Item B: Public Safety Task Force Update

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· W ouId provide reasonably stable revenue stream · W ouId be paid by residents and nonresidents · Taxes nonessential expenditures, for relatively small amount · Is already enacted in Washington and other states Disadvantages . · Lane would be first Oregon county with an amusement tax · Requires additional county administration cost · Imposes collection burden on entertaimnent establishments · Is not based on ability to pay, simply a selective sales tax Property Tax Options: Public Safety Service District And Local Option Levy Description of Tax: Lane County is prohibited from increasing its own permanent tax rate to increase property tax revenues into its General Fund. However, one property tax option is for the county to form a new service district with its own permanent tax rate. Formation of a new public safety service district would create a district with a new permanent authority tax rate. A second option is for the county to pass a local option levy. The County's permanent authority tax rate was established in 1997 at $1.2793 per $1,000 of assessed value. Passage of a local option levy is the only way for Lane County to collect property tax beyond the permanent authority established with Measure 47/50. Yield / Adequacy: A new permanent rate authority of $2.00 per $1,000 of assessed value created by the formation of a public safety service district would create about $40.1 million in revenue based on 2004 information. Compression would be minimal at lower rates, but would begin to be significant as the rate approaches $ 2.00. A local option levy passed by voters for $2.00 per $1,000 of assessed value would create about $35.0 million in revenue. However, because the public safety local option levy is compressed at the same level as other local option levies, compression is significant at lower rates and becomes substantial at higher rates" Advantages of forming a service district with a permanent property tax rate: · Generates significant revenue · Does not have to be renewed · Property Tax is an existing, generally accepted tax concept by voters · Provides some growth as maximum assessed values in the district can grow by the constitutionally allowed 3% rate each year · A system for billing and collecting the tax is currently in place, requiring no new administration costs · Taxes Lane County property owners and absentee owners · Deductible for state and federal personal income tax itemizers · Permanent authority revenue would be relatively stable Executive Summary - Lane County Public Safety Task Force Final Report 28