2018 STATE SHARED REVENUE REPORT with Estimates

Transcription

1 2018 STATE SHARED REVENUE REPORT with Estimates Contact: Wendy Johnson, Intergovernmental Relations Associate: or (503) Table of Contents: State Shared Revenue Estimates....2 Highway Trust Fund Revenues....3 Marijuana Tax Revenues....5 Liquor Revenues....9 Cigarette Tax Revenues Emergency Communication Tax Revenues City Populations League of Oregon Cities 1201 Court St. NE, Suite 200 Salem, OR (800)

2 2018 State Shared Revenues Information and forecast estimates in this report are based on the best information available at publication in January The material is subject to forecast and law changes made throughout the year. Per Capita State Shared Revenues for Cities Per capita distributions for revenue sources are calculated based on certified population statistics from Portland State University s Center for Population Research (PSUCPR). Population estimates compiled each July are typically certified on December 15, and thereafter begin to govern the distributions. See page 32 for certified population estimates. Note that quarterly state marijuana tax distributions will use the most recent PSUCPR population numbers (not the yearly certified numbers). Therefore, per capita numbers for those distributions will change throughout the year with annexations, etc. Liquor Revenues (20% of Total Share) Cigarette Tax Revenues Tax Revenues Highway Trust Fund Revenues (Gas Tax) Marijuana Tax Revenues (75% of City s Share) Estimates (2017 SSR Report) $14.90 $1.26 $5.47 $58.47 N/A Actuals $13.88 $1.30 $5.17 $58.75 $ Estimates $17.85 $1.27 $5.37 $64.75 N/A Estimates $18.37 $1.21 $5.50 $72.48 $ Estimates $19.03 $1.18 $5.62 $75.17 $2.99 Non-Per Capita Based State Shared Revenues for Cities State marijuana taxes and liquor revenues have partial distributions to cities that are not based on population. The 14 percent liquor revenue share to cities uses an adjusted population formula that factors in per capita property taxes and per capita income of each city. (See ORS ). The 25 percent state marijuana tax share to cities is distributed based on the number of licensed marijuana premises in each certified city compared to the total number of licensed marijuana premises in certified cities. This includes grower, wholesaler, retailer, etc. licensed premises. The estimates for the total share for all cities is provided in the following table to allow cities to see trends to assist cities in their individual computations Estimates (2017 SSR Report) Liquor Revenues (Based on Formula, 14% of Total Share) Marijuana Tax Revenues (Based on Licenses, 25% of City s Share) $29,613,000 N/A Actuals $27,265,744 $ Estimates $35,478,000 $3,452, Estimates $36,926,000 $2,033, Estimates $38,701,000 $2,423,277 1 The total state shared marijuana tax estimated distribution to cities, provided for in the 2017 report, was $5,640,000 plus an additional $1,430,000 from revenues received in but that had not yet been distributed. No per capita estimate was provided in the 2017 report because the forecasts and distribution methods were in flux. 2 No state payments were actually made in fiscal year as payments were delayed. Backlog payments were made in October and December 2017, and thus they are included within the total fiscal year estimates. See bar graph on page 5. 3 A per capita estimate isn t applicable because two formulas were at use in State Shared Revenue Estimates

3 HIGHWAY TRUST FUND REVENUES $ Per Capita Estimated Disbursement: $ Per Capita Estimated Disbursement: $72.48 Actual and Projected Highway Trust Fund Total Revenue Disbursements to Cities Actuals $113,010, $101,463, $109,939, $127,565, $145,924, $146,962, $155,495, $155,319, $163,717, $164,863,399 Estimates $183,813, $208,126, $218,373,058 $80 $70 $60 $50 $40 $30 $20 $10 $ Per Capita Disbursements Per capita funding with transportation package passage (+ $2.5 million special city allotment program funds) $72.48 $58.01 Per capita funding had the transportation package not passed In 2017, the Legislature approved a comprehensive transportation funding package (HB 2017) that was strongly supported by the League. The package included a 10-cent gas tax increase over a seven-year period, coupled with a 53 percent increase in the weight-mile tax. Registration fees will gradually increase, along with a graduated title fee increase. Note that the transportation package also includes a 0.1 percent statewide payroll tax, a 0.5 percent privilege tax on new vehicles, and a bicycle tax. Those additional taxes are not included in the per capita disbursements, but cities may be eligible for additional funds and new programs funded by these taxes. For example, the payroll tax is dedicated for transit projects. These revenues help pay for the preservation and maintenance of existing streets and roads within cities. Using a melded computation of the various increases over time, cities receive approximately 16 percent of the Highway Trust Fund, counties receive 25 percent, and the Oregon Department of Transportation (ODOT) receives 59 percent. [Since the passage of the 2009 transportation package, which raised taxes in 2010, the distribution for increases has been 50 percent (state)/30 percent (counties)/20 percent (cities)]. From the cities total allocation, $2.5 million will go annually to the special city allotment fund beginning in 2018 (this is an increase from the present $500,000). That allocation will continue to be matched and administered by ODOT to provide competitive grants to small cities (populations less than 5,000) in addition to their per capita allocation (see ORS ) State Shared Revenue Estimates Distribution of Highway Trust Fund Revenues 59% Oregon Highway Division 16% Cities 25% Counties 3

