Friday, May 22, 2009

Welcome to Pendleton – gothcha

The taxpayer - that's someone who works for the federal government but doesn't have to take the civil service examination. ~Ronald Reagan

Taxation with representation ain't so hot either. ~Gerald Barzan

Bridge to nowhere, lofty dream, or great project?

Pendleton recently held an election to increase the local gas tax by 4 cents per gallon. The purpose of the tax is to pay for a road project that will make land available for business development. There has been a fair amount of controversy. For the record, I support the road project, but oppose paying for it with gas taxes.

I am concerned about the decision process to start the road project and the source of funding. However, I’m certain we need to have industrial ready land for potential businesses.

Let’s get real. Before I list my concerns, I want to address the cost of the gas tax because there are a lot of local citizens that are angry. Those that voted “no” need to settle down a little. Let’s look at the math for those, like me, that opposed the tax. We are only talking about $20 per year. Give me a break!!!! Most folks that commute to work drive about 50 miles per day. This equates to 12,500 miles per year. This would require 500 gallons of gas for a typical car that gets 25 miles per gallon. Your incremental tax is $20 if you add 4 cents to 500 gallons of gas. Some a little more – some a little less.

Here is a list of my concerns:

The purpose of the road project was to promote local business. However, the 4 cent gas tax creates a situation where a few current local businesses have a disadvantage with other similar businesses in the region. The gas stations in the city limits will have a 4 cent disadvantage against stations within just a few miles. It is too easy for people to opt out of the tax by buying gas outside of city limits.

The gas tax will disproportionately affect people that consume more gas. This includes many that have to commute for work. Nothing could be less fair than paying for this project through gas taxes.

The supporters explained that taxing gas was a great idea because 40-45% of the gas sold in town was to people that lived out of town. This concerns me for 2 reasons. The first is we should be trying to find more reasons for visitors to come to our town – not fewer reasons. It’s a “Welcome to Pendleton – gothcha” mentality. The second reason is that I feel it is not responsible to spend other people’s money. The local residents that will theoretically prosper should be the ones that pay. I believe that politicians in general make bad decisions when they insure that “somebody else" pays for it.

The other option to a gas tax would be for property taxes to pay for the project. I was in the minority that feels this is the best option. It’s a little self centered because my property holdings are less than others, but again this is a fairer method of taxing for this type of project. Theoretically those that benefit the most should pay for the project. IF the road project brings industrial business to Pendleton, then the property values go up – or at least stabilize – and property owners benefit.

I am also concerned that some supporters of the project have been misleading and arrogant. (NOT ALL SUPPORTERS) They had argued that the election was to support the community. That is not true. The project has already been approved and started: the only issue was how the project would be financed. They also expressed appreciation to the community for supporting the project. While the tax passed by a 54% yes to 46% no, our community leaders need to understand there are still 46% of local citizens that may not financially support the project. I would be more comfortable if they at least recognized the legitimate concerns rather than demonize opponents.

I’d rather have a gas tax to repair current roads in town – geez. Pendleton now has the second highest gas tax in Oregon. Only Eugene surpasses at 5 cents. You gotta know that Eugene is a tax and spend haven! Most other cities in Oregon that have a gas tax – there’s about 20, have limited the tax to 1-2 cents. Most of these taxes are directed only for current road repair. There are a few that have taxed for development projects – but not many.

There are private land owners along the new road that will realize significant improvements in their property value due to this project. It’s a mixed bag issue – they will realize a gain at public expense if the land is developed, or they may be taxed at a higher property value even if there is no real benefit.

OK – so why am I ranting? Folks, I think it makes a difference what our public projects are – AND how we pay for them. The whole concept of letting somebody else pay for it bothers me. That’s why my great-great-great grandchildren will be paying for my stimulus check. Oh well ~ it’s just a part of my political frustration. I know that Republicans blame Democrats for getting us into a mess, and Democrats blame the Republicans for the same. My theory is they are both right. ~ more on that another day .

I think I’ll go buy a bike!

Here are a few photos that fit my opinion – enjoy:


















If you make any money, the government shoves you in the creek once a year with it in your pockets, and all that don't get wet you can keep. ~Will Rogers

When there's a single thief, its robbery. When there are a thousand thieves, its taxation. ~Vanya Cohen

1 comment:

  1. Hope you didn't read this before - I'd posted a draft - ugh - needed to clean up.

    ReplyDelete