PREPARED BY: MATT RODRIGUEZ DATE OF MEETING: 04/03/17
SUBJECT:
TITLE
RATIFICATION APPROVAL OF A LETTER OF OPPOSITION TO AB 252 (RIDLEY-THOMAS) - LOCAL GOVERNMENT: TAXATION: PROHIBITION: VIDEO STREAMING SERVICES
Label
CITY MANAGER RECOMMENDATION
Recommendation
Approve by Minute Order
BODY
COMPLIANCE STATEMENTS
FY 2015-17 Council Priority Workplan Compliance Statement
Municipal Broadband Fiber Project is an adopted policy contained in the FY 2015-17 Council Priority Workplan, effective October 1, 2016.
CEQA Compliance Statement
This is not a project as defined by CEQA.
BACKGROUND
On January 17, 2017, AB 252, authored by Assemblymember Ridley-Thomas, was introduced and would prohibit local cities and counties from imposing any tax on video streaming services. Specifically, this proposed bill, until January 1, 2023, would prohibit the imposition by a city, city and county, or county, including a chartered city, city and county, or county, of a tax on video streaming services, including, but not limited to, any tax on the sale or use of video streaming services or any utility user tax on video streaming services.
This proposed bill would critically impact the City of San Pablo's ongoing development of a Municipal Broadband Fiber Optic Project currently underway. This is a proposed $13M public project to improve digital access and enhance economic development investment into one of the Bay Area's lowest income/disadvantaged communities. Local taxing authority is critical to its construction and implementation by the City and this proposed bill would handicap the City's ability to locally invest in the proposed project.
Authorized Funding Mechanisms - Municipal Broadband Fiber Optic Project
On March 14, 2016, the City Council adopted Resolution 2016-139, which authorized the City Manager to explore a funding mechanism or tax (i.e. CFD, Sales Tax, Parcel Tax, UUT, etc.) needed to develop the Municipal Broadband Fiber Optic Project (See Attachment). The...
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