09/10/1985 Meeting - Laserfiche WebLink

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Mr. Wong said the act would be administered by the state department of e revenue, with set-up costs of about $400,000, including a separate form, instruction book, and software system. Mr. Wong also said the act provided for a reciprocal agreement with other cities that might enact an income tax, in order to avoid double-taxing. Mr. Hansen said he would prefer a deduction for Eugene residents working in Springfield, rather than excluding Springfield residents from the Eugene tax. Mr. Wong said that deduction was possible. Ms. Wooten asked about five A and B on Page 2, and Mr. Lashway said it was a definition of the term "doing business" and excluded income derived from sales activity inside the city, by non-residents, for orders to be filled outside the ci ty. He said B referred to wholesale activity. Ms. Wooten asked about the definition of resident on Page 3. Sta ff sa i d someone residing in the city for more than 200 days, for example a visiting professor, would be subject to the tax unless he or she proved transitory statu s . Ms. Wooten asked about the definition of permanent place of abode, and Mr. Lashway said that applied to students, for example, residing in Oregon for 1 ess than 30 days. Responding to a question from Ms. Ehrman, Mr. Wong said it would take about a week to prepare informa ti on on a corpora te income tax. e B. Sa 11 ot Measure Mr. Wong distributed a September 10, 1985 memo containing a draft ballot measure and charter amendment. He sa i d the Counci 1 a 1 rea dy ha d the ri ght to impose an income tax without voter approval, and the charter amendment would restrict the personal income tax rate to 1/2 percent and dedicate the funds to capital expenditures and administration. Any change to the rate or use would require another vote on a charter amendment, he added. Mr. Wong said approval would mean that income tax revenue could not be used for opera ting expenses, but only for ma intenance of existing infrastructure, creation of new capital infrastructure, or major repair and renovation, and he said those conditions did not necessarily have to be included. Mr. Rutan asked whether any of the revenue could be applied to principal or interest payments on the Hu1t Center or on operating expenses. Mr. Sercombe said he did not have an answer without studying legislative history, and he reconmended direct legislation. Mr. Lashway said the bond indenture for the Hu1t Center bonds would preclude using the income tax to service the debt, and Mr. Wong said default difficulties could be encountered. Mr. Hansen said he thought the capital improvements terminology was too unclear to be used. e MINUTES--Eugene City Council Revenue Work Session September 10, 1985 Page 4