4 HIGHWAY TRUST FUND REVENUE AT A GLANCE Revenue Sources Tax Rates Agency Administration of Revenues Distribution Calculation Payment Schedule Requirements Use of Revenue Restrictions Local Tax Preemption Relevant Statutes Vehicle registration and title fees and surcharges (tiered based on fuel efficiency) Driver license fees Fuel taxes Weight-mile tax (vehicle greater than 26,000 pounds) Fuel Tax Rates: Gasoline: àà Jan. 1, Dec. 31, 2017: $0.30/gallon àà Jan. 1, 2018 Dec. 31, 2019: $.34/gallon àà Additional 2 cent increases in 2020, 2022 and 2024 (subject to meeting accountability and reporting requirements) Use fuel (fuel other than gas used in a motor vehicle including propane, etc.): $0.30/gallon àà Jan. 1, 2018 Dec. 31, 2019: $.34/gallon Aviation gasoline: $0.13/gallon Jet fuel: $0.05/gallon Weight-mile tax rate: See ODOT mileage tax rate tables ODOT Per capita disbursement to cities Monthly Certification Requirement: Cities in counties with populations greater than 100,000 must certify 1 that the city provides at least four of the following municipal services: Fire protection; Police protection; Street construction, maintenance and lighting; Sanitary sewers; Storm sewers; Planning, zoning and subdivision control; or One or more utility services Permitted use includes construction, reconstruction, maintenance, etc. of highways, roads, streets, bike paths, foot paths and rest areas. See ORS ; Art. IX, section 3a of the Oregon Constitution; and statutes pursuant to that section. Partially. Although a city council cannot impose a tax, state law allows a city to refer for voter approval a new or increased local fuel tax. Several cities have a tax and the rate varies generally 1 to 3 cents per gallon. See ORS Approximately 29 cities have a gas tax. ORS ; ORS ; ORS Ch. 319; ORS ; ORS ; HB 2017 (2017) 1 See ORS (imposing certification requirement for cities in counties of over 100,000 population to receive revenues from cigarette, gas and liquor taxes). Counties with population over 100,000: Clackamas, Deschutes, Douglas, Jackson, Lane, Linn, Marion, Multnomah, Washington and Yamhill State Shared Revenue Estimates

5 MARIJUANA TAX REVENUES $ Per Capita Disbursement: N/A Per Capita Disbursement: $2.51 Actual and Projected State Marijuana Tax Disbursements to Cities $16,000,000 $14,000,000 $12,000,000 $10,000,000 Estimated remaining payments for FY $3,220,047 Actuals $ $0 Estimates $13,811, $8,134, $9,693,109 $8,000,000 $6,000,000 $4,000,000 Payments made in October & December 2017 $10,591,500 $2,000,000 $0 $0 $ Payments Made Estimated Payments Marijuana Tax Revenue Payments (Actuals) All Cities 75% Certified Cities (per capita) 25% Certified Cities (per license) October 2017 $8 Million ($2.85 per capita) $352,000 ($0.15 per capita) $117,500 ($ per license) December 2017 $322,000 ($0.11 per capita) $1,350,000 ($0.56 per capita) $450,000 ($ per license) Currently, the state imposes a 17 percent tax on recreational marijuana products. Cities may impose an additional 3 percent tax on such products. Cities receive 10 percent of the state s total revenues on recreational marijuana products, but the formula for distributing that 10 percent has changed over time. (A city that imposes a 3 percent tax on such products would, of course, receive that money as well, but such revenues are not considered part of the shared revenue from the state.) Originally, 10 percent of state taxes collected between January 1, 2016, and June 30, 2017, was distributed to all cities on a per capita basis (those payments were made in October and December 2017). However, due to the intent of the voters 2018 State Shared Revenue Estimates who enacted the recreational marijuana measure, Measure 91 (2014), cities that ban one or more marijuana license types will no longer receive any shared revenue from the state marijuana tax. Thus, for state revenues collected on July 1, 2017 and onward, only cities certified by the Oregon Liquor Control Commission (OLCC) that do not ban marijuana will receive state marijuana tax revenue. HB 3470 (2017) adjusted the quarterly tax distribution formula for those cities: 75 percent of the shared revenue is distributed to eligible cities on a per capita basis, and 25 percent of the shared revenue is distributed (continued on page 6) 5

