LWV League of Women Voters of California
Smart Voter
Alameda County, CA November 5, 2002 Election
Measure HH
Temporary Utility Tax Surcharge
City of Oakland

Municipal Code Amendment - Majority Approval Required

26932 / 33.1% Yes votes ...... 54436 / 66.9% No votes

See Also: Index of all Measures

Results as of Nov 15 4:54pm, 100.0% of Precincts Reporting (244/244)
Information shown below: Summary | Fiscal Impact | Impartial Analysis | Arguments | Full Text

Shall the Oakland Municipal Code be amended in order to provide for a one-half of one percent (1/2%) temporary (five year) surcharge to the City's alternate fuel, cable, electricity, gas and telephone users tax rates and to impose the telephone users tax on all calls regardless of the origination or termination of the call, and regardless of whether the call is included within a "package" or is billed as a separately listed call?

Summary Prepared by The City Attorney:
This measure would authorize the City of Oakland to impose a 1/2% surcharge for five years to the City's Alternate Fuel (coal, charcoal or any other combustible material), Cable, Gas, Electricity and Telephone Utility Users Tax Rate. The tax is imposed on the amount paid by Oakland residents and businesses for alternate fuel, cable, gas, electric and telephone services.

The current tax rate is seven and one-half percent (7.5%). The surcharge would increase the amount of tax paid to eight percent (8%) for a five-year period. Excepted from the proposed electricity and gas surcharges are persons qualifying for the low-income rate assistance program (LIRA) offered by the Pacific Gas & Electric Corporation ("PG&E").

The City may expend revenue it receives from the surcharge for any general fund purpose.

This measure also clarifies that the telephone users tax rate applies to all communications regardless of the origination or termination of the call, and regardless of whether the call is included within a "package" or is billed as a separately listed call.

Fiscal Impact from The City Auditor:
There are two parts to this measure.

First Part: The first part of this measure proposes to amend Section 4.28.030 of the Oakland Municipal Code in order to clarify the application of the telephone users tax. This Section is clarified for imposing the telephone users tax on all calls regardless of the origination or termination of the call, and regardless of whether the call is included within a "package" or is billed as a separately listed call.

Second Part: The second part of this measure proposes to amend the Oakland Municipal Code to provide for a one half of one percent (.50%) temporary (five year) surcharge to the City's alternate fuel, cable television, electricity, gas and telephone users tax rates. This one half of one percent (.50%) surcharge is in addition to the current seven and one half percent (7.50%) utility consumption tax. Thus, the proposed rate would be eight percent (8%) for five years.

FISCAL IMPACT
First Part:
There may be an increase or no change in the City's telephone users tax revenue, and on a telephone bill. There will be administrative costs associated with this measure; however, these costs cannot be determined until program implementation.

Second Part: The Financial Services Agency estimates that the City will gain $3,315,267 in revenue annually from this one half of one percent (.50%) utility consumption tax surcharge. Although it is difficult to make such estimates with precision, we have reviewed data from the Financial Services Agency and the City Manager's Budget Office; and, conclude that these estimates are reasonable.

This tax surcharge revenue will be deposited into the City's General Fund subject to appropriation pursuant to the budget and fiscal provisions of the City Charter. An accompanying advisory measure (Resolution 77325) will allow the voters to determine if they want this tax surcharge revenue to be spent on violence prevention programs.

Utility operators will collect this one half of one percent (.50%) utility consumption tax surcharge from their utility customers. For example, a $50 utility bill will have a $.25 tax surcharge.

Persons qualifying for the low-income rate assistance program (LIRA) offered by the Pacific Gas & Electric Corporation (PG&E) are exempt from the electricity and gas tax surcharges.

There will be administrative costs associated with this measure; however, these costs cannot be determined until program implementation.

s/ROLAND E. SMITH, CPA City Auditor

Impartial Analysis from The City Attorney
Measure HH asks the voters of the City of Oakland to authorize the City to impose a one-half of one percent (1/2%) temporary (5 year) surcharge to the City's alternate fuel, cable, gas, telephone and electricity users' tax rates. All revenues the City receives from the temporary surcharge will be deposited in the City's general fund and the City can expend the revenues for any general fund purpose.

The Measure also clarifies that the telephone users' tax rate applies to all communications regardless of the origination or termination of the call, and regardless of whether the call is included within a "package" or is billed as a separately listed call

A "Yes" vote is a vote in favor of authorizing imposition of a one-half of one percent (1/2%) temporary surcharge to the City's utility users' tax rate.

A "No" vote is a vote against the imposition of a one-half of one percent (1/2%) temporary surcharge to the City's utility users' tax rate.

