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Mid Valley Association of REALTORS® ASKS YOU TO VOTE NO ON THE SALEM PAYROLL TAX

 

If you live within the Salem city limits, you will be voting on Ballot Measure 24-491 “Tax on Wages and Self Employment Earnings to Fund Services” in the November 7, 2023, special election.

 

The Mid Valley Association of REALTORS® endorses the campaign to Defeat the Tax on Salem Workers.  While MVAR supports Salem’s emergency services, this tax is the wrong way to fund public safety in Salem.  Read on to find out why.

 

<< Vote NO on Measure 24-491 >>

 

WHAT IS THE PAYROLL TAX?

 

The payroll tax rate is .814% and would apply to anyone doing work within the Salem city limits, regardless of where they live or where their business/employer is located.  The tax applies to work performed within the city limits, even if that work is only part-time or occasional.  For those who are self-employed (including independent contractor REALTORS®), net earnings would be taxed.  Only minimum wage earners are exempt.

 

The tax is intended to fund existing and new “community safety services” (as well as administration of the tax by the city).  “Community safety services” are identified as:  police, fire, emergency medical services, 9-1-1 call services, code enforcement, and unsheltered services. 

 

If passed, the tax could be effective as early as July 1, 2024.

 

WHY IS THIS TAX WRONG FOR SALEM?

 

NO CAP ON FUTURE TAX INCREASES

If passed, the Salem City Council could increase the tax at any time without a vote of the people.  The city has already said further increases in funding will be necessary – IN ADDITION to this tax.   

 

TOO COSTLY

The impact on household incomes – already strained by high inflation – may cause further housing insecurity.

 

ADMINISTRATIVE TRACKING NIGHTMARE

The payroll tax would be a nightmare for businesses and independent contractors to track and implement.  Especially for those whose work activities are not consistently done at one location and on any given day may move across the city limits multiple times.  The resources needed to track these activities could be overwhelming.

 

LITTLE ACCOUNTABILITY

As written, there is no oversight for how these funds would be spent.  This means the city could decide to spend 80% on unsheltered services and only 20% on emergency services. 

 

<< Vote NO on Measure 24-491 >>

 

PAYROLL TAX BACKGROUND

 

The City of Salem projects it will need an additional $19.4 million annually in revenue to cover current services, in addition to $9.6 million for unsheltered services. 

 

Following a series of City Council work sessions including Budget Committee deliberations, the Salem City Council held a public hearing on July 10. 

 

Over 100 people submitted written comments and approximately 50 people testified during the public hearing including Ashleigh Fordham (MVAR Past President), Ron Liedke (MVAR Vice President), and Selina Barnes (MVAR Government Affairs Director).  The comments and testimony were overwhelmingly in opposition to the tax and/or that the tax should be sent to the voters to decide.  Thank you to all REALTORS® who submitted comments or testified.

 

Following the public hearing, the City Council adopted the payroll tax Ordinance Bill No. 12-23 by a 5-4 vote.  A motion to refer the tax to voters failed along the same 5-4 vote. 

 

Those who voted to implement the tax without voter approval were:

Mayor Chris Hoy

Council President Virginia Stapleton (Ward 1)

Linda Nishioka (Ward 2)

Trevor Phillips (Ward 3)

Micki Varney (Ward 8). 

 

Those who voted against the tax were: 

Deanna Gwyn (Ward 4)

Jose Gonzalez (Ward 5)

Julie Hoy (Ward 6)

Vanessa Nordyke (Ward 7)

 

CAMPAIGN AGAINST THE PAYROLL TAX

 

On August 9, the referendum campaign (Refer the Tax on Salem Workers) turned in nearly 13,000 signatures to the city of Salem to refer the payroll tax to the voters.  As 3,986 valid signatures were required, this was an extremely successful campaign clearly indicating Salem voters wanted to vote on this tax.  The Marion County Clerk’s office determined on August 11 the referendum had qualified for the November 2023 ballot.

 

The referendum campaign has transitioned into the payroll tax opposition campaign (Defeat the Tax on Salem Workers). 

 

<< Vote NO on Measure 24-491 >>