemption be maintained?
Yes. Qualifying low-income residents may continue to apply for an exemption from the UUT.
Is Glendale the only City updating its UUT?
No. Over 150 California cities maintain a UUT. Cities that have approved a modern UUT ordinance include but are not limited to: Pasadena, Los Angeles, Long Beach, Culver City, Ventura and Sierra Madre. Today, approximately two-thirds of the telecommunications UUT revenue in California is now voter approved.
For additional information, please call 548-4844.
More Information on Measure U
Read the impartial analysis, and arguments for and against Measure U. The documents are
available in the following languages