Item B: Update on Homeless Initiative Action Plan

Home Browse Search

Revenue Options Reviewed by the Committee DESCRIPTION OF TAX POTENTIAL ANNUAL YIELD REVENUE OPTION Admission Tax An excise tax on the sales price of admission to an event A 1% tax on movie and Hult Center tickets, or performance. video and DVD rental charges, and golf and bowling fees is estimated to yield $175,000 in 2002. Business/Corporate A flat or graduated tax based on business net income A 1% tax on the income of corporations Income Tax earned within the City; a subset of this tax could be based doing business in Eugene would generate on net corporate income earned within the City. approximately $2.7 million in FY03. A 10% State corporate income tax surcharge would generate approximately $1.8 million in FY03. Business License A fee on businesses for the privilege of operating within Based on Oregon Employment Department Fee the City. Usually a set dollar amount. records, there are roughly 5,800 businesses registered in Eugene area zip codes. Based on Salems proposed fee schedule and = estimate of business size distribution, a business registration tax would generate an estimated $1.4 million per year in Eugene in 2002. Employer Per A business privilege tax based upon the number of persons Gross Revenue Generation per $10 Per- Capita Tax employed in the City. Capita Tax is approximately $730,000. General Fund Funding could be provided through the City of Eugene Would vary. Allocation budget process to homelessness and housing issues, prioritized against other competing needs. General Sales Tax A tax on the retail sales of goods and services (usually a Based on 2001 data, a 1% sales tax would percentage), to be collected at the point of sale. generate approximately $19.5 million. Gross Receipts Tax A flat or variable tax on the gross income of all companies A City gross receipts tax of .02% would have engaging in business in the City. raised an estimated $2 million in calendar year 2001. This estimate is based on taxing all businesses and therefore may need to be reduced for any exempted businesses. New Construction A flat fee or percentage charge on new construction In 2001, a 10% surcharge on building permit Fee activity. fees would generate $308,000. Payroll Tax A tax on wages and salaries earned within the City. The approximate private payroll figure would be $2.4 billion. With a 0.1% payroll tax on private employers, gross revenue would be approximately $2.4 million. Personal Income A tax on earned and unearned income received by In 2001: $31 million with 1% tax on Tax residents of Eugene and non-residents earning income in Adjusted Gross Income or $1.8 million with Eugene. 1% surcharge on State Income Tax Property Taxes A temporary local option levy or general obligation bonds Varies Real Estate A fee is collected when taxable real estate is sold; could be Preempted by state law. Transfer Tax a flat fee or a percentage. Restaurant Tax An excise tax collected at restaurant facilities. Based on estimates developed for the 1993 proposed restaurant tax and assuming 6% average growth, a restaurant tax would generate approximately $2.3 million in 2001. Sales Tax on A tax on the retail sales of select goods and services Would vary depending upon the goods and Selected Items (usually a percentage), to be collected at the point of sale. services selected as the tax base. Utility A utility bill surcharge to be paid by electrical, natural gas, In 2001, a .2% tax rate would generate Consumption Tax and cable television utility customers in Eugene approximately $2 million. 24 Blue Ribbon Committee on Homelessness, Recommendation April 2, 2008 -- Page