What is Measure G?

Measure G will reduce the tax rate from 6% to 5.75% on the City’s existing Utility User’s Tax (UUT) rate on telecommunications and video services including “land line” telephone service, cell phones, cable TV, and similar video services. Measure G will modernize the existing Telecommunications and Video Services Ordinance to be consistent with new federal and state laws, and update definitions so all taxpayers are treated the same.

Measure G is being submitted to the voters by the unanimous vote of the Santa Barbara City Council. Measure G will protect current revenue of over $5 million to fund City services including:

   Police, fire and 9-1-1 emergency communications,

   Parks and recreation

   Gang prevention and after school programs for at-risk youth

   Senior services

   Street and pothole repair

   Public transit and other general fund services

Why is the UUT rate on telecommunications and video services being reduced?

Measure G will reduce the existing UUT rate on telecommunications and cable TV from 6% to 5.75%. It will also expand the UUT to newer telecommunication and video technologies such as Internet-based telephone services so they are treated the same as cellular, land-line, and cable-based technology. It is estimated that lowering the UUT rate and expanding the UUT to newer telecommunication and video technologies will maintain the current level of revenue.

Why is this on the ballot?

The current UUT rate was enacted almost 40 years ago, before the introduction of many modern telecommunication technologies. Measure G is needed to avoid a potential legal challenge, which could result in a loss of revenue and cuts to City services such as police,

fire, 9-1-1 assistance, parks, recreation, and street repair. Many of the other 150 cities and counties that have UUTs share a similar risk; at least 26 have already updated their ordinances by voter approval.

Does Measure G tax Internet access?

No. Congress has placed a moratorium on Internet taxes until at least 2014. Passage of Measure G will permanently exempt Internet access from local taxes, including email and Internet access over cell phones and mobile devices.