Metro wants to 'extend, not raise' supportive housing tax

Metro is now forecasting this tax (the largest per capita tax program in the country) will bring in $360 million this year -- and they now want to expand spending beyond homeless services by updating the rules on how they can collect and spend the cash.

PORTLAND, Ore. (KOIN) -- In 2020, tri-county voters approved a measure that charged a personal income tax on high income earners and a business income tax. This money—the Supportive Housing Services Tax—is designated to only pay for homeless services programs in three county-region.

Metro is now forecasting this tax (the largest per capita tax program in the country across a region) will bring in $360 million this year—and they now want to expand spending beyond homeless services by updating the rules on how they can collect and spend the cash.

"We think this would develop better regional goals that counties could be judged by," said Andy Shaw, the director of Government Affairs at Metro. He said they're aiming for transparency and longevity.

The Supportive Housing Services Tax can only be spent on homeless services and each county can do with it what they will.

This new proposal recommends changing the rules to allow counties to spend the money on buying, building and preserving affordable housing, create an independent oversight board for transparency and accountability, adjusting the tax thresholds for inflation each year and potentially reducing the tax rate.

It even suggests extending the tax beyond the current end-date of 2030. Metro's next ballot measure might ask voters to extend the tax to at least 2050.

"It would extend the tax, not raise the tax," Shaw said. "That long term investment, we think, is what really can make a difference in helping people get off the streets, address homelessness, which is the largest item of concern for voters and residents of our region."

Shaw does not think extending the tax would drive people and businesses away.

"The voters in this region have supported increasing taxes for the betterment of the community, but they are reaching their limit," Shaw told KOIN 6 News. "Inflation, the increases of rents, housing, and food costs going up is requiring people to do more with what they already have. We think this is an opportunity for government to show we can also do more with what we have."

He said Metro wants to strike a balance of giving Multnomah, Washington and Clackamas counties flexibility in spending while also holding them accountable to taxpayers.

The Metro council will take these recommendations into consideration and make a more detailed decision by December. Whatever the decision is, voters are likely to see a measure from Metro about these suggested tax changes in May 2025.