Item 4: Ordinance on City Income Tax for Schools

Home Browse Search

Administrative Authority: The ordinance gives administrative authority to the City Manager to implement the tax and develop forms, rules and policies. (2.2006) Conformity to State Law: The ordinance states that the City will follow state law and regulations adopted by the Oregon Department of Revenue. (2.2008) Deadlines, Interest and Penalties: The ordinance sets out the deadline for filing taxes, allows for extensions, and sets out the consequences for non-compliance. It also provides for an appeal in the case that a taxpayer would like to protest any determination of the City Manager or designee. (2.2016 through 2.2030) Ballot Measure Provisions: The ordinance includes the provisions in the ballot measure around use and division of funds, reporting and review panel requirements, and reduction or suspension of the tax if certain actions are taken by the state. (2.2032 through 2.2036) Confidentiality: The ordinance includes provisions to ensure confidentiality of personal financial information or social security numbers submitted by taxpayers under the ordinance. (2.2038) Update on Administration of City Income Tax There is a great deal of interest in how the City will administer the income tax, and how much it will cost to do so. Staff have been working on this, along with the ballot title challenge and drafting of the ordinance. We do not yet have all of the information about how the tax will be administered or how much it will cost, but we wanted to provide an update on what we have learned. Both the Oregon Department of Revenue and the City of Portland Revenue Bureau were contacted to see if they would be interested in administering the City’s tax. The reason for contacting these organizations is that they already have in place the software and expertise to collect income taxes, which the City does not possess. If one of these entities were interested in providing administration services to the City at a reasonable cost, then this is likely to be less expensive than having City staff take on this role, especially for a temporary tax. The City of Portland Revenue Bureau has indicated that they would be willing to explore the possibility of providing services to administer the tax. The Oregon Department of Revenue has indicated that they do not have the capacity to take on administration of the City’s tax at this time. They are experiencing budget shortfalls, and implementing software upgrades that are taking significant staff time. City staff have been in discussions with the City of Portland Revenue Bureau and with Multnomah County staff to learn more about how the Multnomah County temporary income tax was administered. This includes phone calls, review of background materials, rules and other information, and setting up future meetings with staff from those jurisdictions. We are also working on developing an outline for how administrative duties of the tax might be split between the City of Portland Revenue Bureau, Eugene staff and others. If the measure is approved by voters at the May 17 election, City staff will bring more information to the council about administration of the tax, including a budget for implementing the tax. Information on City Web Site All of the council background materials on the school tax can be found on the City’s web site, at:  eugene-or.gov/schooltax. \\Cesrv500\cc support\CMO\2011 Council Agendas\M110411\S1104114.doc