Item 3: Ratification of Unanimous IGR Actions and Action on Non-Unanimous IGR Actions

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ContactRespondent Dept Updated Priority Recommendation Mark Villegas CS-FIN 01/14/2011 Pri 1 Oppose Comments: This would impose a huge burden on the City to process pay for newly hired employees. The changes to the system, the manual processing, and need to contact each and every new hire. At the beginning of summer we hire 40-60 employees each pay period for a few pay periods. This doesn't even help the employees; instead of a long wait before receiving their first pay check, they end up with the same long wait between their 1st and 2nd pay checks. No good way to modify bill to make it acceptable. ContactRespondent Dept Updated Priority Recommendation Susan Mullett CS-HR 01/13/2011 Pri 1 Oppose Comments: Support Finance’s Recommendation. HB 2231 Relating Clause: Relating to cigarettes taxes; prescribing an effective date; providing for revenue raising that requires approval by a three-fifths majority. Title: Increases cigarette tax. Sponsored by: By Representative GREENLICK (Presession filed.) URL: http://www.leg.state.or.us/11reg/measpdf/hb2200.dir/hb2231.intro.pdf Contact Respondent Dept Updated Priority Recommendation Larry Hill CS-FIN 01/20/2011 Pri 1 Support Comments: HB 2231 would significantly increase millage taxes on cigarettes, from a total of 59 mills to 109 mills per cigarette. This would raise the total cigarette tax from the current $1.18 to $1.23 per pack. The bill would as well as impose a new one-time floor tax of 50 mills per cigarette on distributors and retailers of cigarettes on stock on hand as of January 1, 2012. However it also proposes to change the distribution of cigarette tax revenues, some of which come to the City of Eugene, although the distribution amounts are left blank in the printed bill. The bill will need amendment to insert distribution amounts. It is very important that the share of cigarette tax revenue currently going to cities not be reduced, and it should be increased if at all possible. The cigarette tax, when it was approved by voters in 1967,was $0.04 per pack, with 50% of the tax designated for property tax relief and 50% to be distributed to cities and counties. Since then, the amount of tax on cigarettes has increased but cities proportionate share of the tax revenue has shrunk, from 33% to just 1.7% of the total tax (a second penny was added for cities in 1986). The current tax rate is $1.18 per pack of 20 cigarettes. Generally, the tax is paid through the use of tax stamps that are purchased by Oregon licensed cigarette distributors. Revenue from the tax is allocated as follows: $0.22 to the State General Fund (18.64%), $0.86 to the Oregon Health Plan (72.66%), $0.02 to cities (1.93%), $0.02 to counties (1.93%), $0.02 to the Oregon Department of Transportation for transportation services to 6