Portland Metro, Oregon, Measure 26-210, Income and Business Taxes for Homeless Services (May 2020)

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Portland Metro Measure 26-210
LocalBallotMeasures Final.png
Election date
May 19, 2020
Topic
Local income tax and Local business tax
Type
Referral
Origin
Lawmakers


A income and business tax measure was on the ballot for Portland Metro voters in Multnomah, Clackamas, and Washington counties in Oregon, on May 19, 2020.[1]

A "yes" vote supported authorizing a 1% tax on household income above $200,000 and individual income above $150,000 and a 1% profit tax on businesses with gross receipts higher than $5 million to fund homeless services with the taxes expiring in 2030.

A "no" vote opposed authorizing a 1% tax on household income above $200,000 and individual income above $150,000 and a 1% profit tax on businesses with gross receipts higher than $5 million to fund homeless services with the taxes expiring in 2030, thereby maintaining the marginal tax rate at 9.9% for household income above $250,000 and individual income above $125,000.


A simple majority was required for the approval of Measure 26-210. The income tax was designed to be on resident and non-resident income earned within the Metro area. Metro officials estimated the combined revenue of the income and business taxes to be $248 million per year. The tax would take effect in 2021 and expire in 2030.[2]

Measure 26-210 required that the revenue raised by the income and business taxes be divided according to the proportion expected to be received from the three counties that make up Portland Metro. Multnomah County was set to receive 45.3 percent of the revenue, Washington County was set to receive 33.3 percent, and Clackamas County was set to receive 21.3 percent. A 20-member oversight committee was set to be formed to conduct and publish annual financial audits.[2]

Election results

Portland Measure 26-210

Result Votes Percentage

Approved Yes

299,517 57.98%
No 217,091 42.02%
Results are officially certified.
Source


Text of measure

Ballot question

The ballot question was as follows:[1]

Should Metro support homeless services, tax income over $200,000/$125,000 (joint/single), profits on businesses with income over $5 million?[3]

Ballot summary

The ballot summary was as follows:[1]

Measure funds supportive housing services to prevent and reduce homelessness in Washington, Clackamas, and Multnomah counties within district boundaries. Prioritizes services to address needs of people experiencing, or at risk of, long-term or frequent episodes of homelessness. Services funded by a marginal income tax of 1% on households with income over $200,000 (over $125,000 for single filers) and a business profits tax of 1%. Income tax applies to resident income, and to non-resident income earned from sources within district. Exempts businesses with gross receipts of $5 million per year or less. Declares funding for homelessness services a matter of metropolitan concern, directs regional funding to local services agencies, requires community engagement to develop localized implementation plans. Allocates funds to counties by estimated revenue collected within each county. Establishes community oversight committee to evaluate and approve local plans, monitor program outcomes and uses of funds. Requires creation of tri-county homeless services coordination plan. Requires performance reviews and independent financial audits. Metro administrative and oversight costs limited to 5%. Requires voter approval to continue tax after 2030.[3]

Full text

The full text of the measure is available here.

Support

Here Together Coalition campaign logo

Here Together Coalition led the campaign in support of Measure 26-210.[4]

Supporters

Arguments

  • Craig Dirksen, Metro Portland councilman said, "In my district in southern Washington and Clackamas counties our homelessness crisis may look different than in downtown Portland, but no part of our region is untouched by this crisis. ... Every part of this region has a major gap to fill when it comes to getting people the help we need."[2]
  • Stan Amy, Gun Denhart, and Tom Kelly, founders of the Oregon Business Association, said, "The 1% tax on large businesses is a reasonable and fair approach—and the need is undeniable. That is why, as business leaders in our region, we urge voters to say “yes” to Measure 26-210. The companies to be taxed are only those with over $5 million in sales a year. As a result, this measure exempts 94% of all businesses in the region; most notably small and medium-sized businesses."[9]
  • Michael Sterner, the housing services program manager at El Programa Hispano Católico, said, "[I]t is essential to have assistance funds that can be used throughout the Metro area. We have had to deny assistance to families in need because they are in neighboring counties for temporary shelter or due to a pending court proceeding. Funds available throughout the Metro area would allow us to help those families, too."[10]

