The Springfield City Council unanimously adopted a payroll tax Monday to help stabilize the city’s long-term finances.
City officials have said they need a new source of income to make up for plateauing property tax growth and the rising cost of providing services.
The .1% tax will be paid by both workers and employers. Springfield’s payroll tax will go toward general budget needs, unlike Eugene’s, which is restricted to public safety issues.
Unlike in Eugene, the payroll tax in Springfield will apply to minimum wage workers. The only exemptions are those legally required, such as for federal government workers and those that work for the state.
The new tax is one of several initiatives a taskforce of community members, business owners and civic leaders recommended to close a long-term, structural revenue and spending gap.
Every city council member voted for the tax Monday without a discussion. It had been briefed, and discussed extensively at previous meetings over the last year.
In a hearing in April, the tax was opposed by some business owners, who worried they wouldn’t be able to afford it in an already tough economy. Others, especially library supporters, were in favor of the tax arguing it was needed to maintain services.
Springfield staff can begin the logistical work to launch the payroll tax now that it's been formally approved by the city council. It is scheduled to roll out next year.
