10/14/1985 Meeting (2) - Laserfiche WebLink

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$7,500 or less and a system of credits for people with incomes of $7,501 to e $10,000. It also includes a dedication of revenue to capital improvement projects and the debt service for the airport and library expansion. Motor- ized and computer equipment have been added to the capital improvement pro- jects. Mr. Wong distributed a page titled "Taxable Income Under City of Eugene Income Tax Proposal II to the council. He recommended the council not take official action on the ordinance until after the vote on November 5, 1985. Ms. Schue suggested the Library Board consider a recommendation to issue library cards to non-residents who pay the city income tax. No councilors objected to the suggestion. Ms. Wooten asked Ms. Schue or Mr. Gleason to convey the suggestion to the Library Board. Mr. Wong answered questions from several of the councilors about the proposed income tax. He said a resident of Springfield who works for International Kings Table in Springfield would not pay a Eugene income tax even though the company headquarters is in Eugene. A subcontractor who works throughout the state and has a business address in Eugene would pay a city income tax on all income if the business is not incorporated. If the business is incorporated, the subcontractor would pay a city income on his or her salary from the cor- porati on. Lee Lashway, a City attorney, said a person who lives outside Eugene and works for Lane Community College in downtown Eugene would pay city income tax on that salary. e Referring to Section 3.612 of the ordinance, Mr. Hansen said the capital improvements that will be financed with the income tax should be specified. Responding to the comment, Mr. Wong distributed a page containing an alterna- tive for Section 3.612 which included the definition of capital projects in the Capital Improvement Program (CIP). Mr. Gleason added that the ultimate control of the revenue is in the budget process. Mr. Hansen said the definition of capital projects in the CIP was not specific enough. He would like details in the ordinance about how the income tax will be used for the airport and library expansions as well as the CIP. However, the alternative for Section 3.612 was better than the first wording. Answering a question from Mr. Miller, Mr. Gleason said items which cost less than $5,000 could be financed by the income tax if they are part of a new project. Referring to Section 3.604 (4), Mr. Holmer suggested the word "may" be changed to "shall" so that Eugene woul d have agreements wi th other ci ti es that woul d provide reciprocal exemptions. Mr. Hansen responded to Mr. Holmer's suggestion by saying that the Eugene ordinance indicates that income taxes paid to other cities are deductible. Other cities that have income taxes should provide for deductions. He woul d let each city protect its own citizens. He said people who work in Eugene should pay the income tax because one of the goals of the proposal is to provide an opportunity for people who live outside Eugene to help pay for e things they use in the city. He opposed reciprocal exemptions and would like to delete Section 3.604 (4). MINUTES--Eugene City Council October 14, 1985 Page 11