Commitee RICK METSGER State Senator hat Menten etn Gene Lage Opemtions ‘Seino OREGON STATE SENATE, SALEM, OREGON 97301 fECetvE | ep Sua 2 5 2008 Chair, Multnomah County 501 SE Hawthorne Blvd. Portland, OR 97214 June 23, 2008 Dear Chair Wheeler, Twrite to you today to bring your attention to Multnomah County's use of the Motor Vehicle Rental Tax, and to begin a discussion about the future uses of these funds. For the past year, I have been consulting with Legislative Counsel on this issue, and I have now received an opinion which clearly and unequivocally states that the tax, in particular the use of the revenue raised, is unconstitutional. In short, the Constitution is clear that a tax on the use of a motor vehicle can only be used for projects consistent with the Highway Fund. The case law analyzed by Legislative Counsel fully demonstrated the use of the Multnomah County Motor Vehicle Rental Tax to be inconsistent with the constitutional restrictions. The tax currently generates about $14 million a year. I suggest this newly found revenue stream for roads and bridges could fully meet two critical needs in Multnomah County for which you are currently struggling to find sufficient funds. The currently available $14 million could be divided between the project to replace the Sellwood Bridge and a project to rebuild Comelius Pass Road. According to our Legislative Fiscal Office, $10 million should be sufficient to pay debt service for the Seliwood Bridge project, while $1.2 million should pay debt service on $20 million of a $40 million major rebuild of Comelius Pass Road. These are both critical projects in need of swift action from local leaders, and I strongly urge you to use these funds in this way. Tunderstand that when you implement this legal opinion, you will be left with a sizable hole in your ‘operating budget, and that the programs previously sustained by the rental car tax will have to find new sources of funding. However, I will commit to seeking $10 million in state funds, and I will work with Washington and Columbia Counties to provide an additional $10 million to complete the Comelius Pass portion of the project. Note that these projects still leave about $2.5 million a year for additional road maintenance and repair. understand that you will need some time to study this decision and develop an alternative plan for these funds and the programs that currently depend upon them. I am available to meet with you to discuss the opinion from Legislative Counsel, and I look forward to working with you further as you seek and implement solutions. ger State Sehator (ice: 900 Cou St. NE $207, Salem, OR 97301 ~ Phone: (503) 986-1726 - Email: sensickmesper@atate crus ‘Distic: P.O, Boe 287, Welehes, OR 97067, ee