Official arguments

The following arguments in support of the measure were included in the 2020 Voters' Pamphlet provided by Here CareOregon, Health Share of Oregon, Kaiser Permanente, Legacy Health, and Providence Health & Services - Oregon:[5]

As leading nonprofit health care providers in the Portland metro region, we know that housing is health. Without a safe, stable place to call home, it’s nearly impossible for our patients to focus on basic health and medical needs, and for our doctors and nurses to keep them healthy.

Patients who are homeless have a higher rate of hospital admissions and emergency room visits, while also suffering from poorer health outcomes and higher mortality rates. This disparity is even more devastating during the COVID-19 public health crisis we are confronting.

While some of us are business competitors, we are all in the business of keeping people healthy. That’s why we support Measure 26-210 - we are all in this together, to serve people experiencing homelessness in our community. In Oregon and across America, we and other health care organizations are investing in housing development, supportive services, safety-net clinics, community health workers, and much more.

Here in the metro region, we are working collaboratively with government and nonprofit partners to address a key driver of health - housing instability and homelessness - to improve the health and well-being of the communities we serve. As major health care systems, we won’t back down from our commitment to helping house and care for vulnerable people in our community. But with thousands of families and individuals experiencing or at risk of homelessness across the region, we know our efforts cannot meet the entire need. We urge a Yes vote on Measure 26-210 so that together, our region can make a historic investment in the health and wellbeing of the entire community.[3]

Opposition

Alliance for an Affordable Metro led the campaign in opposition to Measure 26-210.[11]

Opponents

  • Taxpayer Association of Oregon[5]
  • Oregon Small Business Association[5]
  • Cascade Policy Institute[5]
  • Northwest Grocercy Association[12]

Arguments

  • Joe Gilliam, president of Northwest Grocery Association, said, "Retail sales are down. Small businesses are boarding up, and they're saying ‘Too bad for you. We're going to tax you now."[12]

Official arguments

The following arguments in opposition to the measure were included in the 2020 Voters' Pamphlet provided by Cascade Policy Institute:[5]

VOTE NO ON 26-210: ENOUGH IS ENOUGH

Metro is at it again. Last November, Metro raised taxes $475 million for parks and nature. Now, Metro wants $2.5 billion for housing services. This November, Metro has plans for $3.8 billion in taxes to expand light rail. That’s nearly $6.8 billion in new taxes—in one year alone.

Families are losing jobs. Businesses are closing. Our region is in a recession.

We can’t afford Metro’s reckless spending. We can’t afford Metro’s new taxes.

VOTE NO ON TWO NEW INCOME TAXES

Measure 26-210 punishes struggling families and businesses with two new income taxes. Many small and medium sized business owners will be taxed twice by Metro’s measure. First on their business income, then on their personal income.

Measure 26-210 imposes thousands of dollars in new taxes on struggling families. Families who can’t make their mortgage, can’t afford their car payment, can’t afford their student loans. In these tough times, Measure 26-210 may create more homeless than it helps.

Metro doesn’t care. Metro had a chance to pull this measure once it learned how COVID-19 would destroy families and businesses. Instead, Metro chose to go full speed ahead with its punishing taxes.

VOTE NO ON METRO’S MISSION CREEP

Metro’s mission is land use and transportation planning. How’s that working out for you? You’re stuck traffic and our housing market’s a mess.

Measure 26-210 expands Metro’s mission to include rental subsidies and homeless services. Metro wants you to pay for their mission creep. Given Metro’s history of misplaced priorities, do you trust them to get it right this time?

