City Council explores vacant property tax and diverse revenue sources

The Corvallis City Council held a work session on December 16, 2024, focusing on exploring alternative revenue sources to address the city's financial challenges. Key discussions centered around the potential implementation of a vacant property tax and the viability of various tax options, including payroll taxes.

Council member Lisonbee raised the issue of vacant properties, noting that approximately 16% of industrial and residential land in Corvallis is currently vacant or partially vacant. This statistic prompted interest in exploring a vacant property tax as a means to generate additional revenue. However, it was clarified that the state regulates property tax collections, and the feasibility of such a tax would need further investigation.

The conversation also touched on the idea of diversifying revenue sources rather than relying on a single method. Council members discussed the possibility of combining different tax strategies, such as increasing the lodging tax and implementing a payroll tax, to meet the city's financial needs. The complexity of managing multiple revenue streams was acknowledged, with emphasis on the need for careful consideration of which options to pursue.

Diane, another council member, advocated for a payroll tax, suggesting that it could be structured to be income contingent, providing a fairer approach based on individual earnings. She emphasized that a payroll tax could not only address immediate financial issues but also create a sustainable revenue stream for future capital needs.

The meeting highlighted the ongoing challenges faced by the city, particularly with significant employers like Oregon State University and local hospitals being nonprofit entities, which limits the tax base. The council's discussions reflect a proactive approach to finding solutions while recognizing the trade-offs involved in each potential revenue source. Further exploration and analysis will be necessary as the council moves forward in addressing these financial concerns.