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This page contains a single entry from the blog posted on August 4, 2008 4:55 AM. The previous post in this blog was More on the anthrax doc. The next post in this blog is Chavez Boulevard, Round 2. Many more can be found on the main index page or by looking through the archives.

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Monday, August 4, 2008

County car rental tax blowup implicates Portland bonds

Jim Redden, one of the few soldiers still standing at the Trib, has a strong story going about the allegedly illegal use of car rental taxes by Multnomah County. State Senator Rick Metsger from East County is making a big issue out of it, and he's backed up legally by the state's legislative counsel.

Today Redden points out that some of the tax dollars that state lawyers say are being misspent have been used to pay back money that was borrowed in 2001 to expand the Oregon Convention Center, refurbish what is now PGE Park, and improve the Performing Arts Center. Indeed, according to this document (page 8 of the pdf file), part of the car rental tax was apparently pledged as security for the Convention Center bonds; the same was true for bonds for the stadium and the performing arts center (page 8 of this file).

Meanwhile, on another city debt front, all of the city's bonds that were insured by the now-troubled bond insurance companies Ambac and MBIA have been officially downgraded by bond rating agencies, as revealed in the June notices here (among others). Bonds with a top rating now represent only a small part of the city's outstanding debt.

Comments (8)

County Commission have taken oath to uphold the law. Funny how quickly they abandon it whenever its convenient to do so. Same goes for pdx city council.

I was going to post the classic "constant vigilance" quote, but I like this one better in this instance:

"Giving money and power to government is like giving whiskey and car keys to teenage boys. – P.J. O’Rourke"

Mayor elect Scam Adams often argues he can't divert money from one project, like streetcars, to another project, like street maintenance. Here's but one small example of how government officials and bureaucrats easily re-route money from one pot to another. Anyone who's been around a bureaucracy knows rules are there to inhibit the uninformed and unconnected. Those with the keys to the bureaucracy know how to synthetically change the locks quickly by changing terms, definitions, etc of a given project to fit the myriad of funding sources.

Sam Adams is the biggest and most seasoned liar to ever hold a seat on the council.

A study was just published by the National Business Travel Association where they rank 50 cities according to their "discriminatory travel taxes," which are taxes on lodging, car rentals and meals. Portland ranked the highest in the country! They note that such taxes hurt local businesses and consumers since they account for "more than half of car rentals" and that the tax impact on out-of-town visitors results in lost business that cities often are not even aware of. Their report can be found at:
http://www.nbta.org/NR/rdonlyres/3103B645-EB23-4DDB-AC9B-7A169C6710EF/0/TravelTaxReportJuly2008Final.pdf

Bob Whelan,

That is completely non-sensical. Of course Portland has the highest "rate of discriminatory travel taxes". There's no Sales Tax! Anything divided by 0 is infinite.

When looked at the raw amount of travel tax, Portland was at the bottom, usually 1/2 the cost of cities like San Francisco and that top resort location of Cleveland, Ohio.

Mr. Whelan, what you've just typed is one of the most insanely idiotic things I have ever read. At no point in your rambling, incoherent response were you even close to anything that could be considered a rational thought. Everyone in this blog is now dumber for having to read it. I award you no points, and may God have mercy on your soul.

I think Whelan links to an interesting set of statistics. Visitors to Portland don't pay general sales taxes, but they do get governmentally nickeled and dimed at the car rental counter and at hotel checkout.

To me the crucial distinction is that in sales tax states, the tourist revenue goes to all sorts of important government functions. Here in Portland it mostly goes (at least until now) to pay for the Convention Center, Performing Arts Center, and PGE Park. That's crazy.

The actual amount of discriminatory travel taxes for central city Portland, OR per day was $22.83 (lodging, car rental, and meals), which is the highest of the 50 cities surveyed by the NBTA and well above the average ($12.94). The point about dividing by zero, as brought to our attention from “Well Duh”’s vituperative comment, is inapplicable. The rate by the association is simply dollars spent per business visitor day, not as a ratio to sales taxes.

The NBTA is an association of corporate business travel managers and news of Portland’s high tax came to my attention via Smith Travel Research, which is widely read by the lodging and travel industry. The City of Portland may want to consider moderating its tax rate on business travelers so as avoid being among the 5 highest in the list.