6 MARIJUANA STATE SHARED REVENUE AT A GLANCE Revenue Sources Tax Rates Agency Administration of Revenues State retail sales tax on all recreational marijuana products Note: There is no tax on medical marijuana products. Regular Sales Tax Rate: 17% for state retail tax on recreational marijuana (October 1, present) Notes: The early sales tax rate was 25% (January 4-September 30, 2016). Sales on recreational marijuana edibles and concentrates were delayed; they began on June 2, Department of Revenue (DOR) collection of taxes each month; Department of Administrative Services payments to cities Note: OLCC quarterly certification requirement began after June 30, 2017 Distribution Calculation Cities are to receive 10% of the state tax revenues after administrative and enforcement expenses are deducted. Pre-July 1, 2017: The 10 percent share was distributed per capita in October and December 2017 to all cities. The payments were from revenue receipts collected from January 2016 through June 30, This formula is no longer valid as of January 1, Post-June 30, 2017: Eligible cities (cities that do not ban) will receive will receive the 10 percent share using the following formula: àà75% of the 10% share will be distributed per capita (based on population of eligible cities) àà25% of the 10% share will be distributed based on licensure numbers in the city compared to the total licenses in all eligible cities for the quarter Payment Schedule Quarterly (Expected in March, June, September and December 2018) Pre-July 1, 2017: No requirements Requirements Use of Revenue Restrictions Post-June 30, 2017: The city must respond to a quarterly from the OLCC that links to a certification form with questions regarding local regulation of marijuana. Only cities that have not banned marijuana premises for the six defined license types are eligible to receive a revenue payment. That is, a city may not adopt an ordinance that prohibits the establishment of a premises for which a license is required under state law for a recreational marijuana producer, processor, wholesaler, or retailer. A city may also not adopt an ordinance prohibiting a medical marijuana grow site nor a medical marijuana facility. Failure to timely respond to OLCC will result in forfeiture of the quarterly payment, with that city s share of marijuana tax revenues going to certified cities. Unrestricted. The to assist local law enforcement language was deleted in HB 3470, section 32 (2017). Partially. A city may adopt an ordinance imposing a tax on retail sale of recreational marijuana (not medical marijuana), but state law requires the city refer the ordinance to the electors of the city for approval. In addition, a city may not impose more than a 3% tax. (ORS 475B.345) Local Tax Preemption Key Statutes Note: Most cities with a local tax have entered into an intergovernmental agreement with the DOR whereby the department collects and enforces the city s local marijuana tax. Cities receive their local tax quarterly along with their state shared marijuana tax payment. Cities with a small number of marijuana retailers and that use DOR for collection are reminded that there are confidentiality requirements provided for by the agreement. The League will seek to address the confidentiality issue in the 2018 legislative session, so quarterly payment totals are clearly disclosable in budgets. Measure 91 (2014) (legalizing recreational marijuana sales); ORS 475B.015, 475B ; Or Laws Ch. 1, sec. 44 (2015), amended by HB 3470 (2017) (see sections 30-37) State Shared Revenue Estimates

7 to cities based on the number of license premises in the city (grower, retailer, wholesaler, etc.). Cities are reminded that due to the League s advocacy efforts, possible statutory restrictions on how state shared marijuana revenues may be used were removed in HB 3470 (2017). Revenue Projections/Payments: HB 3470 (2017) officially gave the Oregon Office of Economic Analysis recreational marijuana forecasting responsibilities on a permanent basis. The official projections in this report are based on their office s December 2017 forecast (released in November). However, the League suggests that cities eligible for the shared revenue (i.e., those that do not ban marijuana facilities) use their December 2017 distribution as a starting point for making their upcoming fiscal year budget projections. The payment made in December was the only one that is for a full quarter (September to November 2017) using the new distribution formula. It will give cities some idea of what quarterly estimates may look like in Note that the license-portion (25 percent) of the distribution is particularly hard to predict in the new legalized marijuana industry, as the number of licenses continues to increase each quarter, but locations vary significantly. As in the past, the League suggests conservative budgeting practices for this revenue stream. Updated state marijuana tax revenue projections are expected in mid- to late-february. The general outlook for recreational marijuana sales and tax collections remains highly uncertain. While nearly two years of tax data is now available, there have been substantial changes during that time period which complicate forecasting (changes in regulation, tax rates, and weather complications). That said, Oregon s economists are predicting that over the coming few years, the state will see strong growth as the product becomes more widely available, more socially acceptable, and more black market sales are subsumed into the legal market. The state s economists are looking to the experiences in Colorado and Washington for forecasting trends. Trends which factored into their analysis include: usage rates, tax rate comparisons, marijuana product prices, and cross-border activity. MARIJUANA TAX REVENUES continued Distribution of State Marijuana Tax Revenues 10% Cities 10% Counties 15% State Police 5% OR Health Authority 20% Health 40% State School Fund The projections and charts in this report are further complicated by the significant delay in starting payments to cities. State taxes began in January 2016, but no distributions were made in the biennium. (The delay was due to an open loan for marijuana program start up costs that was authorized through June 30, 2017.) Instead, the revenues were carried over into the biennium, and revenues were first distributed to cities in October Approximately $8 million was distributed to cities then on the basis of population at the rate of approximately $2.85 per person. In October, an additional distribution of approximately $470,000 was also made just to cities that had not banned premises which require a marijuana license for taxes after July 1. That additional payment was based on revenues collected after July 1, 2017 and utilized the new 75/25 percent formula. (continued on page 8) 2018 State Shared Revenue Estimates 7

