Salem votes to tax city worker paychecks to help pay for emergency services

SALEM, Ore. (KOIN) -- If you work in Salem, you might see a tax of around $42 per month next year.

The city council passed the Safe Salem Payroll Tax late Monday night and is looking to implement it by July of next year. The tax would be imposed on all wages for individuals working in Salem, regardless of where they live -- minimum wage employees would be exempt.

Salem City Manager Keith Stahley says the tax would help pay for emergency services as the city faces a $19 million budget shortfall. Employees and employers lined up for more than two hours worth of public testimony, with most people speaking against the tax.

"I think this tax is not ethical, its regressive, and unfair," one speaker said.

"This tax is unaffordable to many," added another speaker.

The tax is expected to generate about $28 million each year.