Tom Warne Report, 26 October 2012
The Oregonian – October 23, 2012
A two-cent-per-gallon gas tax in the city of Cornelius has helped maintain local roads and streetlights over the two years since it took effect. The tax has brought in $400,000 since it passed for basic road improvements such as repaving in residential neighborhoods. After the city failed to pass the same tax in 2006, officials sweetened the proposal by two years ago by promising to stop collection of a monthly $2.25 streetlight fee from residents if the tax was approved, which it was, by 55% of the vote.
“It’s the most anti-business, anti-consumer tax I’ve ever seen,” said Bob Barman, owner of the Chevron station on the city’s main thoroughfare, North Adair Street. He said his losses have been growing since the tax was implemented in 2010. Last year, his station lost $19,382. This year, he is down $63,717 from last year.
Two miles away, the Chevron in Forest Grove charges about the same price as Barman for fuel, but does not have the extra tax included in the price. Barman says that in effect, he is taking the two cents per gallon from his profits. “No business can lose money consistently and stay in operation,” he said.
Local gas station employees have been going door-to-door to encourage residents to repeal the tax, saying that the city has plenty of money. They are passing out a flyer urging voters to vote yes on Measure 34-201, a two-year, 35-percent increase in city revenue, which went from $20.8 million in 2010 to $28.1 million for the 2012-13 fiscal year.
Local taxes are useful and often do much to fill the funding gap for transportation and many other capital infrastructure uses. The challenge occurs when jurisdictions are in such proximity that citizens can avoid a tax in one locale by traveling a short distance to another. TW