LTD seeks to increase bus tax

LTD seeks to increase bus tax

EUGENE, Ore. - Payroll taxes may go up in 2015 for businesses and people who are self-employed within the Lane Transit District.

LTD is taking the first step toward bumping the tax 1/10th of 1 percent.

By state law, the district has to do a study and determine the region's economy has recovered to support such a tax increase.

Transit managers say without the tax increase, LTD would start losing money.

Marketing manager Russ Arnold told KVAL News, “Within 4 to 5 years out, we'd start to be running at a deficit. We'd have to look at other measures to balance our budget.”

Eugene consulting firm ECONorthwest has been hired to do the study.

Arnold says any raise in the tax wouldn’t take effect until January 2015.

Most businesses would pay an additional $290 in bus taxes over a 10-year period.