8 MARIJUANA TAX REVENUES continued Marijuana Revenue Distributions to Cities Marijuana Tax Revenues (75% of City s Share) Marijuana Tax Revenues (Based on Licenses, 25% of City s Share) Estimates (2017 SSR Report) N/A 1 N/A Actuals $0 2 $ Estimates N/A 3 $3,452, Estimates $2.51 $2,033, Estimates $2.99 $2,423,277 1 The total state shared marijuana tax estimated distribution to cities, provided for in the 2017 report, was $5,640,000 plus an additional $1,430,000 from revenues received in but that had not yet been distributed. No per capita estimate was provided in the 2017 report because the forecasts and distribution methods were in flux. 2 No state payments were actually made in fiscal year as payments were delayed. Backlog payments were made in October and December 2017, and thus they are included within the total fiscal year estimates. See bar graph on page A per capita estimate isn t applicable because two formulas were at use in At the end of December 2017, all cities received a final state shared revenue payment from the Oregon Department of Administrative Services (DAS) for state marijuana taxes collected between January 1, 2016 and June 30, The city distribution totaled $322,000, which equals roughly 11 cents per capita. This final payment was a result of additional tax payments that were reconciled by DAS/DOR after the October distributions were sent to all cities. After June 30, 2017, only cities that do not ban marijuana premises and that are certified by the Oregon Liquor Control Commission (OLCC) are eligible for a share of state marijuana tax revenues. DAS included a full quarterly payment (September November) to these certified cities in the December payments utilizing the new 75/25 city-distribution formula. The per capita portion of the cities share was approximately $1.35 million (about.56 per capita), and the total license share was approximately $450,000 (about $637 per license). State shared marijuana tax payments in 2018 are expected to follow a traditional quarterly payment schedule of March, June, September and December. To receive future revenues, cities that do not ban must certify quarterly with the OLCC that they do not prohibit the establishment of premises for which a marijuana license is required. A link with the certification form is ed to cities each quarter by OLCC State Shared Revenue Estimates

9 LIQUOR REVENUES $ Per Capita Estimated Disbursement: $ Per Capita Estimated Disbursement: $18.37 Actual and Projected Liquor Tax Disbursements to Cities 14% Share 20% Share Actuals $60,000, $20,665,641 $29,522,344 $50,000, $22,204,500 $31,720, $21,024,998 $30,035, $21,894,531 $31,277,901 $40,000,000 $30,000, $23,965,892 $34,236, $25,109,271 $35,870, $26,556,890 $37,938, $27,588,752 $39,412, $27,814,601 $39,735,144 $20,000,000 $10,000,000 $ Note: OLCC projections haven t been updated; 3.5% to 5% yearly increase may be more accurate $27,265,744 $38,951,063 Estimates 14% Share (formula) 20% Share (per capita) $35,478,000 $50,683, $36,926,000 $52,751, $38,701,000 $55,287,000 Distribution of Liquor Tax Revenues Cities share of this state shared revenue is 34 percent, of which 20 percent is distributed per capita, with 14 percent distributed using a formula that factors in property taxes, population and income. The three major contributors to this revenue source are: the sale of distilled spirits; taxes on beer, wine and cider; and liquor licensing fees. Distilled spirit sales, however, make up more than 95 percent of this revenue source. That s because the state maintains the exclusive right to sell packaged distilled spirits and sets the mark-up on products using a wholesale price formula. This means that the bulk of this state shared revenue source technically is based on profits, and not taxes. The mark-up formula on distilled spirits has not been changed since At approximately 8 cents per gallon, or about 4 cents on a six-pack, Oregon s beer and cider tax is one of the lowest in the country. Oregon s beer tax rate has remained unchanged since The wine tax is in the middle compared to other states, and is 67 cents per gallon. The wine tax has not been increased since The OLCC imposed a temporary 50 cents per bottle surcharge on distilled spirits in 2009, and these revenues have been directed by the Legislature to the general fund, not to the shared revenue fund. The surcharge, unless extended by the OLCC, expires on June 30, There is a small downturn in the liquor revenues in fiscal year This abnormality is attributed to the fact that the OLCC borrowed approximately $650,000 from the liquor fund in to pay for regulatory start-up costs of the state s marijuana program. The loan was authorized by the Legisla State Shared Revenue Estimates 10% Counties 14% Cities (Formula) 20% Cities (Per Capita) 56% State ture and was paid back in the fiscal year. The OLCC has not adjusted its projections for some time, and thus the League recommends more conservative budgeting then the estimates provided. A reasonable economic estimate, according to the Office of Economic Analysis, is a percent increase over last year s actual payments. 9

