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Editorial: Yes on Measure B for Rancho Cordova

Published: Thursday, Apr. 16, 2009 - 12:00 am | Page 22A

Measure B on the May special election ballot in Rancho Cordova has gotten very little attention. Nonetheless, it's important.

The measure would modernize and expand the city's current 2.5 percent utility users tax to include wireless and other new technologies. For the most part, this is not a new tax. It is the same utility tax Rancho Cordova residents used to pay to the county.

Now, that money goes to the city. The tax applies to electricity, gas, sewer, cable TV and other telecommunications but not to cell phones.

As people have shifted from land lines to cell phones, the utility tax take has diminished. Measure B would extend the tax to cell phones, text messaging, paging and communication lines such as T-1 lines.

According to the analysis of the measure prepared by Rancho Cordova's city attorney, "Measure B does not propose any tax on internet access, including DSL and cable modem lines. It also does not tax internet services, such as purchases or downloads of music, books, games etc."

Rancho Cordova receives $2.1 million a year from its utility tax now. It's estimated that the expanded tax would bring in another $800,000 annually.

Even if expanded as proposed, Rancho Cordova's 2.5 percent utility tax would remain among the lowest among cities in the state. The city of Sacramento's utility tax is 7 percent.

The new tax is a special tax, not a general tax. As a special tax, the money raised could be used only for specified purposes – specifically, for police services, maintaining and improving city streets and sidewalks, landscaping, graffiti removal and code enforcement.

Also, because it is a special tax, the measure needs two-thirds voter approval. That will be hard to achieve in a low-turnout special election.

Nonetheless, Rancho Cordova residents would be smart to approve Measure B. The city's leaders have been thrifty with public dollars. A modernized utility tax will help protect the public purse without gouging taxpayers.


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