Item B: Funding Strategies for Transportation System Operations, Maintenance, and Preservation

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The commuter tax would be an ongoing revenue source, fluctuating from year to year to Assessment of the extent that there are swings in the number of non-resident workers or their personal Financial income earned within the City. In times of a general economic slowdown, revenue would Stability and drop, then rise again in a recovery. Long-term changes in the distribution of metropolitan Political area urban development, business location decisions and City annexation practices would Feasibility affect the growth in revenue from a commuter tax. Political feasibility of a commuter tax is difficult to judge since it is a new idea in Oregon. Implementation of a payroll tax or per capita business license fee would be of concern to Eugene employers. A non-resident income tax would potentially be of concern to unincorporated Lane County, Springfield, Junction City and other area cities, since residents of those jurisdictions would be subject to a City of Eugene tax. Eugene residents who work outside the City might be concerned that they would potentially be subject to a commuter tax implemented by another jurisdiction if this type of tax were to come into widespread use in Oregon. Any commuter tax ordinance could be subject to a referendum petition to require a vote, although the people subject to a non-resident income tax would not be able to refer the ordinance. Potential positive economic effects could offset potential negative economic effects. An Potential example of a possible positive effect is that the revenue from the commuter tax could go Economic to sustain important services and essential infrastructure and facilities within the City of Impacts Eugene that help maintain livability and a healthy business environment and so preserve jobs. On the other hand, a payroll tax or per capita business license fee would increase the cost of doing business within Eugene, possibly having a negative effect on business location decision. A non-resident income tax would decrease non-resident workers’ disposable income, some of which is spent in Eugene. A commuter tax would provide ongoing revenue to help fund ongoing City services, Consistency with consistent with City policy and would serve to further diversify revenue sources. Council Goals and Policies Other A number of jurisdictions across the nation impose a commuter tax or fee, typically in Jurisdiction conjunction with a parallel tax on residents. These include Philadelphia, Los Angeles, San ExperiencesFrancisco, Chicago, Kansas City, Pittsburgh and others. New York City had a commuter tax until 1999 and is now considering re-establishing it. Washington D.C. has asked Congress to permit collection of a commuter tax. Seattle has recently adopted a commuter tax in the form of a per-capita business fee of $25 on non-resident workers, with a parallel per capita tax on resident workers, to be collected starting in July, 2007. 3