Measure HH is submitted to the voters of the City in accordance with the Constitution of the State of California. In order to pass, a "Yes" vote by a majority (50%+1) of the voters voting on the measure is required.

s/JOHN RUSSO City Attorney

  News and Analysis

Oakland Tribune

San Francisco Chronicle
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Arguments For Measure HH
This measure, together with Measures GG and II, will provide the necessary revenues to fund our violence prevention campaign. It is no secret that violent crime and particularly murders have increased recently. We must take decisive action to reverse this dangerous trend. Measure GG provides the money to do so.

With hard economic times in the Bay Area, Oakland has had to cut back on many programs. If we are to add 100 more police and carry out the specific crime prevention programs described in the Advisory Measure FF, we need more city revenues. This is what the temporary surcharge of Measure GG makes possible.

For five years only, a half percent (0.50%) surcharge will be added to your utility bills: telephone, gas, electric and cable. If you pay a total bill of $200 a month for all your gas, electric, telephone and cable services, the additional cost to you from this Measure HH surcharge will be less than a cup of coffee: $1.00. In other words, we are asking for a half a penny on each dollar you spend on utilities. Very low income people will be exempt from paying surcharges on electricity and gas.

Fighting crime, helping troubled youth, reducing domestic violence and assisting returning parolees simply cannot be done without more money. Paying a little more each month with your utility bills is a small price to pay for increased personal safety and public well-being.

Please help keep Oakland on the move. Vote the revenue needed to support our violence prevention programs.

For more information, see http://www.jerrybrown.org.

VOTE YES ON HH

s/JERRY BROWN Mayor of Oakland
s/ROBERT L. JACKSON Pastor of Acts Full Gospel Church
s/HENRY L. GARDNER Former City Manager

NO ARGUMENT AGAINST MEASURE HH WAS SUBMITTED.

(No arguments against Measure HH were submitted)

Full Text of Measure HH
WHEREAS, the City Council of the City of Oakland desires to amend Section 4.28.030 the Oakland Municipal Code in order to clarify the application of the telephone users tax; and

WHEREAS, the City Council of the City of Oakland desires to amend the Oakland Municipal Code in order to provide for a one-half of one percent temporary (five year) surcharge to the City's alternate fuel, cable, electricity, gas and telephone users tax rate; and

WHEREAS, all revenues received from any increase will be deposited in the general fund of the City to be expended for general fund purposes; and

NOW, THEREFORE, BE IT RESOLVED: That the City Council of the City of Oakland does hereby submit to the voters at the November 5, 2002 special election the text of the proposed ordinance, which shall be as follows:

SECTION 1. The Municipal Code is hereby amended to add, delete, or modify sections as set forth below (section numbers and titles are indicated in bold type; additions are indicated by underscoring and deletions are indicated by strike through type; portions of the regulations not cited or not shown in underscoring or strike-through type are not changed).

SECTION 2. Paragraph A of Section 4.28.030 of the Municipal Code is hereby amended to read as follows:

4.28.030 Telephone users tax imposed.
A. There is imposed a tax upon every person with a service address in the city, other than a telephone corporation, (as defined by and licensed by the California Public Utilities Commission), using intrastate, interstate, or international telephone communication services including, but not limited to, cellular telephones and facsimile transmissions for communications regardless of the origination or termination of the call, and regardless whether the call is included within a "package" or is billed as a separately listed call originating or terminating in the city. The tax imposed by this section shall be at the rate of seven and one-half (7.50) percent of all charges made for such services and shall be paid by the person receiving such services, and collected by the provider of such services.

SECTION 3. The Municipal Code is hereby amended by adding Section 4.28.031 to read as follows:

4.28.031 Imposition of surcharge.
Effective February 1, 2003 or such later date as required by state law, there shall be a surcharge of one-half of one percent (.50%) upon every person with a service address in the city, other than a telephone corporation, (as defined by and licensed by the California Public Utilities Commission), using intrastate, interstate, or international telephone communication services including, but not limited to, cellular telephones and facsimile transmissions for communications, in addition to the seven and one-half percent (7.50%) tax specified in Section 4.28.030. The surcharge so collected shall be deposited in the General Fund subject to appropriation pursuant to the budget and fiscal provisions of the Charter.

Charges billed or falling due shall be subject (1) to the tax of seven and one-half percent imposed by Section 4.28.030 to the extent that they cover any portion of the period prior to February 1, 2003, and (2) to the one-half of one percent surcharge imposed by this Section to the extent that it covers any portion of the period between February 1, 2003 and February 1, 2008.

