Voters Approve Cap And Restrictions For City Of Eugene's Payroll Tax

Nov 5, 2019

With 82 percent approving of a measure in the November 5th special election, voters have decided that the City of Eugene’s new payroll tax will be capped. 

Credit Brian Bull / KLCC

The payroll tax itself was controversial when City of Eugene councilors approved it in June.  Some critics said it should have been put up to a public vote. 

This election's outcome does not eliminate the payroll tax, but restricts just how high it can go and what it can be used to fund.

Measure 20-302 will cap taxes on what employers pay at 0.44 percent, and what employees earn at 0.21 percent.  It also limits what payroll tax revenues can be used for, namely community safety services and some tax administration.

The payroll tax will take effect in summer 2020.  With nearly $24 million generated per year, it’ll fund the addition of 40 officers to the Eugene Police Department, as well as fund fire and emergency services, and homeless programs.

Minimum wage earners will not be affected by the tax.

Copyright 2019, KLCC.