05/21/1979 Meeting - Laserfiche WebLink

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hundred with exemptions outlined in the distributed material. With information taken from the Records Office, it is estimated that the transfefr dta~ ~ould :aise ovetrh$3.mthil~ifonl a.year. dThe ladlvafntfagtes arteh ~ ease 0 a mlnlstratlon, grow Wl ln atlon, an sma e ec on e homeowners. It is considered by some to be a good curb on speculation. The disadvantages are that it adds to the cost of buying and selling a house and the income from the tax is not steady, but based on the housing market. Manager noted the Gross Receipts of Business Tax was developed three or four years ago by a Revenue Subcommittee of the Budget Committee. It was rejected by that committee. The tax is based on gross receipts of businesses. The tax rate is by category of business, depending on profits-to-receipts ratio. There is a minimum $25 fee and an initial $10 registration fee. The advantages are that it is a stable source of income, it can be collected indirectly throughout the trade area, and it can be deducted from income tax. The disadvantages are busi- nesses feel that it hurts them competitively, and it has high adminis- trative costs in record keeping and auditing. Mr. Lieuallen noted that this was not a decision on the merits of the taxes, but whether to put the measures on the ballot. Public hearing was opened. Those speaking in favor of placing the tax measures on the ballot were: Janet Calvert, League of Women Voters of Central Lane County, urged ~ the Council to place the measures on the ballot. She asked the City to provide a clear education program and said the League would help in providing education to the citizens. Those speaking against placing the tax measure on the ballot were: William Neal, American Institute of Architects, felt the building industry now carries a great deal of tax burden, and additional fees were being added to the overburdened segment of the population. In the three-legged stool of taxation, he felt several legs were the building community. Mike Schwartz, 2390 Lariat, urged the Council to vote against the gross receipts tax on business. He felt it would put Eugene businesses at a competitive disadvantage. Emerson Hamilton, 3232 West 5th, urged the Council to vote against both tax measures, to cut spending, and to use the property tax for revenue. He cited the unfairness of averages in determining tax rates, the individual business expense, the competitive disadvantage - 2g~ 5/21/79--4