The Arcadia City Council approved a 5% tax on interstate and international telephone calls over the strong objections of residents. The tax, which will cost about $.40 per person per month, is expected to generate $225,000 in city revenues, which will help close the gap between the city's general fund expenditures and revenue.
The Arcadia City Council unanimously supports a 5% utility tax on interstate and international telephone calls. The proposed tax will cost about $.40 per person per month.
Arcadia seeks to extend the right to collect cell phone usage tax. Officials plan to hold a special election in May or June in 2009 for a ballot measure. If communicated to voters correctly, it should pass, because it would not raise the tax but protect the city's revenues. At stake is about $1 million in yearly revenue. To do that, voters must allow the city to legally redefine what a telecommunications tax is. Recent court rulings have suggested cities cannot tax cell phone use by relying on older telecommunications tax ordinances.