Portland street fee hearing

PORTLAND, OREGON - June 25, 2014 - A public hearing was held Wednesday night for people to give input to city leaders on the residential street fee proposal. Mayor Charlie Hales (shown here), City Commissioner Steve Novick and Portland Bureau of Transportation director Leah Treat heard testimony. Stephanie Yao Long/The Oregonian

(Stephanie Yao Long)

A residential income tax costing some Portlanders as much as $2,400 per year has the support of a committee recommending how the city should raise money for street maintenance and safety projects.

Single tax filers with adjusted gross income up to $25,000 and joint filers up to $30,000 would be exempt.

The concept gained widespread endorsement Thursday at the final meeting of a street fee advisory panel representing non-profit and low-income interests. The City Council is expected to vote on a funding plan in November.

The income tax plan backed by the advisory committee looks very different from the street fee Commissioner Steve Novick and Mayor Charlie Hales proposed in May.

The earlier plan called for a maximum fee of $11.56 per month for Portland households, with discounts for apartment dwellers and low-income residents. The plan pulled from City Council dockets in early June included a phase-in approach that would ultimately lead to $12 per month by the third year.

Both of those proposals represented just the residential half of a plan to charge all street users, including nonprofits and businesses. The goal: roughly $53 million per year in gross revenue.

City officials regrouped, creating two new citizen advisory panels in addition to another group that has met throughout the year to advise Hales and Novick on funding proposals. One consisted of business people, the other represented low-income stakeholders.

During the last three months, the committees were presented with very different-looking new proposals with diminished expectations for revenue.

As of this week, both the business and low-income groups were deliberating on plans that would raise $20 million. After administrative costs and low compliance rates, the city expects $30 million per year in net revenue.

The bracketed tax plan would cost $500,000 - $900,000 in one-time set up costs plus $850,000 to $1.3 million each year to administer and collect from taxpayers. City officials expect roughly 270,000 tax filings each year.

Novick, who decried the controversial arts tax as "beyond regressive," said he heard from many residents who felt the same way about the street fee.

In addition to the complete exemption for low income households, the income tax now under discussion would include $3,000 deductions per dependent, prior to calculating the precise tax bracket.

How much would you pay? Take a look at the table and share your thoughts in the comment section.

Residential income tax - 'Bracketed Capped Tax' Proposal Adjusted Gross Income, joint tax filers Yearly fee (capped at $200 per/month) $0-$30,000 $0 >$30,000 - $50,000 $18 >$50,000 - $75,000 $48 >$75,000 - $100,000 $96 >$100,000 - $175,000 $144 >$175,000 - $250,000 $300 >$250,000 -$500,000 $1,020 >$500,000 and up $2,400

(Data provided to committees by PBOT)

-- Andrew Theen