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<br />e <br /> <br />e <br /> <br />e <br /> <br />packet included details of the adjustments council has made over the past <br />week. <br /> <br />Regarding corporate and personal income taxes, Mr. Mounts said that the first <br />schedule demonstrates results of these taxes in increments of 5 percent and <br />.05 percent, respectively. He said that approximately 7.5 percent of the <br />total base against the total personal income tax is business-related. <br /> <br />Mr. Mounts said that the Department of Revenue bases its charges on the number <br />of returns the City generates, not the amount of revenue that it collects. <br />Mr. Mounts explained the figures in the handout which represent revenues <br />required to balance Strategy A. He said that if the council wishes to achieve <br />a 50/50 split between personal income tax and corporate income tax, a .10 <br />percent tax on personal income and a 1.5 percent tax on corporate income would <br />be necessary. <br /> <br />Mr. Nicholson expressed hesitance about overburdening poorer members of the <br />community. The council briefly discussed the possibility of allowing a <br />personal income exemption, so that not all personal income would be taxed. As <br />requested by Mr. Nicholson, Glen Svendsen from the Eugene Decisions project <br />team provided figures which revealed that a tax of .25 percent on the portion <br />of personal income over $10,000, accompanied by a 1.5-percent corporate income <br />tax, would result in a similar 50/50 split. <br /> <br />Mr. Nicholson moved, seconded by Ms. Ehrman, to approve a <br />personal income of .25 percent tax on the portion of an <br />individual's income over $10,000 and a corporate income tax of <br />1.5 percent. <br /> <br />In response to a question from Ms. Ehrman, Mr. Boles said that there are <br />approximately 4,400 businesses in Eugene. Mr. MacDonald wondered whether <br />staff had based its analyses and suggestions on existing programs in other <br />communities. He said that the corporate tax rate could be reduced to 1.3 <br />percent. Mr. Mounts agreed, but cautioned against reducing it at this point, <br />since the figures are estimates. Mr. Robinette felt that the suggested <br />percentages were adequate starting points. Mr. Nicholson reiterated his <br />concern that recommendations emerging from the Eugene Decisions process may <br />shift more financial burdens on to those in the community who already cannot <br />afford many City services. Ms. Ehrman shared his concern, and supported the <br />concept of allowing a the suggested personal income tax exemption. <br /> <br />Ms. Bascom wondered how the City has allowed corporate representatives to <br />provide input. Staff agreed to provide a summary of the citizen/interested <br />party participation process, which would include a summary of methods and <br />results of the tabloid. Mr. Boles requested an impact statement from the <br />Department of Revenue regarding administration costs of implementing the <br />personal/corporate income tax. <br /> <br />The motion passed, 6:1 (Mr. Green opposed). <br /> <br />The council directed its attention to the revenues required to balance <br />Strategy B. <br /> <br />MINUTES--Eugene City Council <br />5:30 p.m. <br /> <br />Apri 1 23, 1992 <br /> <br />Page 2 <br />