![]() Meals Tax Goes Down at Council, Will Likely Move to Ballot Last night the Grants Pass City Council voted 5-3 in opposition of adopting the ordinance at Council level for a food and beverage tax, flipping their previous vote earlier this month. Restaurant operators showed up in droves with signs and buttons as well as to testify alongside ORLA and its members, clearly demonstrating how our industry is well organized and willing to do what it takes to protect our businesses. Despite the Council voting against enacting the tax, they may decide to place it on the ballot in November for voters to decide. Council Considered General Sales Tax, Utility Fee, and Meals Tax The City of Grants Pass is looking for funding sources to increase service levels of public safety. A general sales tax, a prepared meals tax on restaurants, and a utility fee were all being considered. And on February 7, City Council voted 5-3 to pursue a 3% meals tax in addition to a utility fee. Grants Pass’ city charter allows Council to legally pass this tax without the vote of the people, though it is very uncommon for new taxes to be passed without a ballot vote. Based on draft language for the new food and beverage tax ordinance, increases in the 3% tax would be allowed at any time and to any amount without the vote of the people. We strongly feel the Council’s decision to place the burden of paying for services everyone will benefit from on a single industry segment is inequitable and dangerous. Brief History:
ORLA has outlined several reasons why voters should be allowed to weigh in on a sales tax on meals:
At the very least, the people of Grants Pass deserve to vote up or down on this sales tax on meals. An even better solution for the City would be to consider an Economic Improvement District or similar mechanism where the burden of raising revenue falls more broadly than on just the struggling local restaurants. If you have any questions or want to get engaged in this issue, reach out to ORLA Regional Representative, Terry Hopkins. ORLA is a trade organization for the foodservice and lodging industry in Oregon, formed for the purposes of promoting the common business interests of its membership and to improve business conditions of the foodservice and lodging industry. If you are not currently a member of ORLA and would like to learn more, visit our Membership page and reach out to us via email.
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