MEASURE NO. 24-45 City of Salem Ballot Title: Submitted to the People by the City Council Enacts Business Registration Tax Question: Shall a registration tax be imposed on persons doing business in the city, producing estimated annual revenue of $1.57 million? Summary: A “Yes” vote on this measure is a vote to increase taxes. Requires persons doing business in city to register and pay annual taxes based on number of full-time-equivalent employees who work in city as follows: 0-4 employees $100 5-19 employees $250 20-49 employees $500 50-99 employees $750 100-249 employees $1,500 250+ employees $2,000 Tax is for revenue purposes only. It is imposed on persons other than employees engaging in any enterprise, activity, profession or undertaking in pursuit of profit, gain or production of income, including property transactions, manufacturing or sale of goods, and rendering of services. Exempt are persons city may not legally tax for business registration, exempt organizations under Section 501(c)(3) of the Internal Revenue Code, persons whose annual gross receipts are less than $25,000, persons holding less than three garage sales per year, persons renting or leasing less than three dwelling units, individuals under 18 and city neighborhood organizations. Provides for temporary registration. Prohibits transfer of registration. Requires displaying registration and keeping records. Prescribes civil and criminal penalties and procedures. Explanatory Statement: A "Yes" vote on this measure is a vote to increase taxes. This measure requires persons who do business in the city to register and pay annual taxes based on the number of full-time-equivalent employees who work in the city as follows: 0-4 employees $ 100 5-19 employees $ 250 20-49 employees $ 500 50-99 employees $ 750 100-249 employees $1,500 250 + employees $2,000 Persons, not employees, who engage in any activity, profession or undertaking of any nature in pursuit of profit, gain or production of income within the city limits are subject to the tax. The tax applies to a person whose business is located within the city limits, and to a person whose business is located outside of the city but who does business inside the city limits. The tax does not apply to: 1. Persons the city may not legally tax for business registration; 2. Charitable, religious, educational and other organizations exempt from federal tax under Section 501(c)(3) of the Internal Revenue Code; 3. Persons whose annual gross receipts are less than $25,000; 4. Persons holding less than three garage sales per year; 5. Persons renting or leasing less than three dwelling units; 6. Individuals under 18; and 7. Neighborhood organizations. Temporary registration, at one quarter of the annual rate, is available for persons doing business in the city for not more than 30 days. The tax is for revenue rather than regulatory purposes. The estimated revenue to be raised by the Business Registration Tax is $1.57 million annually. Use of the revenue would be determined by the City Council through the annual public budgeting process. Submitted by: Mike Swaim, Mayor On behalf of the Salem City Council No arguments in favor of or opposed to this measure were filed.   Back to the November 7, 2000 Voter Pamphlet Main Page