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Theamountofrevenuecollectedislikelytomirroremploymentand <br />wagetrendsandthereforecorrelatestronglywiththecurrent <br />economicconditionsinthearea. <br />RevenueAdequacyThisrevenuesourcewouldgenerateaverysignificantamountof <br />revenueandwouldprovideasustainablesourceofrevenueforthe <br />GeneralFundfortheforeseeablefuture. <br />AdministrativeEffortTheeffortassociatedwithadministration,collectionandenforcement <br />ofthisrevenuesourcewouldbebornprimarilybytheStateofOregon <br />andwouldbesimilartotheeffortassociatedwithcollectingpayroll <br />taxesonbehalfofLTDandTriMetbytheDepartmentofRevenue.If <br />theCityofEugeneweretocollectthistaxonitsown,the <br />administrativecostsofdoingsowouldbeveryhigh. <br />TimelineAreasonabletimelineforimplementationofthisrevenuesource <br />cannotbeestimatedatthispoint. <br />Incidence&EquityEvenwhenestablishedataflatrate,thistaxisoftenregressiveinits <br />nature,becauseitignoresnonwageincomesuchasselfemployment <br />earnings,investmentincome,rentsanddividends.Thistaxmayaffect <br />householdrelocationdecisionsandthishaveanegativeimpacton <br />populationgrowth.Anemployerpaidoptionwouldcreatea <br />disincentiveforjobcreation. <br />NexusCitizensemployedwithintheCityofEugenelimitswouldbenefitfrom <br />adequatelyfundedgeneralgovernmentservices,suchaspoliceand <br />fireprotection,parksandlibraries.CitizenswhoworkintheCityof <br />Eugeneandliveelsewhere,butuseCityserviceswhilewithintheCity <br />limits,wouldcontributetotheŝƚLJ͛Ɛtaxbase. <br />ConsistencywithCouncilGoalsThisrevenuesourcewouldnotbeinconsistentwithadoptedCity <br />&PoliciesCouncilgoalsandpolicies.Itwouldstronglysupportthegoalof <br />achievingfair,stableandadequatefinancialresources. <br />Fairness&PoliticalFeasibilityOppositiontoapayrolltaxfrombothbusinessandlaborgroups,as <br />wellascityresidentsingeneral,wouldbelikely.Whenthistaxis <br />withheldfromthewagesofonlynoncityresidents,itissometimes <br />calledaworkprivilegetax;itwasconsideredandrejectedbythe <br />EugeneCityCouncilin2004. <br />TheEugeneDecisionssurveysidentifiedthisrevenuesourceasoneof <br />thethreeleastfavoredtaxationchoices.Itislikelytofaceopposition <br />atthestatelevelaswell. <br />SustainabilityImpactThisrevenuesourcewouldnotimposeanundueburdenonfuture <br /> <br />