New Search
s <br />ORDINANCE NO. <br />ATTACHMENT B <br />AN ORDINANCE CONCERNING MOTOR VEHICLE FUEL DEALER'S <br />BUSINESS LICENSE TAX AND REPEALING SECTION 3 OF <br />ORDINANCE NO. 20337. <br />The City Council of the City of Eugene finds that: <br />A. In January 2005, the City Council enacted Ordinance No. 20337 approving a two- <br />cent increase to the motor vehicle fuel tax from three to five cents per gallon. Section 3 of <br />Ordinance No. 20337 contained a sunset provision with respect to the two-cent increase. The <br />sunset provision will cause the tax to revert to three cents per gallon on February 29, 2008. <br />B. In adding the sunset provision, the City Council anticipated that the three years <br />would allow sufficient time to complete a comprehensive review of available funding options <br />and to develop a stable funding strategy to meet the City's transportation system needs. <br />C. Although substantial street preservation work has been completed utilizing the <br />five-cent per gallon motor vehicle fuel tax, the backlog of needed repair work continues to grow <br />~ and construction costs continue to rise. By early 2007 the estimated cost of that backlog had <br />grown to nearly $170 million, and without new funding, is projected to grow to more than $280 <br />million within the next 10 years. <br />D. The Council subcommittee studying the City's transportation funding needs and <br />options recommended that the current five cent per gallon motor vehicle fuel tax be increased by <br />tfiree cents per gallon to eight cents per gallon. <br />E. On May 29, 2007, the City Council approved Ordinance No. 20384, which <br />increased the motor vehicle fuel dealer's license' tax by three cents per gallon and repealed the <br />sunset provision contained in Section 3 of Ordinance No. 20337. This ordinance was subject to a <br />referendum petition, and the Council subsequently repealed Ordinance No. 20384. In lieu of that <br />ordinance, the Council submitted to the electors of the City a measure to increase the motor <br />vehicle fuel dealer's business license tax by three cents per gallon. <br />F. At the election held on November 6, 2007, the electors of the City rejected the <br />measure to increase the motor vehicle fuel dealer's business license tax by three cents per gallon. <br />G. The City Council finds it would be in the public interest to repeal the sunset <br />provision in Section 3 of Ordinance No. 20337, so that the motor vehicle fuel dealer's business <br />license tax as set forth in Section 3.467(b) of the Eugene Code, 1971 remains at five cents per <br />gallon. <br />~ NOW, THEREFORE, based on the above findings, <br />Ordinance - 1 <br />50801284-attB.DOC City-Council Agenda page 173 <br />