Eugene officials weigh the legal options on gas tax ballot issue

Eugene's controversial gas tax increase was due to go into effect Wednesday, but now it could be headed back to a courtroom.

Friday, a Lane County judge ruled that voters should have a say on the tax in November.

But Eugene City Councilors are expected to decide next week on whether to appeal that decision.

A street repair project at 18Th and Agate near the U-of-O campus is one of several projects in Eugene this summer, largely funded by the local gas tax.

The work goes on, while city attorneys consider the legal options.

A Lane County judge has ruled that local gasoline dealers have gathered enough signatures to put the gas tax on the local ballot.

The petition drive was started after the Eugene City Council enacted a 3 cents per gallon increase in the tax.

A North Eugene councilman says the city council would be wise to simply drop the 3 cents.

Councilman George Poling states, "Just go ahead and repeal the 3 cents the Council approved not too long ago and then drop the sunset on that 2 extra cents."

Poling is referring to the 2-cents addition to the tax approved in early 2005 that is due to phase out next February. That would keep the Eugene tax at 5 cents per gallon. However, gas dealers say they want to make sure the extra 2 cents goes away and that's included in the referendum.

The gas dealers maintain a better solution would be a statewide gas tax increase, so that all cities share in the increased revenue. President Ron Tyree of Tyree Oil, Incorporated in Eugene explains, "Even a county-wide tax would take away some of the competitive disadvantage for those dealers located in Eugene."

Eugene City Attorney Jens Schmidt told KVAL today (July 30) the city is pondering whether to take the judge's Friday ruling to the appeals process, or abide by the ruling and call for the election on the gas tax in November.

The Eugene City Council could make some decisions at a work session August 8Th.