Petroleum Lobbyist: Portland Street Fee's Income Tax Requires a Public Vote

The head of the state's gasoline lobby says he believes Portland Mayor Charlie Hales' latest iteration of the "street fee" is required by the city charter to be sent to voters.

Paul Romain, the lobbyist for the Oregon Fuels Association, tells WW that city rules require sending new taxes to a public vote—and the new proposal, a steeply graded income tax, falls under those requirements.

"If it's an income tax, we feel very confident they have to throw it out to the voters," Romain says. "There's no authorization in the charter for them just to adopt another tax."

Romain is referring to city charter section 7-110, which outlines what tax levies can be authorized by City Council without a public vote. Portland Mercury reporter Dirk VanderHart first reported Romain's contention this afternoon on Twitter.

Section 7-110-6 says "nothing herein contained shall affect the right, power or duty of the Council to levy special taxes heretofore or hereafter authorized by the voters, and special taxes authorized and found necessary shall be levied."

Hales spokesman Dana Haynes says Romain's reading of the city charter is wrong—the section refers to property taxes.

"The city attorneys have always considered what has to and doesn't have to go to voters," Haynes says. "We disagree with Mr. Romain. We understand why he would want that. But we disagree with his legal analysis."

Romain is a longtime opponent of Portland transportation taxes. In 2008, his coalition's pledge to refer a street fee to voters caused then-City Commissioner Sam Adams to scrap his plan. He has warned Hales that if City Council doesn't send this version to voters, someone will. 

UPDATE, 2:52 pm: Romain says a re-reading of the city charter suggests the city attorneys are right, and City Council is within its legal rights to pass an income tax. 

"I see where they're coming from on it," he says.

But Romain says his clients are preparing to collect signatures and send the Portland street fund to the voters.

"We're looking at a referral," Romain tells WW. "One way or another, the people are going to end up voting on it. Basically, there are sufficient folks out there that it will be referred." 

Meanwhile, Portland Business Alliance president Sandra McDonough declared on her OregonLive.com blog that the downtown business lobby won't support an income tax.

"We remain very concerned about the proposed income tax for the residential side," she writes, "and the potential impact on people who live in Portland."

WWeek 2015