10 Revenue Sources Tax Rates Agency Administration of Revenues Distribution Calculation LIQUOR STATE SHARED REVENUE AT A GLANCE Privilege taxes on beer, wine and cider (ORS Ch. 473) License fees Profit from distilled spirits sales Miscellaneous revenue in the OLCC account Note: 50 cents distilled spirits per bottle surcharge is NOT included in state shared revenues (it goes to state general fund) $2.60/ barrel (31 gallons) for malt beverages and cider $0.65/gallon for wine + $0.10/gallon for wine with greater than 14% alcohol + $.02/gallon (directed to Oregon Wine Board) Profit Markup Formula for Distilled Spirits: Up to $78.06/case cost: o (Landed cost x 2.131) plus $1.40 freight/bottles per case o Round to the next $.05 and add $.50 surcharge/bottle (surcharge goes to General Fund and is not shared with cities) Over $78.06/case cost: o [(Landed cost plus $14.45) x 1.798] plus $1.40 freight/bottles per case o Rounded to the next $.05 + $.50 surcharge/bottle (surcharge goes to General Fund and is not shared with cities) OLCC certifies revenue; DAS makes payment to cities. 14% Share of Liquor Revenues 20% Share of Liquor Revenues Complex formula including city property taxes, population and income (ORS (4)) Payment Schedule Quarterly Monthly Requirements Ordinance Requirement: Before July 31: Pass an ordinance or resolution requesting state shared revenue money; Hold public hearings before the budget committee and city council regarding the city s use of state shared revenues; Submit documentation, such as the short form distributed by DAS, certifying compliance; and Levy property taxes for the preceding year. AND Certification requirement (Same as required by 20% share) Per capita disbursement to cities (ORS (1)(b)) Certification Requirement: Cities in counties with populations greater than 100,000 must certify 1 that the city provides at least four of the following municipal services: Fire protection; Police protection; Street construction, maintenance and lighting; Sanitary sewers; Storm sewers; Planning, zoning and subdivision control; or One or more utility services. Use of Revenue Restrictions Local Tax Preemption Unrestricted Yes. Cities may not impose a tax or fee on malt beverages or any alcoholic liquors (See ORS and ORS ). Key Statutes ORS ; ; See ORS (imposing certification requirement for cities in counties of over 100,000 population to receive revenues from cigarette, gas and liquor taxes). Counties with population over 100,000: Clackamas, Deschutes, Douglas, Jackson, Lane, Linn, Marion, Multnomah, Washington and Yamhill State Shared Revenue Estimates

11 CIGARETTE TAX REVENUES $ Per Capita Estimated Disbursement: $ Per Capita Estimated Disbursement: $1.21 Actual and Projected Cigarette Tax Disbursements to Cities Actuals $4,252, $4,133, $3,889, $4,022, $3,911, $3,822, $3,642, $3,575, $3,639, $3,634,667 Estimates $3,612, $3,484, $3,435,667 $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $ Cigarette taxes are currently $1.33 per pack, and cities share of that revenue is about 2 cents per pack. When voters passed Oregon s initial cigarette tax in 1967, cities received 25 percent of the revenue, and another 50 percent was dedicated to property tax relief. Since January 1, 2016, 14 cents per pack has been dedicated to mental health. While cities receive a share of tax revenues for cigarettes, no shared revenue is distributed for any other tobacco products, including cigars, moist snuff, chewing tobacco, pipe tobacco, etc. Cities are preempted from imposing taxes on cigarettes and other tobacco products. To date, vaping products are not taxed by the state and cities are not preempted from imposing a local tax on vaping products. Distribution of Cigarette Tax Revenues 2% Tobacco Reduction 2% Counties 10% Mental Health 17% General Fund 2% Cities 2% Public Transit 65% Oregon Health Plan 2018 State Shared Revenue Estimates 11

12 CIGARETTE STATE SHARED REVENUE AT A GLANCE Revenue Sources State cigarette tax per pack Note: Tax revenues from other tobacco product is NOT included in state shared revenues. Tax Rate Pre : $1.18/pack Jan. 1, 2014-Dec. 31, 2015: $1.31/pack Jan. 1, 2016-Dec. 31, 2017: $1.32/pack Jan. 1, undetermined: $1.33/pack Agency Administration of Revenues Distribution Calculation Payment Schedule DOR collects revenue; DAS makes payments to cities Per capita disbursement to cities Monthly Requirements Certification Requirement: Cities in counties with populations greater than 100,000 must certify 1 that the city provides at least four of the following municipal services: Fire protection; Police protection; Street construction, maintenance and lighting; Sanitary sewers; Storm sewers; Planning, zoning and subdivision control; or One or more utility services. Use Restrictions Unrestricted Local Tax Preemption Yes. Cities may not impose a tax on sale or use of tobacco products (ORS ). Key Statutes ORS ORS ; ORS See ORS (imposing certification requirement for cities in counties of over 100,000 population to receive revenues from cigarette, gas and liquor taxes.) Counties with population over 100,000: Clackamas, Deschutes, Douglas, Jackson, Lane, Linn, Marion, Multnomah, Washington and Yamhill State Shared Revenue Estimates

