Springfield leaders will discuss a new payroll tax in the new year, though the city can’t collect it until 2027 at the earliest.
Eugene’s payroll tax can only be spent on police, fire and homeless services. But Springfield’s leaders have not yet settled on how they would spend their funds, and are continuing to discuss other logistics required to roll out a new tax.
Earlier this month, several community members told the city council they supported a larger than originally suggested payroll tax if a portion is dedicated to the library, which has had its funding reduced over several tough budget cycles.
"I don't want to live in a town that doesn't have a well-funded library,” Jessica Winans told the city council during a Dec. 10 public hearing. “I don't want that to be where my kid grows up, and I think that we have a way in front of us where we can move forward with the payroll tax at a well funded rate so that doesn't have to be a possibility for my kid and the other kiddos in this room tonight."
The structure of Springfield’s payroll tax will likely be similar to Eugene’s with employers and workers splitting the burden. The tax would be designed to reduce the city’s reliance on property taxes, which haven’t kept up with the cost of providing public services.
Springfield is considering a 0.1% rate. Eugene’s payroll tax rate is slightly more complicated, with most employers paying a .21% rate. Minimum wage workers are exempt and very small businesses pay a lower rate. Springfield's payroll tax proposal was one of several suggested by a committee of local government, business and community leaders to stabilize the city’s budget amidst ongoing financial challenges.
Springfield Mayor Sean VanGordon asked the community to approach the issue with caution during that Dec 10 meeting, saying there is a limited amount of payroll taxes the city can sustainably collect.
"We have a ton of fire needs, we have a ton of building needs, we have a ton of deferred maintenance, we have a ton of road maintenance,” VanGordon said. “I want in this entire conversation, and I know it's really hard because you guys have your nightly lives to go too, but the library isn't the only need that's out there."
VanGordon also asked the community for their patience, saying city staff need time to iron out details and options for the city council.
In-depth discussions are planned after the city council returns from their holiday break in January. The soonest collection could begin would be 2027.