The surcharge imposed by this Section shall expire on February 2, 2008.

SECTION 4. The Municipal Code is hereby amended by adding Section 4.28.041 to read as follows:

4.28.041 Imposition of surcharge.
Effective February 1, 2003 or such later date as required by state law, there shall be a surcharge of one-half of one percent (.50%) upon every person, other than an electrical corporation (as defined by and licensed by the California Public Utilities Commission), who receives electrical energy within the limits of the city from an electrical corporation, in addition to the seven and one-half percent (7.50%) tax specified in Section 4.28.040. The surcharge so collected shall be deposited in the General Fund subject to appropriation pursuant to the budget and fiscal provisions of the Charter.

Charges billed or falling due shall be subject (1) to the tax of seven and one-half percent imposed by Section 4.28.040 to the extent that they cover any portion of the period prior to February 1, 2003, and (2) to the one-half of one percent surcharge imposed by this Section to the extent that it covers any portion of the period between February 1, 2003 and February 1, 2008.

The surcharge imposed by this Section shall expire on February 2, 2008.

Excepted from this surcharge are persons qualifying for the low-income rate assistance program (LIRA) offered by the Pacific Gas & Electric Corporation ("PG&E").

SECTION 5. The Municipal Code is hereby amended by adding Section 4.28.051 to read as follows:

4.28.051 Imposition of surcharge.
Effective February 1, 2003 or such later date as required by state law, there shall be a surcharge of one-half of one percent (.50%) upon every person, other than a gas corporation (as defined by and licensed by California Public Utilities Commission) who receives gas (including but not limited to propane, butane, and any other gas used for fuel) within the limits of the city which is delivered through mains or pipes by a gas corporation or delivered by any means of transportation. The surcharge imposed by this section one-half of one percent (.50%) of all charges made for such gas, including but not limited to minimum charges for service, or pipeline usage and shall be paid either by the persons paying for such gas, or collected by the service supplier, in addition to the seven and one-half percent (7.50%) tax specified in Section 4.28.050. The surcharge so collected shall be deposited in the General Fund subject to appropriation pursuant to the budget and fiscal provisions of the Charter.

Charges billed or falling due shall be subject (1) to the tax of seven and one-half percent imposed by Section 4.28.050 to the extent that they cover any portion of the period prior to February 1, 2003, and (2) to the one-half of one percent surcharge imposed to the extent that it covers any portion of the period between February 1, 2003 and February 1, 2008.

The surcharge imposed by this Section shall expire on February 2, 2008.

Excepted from this surcharge are persons qualifying for the low-income rate assistance program (LIRA) offered by the Pacific Gas & Electric Corporation ("PG&E").

SECTION 6. The Municipal Code is hereby amended by adding Section 4.28.061 to read as follows:

4.28.061 Imposition of surcharge.
Effective February 1, 2003 or such later date as required by state law, there shall be a surcharge of one-half of one percent (.50%) upon every person, other than a cable television corporation, who receives cable television services whether paid periodically or charged per program, event or specific transmission whether delivered by cable, microwave, or any other method within the city, in addition to the seven and one-half percent (7.50%) tax specified in Section 4.28.060. The surcharge so collected shall be deposited in the General Fund subject to appropriation pursuant to the budget and fiscal provisions of the Charter.

Charges billed or falling due shall be subject (1) to the tax of seven and one-half percent imposed by Section 4.28.060 to the extent that they cover any portion of the period prior to February 1, 2003, and (2) to the one-half of one percent surcharge imposed by this Section to the extent that it covers any portion of the period between February 1, 2003 and February 1, 2008.

The surcharge imposed by this Section shall expire on February 2, 2008.

SECTION 7. The Municipal Code is hereby amended by adding Section 4.28.071 to read as follows:

4.28.071 Imposition of surcharge.
Effective February 1, 2003 or such later date as required by state law, there shall be a surcharge of one-half of one percent (.50%) upon every person who receives alternate sources of fuel energy including but not limited to coal, charcoal or any other combustible material within the limits of the city which is delivered by any means of transportation, in addition to the seven and one-half percent (7.50%) tax specified in Section 4.28.070. The surcharge so collected shall be deposited in the General Fund subject to appropriation pursuant to the budget and fiscal provisions of the Charter.

Charges billed or falling due shall be subject (1) to the tax of seven and one-half percent imposed by Section 4.28.070 to the extent that they cover any portion of the period prior to February 1, 2003, and (2) to the one-half of one percent surcharge imposed by this Section to the extent that it covers any portion of the period between February 1, 2003 and February 1, 2008.

The surcharge imposed by this Section shall expire on February 2, 2008.


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