Document text
48 °F Forecast | Road Cams Friday, January 28, 2005 Today's News | Classifieds | Autos | Homes | Jobs | Tempo | Health | Community | Home Delivery SECTIONS Home Page Local News Sports Business Obituaries Life Opinion - Politics Tempo AP News Weather Classified Archives Site Map SPECIAL SECTIONS Since We Asked Outdoor Journal Menu Guide How To Guide Wellness Connection Readers' Choice Real Estate Showcase Real Estate Guide Joy Magazine Homelife Magazine Wedding Guide Passport to the Rogue Valley EXTRA Newspaper in Education Personals Movie Times TV Times E The People Volunteer Opportunities Moving to Southern Oregon? MARKETPLACE Find a Car Find a Home Find a Job Classifieds Place an ad eSouthernOregon Automotive Communities Entertainment Publications Recreation Calendar CUSTOMER SERVICE Frequent Questions Advertising Information Home Delivery Employment Contact Us Media Kit Network Affiliate Oregon Road Conditions & Cams Email Story to a Friend January 31, 2003 Sales tax bill would help finance education Hannon, Bates put together a measure that would also reduce other taxes in Oregon By DON JEPSEN for the Mail Tribune 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 Thursday 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," Bates said. "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. A sales tax has been anathema to Oregon voters who have trounced it repeatedly at the polls. But 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 introducedto 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. Mail Tribune Home Local News | Sports | Business | Obituaries | Life Opinion - Politics | AP News | Archives | Site Map E Southern Oregon | Classified Copyright © 1997-2005 Mail Tribune. All rights reserved. Privacy Policy | Terms & Conditions Website Feedback ADVERTISERS A D V E R T I S E R S SPECIAL SECTIONS Auto Finder Job Finder Home Finder Joy Magazine Homelife Magazine Tempo Readers' Choice Real Estate Showcase Since We Asked Outdoor Journal Moving to Southern Oregon? Volunteer Opportunities Student Loan Consolidation Conference Calls - $50/Month Home Security Systems Trunks, Footlocker, Trunk, Footlockers