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Gas Tax Sunset
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Gas Tax Sunset
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Last modified
5/11/2010 9:58:12 AM
Creation date
10/10/2008 1:13:19 PM
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PW_Exec
PW_Division_Exec
Administration
PWA_Project_Area
Road Repair
PW_Subject
Gas Tax Sunset
Document_Date
1/28/2008
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c <br />Terry Connolly, 1401 Willamette Street, speaking on behalf of the Eugene Chamber of <br />Commerce, said given the likelihood that the 2 cent gas tax would be referred to voters and then <br />repealed if the council chose to keep it, the decision before the council was whether it would be <br />better off spending the next several months engaged in another debate about a gas tax or using the <br />time to make the case to the public for a bond measure to pay for street repairs. He felt to do so <br />without the gas tax competing with the message to the public would beriefit the potential bond <br />measure. He related the Chamber's recommendation which was to choose the latter course of <br />action. He believed that the energy to be spent on the gas tax would be better served in working <br />with others who were focusing on a comprehensive funding package in the Oregon Legislature to <br />be approved in the 2009 session. He stated that the Eugene Chamber and "virtually every" <br />leading business organization and trade association in the State of Oregon was asking the <br />legislature to approve a package that would provide the funding that was needed for the operation <br />and maintenance of the transportation infrastructure throughout the state, counties, and cities. He <br />understood why the City would not want to part with the $1.7 million that the 2 cent gas tax <br />generated per year. He felt that choosing to let the 2 cent tax sunset for the time being would <br />allow the council and the Budget Committee to identify other sources of existing revenue or a <br />portion of the capital reserves to offset the reduction "at least for a couple of years." He also <br />thought this would be looked upon favorably by the voters. <br />Ron Tyree, 4000 Spring Boulevard, Ward 2, stated that he operated a local distributorship. He <br />supported the upgrade needed in transportation and fuel taxes as a source of revenue for those <br />repairs. He did not support taxes that were different throughout different jurisdictions. He <br />averred that this caused confusion and an unfair competitive advantages or disadvantages for <br />local gasoline marketers. He said the price discrepancy was also causing people to shift their fuel <br />purchases to other areas. He related that the volume for the area had dropped from 80 million <br />gallons per year to 70 million gallons per year, a 12 percent drop in volume. He attributed this <br />drop solely to the gas tax. He reiterated that there was a consolidated group that was working at <br />the legislative level to improve the state gasoline tax. He believed there was a"real chance" that <br />this could be positive and successful. He declared that Eugene stood to gain $4 million per year <br />if the tax, as proposed, went through. This was equivalent to a 6 cent per gallon tax. He thought <br />a local tax would cause people to oppose any tax at all. He recommended allowing the 2 cent tax <br />to sunset. He said if the statewide effort failed in 2009 he would help support a countywide gas <br />tax. <br />Paul Romain, 707 Southwest Washington Street, #927, representing the Oregon Petroleum <br />Association (OPA), pledged that the OPA would work for a 12 to 14 cent increase in the state <br />gasoline tax to be implemented immediately upon approval of the legislation. He said the part <br />that would go to local government would be negotiated. He stressed the OPA opposition to local <br />gas taxes. He implored the council to not "put [them] in the position of having to put the gas tax <br />on the ballot." <br />John Anderson, 3340 King Edwards Court, Ward 4, voiced his opposition to the Z cent gas tax. <br />He felt the public had already voted on whether it wanted a gas tax by reducing the amount of <br />fuel purchased locally. He said while people had not changed their driving habits, they had <br />changed their purchasing habits. He averred that he would be the "first to step up" to help find a <br />more local solution if the legislative session did not result in improved funding. <br />Murphy McHugh, 1848 Russet Drive, echoed the comments of those in support of the sunset <br />clause. He averred that the council had "penalized" him for being a gas station owner in the City <br />of Eugene. He said if he sold gasoline five blocks away from his current location the fuel would <br />be 5 cents cheaper. He related that his business was down and this had resulted in having to lay <br />
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