Salem Voters Likely to Decide Fate of Payroll Tax

SALEM, Ore. (AP) – Voters in Salem, Oregon, will likely decide on a payroll tax dedicated to paying for public safety as the city tries to patch a multimillion-dollar deficit.

The Statesman Journal reports councilors struck a compromise Monday when they tentatively decided to send local voters the payroll tax, which would also apply to commuters driving into town for work, instead of approving it themselves.

The payroll tax would stand at 0.266% for workers making more than minimum wage and up to $15 an hour. Workers with higher hourly wages would see a tax of 0.39%. Minimum wage earners would be fully exempt.

City staff forecast about $9.1 million in revenue from the levy in the first year.