news
The Taxman Cometh?
CITY COUNCIL PURSUES PAYROLL TAX
DESPITE FLAWS NOTED IN 2014 AND AGAIN IN FEBRUARY
By Henry Houston
M
ore than half of the public
testimony given to the Eugene
City Council May 28 opposed the
proposed payroll tax for public
safety. Some speakers received
claps and cheers, leading Mayor
Lucy Vinis to request silence
from the audience.
If the City Council passes City Manager Jon Ruiz’s
recommendation of a 0.4 percent on employees and
0.2 percent on minimum-wage workers and employers,
Eugene would be the first municipal government in
Oregon to impose a payroll tax. Most of the revenue —
65 percent — would increase funding for Eugene Police
Department.
Part of what informed the city’s discussion on
tax mechanisms came from a 2014 revenue report.
Although the team of citizens who compiled the report
didn’t recommend the tax at that time, the City Council
still approved the idea as a potential revenue maker
despite other associated costs pointed out by city staff
during a Feb. 23 City Council work session.
Marty Wilde, now a state representative, worked on
the 2014 revenue team that explored two dozen other
tax mechanisms to raise money for the general fund.
slant
• Reading this Slant column and hungry for more
opinions about what’s going on in Lane County and
Oregon? This week you can find our Local and
Vocal columns, written by your fellow community
members, at the back of the paper (not far from
everybody’s favorite writer, Dan Savage). We’re
always looking for opinions on issues that affect our
readers in letters and columns, so send them in to
letters@eugeneweekly.com.
• An appalling editorial ran in The Register-
Guard June 3. Under the headline “College degrees
are a privilege,” the GateHouse-owned newspaper
argued that not only is a college degree “not a right”
for Oregonians, but that the University of Oregon
is perfectly justified in boosting undergraduate in-
state tuition by 10 percent (a “moderate increase,”
the RG argues) while refusing to make cuts in its
multi-million-dollar sports business. No, we don’t
think higher education should be free. But education
is a right that should be accessible to all Oregonians,
and not just those from the wealthy and privileged
corporate classes.
At the time, the city was looking at ways to raise money
to fund the city’s operations. The Great Recession’s
impacts had hit Eugene, and the budget committee
wanted to see what taxes might increase revenue to
avoid further cuts.
The 2014 revenue team also said certain employers
would be exempt. That’s because of intergovernmental
immunity, a law that prohibits governments from intrud-
ing on other governments’ sovereignty — in this case, tax-
ing government employers. That leaves out some of the
largest employers in Eugene: the University of Oregon,
Lane County government and Eugene School District 4J.
While government employers would escape the 0.2 per-
cent tax, government employees would still be taxed.
Other tax mechanisms discussed by the team
included red-light cameras, personal income taxes
and an admissions tax. One tax recommended by the
revenue team recommended a 5 percent restaurant
tax, which the group estimated could bring in about
$15.5 million before administrative costs.
The City Council heard more about the costs
associated with the payroll tax during its work session.
Implementing such a tax wouldn’t be free. Having
the state Department of Revenue (DOR) collect the tax
would cost $1 million up front.
• Can it possibly be true that Art Robinson is
running once again against Peter DeFazio for
his congressional seat? The jillionaire Mercers
seem to have been persuaded that 2020 is the
year that extreme right Robinson can win. Don’t
think so. DeFazio is now the powerful chair of the
transportation and infrastructure committee in the
House. We’ll just have to defeat Robinson one more
time.
• The riderless horse with the riding boots
reversed in the stirrups was a profound tribute
to the late Oregon Federal Judge Owen Panner
in a celebration of life June 1 at the Panner family
horse arena outside Medford. Judge Panner, who
lived from July 28, 1924 to Dec. 20, 2018, was
appointed by President Jimmy Carter to serve as a
U.S. district court judge in 1979. Judge Anna Brown
presided over the service, asking for the brevity
Judge Panner famously favored in his courtroom.
More than 200 lawyers, judges, family and friends
gathered on a warm Saturday afternoon for this
unusual ceremony that closed with the riderless
horse led twice around the Panner family horse
arena representing a fallen leader who will ride no
more.
Then the city would pay DOR $600,000 annually, a
base level that could increase if there are complexities
to the tax; the amount is likely to increase since
minimum wage workers would be taxed at a lower rate.
After the May 28 City Council public forum, it seems
that the council is considering some adjustments, like
exempting Springfield residents who work in Eugene.
The city could administer the tax itself, but that
would cost twice what DOR charges.
DOR would need to set up the tax, and it would take
years to collect close to the full amount, according to the
city. The city says public services — such as EPD — need
an annual increase of $23 million to operate sufficiently.
The payroll tax wouldn’t provide that amount until
2025. City projections show the initial collection rate of
revenue would be 75 percent in 2021 and increase by 5
percent until reaching 97 percent in 2025.
Laura Hammond, a spokesperson for the city, says it
will roll out the enhanced services and programs based
on anticipated funding. It could take years until the city
fully implements the programs.
During the Feb. 23 work session, councilors and the
mayor weren’t interested in having citizens vote on
the payroll tax because of the urgency of replacing an
18-month one-time bridge funding of $8.6 million, which
would end if the tax went on the ballot in November.
“If it’s approved, it wouldn’t meet our July 2020
deadline,” Vinis said during the February work session.
“We wouldn’t be able to implement it that fast. You
would be facing another funding gap decision.”
Eugene citizens could refer the ordinance for a
public vote if the City Council passes it. It would take
5,394 signatures to refer the ordinance. ■
The City Council will discuss the payroll tax again during a work
session 5:30 pm Monday, June 10, at Harris Hall, 125 E. 8th Avenue.
• Juliana v. United States was argued at the Ninth
Circuit Court of Appeals June 4, with thousands
following the case via the hashtag #AllEyesOnJuliana.
At issue was whether the “climate kids” will get
their day in court. Concerned citizens, youth
and adults alike, are taking this and other climate
lawsuits to court because our local, state and
federal governments aren’t doing enough to stop
climate change. In an era where our own president
is foolish enough to doubt the science behind global
warming it’s an uphill battle, but a worthy one.
• Bend and its environs filled a full page in The
New York Times travel section Sunday, June 2. The
marketing was a little weird: “…Central Oregon
is home to the world’s last Blockbuster store and
it’s known for its proliferation of cannabis
dispensaries and craft breweries.” The author,
Dave Seminara, also mentioned a “popular local
bumper sticker” that reads “Bend Sucks, Don’t
Move Here.”
SLANT INCLUDES SHORT OPINION PIECES, OBSERVATIONS AND RUMOR-CHASING NOTES COMPILED BY
THE EW EDITORIAL BOARD. HEARD ANY GOOD RUMORS LATELY? CONTACT EDITOR@EUGENEWEEKLY.COM
E U G E N E W E E K LY . C O M
J U N E
6 ,
2 0 1 9
9