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.”
Local business owner Jenn Benavidez also questioned the agency’s justification. “Cherriots currently has more than $40 million in reserves,” she said. “Missing a bus should not be used as an excuse to impose financial burdens on every employer in the Salem-Keizer area.”
Not all testimony opposed the tax. Kathy Lincoln, a former Cherriots board member, urged councilors to consider the long-term benefits of an expanded system. She said robust transit reduces congestion, supports businesses by connecting workers and customers, and provides essential service to families without multiple cars. Lincoln encouraged the council to invite Cherriots leadership to present directly before taking a firm stance.
Cherriots officials were notified of the council’s agenda item last Friday and invited to participate. No board members attended the meeting to testify. Instead, Allan Pollock, director of Cherriots, submitted written public comment urging the council to delay action.
“I am requesting you defer action on Agenda Item 8c in order to provide Cherriots representatives the opportunity to present the funding proposal and service plan prior to taking a position,” Pollock wrote. “The employer payroll tax would fund a robust service plan that has been developed with extensive planning, community and rider input. The service plan will benefit all residents of the Salem-Keizer community including the business community and the 59% of Cherriots riders who use the bus to go to and from work.”
Pollock also clarified that the district’s taxation authority does not expire on Jan. 1, 2026. Rather, the law authorizes Cherriots to begin implementing elements of the payroll tax on that date. He said the council should consider the role a stronger transit network could play as Keizer grows, adding that a more robust system would help ease traffic congestion. Pollock offered to schedule a presentation with City Manager Adam Brown at a future work session or meeting.
Still, several councilors voiced broader objections. Councilor Christopher argued the tax should not be imposed by a governor-appointed board without a public vote, pointing to a similar tax defeated by voters in 2015. Councilor Cross, who placed the item on the agenda, called the proposal “double dipping,” noting that Cherriots already receives property tax funding.
In the end, the council voted to adopt a public position opposing the tax. Council President Star recused herself due to a potential conflict of interest, but the motion carried. The City Manager was directed to draft a letter of opposition to Cherriots, the City of Salem, the Governor, state legislators, and local chambers of commerce.
The letter will emphasize three points repeated throughout the meeting: that the tax is an unnecessary burden on employers, that Cherriots has not made a clear case for immediate funding, and that a levy of this scale should go before voters.
For Keizer leaders, the message was clear: while the region may need stronger transit, they believe this is not the way to get there.
