NOTE: This position statement was drafted by local restaurateurs and foodservice operations doing business in Hood River County and as a result reflects the official position of our statewide association on their behalf.
Hood River County needs a solution to their budget shortfall, but this is an ill-conceived way to do it. There is still a three-year runway to find a financial solution and this measure is fundamentally flawed. Measure 14-66 is bad for Hood River County for the following reasons:
Bad for Businesses
- Entire tax burden carried by just one business segment – this is not a fair tax.
- Restaurants are seasonal and already struggle in the winter.
- Already hit by massive cost increases from higher minimum wages and unequal share of business property taxes.
- Restaurant sales taxes are shown to shift demand to large corporate chains and grocery stores, hurting local restaurants and farms.
- Tax is complex and hard for small restaurants to implement and comply with.
Bad for Workers
- Will reduce overall income and overall employment opportunities.
- Will reduce tip income as customers will tip less to offset additional tax cost.
- Restaurant employees already struggle with affordable housing and this will compound that, especially in winter months.
Bad for Residents
- Residents will shoulder most of the tax burden as they eat in restaurants all year long. Tourism is only a factor for a few months of the year.
- Residents want to support and access local farmers and locally sourced food. This tax creates a headwind for that.
- Restaurant sales plummet during economic downturns, making this an unstable source of income for the county.
Let’s ask Hood River County to bring a fair and sustainable option for raising these funds.