Item 6: Ordinance on City Income Tax for Schools

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305.150 and 305.155 and corresponding Oregon Administrative Rules. Applications for settlement offers will be provided by the finance officer to taxpayers proposing settlement offers. 2.2030 Tax as Debt. The income tax due per this code and any interest and penalties subsequently assessed thereon shall become, from the time such liability is incurred, a personal debt, due to the city, from the person or persons liable for the debt. The finance officer may pursue collection of this debt through all legal and available means. 2.2032 Use and Division of Funds . (1) Funds may only be used by the school districts to reduce the number of days students are not in school and to reduce average class size. Funds may also be used to pay the cost of implementation of the income tax. Before any funds are divided between the two school districts, funds shall first be distributed to cover the costs of implementation of the income tax. (2) Funds generated by the tax shall be divided between the Eugene School District 4J and Bethel School District based on the number of Eugene residents enrolled in each district. In addition, before funds are distributed to a school district, the district must enter into an intergovernmental agreement with the city to ensure that the funds are spent only as authorized by this income tax code. 2.2034 School District Reporting . In order to continue receiving funds each year, the Eugene School District 4J and Bethel School District shall provide a report to the City Council describing how the income tax revenues were spent. In addition, the school districts shall establish a review panel, similar in nature to the Citizen Street Repair Review Panel, comprised of four members appointed by the Bethel School District, four members appointed by the Eugene School District, and four members appointed by the Mayor, two of whom should be business representatives and two of whom opposed the measure. The first report from the school districts and the review panel will be due by December 31, 2012 for the 2011 tax year. The reports must be completed and submitted annually. 2.2036 Reduction or Suspension of Tax . The council shall, by resolution, reduce or suspend the tax if the state either: (a) Increases state funding of the school districts to the point that additional local revenues are no longer needed to restore instructional furlough days or prevent average class size from increasing; or (b) Requires that the local income tax revenues decrease the amount of state funding for the school districts. 2.2038 Confidentiality . Except as provided in this code or otherwise required by law, the city manager, finance officer, any elected official, employee, or agent Ordinance - Page 6 of 7 {00002492;7 }