City Audit Committee Objects to Proposed ‘Cat Tax’

The city's Audit Committee on Monday objected to a proposed "cat tax" that staff hope will generate revenue and protect public health by requiring cat owners—like dog owners—to register their pets and vaccinate them against rabies.

"The very population that presents the rabies risk isn't going to be covered under this government tax," said San Diego City Councilman Carl DeMaio. "When you really peel back the logic, the only sense that this makes is from a monetary sense. You're trying to get money."

The so-called "cat tax" was one of 10 recommendations from the Office of the City Auditor presented in a performance audit of the financial agreement between the city and the County of San Diego Animal Services. The committee, in a 3-1 vote, accepted the report with a note objecting to the recommended fees for cats.

"Now is not the time to do that," Councilman Kevin Faulconer said, citing the ongoing economic woes.

Auditor's Office staff said the fees on cat owners would more fairly share the cost of animal services, which the city's estimated 373,000 cats also have access to.

"From the City’s cost perspective, not registering cats places the burden of paying for the City’s liability unfairly on dog owners and the general tax payer," the report states.

Staff, citing data from national organizations, also argued that not requiring cat rabies vaccinations jeopardizes public health. DeMaio and Faulconer, however, questioned what the local risk is and how that national data applies to San Diegans specifically.

According to the report, the percentage of rabid cats in the U.S. increased 12.2 percent between 2007 and 2008, while the percentage of rabid dogs decreased during the same period.

State laws require dogs to be registered and vaccinated. A number of low-cost vaccination clinics are available around the county. Animal Services charges between $14 and $72 for dog registration, depending on whether the animal is spayed or neutered, and the length of the registration. Auditor's Office staff estimated that cat licensing between 2008 and 2010, with a 5 percent compliance rate, would have brought in an additional $536,350 in net revenue. The net figure accounts for additional staff and cost recovery expenses.

The report could come before the City Council within the next month or two. The performance audit comes amid as city staff try to realign the shared costs between the city and county. Staff say San Diego bears a disproportionate share of county animal services, which are also offered to unincorporated areas and Carlsbad, Del Mar, Encinitas, Santee, and Solana Beach.

According to the report, San Diego pays about $1.1 million for other areas' costs. Between July 2007 and June 2010, San Diego accounted for 59.1 percent of service requests, but paid 64.8 percent of the actual shared cost. Beside the aforementioned "cat tax," the report recommends renegotiating the allocation formula with the county and improving dog license compliance to cut costs. City staff, in a response in the report, said they must abide by current allocation formulas for at least one more year unless county officials agree to negotiate.

The contract costs the city about $7.5 million a year from the general fund and another $1.5 million from resident fees, according to the report. The current contract runs through fiscal year 2013.