League of Women Voters of California Education Fund
	Riverside County, CA November 4, 2008 Election
	Measure P Utility Users' Tax City of Moreno Valley Majority Approval Required Pass: 36,080 / 79.19% Yes votes ...... 9,481 / 20.81% No votes See Also: Index of all Measures

Arguments For Measure P

Arguments Against Measure P

Measure "P" will not increase taxes. It will: Lower the current utility user's tax (UUT) on all utility services by one-quarter percent (1/4%) from 6% to 5.75%; Modernize the City's UUT ordinance to treat all taxpayers who use telecommunications services fairly and equitably; and Remove the risk of the City losing nearly $5 million in revenue that provides funding for vital City services. In 2006 the IRS repealed the FET and directed all telephone companies to discontinue collecting the FET on long distance calls, including wired and wireless phones, voice over internet protocol (VoIP) and prepaid cards. The IRS ruling has now resulted in lawsuits against some city UUT ordinances claiming that the local taxes on those calls are no longer valid. In addition to legal challenges to UUT ordinances, there are technological ones as well. Since 1996 when Moreno Valley voters approved the UUT ordinance, telecommunications services have changed dramatically. There is a vast array of telecommunications services being provided. Some are using private communications systems and the Internet protocol with high speed, broadband services, none of which are covered in the City's current UUT ordinance. As more people use new technology, UUT revenue will decline. Worse, people who can afford the new technology escape the UUT while those who must use the older technology are taxed. That's not fair. The City cannot afford to lose $5 million in tax revenue that is used for funding public safety and other vital services. Like many other California cities that have placed similar measures on the ballot and received overwhelming approval,it's time to fix our City's outdated UUT ordinance and treat all taxpayers equitably. We urge your "YES" vote on Measure "P." By: William H. Batey II, Mayor      Frank West, Mayor Pro Tem      Bonnie Flickinger, Council Member      Richard A. Stewart, Council Member      Charles R. White, Council Member Rebuttal to Arguments For Utility Taxes (UUT) are regressive taxes because they fall on life's necessities such as water, cooling, heating, lights, communication, etc.). The UUT: Adopted in 1991 a temporary tax with a 3-year sunset clause. Special Election June 1996 to make tax permanent, Voters voted NO. The utility tax was voted into law November 1996 after the City Council put it back onto the ballot this time with additional items to be taxed: cell phones, wireless pay television. UUT revenues the city collects have grown over 100% since the 1991 inception. The Council can cut this tax any time with NO ballot measure. Under Proposition 218, Right to Vote on Taxes Act, a ballot measure is necessary for tax increases. Measure "P" is a tax increase on previously untaxed telecommunication services. Our Council has budgeted up to $90,000 of our tax money to convince us to raise our taxes. With fewer jobs being created, home foreclosures, mounting bills, higher gas prices, higher health care costs, climbing food costs, raising utility costs, residents falling behind on paying utilities, and skyrocketing debt, Moreno Valley taxpaying families need less taxation not more. TO PREVENT A TAX INCREASE, VOTE NO ON MEASURE "P." By: Marcia Amino, Homeowner      Ted T. Amino, Ret. Homeowner

Measure "P" is misleading to Moreno Valley Taxpayers. If the Utility User's Tax was only being reduced a ballot measure is unnecessary. The City Council wants to impose the UUT on heretofore-untaxed telecommunication services. Because Proposition 218 says no government may increase any general tax unless that tax is submitted to the voters and approved by a majority vote, Moreno Valley must put this measure on the ballot. With the economic difficulties faced by families, at the very least, there should have been more than a token cut in this regressive tax. Using the carrot and stick method on we taxpayers is disingenuous and to disguise a tax increase on heretofore untaxed services. The Utility User's Tax is a general tax and goes directly into Moreno Valley`s General Fund. In 2006 the UUT collected $13,812,000 and in 2007 $15,463,000 was collected (City CAFR 2007). This City Council could have, without spending for a ballot measure, cut the UUT at any time during these past few years of unprecedented revenue growth, but they didn't. Moreno Valley, like the rest of California governments is now in a revenue downturn. Unfortunately, the taxpayers and families of our City are also experiencing an economic squeeze: stagnant wages, fewer jobs, higher food prices, declining home values, higher gas prices, and higher utility rates. Let's bring fiscal sanity to our local government, VOTE NO ON MEASURE "P." Real tax reduction to reduce the tax burdens on our families and businesses is the way to bring economic growth and Measure "P" is not that. By: Marcia Amino, Homeowner   Ted T. Amino, (Ret.) Rebuttal to Arguments Against Measure "P" reduces the Utility Users Tax from 6% to 5.75%. The City Council can reduce the Utility Users Tax; however, a ballot measure locks the reduction in and prevents the City Council from increasing it. In addition, Measure "P" will modernize the language to make the tax fairer to all those using similar services and utilities. A YES vote for Measure "P" will reduce the Utility Users Tax. The argument against states a ballot measure is unnecessary. In order to make the reduction permanent and fair to all, Measure "P" is necessary. Once Measure "P" reduces the Utility Users Tax, the City Council cannot raise it without a vote of the people. Vote YES on Measure "P." By: William H. Batey II, Mayor   Frank West, Mayor Pro Tem   Bonnie Flickinger, Council Member   Richard A. Stewart, Council Member   Charles R. White, Council Member