13 9-1-1 EMERGENCY COMMUNICATION TAX REVENUES $ Per Capita Estimated Disbursement: $ Per Capita Estimated Disbursement: $5.50 Actual and Projected Tax Disbursements to Local Governments Actuals $22,673, $23,344, $23,075, $22,765, $23,914, $23,725, $23,916,164 Estimates $24,106, $24,296, $24,487,293 $25,000,000 $24,500,000 $24,000,000 $23,500,000 $23,000,000 $22,500,000 $22,000,000 $21,500,000 $21,000,000 $20,500,000 $20,000, Distribution of Tax Revenues { Local government share covers 25% of costs of PSAP operations 24% Per Capita 36% 1% to each county for distribution to PSAPs within county 35% Oregon Office of Emergency Management (OEM) 4% OEM Admin. } State share covers 100% of state costs 1% DOR Admin State Shared Revenue Estimates 13

14 With modest growth, taxes are trending upward. Most cities will not directly receive this state shared revenue, as the city share is directed to the public safety answering point (PSAP) provider connected to the statewide network. Less than 20 of the 45 PSAPs in Oregon are operated by cities; most are managed by counties or a regional entity. The PSAP responsibility is partially funded through the state s Emergency Communications Tax, which is 75 cents per month per phone line. Since 2015, prepaid wireless carriers have been taxed at the point of sale, at a rate of 75 cents per transaction. In short, the tax now covers cell, radio, wired and wireless services. Local governments receive approximately 60 percent of taxes, but the taxes generally cover less than 25 percent of the costs of total PSAP operations. Ratios of individual PSAP costs to taxes received vary. The local government share is distributed by providing 1 percent per county, with the remainder distributed per capita. Quarterly tax distribution charts of the PSAPs can be found on the Office of Emergency Management s website TAX STATE SHARED REVENUE AT A GLANCE Revenue Sources Emergency Communication Tax Tax Rates $0.75 cents/month per telephone access line capable of accessing emergency reporting services $0.75 cents per each retail transaction related to prepaid wireless products, including minutes purchased Agency Administration of Revenues Office of Emergency Management Distribution Calculation Payment Schedule After administrative costs (up to 1% for DOR and 4% for OEM), and the portion to OEM of 35% is transferred, the remainder goes to local governments to pay for the PSAPs (public safety answering points). A 1% base is distributed per county (about 36%) and the remaining tax revenues are distributed on a per capita basis (about 24%) for distribution directly to jurisdictions connected to the statewide network. Quarterly Requirements Annual accounting report to OEM (ORS (9)). Usually the report is due in January. Use of Revenues Restrictions See ORS (9) and OAR for permitted expenditures associated with costs. Intergovernmental agreements might also restrict use of revenues. Local Tax Preemption Under legal review Key Statutes ORS ; OAR to State Shared Revenue Estimates

