No new taxes or fees in Portland: Don’t Believe It!

No new taxes or fees!

That was one of the recommendations of Gov. Tina Kotek’s Portland Central City Task Force convened to consider the city’s most challenging problems and recommend ways to address them. 

“Declare a moratorium on new taxes…” urges the Task Force report.…elected officials should consider a three-year pause, through 2026, on new taxes and fees…”

Oh well, so much for that.

Your Portland property taxes, which were due Nov. 15, probably already went up and will likely go up again in 2024. According to the Lincoln Institute of Land Policy and the Minnesota Center for Fiscal Excellence, Portland ranked fifth highest nationally for effective property tax rate — a homeowner’s tax bill as a percentage of a property’s value — on a median-value home in 2022.

And Portland Commissioners Dan Ryan and Rene Gonzalez are already floating a November 2024 ballot measure that would raise property taxes to cover a $800 million bond for maintenance and new construction projects for the city’s parks and fire departments. 

Oregonians are also already paying higher gas taxes. Oregon’s gas tax increased to 40 cents as of Jan. 1, 2024. That’s an increase of two cents per gallon from last year. The new rate keeps Oregon among the ten states in the U.S. with the highest gas taxes. Propane and Natural Gas Flat Fee increases also went into effect for qualified vehicles on Jan. 1.

Portlanders (and many more folks) are also facing increases in electricity rates. PGE customers can expect to pay 18% more on their power bills starting Jan. 1. The 2024 rate increase will cost the average single-family household an extra $24.59 each month.

And then there are all the taxes and fees the 2003 Legislature gleefully enacted. 

According to the Taxpayer Association of Oregon, Oregon lawmakers passed 185 fee increases (increasing existing fees and establishing new fees) in 2023 that will mean $47 million in higher costs.

Of those, 77 new or increased fees will directly impact the cost of medicine, hospitals and health care, which are all already straining the budgets of Oregonians.  Another 47 fee increases will impact Oregon’s agriculture industry and consumers.

A list of 2024 fee increases by agency is below: 

And then there are the new fees the 2023 Legislature created:

Portlanders and almost all Oregonians are also going to be paying a new cell phone tax this year. Starting January 1, 2024, a 988 Coordinated Crisis Services Tax will be added to the existing Oregon Emergency Communications (911) Tax. The new tax was implemented by the Oregon Legislature with the passage of House Bill 2757. The $50 million a biennium tax is slated to fund the state’s new 9-8-8 suicide prevention hotline.  

DMV fees have gone up, too, touching just about everybody with a vehicle. For example:

  • Class C driver license or restricted Class C driver license, increased from $54 to $58
  • Commercial driver license, increased from $75 to $160
  • Instruction driver permit, increased from $23 to $30
  • Commercial learner driver permit, increased from $23 to $40
  • Hardship driver permit application, increased from $50 to $75
  • Fee for renewal of a commercial driver license, increased from $55 to $98
  • Fee for knowledge test for a motorcycle endorsement, increased from $5 to $7
  • Fee for a skills test for any commercial driver license, increased from $70 to $145

And the list of fee increases goes on, nickeling and diming Oregonians.  

And of course legislators are busy thinking of new taxes.

For example, because the Oregon Department of Forestry wants more money to fight wildfires, Sen. Elizabeth Steiner, D-Portland, wants to charge every property owner in the state an annual fee to pay for what she perceives as a statewide issue.

And then, of course, there’s always inflation. It has been pushed down by aggressive Federal Reserve action, but in its long-term economic projections from December, the Federal Open Market Committee forecasted core Personal Consumption Expenditures Price Index inflation will drop from 3.2% in 2023 to 2.4% in 2024 and 2.2% in 2025.

But, still, hold on to your wallet. The state is considering tolls on I-205, I-5, U.S. 26 and Highway 217.

And the beat goes on.

Sock it to ’em: Hales and the left long for more taxes

More taxes. That’s the left’s answer for everything. Usually, they try to spread out the tax increases so you won’t notice how the total is escalating. But this year, they’re going whole hog.

Funny Tax Picture 2

On Tuesday, Portland Mayor Charlie Hales proposed an $8.7 million increase in the Business License Fee. Now 2.2 percent of a business’ net profit, the fee would increase to 2.5 percent for 25,200 Portland businesses.

“We need to be responsible leaders by providing enough revenue to deliver basic City services and invest in making lasting progress on our challenges,” Hales said. “A slightly larger fee on business’ profits will have a far-reaching, positive impact on the city as a whole.”

Meanwhile, Our Oregon, a coalition of unions and progressive groups, is promoting Initiative Petition 28 for the November 2016 ballot.

The measure would raise the corporate minimum tax on Oregon sales of more than $25 million a year from the current minimum of $50,000 to $30,001 plus 2.5 percent of the excess over $25 million. The tax would be based solely on sales, not profit.

The Legislative Revenue Office estimates the corporate tax measure would raise $5.3 billion during the 2017-2019 biennium. Corporate taxes during that biennium under the current system are projected to reach about $1.1 billion.

In other words, the measure would increase corporate tax collections per biennium by a whopping 400 percent in one fell swoop.

“If that passes, we’ll have a lot of money to pay for stuff,” said Rep. Mitch Greenlick (D-Portland).

All this would be on top of Portland’s much-maligned Arts Tax, which a large swath of the city’s liberal population isn’t paying, and an additional 10 cents a gallon gas tax in Portland, the brainchild of Portland Commissioner Steve Novick, that would generate $64 million over the next four years if voters approve it on May 17.

Yesterday, May 3, an Oregon judge approved ballot language for another tax, a payroll tax that would support Portland State University. Supporters will now begin collecting signatures to get the tax on the ballot in November. The proposed one-tenth of 1 percent payroll tax on wages paid by Portland-area businesses would generate about $40 million annually for PSU.

And if all these new taxes aren’t enough, the increases in the minimum wage that the Democrats in the state Legislature just pushed through will start in July.

Meanwhile, Gov. Brown is meeting in Portland today with lawmakers and business executives to start the process of crafting a multi-billion dollar funding package for state roads. The package would likely involve higher gas taxes and vehicle registration and driver license fees.

Hold on  to your wallets, folks.