>> Home       Subscriber Services   |  e-Edition   |  Vacation Stop & Start   |  Pay Your Bill   |  Delivery Questions/Concerns   |   GET 2 WEEKS FREE!
Corvallis Gazette Times
Brides & Weddings |  Dining & Entertainment |  Health |  Home Owner's Center
61°F
ARCHIVES Print this story  |  Email this story  |  Last modified: Monday, May 15, 2006 11:45 PM PDT Subscribe to our RSS Feed  Subscribe to RSS
Council approves tax on phones

With an 8-0 vote, the Corvallis City Council on Monday night enacted a tax on phone companies to pay for fire protection services.

Councilor Scott Zimbrick said he had listened to concerns about the tax’s potential negative impacts. But Zimbrick and other elected officials said they had a responsibility to find a way to fund essential public safety services, including the fire equipment and training facility that will be paid for with revenue from the new tax.

“It’s important to me,” Zimbrick said. “Public safety is in peril if we don’t.”

After the meeting where there were as many lobbyists present as Corvallis residents, industry representatives vowed they would try to get the council’s decision referred to voters. Councilors noted that a concerted campaign by the industry against the tax, including direct mail, telephone banking and newspaper advertising didn’t result in much opposition, councilors said.

Stacey Sprinkle of Verizon Wireless said it was unfair to target telecommunication companies, and that requests for the city to consider a business tax were ignored.

“We’re still very much opposed to this tax,” Sprinkle said.

The 5 percent business tax on all telecommunication services companies will take effect July 1. The city estimates it could collect $700,000 a year, money that would be used initially to fund fire department services, such as replacing old vehicles and building a new training tower.

This is the second time during this council term officials have raised taxes administratively.

The council in September by majority vote passed the transportation maintenance fee, an add-on to the monthly water bill, based on the number of trips per day generated by those who use a particular type of building. Starting July 1, residents of single-family homes would pay $1.40 a month, small retail stores $11 and grocery stores about $50.

The city expects to raise $400,000 a year for the most urgent street projects through the transportation maintenance fees.

The telecommunications revenue alternative was proposed by city officials and the concept generally endorsed by the council earlier this year. The recommendation from the city’s finance department proposed the tax as a way to fill a budget gap in funding fire services.

Although public testimony has been overwhelmingly against the tax, the alternative was to trim the budget. Without the new revenue, the City Council would have to reduce other property tax-funded services, such as the library, police and fire departments and parks and recreation, officials say.

Former city councilor Tony Howell was one of half a dozen people who spoke in favor of the tax. Howell said paying for fire equipment and training needs through the cell tax will probably save most residents in the end.

“This saves more of us in fire insurance that this will cost most people,” Howell said.

At a glance

THE ISSUE: The Corvallis City Council has been considering a 5 percent business tax on telecommunication services, including cell phones.

WHAT’S HAPPENED SO FAR: The council enacted the tax with an 8-0 vote at Monday’s meeting.

WHAT’S NEXT: The tax will take effect July 1. It’s likely that telecommunication companies will pass along increases to customers.

Reader Comments
The comments below are from readers of Gazettetimes.com and in no way represent the views of the Corvallis Gazette Times or Lee Enterprises.
Don't see your comment? Read about how we moderate this forum.
For complete rules on posting, read our "Rules for Posting Comments."
Loading…
More Community News
Browse Achives
Browse articles that have been published online at Gazettetimes.com. You can browse the last 14 days or click below to perform an advanced archive search going further back.