Item B: Public Safety Task Force Update

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. Creates burden for restaurants to collect tax . Is not based on business profitability Business License Tax Description of Tax: A Business License tax could be an annual fee imposed on any person, partnership, corporation or similar entity doing business in Lane County. The fee could take various forms: a fixed amount per business, a flat percentage of income earned in Lane county, a fixed fee levied on businesses according to their employment size. Yield I Adequacy: A flat tax of $100 per private business unit would have raised an estimated $978,000 if in effect in 2004 and would raise $1 million in 2006. A fee of $20 per employee would have raised $2,295,000 in 2004, and $2.4 million in 2006. Advantages . Generates significant revenue and would be reasonably stable . Could provide non-dedicated general fund revenue . Would be deductible business expense for state and federal taxes . If imposed on per employee basis, would be fair to small and large businesses . Provides increased share of county funding from business sector Disadvantages · Although Oregon cities use it, Lane may be first Oregon county with a per-employee business tax . Requires additional county administration cost . Perceived as a "negative factor" for prospective Lane businesses . Is not based on business profitability Amusement & Entertainm.ent Tax Description of Tax: An amusement/entertainment tax could be either an excise tax on the sales price of admissions or entertainment service, or could be a selective gross receipts tax on those businesses engaged in the entertainment industry" The tax will be an excise tax paid by the consumer, e"g., a 5 percent tax on videocassette rentals, on movie tickets, performing arts tickets and other admissions at a percentage of the basic charge. The tax could be extended to cover sporting activities and entertainment cover charges Yield I Adequacy: A I-percent tax on consumer expenditures for fees and admissions could raise revenue in 2006 in the range of $450,000 if applied to movie theaters, video rentals, and golf courses. An additional $123,000 could be raised if the tax also were applicable to University of Oregon ticket sales. Advantages . Generates significant revenue . Could provide non-dedicated general fund revenue Executive Summary - Lane County Public Safety Task Force Final Report 27