In Portland, progressive leaders are contemplating new tax measures in a bid to secure funds for the city’s deteriorating road infrastructure. The urgency is palpable as they look for solutions to mend streets in dire need of repair.
Mayor Keith Wilson is spearheading a prominent proposal for a transportation utility fee, which would introduce a new monthly charge to both residents and businesses. This comes amid concerns in a city already grappling with some of the nation’s highest tax rates.
Under the proposed plan, homeowners would incur a $12 monthly fee, apartment dwellers would pay $8.40, and businesses would face a $61 charge. These fees would appear as part of their utility bills.
Mayor Wilson has described the initiative as essential, framing it as a ‘necessary, forward-looking conversation’ aimed at financing critical repairs like pothole fixes. He stresses the importance of addressing these infrastructure issues for the city’s future well-being.
According to city projections, this fee could bring in up to $46.7 million each year, providing much-needed resources for road maintenance and repair.
Highlighting the urgency of the matter, Portland councilwoman Olivia Clark, a Democrat, noted a recent tragic incident where a cyclist lost their life after encountering a pothole. This underlines the critical need for timely action and effective solutions.
‘We’re going to pay for this one way or another,’ Clark told KOIN. ‘So I would rather get ahead of the problem.’
The tax hike pitch comes as Portland’s street maintenance backlog has ballooned to $4.8billion.
Portland Mayor Keith Wilson, a Democrat, has backed a transportation utility fee that would raise locals’ high taxes even more
A cyclist recently died after falling into a pothole, according to Portland councilwoman Olivia Clark
Locals appeared skeptical about the proposal, noting they were already taxed plenty.
‘We are a highly taxed city and we need to be thoughtful about where we’re spending our money on things like this,’ Ross Jackson, a Portland resident, told the outlet.
However, city officials were adamant that money must be raised to fix the streets.
Wilson’s office said the tax hike ‘could provide a stable source of funding for essential road maintenance and safety improvements,’ according to The Oregonian.
The mayor added that 31 cities in Oregon already used such a tax, and that Portland following suit would ease the city’s ‘reliance on federal, state, and fuel-based taxes.’
Portland’s streets are marred by potholes and poorly laid asphalt, which are especially problematic after storms.
The city admitted last year that nearly two-thirds of its streets were in poor or very poor shape.
More than half of Portland’s busiest streets were described to be in ‘similarly decrepit conditions.’
‘We have to do something,’ Clark said. ‘Our streets are just going to continue to deteriorate.’
Clark recognized that Portland’s streets were deteriorating and called for taxes to be hiked in order to carry out repairs
Portland’s street maintenance backlog has ballooned to $4.8billion. Officials have admitted that almost two-thirds of the city’s streets are in poor or very poor condition
Some neighborhoods in the Democrat-run city remain unpaved, lacking curbs or sidewalks.
Clark said: ‘I think the conditions speak for themselves. They’re deplorable. It’s a system failure.’
Locals will be allowed to give public feedback on the transportation utility tax proposal on April 2.
If there are no setbacks, the proposal will be presented to the full Portland City Council six days later, and ahead of the city’s budgeting process.
Portland’s Bureau of Transportation told the Daily Mail that it was ‘unable to meet basic needs for maintenance and safety’ because revenue is not keeping pace with expenses.
‘If nothing changes, PBOT will have to cut its budget for the eighth consecutive year,’ the agency said.
‘The longer we wait to repair our transportation assets, the bigger and more expensive the problems become.’
Wilson’s office said that the transportation tax proposal ‘could provide a stable source of funding for essential road maintenance and safety improvements’
Other proposals to raise taxes in Portland include a street damage restoration fee, as well as a surcharge of up to 50 cents on individual deliveries from the likes of Amazon or DoorDash
Portland lawmakers are also considering a street damage restoration fee on utility companies and contractors that dig into public roads.
This model is used in other liberal cities such as Seattle, San Diego or San Francisco.
A tax hike there could raise another $22million per year, according to Clark.
‘I’m absolutely appalled that our neighbors are raising more money than we are, and their streets are in better condition than ours are,’ she said, per the Willamette Week.
A surcharge of up to 50 cents on individual deliveries from companies like DoorDash, Amazon and FedEx is also being studied in order to raise the revenue needed for the road repairs.
That proposal could generate $13.5million per year, further squeezing locals’ pockets.
Portland already ranks among the highest-taxed cities in the US.
In total, combined state, county, and city taxes give the city America’s highest corporate tax rate at just under 21 percent, according to the Tax Foundation.
High-income earners in Portland face a combined top marginal rate of almost 15 percent on their income Then, small businesses have to contend with aggressive taxes at a cumulative rate.
The Daily Mail has reached out to Mayor Wilson’s office for further comment.
