Vote NO on “G”

Palm Springs ballot Measure "G" will authorize enactment of a new City Telephone User's Tax ordinance. Copies of the proposed ordinance are available on the City’s website at http://www.palmsprings-ca.gov/index.aspx?page=744. That ordinance will add new taxes and more telephone products to the current tax base.

The following is how Measure "G" appears on the Nov. 3, 2009 Palm Springs ballot.

Measure "G"
Shall an ordinance be adopted to: reduce the City's telephone users' tax from 5% to 4.5%; revise the method for calculating and collecting the telephone users' tax to reflect technological advances and changes in state and federal law; eliminate the emergency response fee and adopt an access line tax in an amount equal to the current emergency response fee; and ratify and approve past collection of the telephone users tax and emergency response fee?

The following analysis summarizes the effects of the ordinance

(as authorized by the obscurely-worded Measure “G” paragraph above).

• Reduces existing Telephone User's Tax rate from 5% to 4.5%.
• Cell Phone users will be taxed at new 4.5% rate.
• Cable Phone users will be taxed at new 4.5% rate.  
• Future telephone related technologies will be automatically taxed at the 4.5% tax rate.
• Adds a new telephone Access Line Tax.
• Eliminates existing Emergency Response Fee.
• Access Line Tax replaces Emergency Response Fee - funds no longer dedicated for emergency response needs.
• New Access Line Tax will be inflation adjusted and increased each year.
• Past unapproved Telephone User's Tax collections are retroactively approved.
• Past unapproved Emergency Response Fee collections are retroactively approved.

The state constitution requires voter approval of all new taxes. That requirement is the driving force behind Measure "G" and the new Telephone User's Tax ordinance. Palm Springs has been taxing too many telephone technologies without first obtaining voter approval. The courts are expected to soon invalidate such actions and require repayment of past collections. If voters approve Measure "G" a court ruling would not apply to Palm Springs for the new ordinance has language that validates it's past, present and future telephone tax collection policies and practices. The importance of the issue to the City is underscored by their willingness to sacrifice a half percent in the tax rate as an enticement for voters to approve the ballot measure. Don’t be fooled by the offer of a modest tax reduction. This measure will cost taxpayers more than they’ll ever receive from that half percent reduction.

Vote NO on ballot Measure “G”

(Prepared by Bond Shands, P.O. Box 4826, Palm Springs, CA 92263 | www.DesertObserver.com)