Pass: 4810 / 86.20% Yes votes ...... 770 / 13.80% No votes

See Also: Index of all Measures

Impartial Analysis from City Attorney

Ballot Measure O proposes the adoption of an ordinance by adding a new Section 4-11 that updates Albany's current Telephone, Gas, and Electricity Users Tax (Albany Municipal Code Section 4-4 et seq. (sometimes referred to as UUT ordinance) to reflect changes in technology and changes in state and federal laws. The City's UUT ordinance was first enacted in 1971.

The Measure proposes to reduce the telephone communications tax from 7% to 6.5%, and would modernize the definitions to include all types of communications and video services, regardless of the technology used. The gas and electrical tax rate of 7% would remain unchanged.

The Measure also proposes to exempt users with solar energy systems from taxes based upon use generated by those systems.

Passage of the Measure would remove outdated references to federal law from the City's Code, which are now the subject of litigation in other public agencies. The Measure would replace older terms and definitions with modern language that are technology-neutral, and would treat all telephone customers in a uniform manner for local tax purposes, whether they use traditional "land-line" service, cellular/wireless service, or services such as Voice-over Internet Protocol (VoIP) and text messaging.

If this Measure is adopted, most service users would see no change or a reduction in their monthly bills. Those using traditional telephone services would see a rate reduction from 7% to 6.5%. For some wireless customers, there may be a small increase for text messaging, and for some businesses using private communication services (e.g., T-1 line), there would be an increase. E-mail would not be taxed. Digital downloads, including music, games, ringtones, and similar digital products, would not be taxed.

A `Yes' vote by a majority of voters voting would approve Measure O.

A`No' vote by a majority of the voters voting would reject Measure O and leave in place the City's existing ordinance, including outdated references to federal law that could result in litigation and possible loss of existing UUT revenue to the City.

s/ROBERT ZWEBEN, City Attorney