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Cudahy, California, Measure U, Casino Tax Increase (November 2018)

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Local ballot measure elections in 2018
Measure U: Cudahy Casino Tax Increase
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The basics
Election date:
November 6, 2018
Status:
Approveda Approved
Topic:
Local business tax
Amount: 15% monthly gross revenues
Expires in: No expiration
Related articles
Local business tax on the ballot
November 6, 2018 ballot measures in California
Los Angeles County, California ballot measures
Local business regulation on the ballot
See also
Cudahy, California

A measure to increase the casino business license tax was on the ballot for Cudahy voters in Los Angeles County, California, on November 6, 2018. It was approved.

A yes vote was a vote in favor of establishing a tax on casinos and other gambling operations at a rate of 15 percent of total monthly gross gaming revenues with a minimum tax of $10,000 per month.
A no vote was a vote against establishing a tax on casinos and other gambling operations at a rate of 15 percent of total monthly gross gaming revenues with a minimum tax of $10,000 per month.

Election results

Cudahy, California, Measure U, Casino Tax Increase (November 2018)

Result Votes Percentage

Approved Yes

2,527 79.02%
No 671 20.98%
Results are officially certified.
Source

Text of measure

Ballot question

The ballot question was as follows:[1]

To fund city services, including public safety and emergency services; park and street maintenance; and recreational programs; shall the City increase the license tax on casino licenses and other gambling operations to 15% percent of total monthly gross gaming revenues with a required minimum license fee of $10,000 per month to raise a minimum of $120,000 per year or more depending on the level of gross gaming revenues?[2]

Impartial analysis

The following impartial analysis of the measure was prepared by the office of the Cudahy City Attorney:

The 2018 Cudahy Casino Tax Measure (the “Measure”) amends the City of Cudahy’s existing tax on casino licenses and other gambling operations by establishing a 15% percent tax on total monthly gross gaming revenues with a minimum tax of $10,000 per month. Because the tax is structured as a “general tax” within the meaning of Proposition 218, its proceeds may be used for any governmental or public purpose, including, but not limited to, the construction, maintenance and repair of public infrastructure like streets and parks; recreational programs; departmental staffing; police and fire safety services; code and parking enforcement services; and other unrestricted general revenue purposes.

Precisely how much money the tax will raise will depend on the number of casino licenses that may be issued for operations in the City of Cudahy (“City”) and the amount of gross gaming revenues generated by such operations if they were to come into existence. It is believed that at a minimum, however, the tax will generate $120,000 per year in general tax revenue. It should be observed that passage of the Measure does not mean a casino will ever be built in the City. The establishment of a casino will require separate approvals that are not granted by passage of the Measure.

Because the proposed tax is structured as a general tax, it must be approved by at least a simple majority (50% plus 1) of votes cast by Cudahy voters at the City’s General Municipal Election of November 6, 2018. If the Measure fails to receive this minimum percentage of required “Yes” votes, the Measure will fail and the City’s existing tax will remain the same.[2]

—Cudahy City Attorney

Path to the ballot

See also: Laws governing local ballot measures in California

This measure was put on the ballot through a vote of the governing officials of Cudahy, California.

See also

External links

Footnotes

  1. County of Los Angeles, "Current and Upcoming Elections," accessed September 30, 2018
  2. 2.0 2.1 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.