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Updated 02-07, based <br />Personal Income Tax <br /> <br />upon 09-01 economic <br />data <br /> <br />The City has the authority to levy an income tax. <br />Legal <br />Defensibility <br /> <br /> <br />All Eugene residents earning income regardless of employer or source location and <br />Incidence (who <br />possibly non-residents earning income in Eugene. <br />pays?) <br /> <br /> <br />Residents/non-residents <br />: Based upon how the tax is structured, non-residents might or <br />Fairness/Equity <br />might not be affected. <br />Issues <br /> <br />Business/residences <br />: Only residences would be subject to this tax. <br />Low income vs. higher income citizens <br />: Generally designed to be progressive, but the <br />structure can increase or decrease progressivity. Would mirror the progressivity of <br />Oregon State Income Taxes if established as a surcharge to state income tax liability. <br /> <br />Are revenues adequate, timely and stable <br />: Tax revenues would fluctuate with <br />Financial <br />changes in personal income and mirror current economic conditions. <br />Feasibility and <br />Is this an on-going or a one-time revenue <br />: On-going <br />Stability <br /> <br /> <br />Will this revenue option be perceived as fair <br />: While an income tax is generally <br />Politically <br />progressive and could be seen as fair (those with higher income pay more), there is a <br />Supportable <br /> <br />large portion of the community that likely wouldn’t support a local income tax, as has <br />been seen in past elections. The Personal Income Tax and the Gross Receipts Tax were <br />the two highest rated (i.e. preferred) taxes identified by the City Club of Eugene Study <br />Group on Alternative Revenue Sources for the City of Eugene in 1994. <br />Will this revenue option be easily understood by citizens <br />: Yes, as they already pay <br />federal and state income tax. <br /> <br />This tax could potentially affect household and business location decisions if imposed <br />Potential <br />only on City residents. <br />Economic <br />Impacts <br /> <br /> <br />