HomeMy WebLinkAbout9/4/2013 - STAFF REPORTS - 2.O. DCity of Palm Springs
David H. Ready,Esq.,Ph.D.
City Manager
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3200 E Tahquin Canyw Way.Palm Sptings CA 92262
Tel 760.322.8350 • Fax 760.323.9207 •TDD 760.864.9527
David.Ready@palmspringsca.gov • w .palmpringsca.gov
August 19, 2013
The Honorable Lois Wolk, Chair
Senate Governance and Finance Committee
State Capitol Building
Sacramento, CA 95814
RE: AB-300(Perea)-Support of City of Palm Springs
Dear Senator Wolk:
This Office has followed the legislative deliberations on AB-300(Perea)throughout the last year. We
appreciate the efforts in bringing AB-300 forward and the compromises made to satisfy all affected
interests. We have all witnessed the migration of mobile telephone customers from traditional mobile
phone services to prepaid service models. AB-300 reasonably accommodates the City's desire to
ensure an equitable treatment of all mobile phone customers, including those who purchase prepaid
services. AB-300 ensures that those who prepay for services will be responsible for governmental
services they receive in a manner similar to that of customers who pay for more traditional mobile
phone services. This Office respectfully urges you and the members of your Committee to approve AB-
300 and send it on to the full Senate.
During the past several years, prepaid wireless service has gone from being a small segment of the
wireless market to a major share. We understand that now more than 50%of all new wireless sales
are prepaid, and 1/3 of all new 'smart phones' are sold with prepaid services contracts. Unfortunately,
this rapid development of the prepaid market has come at the expense of our existing local UUT tax
revenues from postpaid wireless service. AB-300 would help ensure equal treatment of all wireless
service customers and minimize revenue losses thereby maintaining the City's ability to provide
necessary and vital public services that all wireless customers receive regardless of what wireless
pavment plan they subscribe to.
For the City of Palm Springs,our Director of Finance and Treasurer estimates that the migration of
wireless customers from traditional service models to prepaid services will result in a loss of over
$500,000 annually in General Fund Utility User Taxes(UUT)which we are currently receiving. This
migration is also adversely affecting the City's Emergency Response Tax revenue which directly
supports our vital public safety services of police,fire, and emergency dispatching personnel and
equipment.
PO Boa 2743,Palm Springs CA 92263 ITEM NO.
This Office recognizes and supports AB-300 as a necessary tool for collecting and protecting our
existing local tax revenues, and in assuring tax equity. We thank the bill's author and those members
of your Committee who will support this bill.
Sincerely,
�0—i;I
David H. Ready, Esq.,
City Manager
cc: Assembly Member Perea
Members, Senate Governance and Finance Committee
Committee Consultant,Gayle Miller
Senate Republican Caucus, Ryan Eisberg
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