Explanatory Statement:Approval of this measure would authorize a diesel fuel tax of up to three cents per gallon to raise money for maintenance, repair and safety improvements on county roads and city streets. BACKGROUND Current road maintenance revenues are not sufficient to keep pace with the county's growing population and increased usage of its road system. A diesel fuel tax would be dedicated exclusively to road maintenance, preservation and safety improvements. Many roads in Marion County are rated in fair or poor condition. Property taxes do not go to road maintenance, preservation or safety improvements. TAX IMPOSED The tax is generally collected from wholesale dealers bringing diesel fuel into the county for sale, distribution or use within the county. Each wholesale dealer is required to have a county license and pay a monthly tax of up to three cents for each gallon of diesel fuel brought into the county. Since the tax may be passed along by wholesale dealers to the retail level, the tax in effect will be paid primarily by the public in its purchase of diesel fuel. ADMINISTRATION The tax will be collected and administered by the county or its designee. Much of the ordinance deals with the technical aspects of administration. Dealers are subject to penalties, including license revocation, for failure to comply with ordinance requirements. EXEMPTIONS/REFUNDS The ordinance exempts from the tax: diesel fuel used for vehicles other than motor vehicles on public roads, such as in boats, airplanes or stationary power equipment; fuel used by vehicles on private property, including farms and on logging roads not maintained by public bodies; sales to the United States Armed Forces; fuel exported from the county. USE OF REVENUES - DISTRIBUTION TO CITIES The ordinance provides that the net revenue "shall be used only for the construction, reconstruction, improvement, repair, maintenance, operation and use of public highways, roads and streets and roadside rest areas within the incorporated and unincorporated areas of the county as may be allowed by Article IX, Section 3a of the Oregon Constitution." By law, none of the diesel fuel tax proceeds can be used for any other purpose. Under the ordinance, the proceeds will be distributed to cities and the county: 40% to the county and 40% to the cities. 20% will be earmarked for areas immediately surrounding the cities. The county, and most cities, have developed road maintenance, preservation and safety improvement programs. If this measure is passed, Marion County will use the tax revenues to further its road maintenance program. AMENDMENTS Major features of the ordinance, such as the maximum amount of the tax, exemptions and the use of the money raised cannot be changed except by a future vote of the people. EFFECTIVE DATE The ordinance would take effect July 1, 1998. The tax will first be imposed on a date on or after the effective date, to be determined by board resolution. Submitted by: Randall Franke, Chair Marion County Board of Commissioners
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