As state and local officials roll out plans to help businesses and employees weather the novel coronavirus pandemic, five Portland-area chambers of commerce are trying to get a $250 million homeless services measure pulled from the May ballot.

Representatives from the Beaverton, Tualatin, Gresham, North Clackamas and Oregon City chambers of commerce sent a letter to Metro on Monday saying that now is not the time to add taxes. They join other business groups advocating for delayed implementation of new taxes around the state.

The homeless services measure would impose a 1% tax on people who earn $125,000 a year, or couples who earn $200,000. It would also apply a 1% tax on Metro area businesses that generate more than $5 million annually.

Bars, restaurants and events centers have closed or reduced hours because of state and local bans on large gatherings and social distancing protocols.

Oregon leaders predict a significant hit to small and local businesses. Nationwide, economists predict a possible recession to follow the pandemic.

Chambers of commerce leaders say that the tax increases would stress local businesses.

“Now is not the time to stack new taxes on local businesses and residents,” the letter said. “Instead, Metro should work with the local business community to protect working families and small businesses in the months ahead.”

On Tuesday, the Metro president fired back.

“We know that the population of the region’s most vulnerable isn’t going to get smaller during a recession,” said Metro President Lynn Peterson. “Now, more than ever, is when we need to come together as a community.”

The entire Metro Council later said publicly they would keep the measure on the May ballot.

Supporters of the measure say that many small businesses and low-wage workers likely to be hit hardest by COVID-19 would not be affected by the tax.

The Portland Business Alliance, which is Portland’s chamber of commerce, also released a letter Monday endorsing the homeless services measure.

“Our region has seen record economic growth over the past few decades. While this has been a boon for our business community -- including immigrant family-run small businesses, like Fubonn -- not everyone has benefitted,” says Michael Liu with Fubonn Shopping Center and Portland Business Alliance board member. “Along with this economic boom, there is ironically also an affordability crisis that is affecting far too many families, in every community in our region. It’s time to come together to help those who are hurting.”

The business alliance was part of the coalition that created the measure, but hadn’t formally endorsed it until pushback from other business groups.

The Alliance for an Affordable Metro, which appears to be made up of the lobbying groups Oregon Manufacturers and Commerce and Northwest Grocers Association, filed a ballot title challenge at the beginning of March to the measure.

In statements about why they filed the challenge, the lobbying groups said that they are against adding business taxes.

A Multnomah County Circuit Court judge Tuesday made minor tweaks to the language of the ballot title, but not most of the substantive changes the business group argued for in the lawsuit.

The homeless services measure campaign has not pulled punches in its response to the calls for stopping or delaying the tax measure.

“The lobbyists trying to exploit the coronavirus crisis are apparently immune to shame,” said Angela Martin, who is running the measure’s campaign. “They want to use this moment to punish those who already need help most -- including people who may be the most impacted by the looming public health crisis.”

Homeless people are among the most susceptible to infection and death from the coronavirus. Many have respiratory problems and weakened immune systems from living in harsh conditions.

Social service agencies are also having to triage services so that they can allocate resources to coronavirus response.

While the measure was formed before COVID-19 news began to hit the global stage, supporters say that it would help in times like these.

The campaign has not defined exactly how the funds would be used, but said that they would go toward behavioral health, employment, rent assistance and other services.

CORONAVIRUS IN OREGON: THE LATEST NEWS

-- Molly Harbarger

mharbarger@oregonian.com | 503-294-5923 | @MollyHarbarger

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