Keizer City Council on Monday adopted a formal position opposing a proposed employer-paid payroll tax being discussed by the Salem-Keizer Transit District (Cherriots), directing staff to share the council’s opposition with regional partners and the transit board.

Councilor Julia Cross moved the position, saying she opposes “taxes that aren’t voted on” and that a prior public ballot on a related measure failed. City Manager Adam Brown told council that 2018 legislation (Senate Bill 1536) permits transit districts in some cases to implement employer payroll taxes; Cherriots’ board has discussed a proposed 0.7% employer payroll tax in public outreach materials and has not yet adopted final language.

Local business leaders and residents told the council they oppose the proposal. “Cherriots currently has more than $40,000,000 in reserves,” said business leader Jen Benavides, who represented employers at a Salem Chamber briefing. She and others warned that adding roughly $400–$500 per employee annually (estimates presented to the council) would squeeze small and midsize employers and reduce philanthropic support to nonprofits.

Transit advocates asked the council to defer judgement until Cherriots presents detailed plans and cost forecasts. Kathy Lincoln, a transit supporter who served previously on transit efforts, urged the council to invite Cherriots executive director Alan Pollock to brief the council on needs and plans before the council adopts a final position.

The motion passed with one abstention. Council president Shaney Starr abstained from the vote; the remainder of the council voted in favor of the opposition position and asked staff to forward the council’s action to the transit district, county and legislative delegations for consideration ahead of any board vote.

City staff said they will meet with Cherriots staff and invited the transit district to present its proposal and financial justification to the council. The council also discussed possible overlap between the Cherriots proposal and a pending state transportation package under consideration in the special legislative session, which could add a separate 0.1% payroll tax that would further affect employers if both measures moved forward.

The action does not change law; it records the council’s policy position and asks Cherriots to provide additional detail before any local legislative support is offered.