Salem residents will get to vote on payroll tax following successful referendum effort
A referendum petition to send the recently adopted employee-paid payroll tax to Salem voters has garnered enough valid signatures to get on the November ballot.
The Marion County Clerk's Office determined Friday that the Refer the Tax on Salem Workers petition got more than 4,000 verified signatures — surpassing the 3,986 needed to qualify for the ballot.
After the Salem City Council voted to adopt the payroll tax in July, Oregon Business & Industry, a statewide chamber of commerce and trade association, launched the effort to refer the tax to voters.
Petitioners submitted nearly 13,000 signatures prior to the Aug. 9 deadline.
“Salem residents have left no doubt that they want to vote on this tax,” Angela Wilhelms, president and CEO of Oregon Business & Industry, said. “People were eager to sign the petition.”
The Salem City Council voted July 10 in a 5-4 split to adopt a .814% Safe Salem employee-paid payroll tax for all work performed within city limits.
The payroll tax was set to be imposed on wages for individuals working in Salem, regardless of where they live, as early as July 2024. The tax would not be imposed on those earning minimum wage.
A payroll tax calculator is available at egov.cityofsalem.net/PayrollTaxCalculator/. A person earning the average hourly rate of $29.90, which equates to $62,192 a year, would be taxed $42.19 a month — $506.24 a year.
The funds generated could only be used for community safety, which includes police services, fire, emergency medical services, 911 call services, code enforcement and unsheltered services.
Critics of the tax say it is burdensome and unclear. Dozens of people testified in opposition to the tax before the council passed it.
Proponents said it is needed to keep the city safe and would be used to hire more police to decrease crime, hire more firefighters to reduce response times and maintain and expand existing homelessness services to keep people from living on the streets in unmanaged camps.
City officials have said the funding is needed to maintain current services in light of a projected budget shortfall and warned that without it, cuts to services would have to be made. Some other Oregon cities, including Eugene, have a similar tax.
OBI officials said that for employers, and especially for employers with hybrid workforces, the tax will create a significant compliance burden, as it applies only to work performed within the city of Salem.
Preston Mann, OBI’s director of political affairs and the referendum’s chief petitioner, thanked city and county staff for helping the group navigate the process of petitioning for the referendum.
“Salem residents will now have a chance to vote on a controversial tax that will affect thousands of workers and employers," he said.
For questions, comments and news tips, email reporter Whitney Woodworth at wmwoodworth@statesmanjournal.com, call 503-910-6616 or follow on Twitter at @wmwoodworth
This article originally appeared on Salem Statesman Journal: Salem residents will get to vote on payroll tax in November
