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HomeMy WebLinkAboutAB 252_LtrToRidley-Thomas_20171227City of San Luis Obispo, Office of the City Council, 990 Palm Street, San Luis Obispo, CA, 93401-3249, 805.781.7114, slocity.org December 27, 2017 The Honorable Sebastian Ridley-Thomas California State Assembly State Capitol Building, Room 2176 Sacramento, CA 95814 VIA FAX: 916-319-2154 https://a54.asmdc.org/ RE: NOTICE OF OPPOSITION-AB 252 (Ridley-Thomas). Local government: taxation: prohibition: video streaming services. Dear Assembly Member Ridley-Thomas: The City of San Luis Obispo opposes your proposed Assembly Bill 252, which would prohibit, until January 1, 2023, any city (including a charter city), county, or city and county from levying any tax on video streaming services, including, but not limited to, any tax on the sale or use of video streaming services or any utility user tax on video streaming services. This bill would negatively impact the City’s budget and ability to provide critical services. AB 252 sets a dangerous precedent by undermining the already established will of local voters. Over the last two decades, voters in over 107 cities and 3 counties have adopted measures to modernize local Utility Users Tax (“UUT”) policy and permit local governments to levy a UUT on similar video providers. These voters had the foresight to anticipate changing technologies, and overwhelmingly adopted policy to address the issue. The voter approved measures vary by jurisdiction. For example, the City of Pasadena code, modified by voters in 2008, says video-programming suppliers can face a tax “whatever their technology.” As the internet and wireless technologies expand, the general consumer trend is moving away from tangible goods, brick and mortar stores, and hardware to internet sales and internet delivery of video and digital content. Over time, taxation of newer technologies merely replaces the revenues otherwise lost to local government as a result of consumer trends. It is inappropriate for the Legislature to intrude on matters affecting the interpretation of these local, voter-approved ordinances. Nor should the Legislature attempt to favor one technology over another by deciding in a competitive market which business model should be subject to a local tax. AB 252’s prohibition on the imposition of “any tax” on the sale or use of video streaming services or the imposition of any utility user taxes on video streaming services causes the City of San Luis Obispo great concern. In a time where many cities and counties already face constricted budgets and are struggling to provide critical police, fire, parks and library services, this state legislated decline in revenue would make matters worse. For these reasons, the City of San Luis Obispo Opposes AB 252 (Ridley-Thomas). Sincerely, Heidi Harmon Mayor City of San Luis Obispo cc: San Luis Obispo City Council State Senator Bill Monning, fax (916) 651 – 4917, http://sd17.senate.ca.gov/ State Assembly Member Jordan Cunningham, fax (916) 319-2135, https://ad35.asmrc.org Dave Mullinax, League of California Cities, dmullinax@cacities.org Meg Desmond, League of California Cities, mdesmond@cacities.org