HomeMy WebLinkAboutOrdinance No. 20401
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COUNCIL ORDINANCE NUMBER 20401
COUNCIL BILL NUMBER 4963
AN ORDINANCE CONCERNING MOTOR VEHICLE FUEL
DEALER'S BUSINESS LICENSE TAX AND AMENDING
SECTION 3 OF ORDINANCE NO. 20337.
ADOPTED: January 28, 2008
PASSED: 7:1
REJECTED:
OPPOSED: Clark
ABSENT:
EFFECTIVE: February 27, 2008
ORDINANCE NO. 20401
AN ORDINANCE CONCERNING MOTOR VEHICLE FUEL DEALER'S
BUSINESS LICENSE TAX AND AMENDING SECTION 3 OF
ORDINANCE NO. 20337.
The City Council of the City of Eugene finds that:
A. In January 2005, the City Council enacted Ordinance No. 20337 approving a two-
cent increase to the motor vehicle fuel tax from three to five cents per gallon. Section 3 of
Ordinance No. 20337 contained a sunset provision with respect to the two-cent increase. The
sunset provision will cause the tax to revert to three cents per gallon on February 29, 2008.
B. In adding the sunset provision, the City Council anticipated that the three years
would allow sufficient time to complete a comprehensive review of available funding options
and to develop a stable funding strategy to meet the City's transportation system needs.
C. Although substantial street preservation work has been completed utilizing the
five-cent per gallon motor vehicle fuel tax, the backlog of needed repair work continues to grow
and construction costs continue to rise. By early 2007 the estimated cost of that backlog had
grown to nearly $1 70 million, and without new funding, is proj ected to grow to more than $280
million within the next 10 years.
D. The Council subcommittee studying the City's transportation funding needs and
options recommended that the current five cent per gallon motor vehicle fuel tax be increased by
three cents per gallon to eight cents per gallon.
E. On May 29, 2007, the City Council approved Ordinance No. 20384, which
increased the motor vehicle fuel dealer's license tax by three cents per gallon and repealed the
sunset provision contained in Section 3 of Ordinance No. 20337. This ordinance was subject to a
referendum petition, and the Council subsequently repealed Ordinance No. 20384. In lieu of that
ordinance, the Council submitted to the electors of the City a measure to increase the motor
vehicle fuel dealer's business license tax by three cents per gallon.
F. At the election held on November 6, 2007, the electors of the City rejected the
measure to increase the motor vehicle fuel dealer's business license tax by three cents per gallon.
G. The City Council finds it would be in the public interest to extend by three years
the sunset provision in Section 3 of Ordinance No. 20337, so that the motor vehicle fuel dealer's
business license tax as set forth in Section 3.467(b) of the Eugene Code, 1971 remains at five
cents per gallon until February 28, 2011.
NOW, THEREFORE, based on the above findings,
Ordinance - 1
THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS:
Section 1. Section 3 of Ordinance No. 20337 (the sunset provision) adopted by the City
Council on January 24, 2005, is hereby amended to read: "Unless otherwise extended by the
City Council, the amendment to Subsection (b) of Section 3.467 shall sunset on February 28,
2011, and the tax will revert to three cents per gallon."
Section 2. A copy of this Ordinance shall be appended to Ordinance No. 20337.
Passed by the City Council this
~ay Of~, 2008
Approved by the Mayor this
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Ordinance - 2