Measure O is vital to protecting an existing revenue source for police and fire protection services, youth programs, park maintenance and other city services. This measure was placed on the ballot to update the city’s 40-year old Utility User Tax (UUT) to keep up with technological changes related to wireless and phone services and to comply with new laws.

The definitions in Sacramento’s UUT have become outdated. As a result, users of landlines and cell phones pay the UUT, but users of newer technologies do not. Moreover, because of the way certain terms are defined, this tax is legally vulnerable, putting $12 million of existing city revenue at risk.

The good news for city residents is the city is proposing to reduce the tax rate that is charged on communications services, while fashioning a fairer UUT by making it technology-neutral for all users.

Sacramento Police Chief Rick Braziel says, “Measure O will keep police officers on the street and maintain funding for city programs that help kids stay in school and out of gangs.”

Measure O includes provisions that require annual, independent audits and prevent future increases without voter approval. The measure also continues the existing tax refund program for low-income residents.

Because technology is changing so rapidly and because of new laws, nearly two dozen California cities have updated their UUT ordinances since 2006. Without Measure O, Sacramento’s UUT will become even more unfair and outdated with the passage of time.

Sacramento must act now to protect revenue generated by this source, which can’t be raided by the state Legislature to help balance state budget deficits.

Vote Yes on Measure O to make sure funding for essential city services is protected.