Cherriots board will delay new payroll tax a year as Chamber, others oppose effort

The Salem Area Mass Transit District Board intends to delay imposing a new payroll tax on employers until 2027 and may set a lower rate following significant pushback, according to the board chair.

Cherriots’ seven-person board plans to vote in October to impose the tax to pay for expanded bus service.

The agency’s original plan called for a 0.7% tax on employer payrolls starting in January, which was expected to raise $39 million in its first year. Under state law, the board can impose the tax without a public vote.

The tax rate could be reduced, depending on whether state legislators award more transit funding in a special session.

Cherriots’ original plan prompted an outcry from many business leaders in Salem. The Salem Area Chamber of Commerce announced Thursday that its board vote