The Keizer City Council has formally opposed the proposed Cherriots payroll tax, marking a pivotal moment in the debate over how Salem-Keizer’s transit system should be funded. The decision, made on Aug. 18, follows weeks of growing concern among business leaders and elected officials about the financial strain the tax could impose.
The plan, introduced by Cherriots, would levy a 0.7% employer-paid payroll tax expected to generate roughly $39 million annually for expanded bus service, new transit centers, and updated facilities. Supporters argue the region needs stronger transit to keep pace with growth. Opponents counter that the agency already holds more than $40 million in reserves and has not demonstrated an urgent need for new revenue.
“This isn’t just numbers on a spreadsheet,” said business leader and former city councilor TJ Sullivan. “When Cherriots recommends taking $39 million out of our business community, don’t think that’s not going to have an impact on the nonprofits in our area… Now is not the right time.”…