If Prop S proponents claim federal law will protect you by making Prop S unenforceable, ask them to prove it.
While you’re at it, ask them explain why you should vote for a new local law that violates federal law. If Prop S is unenforceable, why should we enact it?
Meanwhile, click here to see why you’re better off voting “no” than relying on career politicians’ vague assurances that federal law will somehow protect you from their proposed new local tax.
Set forth below is the actual text of provisions Prop S would add to the Municipal Code. As you can see for yourself, Prop S specifically applies to internet and wireless services, including but not limited to text messaging, instant messaging, and VoIP.
“Communications Services” is defined to include all voice, audio and data communications, including DSL, wireless, VoIP, text messaging, instant messaging, PCS, etc.
The only exclusion is downloads (e.g., the 99 cents you pay for an iTunes download).
“Communications Services” are taxed. You pay 9%, but telemarketers pay just 5%.
SEC. 21.1.1. DEFINITIONS.
The following words and phrases whenever used in this article shall be construed as defined in this section:
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(b) "Communications Services" shall mean the transmission, conveyance, or routing of voice, audio. video communications, data or any other communications information or signals to a point, or between or among points, whatever the technology used, and whether or not that information is transmitted through interconnected service with the public switched network, or through fiber optic, coaxial cable, power line transmission, broadband, digital subscriber line or other wireless transmission.
The term "Communications Services" includes transmission, conveyance, or routing in which computer processing applications are used to act on the form, code or protocol of the content for purposes of transmission, conveyance or routing without regard to whether those services are referred to as voice over internet protocol (VoIP) services or are classified by the Federal Communications Commission as enhanced or value added, and includes video and/or data services that are functionally integrated with "Communications Services."
"Communications Services" include, but are not limited to the following services, regardless of the manner or basis on which those services are calculated or billed: central office and custom calling features (including but not limited to call waiting, call forwarding, caller identification and three-way calling); local number portability; text messaging; instant messaging; Ancillary Telecommunications Services; prepaid and post-paid telecommunications services (including but not limited to prepaid calling cards); mobile telecommunications services; Private Communications Services; paging services; and 800 services (or any other toll-free numbers designated by the Federal Communications Commission).
"Communications Services" does not include either digital downloads, such as downloads of books, music, ringtones, games and similar digital products, or that portion of cable or video television services subject to a cable or video television franchise fee.
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SEC. 21.1.3. COMMUNICATIONS USERS TAX.
(a) There is hereby imposed a tax upon every Person with a billing or service address in the City of Los Angeles who uses Communications Services, including services for intrastate, interstate or international Communications Services, to the extent permitted by state and federal law.
The tax imposed by this section shall be at the rate of nine percent of the charges made for those Communications Services and shall be paid by the Person paying for those services. However, as to the charges made for services to any independent telemarketing agency, as defined in Section 21.47(b) of this Code, incurred solely in performing the functions of an independent telemarketing agency, the tax imposed by this section shall be at the rate of five percent of the charges made for those services.