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About Oregon daily emerald. (Eugene, Or.) 1920-2012 | View Entire Issue (June 30, 1983)
CIEE STUDENT R * Lowest fares to EUROPE/ASIA, SOUTH PACIFIC/AFRICA * EURAILPASSES / INTL ID/AYH issued on the spot! ‘USSR BUDGET TOURS •EUROCENTRES -- Intense language study centers ‘WORK ABROAD PROGRAMS 1314 NE 43rd #210 Seattle. WA 98105 Vr Senate seeks sales tax alternative Fadeley’s committee wants sales tax ‘unconstitutional’ By Brooks Daref! Of tha Emarald Having done its best on Monday to dispatch the five pages of sales tax legislation to the dust bin of history, the Select Committee on Con stitutional Revision of Finance will focus its energy on sen ding to the Senate floor an alternative plan to generate property tax relief, one that will probably hinge on increas ing income tax revenue. On Monday the select com mittee endorsed the proposal VWs - MERCEDES - BMWs DATSCJN - TOYOTA - AUDI Reliable Service For Your Foreign Auto 342 2912 2025 Franklin Blvd r nfryyyvTffyyyvyry»r0 * Shutterbug coupon • All Photography Books OFF REG. PRICE Coupon F»pir»» 7/1 >83 Sr8T<rcTrvrnTr&Tfr Shutterbug coupon Picture Frames 20% off our reg. price on all frames in stock > Coupon Expires 7/1/83 trvTmmmmmrnTfl rnmmmnrrrrrrrtrrt Shutterbug coupon Cokin Filters 25% OFF REG. PRICE Coupon Expira* 7/1/83 •ymTyvrryyrvm Shutterbug coupon Jumbo 3 1/2x5 Prints from Slides 35mm, 126 only 3/99c Limit 12 ProcosBing by KS K Color Lsb Coupon Expire* 7/1/83 of committee-creator and Senate Pres. Ed Fadeley, D Eugene, to declare unconstitu tional the imposition of a sales tax as a means of generating state revenue. The proposal does not rule out the fourth part of an alter native plan discussed by the select committee over the weekend, which officially pro vides counties and municipalities with the power to levy any tax, including a sales tax. A Senate vote on the select committee proposal has not yet been scheduled, said Mary Beth Allen, an aide to Fadeley. On June 18 the House pass ed a sales tax package by just one eleventh-hour vote, when House Minority Leader Larry Campbell, R-Eugene, switched his vote just before House Speaker Grattan Kerans, D Eugene, was about to let the gavel fall. The 4 percent sales tax package is estimated to relieve property taxes by about 45 percent. The select committee’s pro posal could be the beginning of the end of the game of hot potato the legislature has played with the sales tax, but play could continue with the general question of property tax relief. Fadeley hopes to have all work on unfinished bills com pleted by the end of next week, says Allen, except for the question of property tax relief and the overall balancing of the state budget. If the Senate passes the select committee's proposal to declare a sales tax un constitutional, any alternative property tax relief package prepared by the committee would be sent to the Senate floor. If it passed, it would go fo the House where sales tax support would undoubtedly be enough to defeat it, says co author of the sales tax legisla tion, Rep. Tony Van Vliet, R Corvallis. At that point joint con ference committees would at tempt to draw up some alter native to the tax relief package, which would then have to be approved by both the House and the Senate, says Allen. To complicate the situation further. Gov. Vic Atiyeh has said he'll call the legislature back into session if they don't come up with what he con siders to be a responsible pro perty tax relief package. Atiyeh may not accept a public referendum which would "put a gun to the peo ple's heads," and pass the hot Emerald photo Senate Pres. Ed Fadeley's select committee is out to ban a statewide sales tax potato of property tax relief to the general public, says Allen. Atiyeh's plan calls for an ex pansion of the Homeowners and Renters Refund Program, which he has dubbed Super HAARP Agreement on an alternative property tax relief plan will be extremely difficult to attain, because both businessmen and the powerful Oregon Education Association sup port a sales tax, says Allen. The OEA wants to head off a no-holds barred, proposition-13-type, anti property tax movement that they fear could result from a watered down or non-existent property tax relief plan, says Allen. The key to Fadeley’s proper ty tax relief plan is an income tax increase of 0.5 percent on adjusted gross income that would generate about $277 million, says Allen. Fadeley’s plan would eliminate tax loopholes and tax shelters and drop the cur rent income tax exemption figure from $7,200 to $5,500 — raising another $326 million. Add this to the $175 million already allocated for HAARP and the total amount of pro perty tax relief, totalling $778 million over the biennium, is about 50 percent of what the sales tax plan would generate in relief. Allen says the figures can be deceiving. Fadeley doesn’t think adding an additional tax — the sales tax — really ends up lowering taxes for the ma jority, says Allen. This is especially true because a sales tax hits middle and lower-income people the hardest. Q0P| pQ Continued from Page 3 of other ASUO organizations. In that vote, students over whelmingly decided that OSPIRG be supported by a per student fee taken each term from student incidental fees. Most ASUO groups submit budgets to the Incidental Fee Committee for approval. 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