Impartial AnalysisIMPARTIAL ANALYSIS OF MEASURE B
Summary: Measure B is proposed by the Cupertino City Council to update the City's existing Utility
Users Tax ("UUT") language to be consistent with current practice. The current tax rate of 2.4% will
remain the same and the senior citizen exemption for Cupertino residents age 65 or older will continue.
The proceeds of the UUT can only be spent on City services and cannot be taken away by the State.
Back rg ound: The UUT is levied on utility users in the City. The City has imposed the UUT on
telecommunication services since 1990. Measure B wall not increase the current rate of 2.4%. UUT
revenues are paid into the City's general fund to finance such services as neighborhood police patrols
and other public safety programs, library services, support for local schools, maintenance of City streets,
open space and park programs and senior programs.
The City's UUT ordinance, like those of most California cities with telecommunication UUTs, referred
to federal law to define and describe the telecommunication services covered by the UUT. These
definitions have been revised by the federal governme~it and telecommunication technology has changed
significantly.
Measure: The measure would replace the older definitions of telecommunication services so that the
language is consistent with current practice.
Measure B would not apply to charges for internet access or internet content or to private
telecommunication services.
Measure B does not increase the current UUT rate of 2.4%. Voter approval would be required for any
increase in the rate or the scope of services subject to the UUT in the future.
Measure B maintains the existing senior citizen exemption for Cupertino residents age 65 years or older.
Measure B also requires annual audits to confirm the t~~x is properly collected and spent according to the
requirements of Measure B and other laws. Audit reports will be available to the public.
Measure B requires approval of a majority of voters. A. "yes" vote for Measure B is a vote in favor of
adopting the amended UUT ordinance. A "no" vote al;ainst Measure B will reject the proposed
amendments to the UUT Ordinance, and continue the 1JUT in its present form.
Carol Korade
Cupertino City Attorney
The above statement is an impartial analysis of the proposed ordinance. If you desire a copy of the
ordinance, please call the Cupertino City Clerk's Office at (408) 777-3223 and a copy will be mailed at
no cost to you. You may also view the ordinance at wx~w.cupertino.org/measureB.