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In Vino Veritas

Robert Mondavi Solaire, Cabernet 2005
Castello Monaci, Liante, Salice Salentino 2006
Ricardo Santos, Malbec 2006
Quinta da Espiga, Tinto 2006
Charles Smith, Holy Cow Merlot 2006
Charles Smith, Boom Boom Syrah 2006
Charles Smith, The Honorable Pinot Gris 2007
Santa Rita, Cabernet Reserva 2005
King Estate, Pinot Gris 2007
Gloria, Douro, Tinto 2002
Bogle, Petite Sirah Port, Clarksburg 2005
Cardwell Hill, Pinot Noir 2004
Silkwood, Red Duet Cabernet-Syrah 2004
Portuga, Vinho Branco 2006, 2007
Osborne, Solaz 2004
Santa Rita, Cabernet, Reserva 2005
Penfold's, Koonunga Hill, Shiraz Cabernet 2006
Chateau Ste. Michelle, Cabernet, Indian Wells 2004
Chateau Ste. Michelle, Merlot, Horse Heaven Hills 2004
Hannah Nicole, Red 2004
Penfold's, Koonunga Hill Shiraz Cabernet 2005
Protocolo, Red 2005
Woodbridge, Chardonnay 2006
Portuga, Vinho Branco 2006
Beaulieu, Cabernet, Rutherford 1998
Beaulieu, Cabernet, Rutherford 1996
Kirkland, Roogle Shiraz 2004
Garda, Classico Chiaretto
A to Z, Oregon Pinot Gris 2005
I Giusti & Zanza, Nemorino 2006
Treana, Marsanne-Viognier, Central Coast 2005
Fife, Syrah, "Stanford" 2000
B.R. Cohn, Silver Label Cabernet 2005
Marques de Casa Concha, Cabernet 2005
Santi, Sortesele Pinot Grigio 2006
Al Muvedre, Tinto Joven 2006
Layer Cake, Shiraz 2006
Gritti, Ca' Andrea, Umbria red 2005
Altos de Luzon, Jumilla 2004
Thomas Leithner, Zweigelt 2004
Cain Cuvee NV 3
Chateau Ste. Michelle, Merlot 2003
Meridian, Sauvignon Blanc 2005
Canoe Ridge, Merlot 2003
Paringa, Shiraz 2005
King Estate, Pinot Gris 2005
Canoe Ridge, Merlot 2003
Maculan, Pino & Toi 2005
Kris, Pinot Grigio 2006
Silvan Ridge, Pinot Gris 2006
Fife, Mendocino Syrah, "Stanford" 2000
Castle Rock, Cabernet, Paso Robles 2005
Willakenzie, Pinot Gris 2006
The Show, Cabernet 2005
Essencia Valdemar, Rioja Rose 2006
Chateau Ste. Michelle, Merlot, Horse Heaven Hills 2004
Beaulieu Vineyard. Napa Valley Cabernet 2004
Irony, Cabernet, Napa Valley 2003
Rosenblum, Petite Sirah, Heritage Clones 2005
Fra Guerau, Montsant 2002
Barefoot Chardonnay
Kana, Syrah 2004
Castell Salegg, Chardonnay, Alto Adige 2004
Fetish, The Watcher Shiraz 2004
Gold Note, Fair Play Zinfandel 2005
Chateau Ste. Michelle, Canoe Ridge Estate Cabernet 2003
Ponzi, Pinot Noir 2004
Red Diamond, Merlot 2003
Mateus, Rose
Benton Lane Pinot Noir 2004
Penya Cadiella Vins de Comtat 2003
Kamiak, Cellar Select Red 2003
Anselmi, San Vincenzo 2005
Rubrato, Aglianico dei Feudi di San Gregorio 2004
Le Grand Noir (Black Sheep) Cabernet-Shiraz
Woodbridge, Chardonnay 2005
Los Vascos, Cabernet, Reserve 2004
Jackaroo, Shiraz 2003
Paul Jaboulet Aine, Crozes Hermitage Syrah, "La Jalet," 2001
Paul Jaboulet Aine, Cotes du Rhone, "Parallele '45,'" 2003
Rolf Binder, Barossa Valley Shiraz 2003
Oyster Bay, Sauvignon Blanc 2006
Woodbridge Chardonnay 2005
Barnard & Griffin, Columbia Valley Cabernet 2004
Quinto do Carmo, Alentejano Red 2000
Forefathers, Alexander Valley Cabernet 2001

The Occasional Book

Oscar Hijuelos - Mr. Ives' Christmas
Madeline L'Engle - A Wrinkle in Time
Steven Hart - The Last Three Miles
David Sedaris - Me Talk Pretty One Day
Karen Armstrong - The Spiral Staircase
Charles Larson - The Portland Murders
Adrian Wojnarowski - The Miracle of St. Anthony
William H. Colby - Long Goodbye
Steven D. Stark - Meet the Beatles
Phil Stanford - Portland Confidential
Rick Moody - Garden State
Jonathan Schwartz - All in Good Time
David Sedaris - Dress Your Family in Corduroy and Denim
Anthony Holden - Big Deal
Robert J. Spitzer - The Spirit of Leadership
James McManus - Positively Fifth Street
Jeff Noon - Vurt

Road Work

Miles run year to date: 28
At this date last year: 102
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In 2005: 149
In 2004: 204
In 2003: 269
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