County to study income tax vote.

Byline: Matt Cooper The Register-Guard

Lane County residents can speak for or against an income tax for public safety at two hearings next month, after county commissioners agreed Tuesday to consider putting the issue before voters in November.

The commissioners want an annual tax of no more than 1.5 percent on personal and business income, to generate an additional $25 million each year to fight methamphetamine abuse and family violence while increasing prosecution, incarceration and treatment programs.

If voters are convinced in November, the county would become the only one in the state with a personal income tax. Lane also would become the second county with a business income tax. Multnomah has had that tax for years, the state Department of Revenue said.

The commissioners have split their pursuit of the income tax into two parts: A commission resolution and a voter-approved amendment to the Lane County charter.

The resolution would state the commissioners' intent to levy the tax, as well as to provide partial relief from property taxes. The amendment, which commissioners will ask voters to approve in November, would cap the income tax rate at 1.5 percent and dedicate it to public safety alone - specifically, meth abuse and the other areas.

The commissioners could enact an income tax without voter approval. But they would risk political repercussions from doing so. Also, if they were to enact the tax now on the condition that voters support the charter change - and voters instead reject that change - the commissioners would be hard-pressed to continue seeking an income tax without risking public reaction.

So, by adopting only a resolution of intent, the commissioners can react to unknowns in the coming months, including public feedback on the tax and the future of federal funding, board Chairman Bill Dwyer said.

"I want to hear from the public," he added. "If they say no to the charter amendment, and you tie the (tax) ordinance to it, you've painted yourself into a hole."

Under the proposal commissioners settled on Tuesday, the tax limit and its purpose would be set in the charter and could only be changed by a vote of the public.

Terry Connolly, of the Eugene Area Chamber of Commerce, struck a positive note regarding the board's direction.

The chamber could be a powerful player for or against an income tax, and Connolly said members generally favor that tax as more equitable than others the board has dismissed, including sales or gross-receipts taxes.

"Can I say that everyone will be on board with (an income tax)? No," Connolly said. But, he added, businesses recognize that a public-safety system is critical to the business climate, economic development and the quality of life.

To partially offset the impact on the public of the income tax, the commissioners would reduce property taxes by up to 95 cents per $1,000 of property value. The current rate to pay for county government is $1.28 cents per $1,000 of value.

The refund would be issued as credit, Dwyer said. By doing so, he said, the commissioners would block other taxing districts from raising their property tax rates to eat up the savings that the commissioners intend for all residents.

The tax would not apply to people who make $20,000 or less annually and businesses that make $25,000 or less annually, budget manager Dave Garnick said. Those with personal or business income above the two limits would be taxed for their entire income, although there would be protections against taxing the same income twice, he added.

WHAT'S NEXT

The Lane County commissioners will hold two public hearings on an income tax for public safety. The issue is likely to go before voters in November.

June 14: 1:30 p.m., Harris Hall, Public Service Building, 125 E. Eighth Ave., Eugene.

June 28: 6:30 p.m., same location.

For more information: Call 682-4203.