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Torrico bill would cost Fremont revenue

By Matt Artz
Thursday, July 16th, 2009 at 4:54 pm in Uncategorized.

From Torrico’s spokesman:

As written, the bill is a full exemption on the sales and use tax so it would affect local revenue.  However, any loss would be substantially lower than if the plant were to close. Majority Leader Torrico is looking at a variety of options and the bill is likely to be amended as it moves forward.

 

Sales and use tax are key components of the $280,000 the city got from NUMMI last year, not counting the $1.9 million it got in property taxes. When NUMMI retools for a new model, the use tax Fremont collects can increase by about $300,000.

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  • Marty

    So Torrico, do I get a tax exemption if I buy a NUMMI vehicle?

  • Eyesbright

    If this exemption is only worth $280,000/year to NUMMI, I trust that it’s meant to be a token gesture. Something tells me that this bill will be amended multiple times – and, by the time our illustrious political reps have agreed on anything, it will be too late.

  • Jon Simon

    If NUMMI closes, it’s got nothing to do with what Torrico or Wasserman. It’s the economy. We can lay blame at the feet of poor regulation.

  • http://www.ishanforcouncil.com Ishan Shah

    Torrico’s slipping a tad IMO. I’m starting to do a little background research on Kamala Harris, his opponent for Attorney General. He’s supposed to make sure the cities that comprise his constituency are protected by legislation, he’s NOT supposed to introduce a bill that would cost us… equal to kicking us while we’re down in this economic slump.

  • Marty

    Well, considering Eyesbright’s comment about the 280K being a token gesture and a negligible portion of NUMMI/Toyota’s business, I have to say I agree with you, Ishan.

    This will be essentially a $280,000 campaign contribution to Torrico’s campaign paid for by the City of Fremont.

    F&*@$#g politicians. Torrico should feel lucky to be running against a destructive twit like Harris.

  • http://www.ishanforcouncil.com Ishan Shah

    The AG race is going to boil down to picking the lesser of two evils, a close call…

  • jattni

    Ishan, losing Nummi would cost the city wayyy more revenue than Torrico’s bill would cost the city. For example, if we lose Nummi, there are plenty of small businesses that would close, and wouldn’t be able to contribute to Fremont. Maybe you need to learn some cost-benefit analysis. Perhaps they’ll teach you that in econ your senior year?

  • Marty

    Jattni,

    I don’t disagree with you. But, I think the point is the 280k is a non-factor in Toyota’s decision. Instead it is a convenient way for Torrico to buy the votes of the 5,500 who work at NUMMI with Fremont’s money.

  • http://www.ishanforcouncil.com Ishan Shah

    Jattni you are precisely right to say that NUMMI closing would be a devastation to small business owners in the area. My father is a small business owner and that is how our family makes a living. I like to believe I’m aware of cost-benefit :] but maybe you’re right, I’ll get some additional info next year.

    To counter you’re statement I’m going to agree with what Marty said. The ultimate decision lies in the hands of Toyota. They haven’t come out and said that they are leaning towards closing the plant, so why are we considering giving help when it has not yet been asked for, nor its necessity implied? Unfortunately Assemblyman Torrico is a tad more concerned about securing votes rather than what’s in the best interest for our city.

    Unfortunately we just can’t afford to be losing giant chunks of tax revenue just now. The Assemblyman should wait and see what happens instead of rushing out to excuse taxes.

  • jattni

    I’m pretty sure Assemblyman Torrico doesn’t have to worry about securing votes in Fremont. He was re-elected by a pretty wide margin. And if there’s anything he can do legislatively, as an Assembly member to save Nummi, then it’s his responsibility to do so.

    And please don’t tell me you’re not interested in securing votes. Save the self-righteousness :)

  • Californiaguy

    Assemblyman Torrico is incompetent as a Assemblyman.
    His expertise is sponsoring feel good, non controversial bills. What was his role in solving the budget mess, nada.
    He is a true politician who does legislation to benefit him, not the people that he represents. His office mate and buddy Bobby Y Kow Ski will be running for his assembly seat.
    Why do the voters elect people like that, just because they are Democrats? Is incompetence a trendy thing now, it seems to be effecting a lot of local politicians

  • Marty

    I’ll add that Torrico was one of 15 state lawmakers who signed the letter encouraging BART management to sustain the exhorbitant salary packages that are running BART into the red.

    And, Torrico stated in late June that 5% salary cuts for state employees would not be considered as a method to resolve the budget.

  • Perry Masonary

    First, if incompetence was a bar to public office, we’d be forced back to true citizen government. Professional politicians are the bane of efficiency and, in some cases, common sense.

    Second, Democrats don’t specialize in incompetence. There’s plenty of that on both sides.

  • jattni

    Umm, I was just commenting about Torrico’s effort to save Nummi and the debate about it costing the city, but somehow this thread devolved into an anti-Torrico screed. My point was that if he’s doing whatever he can in his purview as our state representative to keep Nummi, then that’s all anyone can ask.