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<br />Financing Options - Summary Descriptions <br /> <br />Personal Income Tax <br /> <br />Description of Tax: A Lane County personal income tax would tax income of residents, and <br />possibly nonresidents', earned in Lane County. Income subject to tax would be based on state tax <br />definitions. A tax rate could be applied to Oregon Adjusted Gross Income, or on a taxpayer's <br />Oregon "Taxable Balance", the amount on which actual tax liability is calculated after deductions <br />from Adjusted Gross Income. <br /> <br />Yield / Adequacy: For each I-percentage point tax on adjusted gross income, estimated revenue <br />for calendar year 2005 is estimated at $62.5 million. A I-percent tax applied to the Oregon taxable <br />balance would yield $47.5 million for calendar year 2005 returns. If the county income tax were a <br />10 percent "piggy-back" surtax on the state income tax, revenue for the 2005-06 fiscal year would <br />be approximately $34.7 million. <br /> <br />Advantages <br />. Generates substantial revenue <br />. A fair tax, based on ability to pay, unlike some other taxes <br />. Provides reasonable growth, mirrors economic conditions <br />. Already in effect in other Oregon county <br />. Relatively easy for taxpayers to compute and plan <br />. May be applied to residents and nonresidents, more easily paid with withholding <br />. Deductible for state and federal personal income tax itemizers <br /> <br />Disadvantages <br />. A highly visible tax for prospective residents <br />. More administration cost than by increasing property taxes <br />. More burdensome than sales tax for self-employed and others without withholding <br />. Does not tax corporate income, but does tax other business income <br /> <br />Corporate Income Tax <br /> <br />Description of Tax: A county corporate income tax would be a tax imposed on net corporate <br />income earned within the county geographical boundary. A net income tax is applied to business <br />profits, rather than to a broader measure of business activity, such as gross receipts. <br /> <br />Yield / Adequacy: A 1 percent county tax on corporate income allocated to Lane County would <br />average a little over $3 million per year for the remainder of this decade. Growth of revenue will <br />parallel business activity <br /> <br />Advantages <br />. Generates significant revenue to partially address county needs <br />. Reasonably fair tax, applied only to net profits, unlike some other taxes <br /> <br />Executive Summary - Lane County Public Safety Task Force Final Report <br /> <br />24 <br />