15 Adair Village 850 Adams 375 Adrian 180 Albany 52,710 Amity 1,640 Antelope 50 Arlington 610 Ashland 20,700 Astoria 9,735 Athena 1,175 Aumsville 3,970 Aurora 980 Baker City 9,890 Bandon 3,125 Banks 1,775 Barlow 135 Bay City 1,340 Beaverton 95,685 Bend 86,765 Boardman 3,635 Bonanza 455 Brookings 6,595 Brownsville 1,705 Burns 2,830 Butte Falls 430 Canby 16,660 Cannon Beach 1,705 Canyon City 705 Canyonville 1,925 Carlton 2,205 Cascade Locks 1,310 Cave Junction 1,935 Central Point 17,700 Chiloquin 740 Clatskanie 1,760 Coburg 1,085 Columbia City 1,985 Condon 685 Coos Bay 16,615 Coquille 3,915 Cornelius 11,915 Corvallis 58,735 Cottage Grove 9,920 Cove 550 Creswell 5,410 Culver 1,420 Dallas 15,570 Dayton 2,670 Dayville 155 Certified Population Estimates* Alphabetical Depoe Bay 1,440 Detroit 210 Donald 985 Drain 1,160 Dufur 605 Dundee 3,225 Dunes City 1,325 Durham 1,880 Eagle Point 8,930 Echo 705 Elgin 1,730 Elkton 210 Enterprise 1,985 Estacada 3,280 Eugene 167,780 Fairview 8,975 Falls City 950 Florence 8,745 Forest Grove 23,555 Fossil 475 Garibaldi 790 Gaston 650 Gates 485 Gearhart 1,480 Gervais 2,570 Gladstone 11,840 Glendale 875 Gold Beach 2,275 Gold Hill 1,220 Granite 40 Grants Pass 37,135 Grass Valley 165 Greenhorn 2 Gresham 109,820 Haines 415 Halfway 290 Halsey 925 Happy Valley 19,985 Harrisburg 3,655 Helix 195 Heppner 1,295 Hermiston 17,985 Hillsboro 101,540 Hines 1,560 Hood River 7,955 Hubbard 3,300 Huntington 445 Idanha 140 Imbler 305 Independence 9,340 Ione 330 Irrigon 1,975 Island City 1,115 Jacksonville 2,950 Jefferson 3,235 John Day 1,735 Johnson City 565 Jordan Valley 175 Joseph 1,120 Junction City 6,075 Keizer 38,345 King City 3,630 Klamath Falls 21,770 La Grande 13,245 La Pine 1,730 Lafayette 4,095 Lake Oswego 37,490 Lakeside 1,725 Lakeview 2,300 Lebanon 16,720 Lexington 255 Lincoln City 8,665 Lonerock 20 Long Creek 195 Lostine 215 Lowell 1,070 Lyons 1,180 Madras 6,300 Malin 815 Manzanita 635 Maupin 425 Maywood Park 750 McMinnville 33,665 Medford 79,590 Merrill 840 Metolius 740 Mill City 1,860 Millersburg 1,835 Milton-Freewater 7,070 Milwaukie 20,550 Mitchell 140 Molalla 9,610 Monmouth 9,855 Monroe 620 Monument 130 Moro 330 Mosier 455 Mt. Angel 3,400 Mt. Vernon 525 Myrtle Creek 3,490 Myrtle Point 2,535 Nehalem 280 Newberg 23,480 Newport 10,215 North Bend 9,800 North Plains 2,980 North Powder 445 Nyssa 3,285 Oakland 945 Oakridge 3,245 Ontario 11,465 Oregon City 34,610 Paisley 270 Pendleton 16,890 Philomath 4,710 Phoenix 4,605 Pilot Rock 1,505 Port Orford 1,145 Portland 639,100 Powers 695 Prairie City 915 Prescott 55 Prineville 9,880 Rainier 1,910 Redmond 28,265 Reedsport 4,155 Richland 175 Riddle 1,185 Rivergrove 500 Rockaway Beach 1,350 Rogue River 2,220 Roseburg 24,015 Rufus 280 Salem 163,480 Sandy 10,855 Scappoose 6,875 Scio 905 Scotts Mills 370 Seaside 6,620 Seneca 160 Shady Cove 3,105 Shaniko 35 Sheridan 6,185 Sherwood 19,350 Siletz 1,235 Silverton 10,070 Sisters 2,540 Sodaville 335 Spray 160 Springfield 60,655 St. Helens 13,240 St. Paul 435 Stanfield 2,145 Stayton 7,770 Sublimity 2,755 Summerville 135 Sumpter 205 Sutherlin 8,060 Sweet Home 9,090 Talent 6,325 Tangent 1,235 The Dalles 14,625 Tigard 50,985 Tillamook 4,930 Toledo 3,485 Troutdale 16,070 Tualatin 26,960 Turner 2,005 Ukiah 245 Umatilla 7,245 Union 2,150 Unity 75 Vale 1,915 Veneta 4,785 Vernonia 2,065 Waldport 2,095 Wallowa 805 Warrenton 5,285 Wasco 420 Waterloo 235 West Linn 25,695 Westfir 255 Weston 685 Wheeler 405 Willamina 2,110 Wilsonville 24,315 Winston 5,410 Wood Village 3,920 Woodburn 24,685 Yachats 740 Yamhill 1,075 Yoncalla 1,065 * These numbers reflect the December 15, 2017 certified numbers from the Portland State University Population Research Center. State shared revenues for the Highway Trust Fund, Liquor Revenues, Cigarette Tax Revenues, and Emergency Communication Tax Revenues will use these populations. Portland State also provides quarterly supplemental population reports which will provide the basis for quarterly marijuana revenue distributions. The supplemental reports are available at State Shared Revenue Estimates 15

