02/22/2007

Associated Press

Lane County commissioners have imposed a county income tax to offset the possible loss of $20 million annually in federal timber payments.

The 3-2 vote Wednesday came four months after voters, in a narrow vote, rejected a county income tax that would have added public safety services.

Proponents said Wednesday the 1.1 percent tax seeks only to replace the money that may be lost.

The Lane County measure sends the right message that the county is "just trying to keep what we have right now," said developer Steve Lee of Eugene, who backed the November tax as well.

Commissioners Faye Stewart, Bobby Green and Bill Dwyer voted for the tax. Stewart said the county faced cutting 300 jobs by July 1.

Oregon counties that historically have been dependent on the timber industry face tough budget decisions if the Congress doesn't restore money from a law that compensated them for cutbacks in logging on federal land.

Critics said residents will push to get the tax before Lane County voters and objected to the single rate.

"It's not progressive," said Carole Grappo of Santa Clara. "It's a flat tax. It's an unfair tax."

Stewart said taxpayers in the lowest income bracket — a quarter of taxpayers — will pay nothing, and those who make more than $100,000 a year will provide 80 percent of the revenue.

Dissenting Commissioners Peter Sorenson and Bill Fleenor wanted voters to decide on the tax, and Sorenson said the county should wait until the Congress makes its decisions.

The tax is effective July 1. It applies to both personal and business income. It would be reduced if the "county payments" bill is approved by June 1. After that, congressional action would prompt a public hearing on the how much to reduce the rate.

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Information from: The Register-Guard, http://www.registerguard.com