Item B: Public Safety Task Force Update

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net income. The Washington tax is considered an excise tax on the privilege of engaging in business and is measured by gross income, gross proceeds of sales, or the value of products resulting from activities conducted within the state. Yield I Adequacy: A 0.1 percent COWlty tax on gross receipts would have raised about $22.7 million in 2005. Growth of revenue will parallel business activity. Forecasted growth of revenue from a O.I-percent county tax is estimated to increase about one million dollars per year, although assumptions are fairly tenuous Advantages · Generates significant revenue to partially address county needs · Provides reasonable growth, mirrors economic conditions · Would be deductible business expense for state and federal taxes · Does not treat smaIl and large businesses differently · Provides increased share of county fun~ing from business sector Disadvantages · A visible tax, perceived as negative factor, for prospective corporate residents · Lane County would be first Oregon county with gross receipts tax · Requires new administration cost for county, being a new tax · Creates hardship on emerging businesses by ignoring profits · Receipts will fluctuate with economic conditions Restaurant Tax Description of Tax: A county restaurant tax could be either a selective sales tax on each sales transaction for food and non-alcoholic beverages sold in restaurants, or a tax levied on the gross receipts of restaurants. For this analysis, it is assumed the tax would be as a sales tax on food and non-alcoholic beverages. Yield I Adequacy: Potential revenue from the tax is estimated at $3.9 million per I-percent rate if in effect for 2006. Therefore, a three-percent tax would raise about $11,,7 million if in effect in 2006. Ashland, Oregon currently has a food and beverage tax, with a five percent tax applied to all prepared food (with some exemptions) sold in Ashland. Advantages · Generates significant revenue to partially address county needs . Currently in effect in another Oregon municipality · Provides reasonable growth and is fairly stable · Allows taxes to be paid "pay as you go", in small amounts · Everyone pays, including visitors and those not paying other taxes . Taxes discretionary expenditures Disadvantages · Although in effect in Ashland, Lane would be fIrst Oregon county with a restaurant taxe· County will incur increased administration expenditures Executive Summary - Lane County Public Safety Task Force Final Report 26