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<br />e <br /> <br />e <br /> <br />e <br /> <br />corporations to add back compensation of controlling shareholders (those with <br />five percent or more ownership of the corporation). <br /> <br />Mr. Miller asked if US" corporations were excluded from the Multnomah County <br />tax. Mr. Mounts said no. Mr. Miller pointed out that owners of such <br />corporations must take any profits from the business as income, and must pay <br />both income and corporate taxes on the profits. <br /> <br />Mr. Mounts said that he would provide the council with information from <br />Multnomah County regarding the business net income tax. Responding to a <br />question from Mr. Boles, Mr. Mounts said that he had not had time to examine <br />the information provided by the Department of Revenue and could not give an <br />opinion about the equity of the tax. Mr. Boles asked to what extent would <br />including the salaries paid to the major shareholders increase the amount of <br />the tax. Mr. Mounts said he did not know. The Department of Revenue had not <br />been willing to offer an estimate of how the inclusion of stockholder <br />salaries would change the revenue yield. <br /> <br />Mr. Boles said that he wished to ensure that the council's revenue selections <br />did not result in double-taxation of any business or person. He noted that <br />76 percent of the respondents to City-sponsored surveys indicated their <br />preference for a mix of revenues. <br /> <br />Ms. Ehrman asked if the gas tax could be used to support parking. Deputy <br />Director of Public Works Terry Smith indicated that the Oregon Supreme Court <br />is discussing the potential of using the gas tax to support road-related <br />items such as air emission reduction programs which affect parking. He said <br />that at the present time, the gas tax could not be used to support off-street <br />parking. The gas tax is currently limited to those facilities supporting <br />transportation within the street right-of-way. Responding to a question from <br />Mr. Robinette, Mr. Smith confirmed that gas tax revenues could be used to <br />support street trees. <br /> <br />Ms. Bascom asked when the council would discuss the relationship of its <br />revenue choices to State and County actions. Mr. Robinette suggested that <br />the discussion depended on the revenues the council considered. <br /> <br />Mr. Miller maintained that the City should examine the property tax as a <br />revenue source. If the council decided to seek a levy that increased the tax <br />rate by $1 to dedicate to public safety or the library and the County also <br />decides to seek a property tax increase, compaction would result in an <br />approximate 90-10 split in the yield, with 90 percent of each dollar going to <br />the City. <br /> <br />Responding to a comment made by Mr. Nicholson, Mr. Robinette suggested that a <br />combination of corporate and personal income taxes would avoid the problem of <br />double taxation and capture revenues from closely held corporations. Mr. <br />Nicholson agreed. <br /> <br />Mr. Rutan suggested that the council had tentatively shown support for a <br />combination of corporate, personal income, gas, and property taxes. He said <br /> <br />MINUTES--Eugene City Council <br />5:30 p.m. <br /> <br />April 22, 1992 <br /> <br />Page 3 <br />