There's a difference
This story, on the comparative tax burdens of different cities on travelers, caught our eye. Portland's travel taxes are among the worst in the country, but if you take into account the absence of a retail sales tax, Portland jumps up to being one of the best cities when it comes to taxing travelers.
The article brings a couple of points to mind. One is that the governor's argument for a sales tax -- "it's about time that tourists pay some taxes in Oregon" -- is as specious as his girlfriend's state contracts. When you look at all the taxes they already pay, on hotel rooms and car rentals, tourists are already contributing a fair amount of revenue -- at least if they come through Portland.
But more importantly to us, Portland's two rankings, one low and one high, illustrate a ridiculous feature of the city's taxing scheme. When tourists visit a place like Boston, they pay retail sales tax on practically everything they buy. And that money goes to basic public services -- cops, schools, street lights, that sort of thing. When tourists visit Portland, they pay hotel and car rental taxes. And all of that money has been specially dedicated by the politicians to worthless crap like the Convention Center and endless renovations of the soccer field. In other words, all the tourist taxes in Portland are being handed back to the tourism and entertainment industry, pursuant to Vera Katz's nasal "colors of money" lecture. That ain't the way it works anywhere else.
Oregon doesn't need new taxes half as badly as it needs new leadership that will stop handing tax dollars out to its friends left and right.
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Comments (13)
The "tax the tourists" argument is indeed silly. Only about 4% of sales tax dollars would come from non-Oregonians.
Posted by Isaac Laquedem | September 13, 2012 9:12 AM
"The 'tax the tourists' argument is indeed silly. Only about 4% of sales tax dollars would come from non-Oregonians."
Excellent.
Very excellent point!
Sales taxes are the most regressive form of tax.
And Kitzhaber calls himself a liberal.
Governor Kitzhaber just wants more money.
What about policies which unshakle small and medium sized business so that businesses generate more tax revenue?
This is the opening salvo in getting more money from the People of the State of Oregon without having the policies which encourage the economy to grow?
So, Governor Kitzhaber has implicitly admitted he has no ideas to grow the economy, just schemes & stratagems to keep government growing in the midst of a flat and stagnant economy.
Pathetic.
Posted by Jim Evans | September 13, 2012 9:29 AM
... but if you take into account the absence of a retail sales tax, Portland jumps up to being one of the best cities when it comes to taxing travelers.
Cue the news leak about Samdy's proposal for a new tourist tax increase. Followed shortly by Nick Fish saying he's in favor. The City Council will take 10 minutes of public comment before voting next Wednesday.
Posted by reader | September 13, 2012 9:43 AM
The "tax the tourists" proponents incorrectly assume that all tourists come from other states. Actually, 55% of visitors to Oregon who stay one or more nights come from Oregon, according to the most recent study available from the State Tourism Commission. So a statewide sales tax is not a way to tax those freeloading Californians and Washingtonians, but a way to tax Astorians in Ashland and Portlanders in Port Orford.
http://industry.traveloregon.com/upload/otc/departments/tourismdevelopment/oregon2009statereportjan27updatewithnational.pdf
Posted by Isaac Laquedem | September 13, 2012 9:47 AM
Kiplinger: Oregon #7 in Top 10 "Least Tax-Friendly" State for Retirees
http://www.kiplinger.com/slideshow/TaxUnfriendlyStatesRetirees/1.html
Posted by Mojo | September 13, 2012 10:05 AM
I think we are in so much financial trouble that every money making scheme is being brought to the table, and as far as the city goes,that council does just about anything they want to. Only takes three votes and they are so in sync with each other. There is no financial prudence, one bond after another and more debt. I am concerned that our assets/livability here are being sold down the river in exchange for who knows what next?
Posted by clinamen | September 13, 2012 10:25 AM
Here is another money making idea.
Pay a fee and then if not within 30 days, fines that increase.....
In my opinion, the noose is tightening on the citizenry.
I can go along with property that is junky and dangerous to be cleaned,
but any and all vacant lots?
What is the fee?
From the Desk of
Mayor Sam Adams
Vacant, Abandoned and/or Distressed Property on your Street? We Need Your Help
This is why we have created the Vacant Properties Resolution. This resolution would dramatically help by creating a mandatory online registration system for abandoned or vacant property owners. This system would ensure that public officials know how to contact the owners and require them to take responsibility. Property owners would have to pay a fee and register full contact information for any and all vacant, abandoned, or distressed properties. Failure to register a property within 30 days would result in a series of tiered fines that increase with multiple violations.
Posted by clinamen | September 13, 2012 10:40 AM
The cost to run a sales tax (both from the Dept. of revenue AND from retailers) are not insignificant and they outweigh what little tourists would pay.
That old "tax the other guy" think is easy to get traction with. It just doesn't work out.
Posted by John | September 13, 2012 10:45 AM
I don't know how much it might help, but not voting for Democrats could do some good.
Posted by Sam L. | September 13, 2012 11:08 AM
handing tax dollars out to its friends left and right.
You do realize this is the mission of government?
Ohh if only the USSR would have had better leadership they wouldn't have had the genocide of over 25,000,000 people.
Posted by Pistolero | September 13, 2012 12:20 PM
And, once those "Abandoned and/or Distressed" properties rack up a few bucks in city fines, then comes the lien, and then the foreclosure and seizure of the properties, which they they sell off at sweetheart prices to their insider friends....
A government-sponsored scam that's been taking the country by storm since the "downturn."
Tax Lien Sales: The 'Other' Foreclosure Problem Plagues Elderly Homeowners
http://abcnews.go.com/Business/tax-lien-sales-plague-homeowners/story?id=16755196#.UFKsRI7A6fQ
The Other Foreclosure Menace
Huffington Post Investigative Fund Fred Schulte, Ben Protess and Lagan Sebert
Updated: 05/25/11 05:30 PM ET
http://www.huffingtonpost.com/2010/05/18/the-other-foreclosure-men_n_579936.html
Posted by Mojo | September 13, 2012 9:06 PM
Mojo,
I wondered about where this might lead, and asking people to report vacant lots, might be a good way to get more properties in line for....
Quite frankly, I have come to realize that these plans/motives need to be questioned. Sadly there is no trust left...
and I might add not much decency towards human beings caught in a system, a downward spiral not of their own making.
In my opinion, those who bring about these plans have no conscience, no empathy, there is a name for these types?
Posted by clinamen | September 13, 2012 9:41 PM
Cue the news leak about Samdy's proposal for a new tourist tax increase. Followed shortly by Nick Fish saying he's in favor.
Fish going along again!!
Posted by clinamen | September 13, 2012 10:51 PM