Chamber pres Paul Little indicates the "Internet tax" argument from Measure D opponent Martin Truitt was very convincing. Just not as intended:
"Many Pasadena retailers see imposition of a tax on Internet-based purchases as a leveling of the retail playing field, since online sales transactions as a rule are not taxed but local sales are subject to state and local levies. A book seller in Pasadena, for example, is at a market disadvantage compared to Amazon which can sell the same item yet charge 8.5% less because the online transaction is not subject to California or Los Angeles County sales taxes. Likewise, a local music store may feel that taxing downloads is akin to imposing the same tax burden on Internet transactions that their customers currently pay for cds purchased over the counter."
"The decision to subject Internet sales to taxation is one that will be made by the Federal government, not local jurisdictions, regardless of passage of Measure D."
He does think Martin is incredible though, as per the full release which follows:
PASADENA CHAMBER OF COMMERCE ANNOUNCES
SUPPORT FOR EXTENTION OF UTILITY USER TAX
Board votes to support Pasadena's Measure D citing confidence in
City government and support for existing levels of service
PASADENA, CA – Bill Podley, Chair of the Board of the Pasadena Chamber of Commerce and Civic Association, today announced that the business organization's Board of Directors voted overwhelmingly to endorse passage of Pasadena's Measure D, the extension of the city's Utility User Tax. "After hearing presentations from both the supporters and opponents of Measure D, our Board wanted to voice its support for continuation of the Utility User Tax," Mr. Podley said in announcing the decision. "The Board feels confident in the leadership of the City. We also have serious concerns about potential impacts on the quality of life in our city should the measure fail at the polls in February."
Measure D will continue the existing Utility User Tax in the City of Pasadena at the current tax rate. Passage of Measure D will ensure the City of Pasadena continues to collect approximately $10 million per year in General Fund revenues that result from the telephone portion of the tax. City leaders have repeatedly asserted that the tax is only an extension of the existing levies and won't extend into other areas, such as Internet use or downloads. Measure D is on the ballot for the February 5, 2008, primary election. "The prosperity of our business community is always at risk from competition and economic forces outside our control," Mr. Podley said. "Our board is very concerned that the services that may be impacted should the City be forced to absorb the loss of $10 million in General Fund revenue. That shortfall could significantly impact the business climate in Pasadena."
In December, the Chamber Board had a presentation from city staff on the history, collection and uses of the Utility User Tax. Mayor Bill Bogaard and Councilman Sid Tyler (District 7) also attended the meeting to ask the Chamber to publicly support passage of Measure D. In January, Martin Truitt spoke to the Chamber's Executive Committee and presented the opposition case that the tax will be extended to Internet use. Mr. Truitt also explained that opponents feel the City has more than enough money in reserves to cover any loss that would result for not being able to collect the UUT.
"It ultimately came down to credibility," said Paul Little, CEO and President of the Pasadena Chamber of Commerce. "Mayor Bogaard and Sid Tyler made a convincing case that the City relies on UUT revenues to ensure delivery of many of the services those in our city -- businesses and residents alike -- expect to maintain the quality of life and competitive business environment in Pasadena. We were also impressed that the proponents didn't present a 'doom and gloom' scenario of unsafe streets and fewer firefighters, but honestly told us budget decisions should Measure D fail will likely protect safety initiatives already in place in our city."
"While those in the business community always have to remain conscious of the bottom line, and keep a wary eye on government initiatives that may challenge profitability and competitiveness, the Chamber Board felt strongly that continuing the existing tax is in the best interests of Pasadena residents and businesses," Mr. Little said. "The opponents' argument seems based on a scenario where the City would extend the tax to Internet use, though clearly that is precluded by existing ordinances and Proposition 218 requirements that any new taxes must be approved by the voters. We do appreciate careful budget planning by our City leaders and urge them to be conscious of the bottom line as they make funding and budgeting decisions."
"One need only look at the current budget woes of the State of California to know that no government -- local, state of federal -- is awash in cash as the opponents of Measure D claim," Mr. Little added. "The Governor's required ten percent across the board budget cut at the State level is going to have an impact on the City of Pasadena's budget and the ability of the City to provide services. Understanding that, the Chamber Board felt it was important to protect Pasadena's revenues to ensure the levels of service vital to the prosperity of our business community, especially our small businesses."
"Our Board did express some significant concerns about the present condition of the economy and discussed Council priorities and the level of spending in Pasadena before making a decision to endorse Measure D," Mr. Podley commented. "While we support continuing the present level of Utility User Tax, we sincerely urge the City Council to be conscious of current economic conditions when making decisions that may impact the City budget. We also want the Council to be mindful of the factors that make Pasadena a competitive business environment as they make their financial and budgetary choices."
The Pasadena Chamber of Commerce and Civic Association is a professional business organization. Since the earliest days of Pasadena, the Chamber has played a major role in the development of this internationally renowned city. Since 1888, when the organization was founded as the Board of Trade, the Chamber's primary purpose has been the enhancement of both the business climate and the quality of life in Pasadena. The Pasadena Chamber of Commerce serves 1500 members.
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