Portland State To Try a Payroll Tax

Wednesday, December 16, 2015

GoLocalPDX News Team

Portland State University’s board of trustees voted unanimously to ask voters to approve a new payroll tax in the area at the University’s board meeting last week.

The measure, which university officials are terming a "college affordability proposal," would aim to offer scholarships to local students and hire new faculty and support staff.

The tax would need to voted on by residents in order to pass, via ballot measure. The proposal would create a payroll tax paid by businesses within the Metro. The tax would charge roughly one-tenth to two-tenths of 1 percent of payroll. PSU officials said they estimated the tax would raise between $30 million and $70 million per year.

The structure of the tax is not unprecedented. It is modeled off of a payroll tax for TriMet transpiration services. The tax would be administered by the Metro regional government.

Earlier this year, University President Wim Wiewel said the tax is meant to help add funds to the University’s fund, which had been suffering from low state funding levels. Wiewel said previously that asking businesses to pay to educate the workforce they will soon rely on makes sense.

PSU’s board will have to vote on the proposal a second time during their meeting in January. If the board approves the proposal a second time, the University will need to gain thousands of signatures in order to get the plan on the ballot in time for elections in 2016.

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