Negotiations between Cherriots officials and local business leaders have stalled after months of discussing plans to tax employers for transportation improvements.  The Salem-Area Mass Transit District, known as Cherriots, formed the task force last October after a coalition of business and real estate groups opposed a plan set into motion by the agency to enforce a payroll tax on local businesses to fund service expansions.  The tax would have raised about $39 million per year starting in 2027 for expanded evening, early morning and weekend buses and other additions. The talks were paused after a meeting on Thursday, June 25, Cherriots said in a statement the following day.  “While the group was not able to reach consensus on a proposed approach related to an employer payroll tax within the established timeline,” the statement said. “The conversations reinforced the importance of reliable public transportation and the need for continued collaboration.” Cherriots’ taxing authority comes from legislation passed in 2018 allowing it to impose a wage tax without a public vote. The Salem Area Chamber of Commerce supported the state law at the time, but has since changed its tune citing the economic impacts of the pandemic and failures by the agency to include business leaders in tax conversations.  Salem Chamber once backed letting Cherriots impose taxes, but says agency broke promises of business involvement The overwhelming rejection by voters in May to increase Oregon’s gas tax, vehicle title and registration fees and a temporary payroll tax, also factored into Cherriot’s decision to delay its own tax.   “The outcome of the state transportation package in the May primary election highlighted the importance of continued conversations with our community and business partners about transportation funding priorities,” Cherriots Board President Maria Hinojos Pressey said in the release. Cherriots delayed a vote on the tax last year, allowing its board members and coalition representatives to start negotiations over specifics of the new tax.  Jonathan Castro Monroy, a local financial planner and community leader, served on the task force representing the chamber.  Castro Monroy said he joined the group on behalf of community members who would be most impacted by the new tax — employers, and eventually local families.  Monroy said taxes like the one Cherriots proposed can prompt businesses to raise prices, which would impact those struggling with affordability, including immigrant families, single mothers and senior citizens.  “I am here (on the task force) trying to advocate for members of our society that, to be honest, I don’t think Cherriots really thinks about, and I don’t think the business community thinks about,” Castro Monroy said. “I strongly believe people should have a voice when local governments plan to impose taxes. Particularly with this one.”  “I know it was categorized as a business tax, and the reality though is that it’s not really a business tax, because when you actually look to see what happens when such taxes are imposed in a community is that it trickles down and hurts the people that can least afford it,” he said.  Castro Monroy said doing away with the law that gives Cherriots its taxing authority is something for leaders to look into, but he is not aware of any current efforts trying to accomplish that. “I don’t think that politicians and the business community should have the authority to make those decisions for our community,” Castro Monroy said. “I wanted to make sure that people…have a voice, but unfortunately we didn’t get to that point.”  Contact reporter Joe Siess: [email protected].  SIGN UP: “Thank you for your fair, thorough, and fearless reporting.” Subscribing to Salem Reporter helps sustain in-depth, local reporting that Salem depends on. Invest in your community’s news. Subscribe today. The post Negotiations between Cherriots, business leaders paused after months of meetings  appeared first on Salem Reporter. ...read more read less