08/10/1992 Meeting (2) - Laserfiche WebLink

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e new taxes (70 percent). The restaurant tax and hotel room tax each received a majority of support. The least preferred taxes were the personal income, payroll, and property tax. Mr. Boles commented that the City Council recognizes that the City must solve its financial difficulty without relying on the State. Responding to a question from Mr. Edmunson, Mayor Miller said the restaurant industry has recently organized to gather signatures in opposition to a local restaurant tax. Mr. Rutan said that Lane County Commissioner Jerry Rust held a press conference earlier today to announce a proposal regarding a county- wide increase in the hotel room tax, and that he understood that the hotel/ motel industry would be supportive of such an increase. Responding to a question from Mr. Rutan about preemption, Mr. Hosticka said it was possible that legislative action could preempt local home rule authority. Ms. Bell said that public support for new taxes in Oregon was very limited and that a cap on any new tax would have to be incorporated into the State Constitution to have a chance of being approved by the voters. Mr. Edmunson noted that the real estate industry successfully lobbied the legislature to pass legislation which preempted local home rule authority regarding local real estate transfer taxes. He said that the more broader-based a new tax is, the greater likelihood that it will receive the legislature's attention. Responding to a question from Ms. Ehrman, Mr. Hosticka advised that if the legislature approves a statewide tax measure which is similar to one that has e already been enacted at the municipal level, the statewide measure would likely include a grandparent clause, allowing the existing municipal tax to continue. He pointed out that the only significant increases in State taxes have been enacted by the legislature itself and added that tax measures that have been referred to the voters have all been defeated. Mr. Edmunson said that taxes that are narrower in scope usually receive greater public support. Mr. MacDonald asked representatives to consider how the City could work together with the legislature to address the state's financial difficulties. Mr. Boles expressed concern about a potential reduction in State revenue- sharing which would be a disproportionate burden for the City to carry in solving the State problem. Ms. Bell agreed with Mr. MacDonald that solving the state's financial diffi- culties will require a team effort and added that cooperation was a two-way street. She expressed concern about a local tax measure being placed on a November ballot, saying that it could generate negative feelings locally and possibly have a negative impact on the legislative session next year. She noted that she did not hear input from municipalities, including Eugene, regarding the Governor's Plan. Mr. MacDonald responded that the legislature itself had minimal time to review the Governor's Plan. Responding to a question from Mr. Green about representatives' perspective on the Eugene Decisions process, Mr. Edmunson said that the Eugene-Springfield e MINUTES--Eugene City Council August 10, 1992 Page 2 6:30 p.m.