Pass: 5,738 / 80.0% Yes votes ...... 1,438 / 20.0% No votes

See Also: Index of all Measures

Measure "D" supplants the existing telephone and video users' tax with a modern communications users' tax, and would reduce the rate of the tax from 5% to 4%. The tax would be imposed on charges for the use of communication services, including both telecommunication and video services (defined to include "the transmission, conveyance, or routing of voice, data, audio, video, or any other information or signals to a point, or between or among points, whatever the technology used") and ancillary telecommunications and video services (defined as "services that are associated with or incidental to the provision, use or enjoyment of telecommunications services and video services"). The modernized definitions would apply to all intrastate, interstate and international communications regardless of the technology used to provide such services (e.g., IP-TV). Under current federal law, Internet services and broadband services providing internet access are not taxable. Furthermore, the modern definitions would not apply to charges for internet services such as email and digital downloads such as music, games, and ringtones.

The measure expands and clarifies the City's collection procedures and the process for appealing tax calculations

Like the existing telephone and video users' tax, the communications users' tax would be a general tax, with its proceeds deposited into the City's general fund. Such funds are available to the City for all of its programs. Measure "D" would provide for an annual audit detailing the total tax collected, the purpose for which the tax was expended, and any exemptions granted.

Stan T. Yamamoto, City Attorney City of Redwood City

Since 1983, Redwood City's 5% UUT has been applied to electricity, natural gas, cable television, and in-California telephone charges. That revenue has provided funding for many important capital projects of great benefit to the community, such as storm drain systems, street paving, the Tree Preservation and Sidewalk Repair program, the new community branch library at Redwood Shores, Downtown's new Courthouse Square, significant park renovations, and computer-aided dispatch systems for the police department.

About 1/3 of these revenues are from the rapidly-changing telecommunications and video services and that part of the UUT is out of date with the significant changes in today's technology. It needs to be updated to make it more clear and equitable.

Several state and federal actions beyond the City's control, coupled with rapidly-changing technology, may result in the loss of a significant portion of these revenues unless the UUT is modernized. Loss of this revenue will affect the City's ability to finance community improvement projects or to continue some of our existing popular programs.

Vote "yes" to update the UUT - the rate on telecommunications will be reduced to 4%, and its range will be widened to include out-of-state and international calls, while laying the groundwork for ensuring that the UUT stays up-to-date with changes in technology.

A "yes" vote on Measure "D" will help to keep local control over local revenues, and the UUT will be more fairly applied throughout our community, for today, and the future.

Vote "yes" to help preserve the City's ability to provide community improvements that make Redwood City a great place.

Please join the City Council of Redwood City and VOTE YES on Measure "D."

/s/ Jim Hartnett August 13, 2007 Member, City Council of Redwood City

/s/ Jeff Ira August 13, 2007 Member, City Council of Redwood City

/s/ Janet Borgens August 16, 2007

/s/ Daniela Gasparini August 16, 2007

/s/ Cheryl Angeles August 16, 2007 Chairman of the Board, Redwood City/San Mateo County Chamber of Commerce