Agenda Packet 7-22-19 Meeting - Laserfiche WebLink

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MINUTES – Eugene City Council Work Session June 10, 2019 Page 4 Council Discussion: •Councilor Syrett – said this motion addresses the burden on low-wage employees andshe would not support exempting all employees making less than $25 an hour; said thatthis is a small amount of money to contribute to ensure that when 911 is called,someone will respond. •Councilor Clark – asked if non-profits are included in paying the tax; said his challengewith this amendment is that it gets less broad-based, which was supposed to be therational for a payroll tax. •Councilor Zelenka – wanted to make sure he understood the amendment’s differenttiers for employees and that the employer rate would stay the same. •Councilor Semple – expressed support for this amended motion because it responds tocommunity concerns about lowest-paid workers. •Councilor Taylor – asked for more information about how the rates would translate todollars; said she will vote against this motion because, while it is an improvement, it isnot enough. VOTE ON MOTION TO AMEND: PASSED 6:2, Councilors Taylor and Clark opposed. MOTION TO AMEND: Councilor Zelenka, seconded by Councilor Syrett, moved to 1. Amend subsection (1) of section 3.724 to increase the overall employer tax ratefrom 0.0020 to 0.00212. Add a new subsection (2) to section 3.724that states: “Notwithstandingsubsection (1) of this section, the tax rate imposed on the first $100,000 of wagespaid by an employer with two or less employees is 0.0015.”3. Renumber subsections (2) through (6) of section 2.724 as subsections (3) through(7). and4. Update the cross references in subsections (4), (5) and (7) of section 3.724 and insection 3.726.Council Discussion: •Councilor Zelenka – talked about his motion and his intention to address communityconcerns about sole proprietors by giving them a discount but not an exemption. •Councilor Taylor – shared concerns about employers not giving people raises becausethey will have to then pay more in taxes. •Councilor Clark – said that while he understood what this amendment is trying toaccomplish, it may not work out the way it’s intended. •Councilor Syrett -said she doesn’t think there’s a perfect way to get at the issue, butwould prefer this approach exempting for the first $100,000 for businesses with one ortwo people versus exempting non-profits; expressed support for the amendment even ifit may not get all of the relief intended. •Councilor Yeh – asked Councilor Zelenka to explain his rationale behind the amendmentand why a sole proprietor making $100,000 would need a break. •Councilor Zelenka – asked staff for the number of one- or two-person business withinEugene; explained that the amendment would give a break to sole proprietors makingless than $100,000. •Councilor Clark - asked if “S” corporations pay both the employer and employee rate;asked about other situations where employers do business in Eugene but are notlocated in the city. July 22, 2019, Meeting – Item 2A