VOTE NO ON CHAOS AND CONFUSION

Measure 26-210 was thrown together in under a month. And it shows. Metro has no idea who will actually have to pay the new taxes or how the taxes will be collected and enforced. Metro has no plan to reduce the number of actual homeless.

VOTE NO ON 26-210
[3]

Media editorials

See also: 2020 ballot measure media endorsements

Support

  • Portland Mercury said: "The brainchild of numerous housing and homeless advocacy groups, the measure would use tax dollars to expand already-existing supporting housing programs in the region. ... It’s on us to offer our most vulnerable neighbors a path forward."[13]

Opposition

  • Portland Tribune said: "Every taxpayer-supplied penny available — and likely more — will be needed over the next two years just to retain existing, critical state and local services such as education and health care. For this reason, we cannot support Metro's Measure 26-210, which would raise money for wrap-around services for people who are homeless."[14]

Background

Homeless population in Portland Metro

A 2019 report by Portland State University Homelessness Research & Action Collaborative and Northwest Economic Research Center found that an estimated two percent of the area's population or 38,000 people were homeless at some point in 2017. In January 2019, more than 75 percent of the homeless population in the Portland Metro area had a disability. Compared to other metropolitan areas, Portland had the fifth-highest number of homeless individuals per 1,000 residents with 5.86. Cities with higher rates than Portland included New York City, San Francisco, Boston, and Washington, D.C.[2][15][16]

Funding for homeless services on the ballot

In 2020, Ballotpedia covered local measures that appear on the ballot for voters within the top 100 largest cities in the U.S. Ballotpedia also covered all local measures in California and all statewide ballot measures. Below is a list of local ballot measures concerning homeless services since 2016 within Ballotpedia's scope:

Path to the ballot

See also: Laws governing local ballot measures in Oregon

This measure was put on the ballot through a unanimous vote of the Portland Metro Council on February 25, 2020.[1][2]

See also

External links

Footnotes

  1. 1.00 1.01 1.02 1.03 1.04 1.05 1.06 1.07 1.08 1.09 1.10 Multnomah County Elections, "Measure 26-208 Ballot Language," accessed April 6, 2020
  2. 2.0 2.1 2.2 2.3 2.4 Oregon Metro, "Measure 26-210: Supportive housing services," accessed April 6, 2020 Cite error: Invalid <ref> tag; name "oregonmetro" defined multiple times with different content
  3. 3.0 3.1 3.2 3.3 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
  4. HereTogether Coalition, "Home," accessed April 6, 2020
  5. 5.0 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 Multnomah County, "2020 Voter Guide," accessed April 10, 2020
  6. HereTogether Coalition, "Public Testimony: Multnomah County Chair Deborah Kafoury," February 25, 2020
  7. ''HereTogether Coalition, "Public Testimony: Commissioner Susheela Jayapal," February 25, 2020
  8. Willamette Week, "Bill Walton Has Endorsed a Measure on Portland’s May Ballot, and He’ll Never Stop Talking About It," April 22, 2020
  9. Oregon Live, "Opinion: Time to show we’re here together on homelessness measure," April 5, 2020
  10. HereTogether Coalition, "Public Testimony: El Programa Hispano Católico," March 18, 2020
  11. YouTube, "Alliance for an Affordable Metro," accessed April 28, 2020
  12. 12.0 12.1 KGW8, "Bill Walton endorsement & old-school phone calls: Campaigns adjust to pandemic ahead of May primary," April 22, 2020
  13. Portland Mercury, "Mercury 2020 Primary Endorsements: Local Ballot Measures," April 28, 2020
  14. Portland Tribune, "Vote 'no' on Metro homeless measure," April 24, 2020
  15. OPB, "Governance, Costs, and Revenue Raising to Address and Prevent Homelessness in the Portland Tri-County Region," accessed April 6, 2020
  16. Oregon Live, "Homelessness in Portland versus other cities," accessed April 6, 2020