In light of a report in March 2007 by the San Diego City Council’s Independent Budget Analyst that recommended the strong consideration of the “implementation of a 9-1-1 fee to ensure operability of the City’s emergency response and dispatch system SDI examined the track record of such charges in other California jurisdictions. Authored by Senior Policy Analyst Vince Vasquez, the research highlights three key findings:
Telephone service in California is already subject to high levels of taxation. Indeed, SDI’s research shows that taxes on telecommunication services in some California jurisdictions are as high as 15%, reaching the rates of the “sin taxes” imposed on alcohol and tobacco.
San Francisco’s poor track record after imposing a 9-1-1 surcharge should give San Diego policy makers pause. That city’s surcharge has dramatically increased over time, become permanent, and faced serious implementation problems caused by the calls to grant different groups exemptions and waivers.
While telephone surcharges are often initially sold as focused exclusively toward financing emergency equipment or other public safety needs, the track record shows that frequently the revenue is eventually diverted to supporting unrelated programs and services.
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