16 Portland 639,100 Eugene 167,780 Salem 163,480 Gresham 109,820 Hillsboro 101,540 Beaverton 95,685 Bend 86,765 Medford 79,590 Springfield 60,655 Corvallis 58,735 Albany 52,710 Tigard 50,985 Keizer 38,345 Lake Oswego 37,490 Grants Pass 37,135 Oregon City 34,610 McMinnville 33,665 Redmond 28,265 Tualatin 26,960 West Linn 25,695 Woodburn 24,685 Wilsonville 24,315 Roseburg 24,015 Forest Grove 23,555 Newberg 23,480 Klamath Falls 21,770 Ashland 20,700 Milwaukie 20,550 Happy Valley 19,985 Sherwood 19,350 Hermiston 17,985 Central Point 17,700 Pendleton 16,890 Lebanon 16,720 Canby 16,660 Coos Bay 16,615 Troutdale 16,070 Dallas 15,570 The Dalles 14,625 La Grande 13,245 St. Helens 13,240 Cornelius 11,915 Gladstone 11,840 Ontario 11,465 Sandy 10,855 Newport 10,215 Silverton 10,070 Cottage Grove 9,920 Baker City 9,890 Certified Population Estimates* Numerical Prineville 9,880 Monmouth 9,855 North Bend 9,800 Astoria 9,735 Molalla 9,610 Independence 9,340 Sweet Home 9,090 Fairview 8,975 Eagle Point 8,930 Florence 8,745 Lincoln City 8,665 Sutherlin 8,060 Hood River 7,955 Stayton 7,770 Umatilla 7,245 Milton-Freewater 7,070 Scappoose 6,875 Seaside 6,620 Brookings 6,595 Talent 6,325 Madras 6,300 Sheridan 6,185 Junction City 6,075 Creswell 5,410 Winston 5,410 Warrenton 5,285 Tillamook 4,930 Veneta 4,785 Philomath 4,710 Phoenix 4,605 Reedsport 4,155 Lafayette 4,095 Aumsville 3,970 Wood Village 3,920 Coquille 3,915 Harrisburg 3,655 Boardman 3,635 King City 3,630 Myrtle Creek 3,490 Toledo 3,485 Mt. Angel 3,400 Hubbard 3,300 Nyssa 3,285 Estacada 3,280 Oakridge 3,245 Jefferson 3,235 Dundee 3,225 Bandon 3,125 Shady Cove 3,105 North Plains 2,980 Jacksonville 2,950 Burns 2,830 Sublimity 2,755 Dayton 2,670 Gervais 2,570 Sisters 2,540 Myrtle Point 2,535 Lakeview 2,300 Gold Beach 2,275 Rogue River 2,220 Carlton 2,205 Union 2,150 Stanfield 2,145 Willamina 2,110 Waldport 2,095 Vernonia 2,065 Turner 2,005 Columbia City 1,985 Enterprise 1,985 Irrigon 1,975 Cave Junction 1,935 Canyonville 1,925 Vale 1,915 Rainier 1,910 Durham 1,880 Mill City 1,860 Millersburg 1,835 Banks 1,775 Clatskanie 1,760 John Day 1,735 Elgin 1,730 La Pine 1,730 Lakeside 1,725 Brownsville 1,705 Cannon Beach 1,705 Amity 1,640 Hines 1,560 Pilot Rock 1,505 Gearhart 1,480 Depoe Bay 1,440 Culver 1,420 Rockaway Beach 1,350 Bay City 1,340 Dunes City 1,325 Cascade Locks 1,310 Heppner 1,295 Siletz 1,235 Tangent 1,235 Gold Hill 1,220 Riddle 1,185 Lyons 1,180 Athena 1,175 Drain 1,160 Port Orford 1,145 Joseph 1,120 Island City 1,115 Coburg 1,085 Yamhill 1,075 Lowell 1,070 Yoncalla 1,065 Donald 985 Aurora 980 Falls City 950 Oakland 945 Halsey 925 Prairie City 915 Scio 905 Glendale 875 Adair Village 850 Merrill 840 Malin 815 Wallowa 805 Garibaldi 790 Maywood Park 750 Chiloquin 740 Metolius 740 Yachats 740 Canyon City 705 Echo 705 Powers 695 Condon 685 Weston 685 Gaston 650 Manzanita 635 Monroe 620 Arlington 610 Dufur 605 Johnson City 565 Cove 550 Mt. Vernon 525 Rivergrove 500 Gates 485 Fossil 475 Bonanza 455 Mosier 455 Huntington 445 North Powder 445 St. Paul 435 Butte Falls 430 Maupin 425 Wasco 420 Haines 415 Wheeler 405 Adams 375 Scotts Mills 370 Sodaville 335 Ione 330 Moro 330 Imbler 305 Halfway 290 Nehalem 280 Rufus 280 Paisley 270 Lexington 255 Westfir 255 Ukiah 245 Waterloo 235 Lostine 215 Detroit 210 Elkton 210 Sumpter 205 Helix 195 Long Creek 195 Adrian 180 Jordan Valley 175 Richland 175 Grass Valley 165 Seneca 160 Spray 160 Dayville 155 Idanha 140 Mitchell 140 Barlow 135 Summerville 135 Monument 130 Unity 75 Prescott 55 Antelope 50 Granite 40 Shaniko 35 Lonerock 20 Greenhorn 2 * These numbers reflect the December 15, 2017 certified numbers from the Portland State University Population Research Center. State shared revenues for the Highway Trust Fund, Liquor Revenues, Cigarette Tax Revenues, and Emergency Communication Tax Revenues will use these populations. Portland State also provides quarterly supplemental population reports which will provide the basis for quarterly marijuana revenue distributions. The supplemental reports are available at State Shared Revenue Estimates

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