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Duo delivers sales tax pitch By Don Jepsen For The Tidings SALEM - Two Ashland legislators plan to introduce a sales tax bill next week with revenues earmarked for K-12, community colleges and higher education. Sen. Lenn Hannon, a Republican, and Democratic Rep. Alan Bates are the co-sponsors of the proposed constitutional amendment for referral to voters. Bates said income and property taxes would be reduced correspondingly under the proposal so Oregonians would not pay more. "It picks up revenue from out-of-state tourists," he said Thursday. "We wanted to get it out early so the House Revenue Committee will have time to chew on it," said Hannon. The two sponsors have not yet settled on a sales tax rate. In December, however, Hannon said he might propose a 6 percent sales tax dedicated to funding education. At the same time, he said, he would propose cutting income taxes by 4 percentage points and property taxes by a third. Tax measures must originate in the House. The proposal by Bates and Hannon comes two days after voters turned down a temporary income tax increase to ease the decline in tax revenues due to the state's bleak economy. The increase, which would have sunsetted after three years, would have been used to restore $310 million in cuts this biennium, with $412 million earmarked for the 2003-05 budget cycle. While proposing a sales tax in Oregon - a state notorious for voting down new tax measures - is widely regarded as political suicide, Bates said that the issue went beyond politics. "It's true that we play a lot of politics up here in Salem, but a basic revision of the Oregon tax code is above politics. What we're going to go through in the next two years is a moral issue, because we're talking about not educating kids, not caring for our elderly and not providing public safety," Bates said. "This is life and death stuff, and it goes to our core values about whether we care for each other," Bates added. Hannon said with the current budget crisis, the Legislature should try again to convince residents to support a sales tax. "We have to be extremely careful not to use a piecemeal approach to taxing by increasing fees rather than be upfront and looking at the whole picture," said Hannon. But that is exactly what some legislators are doing, even before the failure of Measure 28. Bills are being introduced to generate additional revenue with special levies, such as a measure sponsored by Sen. Rick Metsger, D-Mt. Hood, and Rep. Rob Patridge, R-Medford, to slap a tax on vehicle insurance policies. That revenue would be dedicated to state police. Another measure would impose a 1 percent tax on lodging, with funds dedicated to tourism. Gov. Ted Kulongoski wants to make permanent a 10-cent-a-pack cigarette tax which expires next year. A real estate transfer tax is reportedly in the works. Senate President Peter Courtney, D-Salem, who with Hannon pushed Measure 28 through the fifth special session last year, said he was open to any and all proposals to help ease a projected $2 billion shortfall next biennium. "I hate gambling," Courtney said, "but if someone wants to introduce a bill for online lottery games I will support it." Rep. Mark Hass, D-Portland, who supports a sales tax, said he and Sen. Ryan Deckert, D-Beaverton, are preparing a bill to allow residents of school districts to add another $1 or $2 to the $5 property tax limitation per $1,000 assessed value so schools could generate additional operating revenue. Under Ballot Measure 5, the state took over the primary responsibility for funding education. Because of the equalization formula, wealthier districts find their tax dollars going to poorer districts, primarily in rural areas. Hass estimated some $450 million in school taxes paid by residents of Washington County flows to other areas of the state. With another $1 or $2 earmarked specifically to local schools, Hass joked, "We could send our kids to school in limousines." Jackson County collects just under $85 million that the state earmarks for education, but spends $123.7 because of equalization, according to an estimate by the Department of Education. Don Jepsen is a free-lance writer living in Salem. Ashland Daily Tidings reporter Sean Wolfe contributed to this report. LINKS: DAILY TIDINGS: Main | News | Sports | Business | Obituaries | Opinion | Columnists | AP News | Subscribe | Archives | Weather | Classifieds | Contact Us | Privacy REVELS: Main | Calendar | Dining | Movies | T.V. OTHER: Road Cams Copyright 2003 Ashland Daily Tidings 541.482.3456. 1661 Siskiyou Blvd., Ashland, OR 97520. Ottaway Newspapers, Inc. - Advertisers -