City of Salem proposes taxing all individuals who work within city limits

PORTLAND, Ore. (KOIN) -- The City of Salem may tax everyone who works within city limits to pay for emergency services.

If passed, the Safe Salem Payroll Tax would be imposed on all wages for individuals working in Salem, regardless of where they live, as early as next July.

This proposed ordinance is getting a lot of people's attention. Some think it's too burdensome and that it will backfire by making it hard to attract employees, but the city is saying it's the only way to fix the budget shortfall.

City officials said the average Salem worker would pay $1.39 per day, which is roughly $42 per month. The tax would generate more than $27 million each year. However, the tax would not be imposed on people earning minimum wage.

"This is the hardest decision to make," said Salem City Manager Keith Stahley. "We're facing a $19 million shortfall."

While officials believe the funding is sorely needed, employees and employers alike packed city hall, giving hours of testimony against this action. Nearly every person that spoke at the Salem City Council meeting shared similar sentiments about this decision being put to the voters -- testimony took over 2.5 hours.

"I think this tax is not ethical, its regressive, and unfair," said one speaker.

"This tax is unaffordable to many," added another speaker.

However, there was one speaker who supported the tax, saying they "see the need. If I need an ambulance, I'd rather it be funded."

The funds could only go to community safety, paying for things like police, fire, emergency medical services, 911 call services, code enforcement and homeless services.

Salem employees can see how much they would have to pay by using a payroll tax calculator on the City of Salem website.