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# Hold up, wait a minute
- URL: https://www.smdp.com/hold-up-wait-a-minute-editor/
- Published: 2008-09-19T15:00:00.000Z
- Updated: 2026-10-24T21:03:23.000Z
- Author: Guest Author
- Tags: Opinion, Santa Monica, #archive-import

*By P. Lamont Ewell City Manager*

Monday’s opinion piece by Bill Bauer contained inaccurate and misleading information about the telecommunications portion of the Utility Users Tax (UUT), which will appear on the November 4 ballot as Measure SM. I feel that it is imperative that our residents be provided with the facts.

The City of Santa Monica has submitted this updated ordinance to the voters to ensure that existing services supported by the UUT on telecommunications are preserved and that the tax is applied equitably. The definitions and language in the existing ordinance are outdated and do not reflect current telecommunications technologies. It would be like having laws on the books that only cite a horse and buggy, when today we have cars. California law requires that any changes to the UUT be approved by the voters. Without an updated ordinance, the City could face legal challenges that will put these revenues at risk. If Measure SM passes, the city will maintain this important source of revenue used to provide services to the community.

The city’s current telecommunications tax is already applied to standard telephone services and cell phones. The new ordinance will clarify that private communications networks such as T-1 lines, cable-like services called IP-TV, VoIP, text messaging and paging are all taxable telecommunications services. Often service providers bundle text and paging into packages which are taxed as a whole, so many customers will not see any change in their telephone bills.

The city will not collect information on where cell phones and other services are used. The city’s UUT is assessed based on the service address, and in the case of wireless, it is based on the “place of primary use” (typically the billing address) as required by federal law. Users will not be charged for services rendered in Santa Monica unless that is their service address or registered place of primary use, as determined by the service provider.

The UUT does not apply to internet access and satellite video services. Federal laws prohibit a local tax on those services. Also, the City’s proposed ordinance specifically excludes from taxation downloaded internet services and products such as music, games, ringtones, and books.

The updated ordinance is intended to protect current revenues to preserve the programs and services our community expects. The measure will keep the same tax rate, continue to exempt low income seniors and disabled persons, and close loopholes to ensure that users of similar services are treated the same, regardless of technology. The residents of several other cities, including Los Angeles, Culver City and Pasadena, have recently passed virtually identical updates to their laws.

The city has observed a steady decline in the UUT from traditional telephone services in recent years and would risk losing up to $12 million in revenues without Measure SM. Revenues from the UUT helps fund city services like after school and summer programs for Santa Monica youth, neighborhood police patrols, fire and paramedic services, and parks and recreational programs.

Factual information on Measure SM is available for residents and businesses at www.smgov.net/UUT

*Originally published in the Santa Monica Daily Press print edition on September 19, 2008.* [Read the original PDF.](https://s3.us-east-1.amazonaws.com/smdp%5Fbackissues/091908.pdf?ref=smdp.com)