The City Council has placed the “Burbank Infrastructure and Community Services Protection Transaction and Use Tax” (Measure) on the ballot. This Measure would amend the City of Burbank Municipal Code to enact a three-quarter cent (¾¢) transaction and use tax, to be added to the current sales tax.
Transactions and use taxes are levied on the same type of purchases as the existing sales tax. Currently, Burbank’s combined state and local sales tax is 9.5%. This is made up of 7.25% state sales tax, 2% for Los Angeles County
Transportation measures and ¼% for Los Angeles County Measure H – homeless initiative. If this Measure passes Burbank’s combined sales tax rate will be 10.25%; the tax would begin April 1, 2019, and the City should start receiving revenue from the tax in June 2019.
The estimated, annual revenue to be generated from this tax is approximately $20,000,000 and will continue until ended by the voters; meaning it could be repealed through another ballot initiative/measure. This is a general tax that allows the revenue to be used for any governmental purpose with 100% of proceeds spent in Burbank and under Burbank control.
The proceeds may be used for services, programs and infrastructure such as:
– maintaining City of Burbank’s fire, police, 9-1-1 response;
– keeping fire stations open;
– maintaining the number of police/firefighters;
– continuing senior and youth after-school programs;
– easing traffic;
– addressing homelessness;
– repairing streets/potholes;
– earthquake retrofitting of City buildings and bridges; and
– establishing an ongoing funding source for the repair and maintenance of existing City infrastructure.
The proposed ordinance has an oversight provision (see §2-4-2114 of the Ordinance) and states the intent for the use of the revenue generated from this Measure, as follows:
– revenue should be spent across a broad category of purposes, such as operations, including services and programs, and infrastructure; and
– revenue should not replace existing infrastructure spending, but rather increase the revenue available for infrastructure projects.
Also, this section of the ordinance provides a framework for independent oversight, as follows:
– requires annual accounting of the tax revenues received and expenditures made;
– requires an independent annual audit to ensure proper expenditure of the revenues;
– requires City Council to appoint an oversight board to advise the City Council on expenditure of revenue generated from this Ordinance, as recommended by City staff, annually for infrastructure projects; and
– the mission of this new Board, in part, is to ensure the reliability, maintenance and safety of the City’s infrastructure.
A “no” vote is against approving the Burbank Infrastructure and Community Services Protection Transaction and Use Tax, a ¾ cent local sales tax.
A “yes” vote approves the Burbank Infrastructure and Community Services Protection Transaction and Use Tax, a ¾ cent local sales tax. This Measure will be adopted and effective if passed by a simple majority of voters.