09/28/1992 Meeting - Laserfiche WebLink

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e Mr. MacDonald suggested leaving the program in the core as an incentive to pursue savings. He said it also challenges the council to garner public support for the program should an additional revenue source become necessary. The motion failed, 6:2; Ms. Bascom and Ms. Ehrman voting in favor. 3. Revenue a. Restaurant Tax Mr. Rutan said he favors the expanded definition of a restaurant, calling it an issue of fairness. He explained that grocery and other stores that sell prepared food are in direct competition with restaurants. Responding to a question from Mr. Robinette, Mr. Rutan said that the Revenue Committee discussed administration of such a tax and decided that the difficulty of collecting the tax depends on how well the ordinance is written. He noted that the larger supermarkets are better equipped than small restaurants to accommodate the tax. Responding to a question from Mr. Robinette, Mr. Mounts said that the issues that the council needs to decide to write an ordinance are the following: tax rate, yield estimate, administrative impact on businesses, compensation for collection of the tax, and definitions of "restaurant," "prepared meal ," and exemptions. e Noting the volume and complexity of issues involved, Mr. MacDonald suggested that the council close on the concept of a restaurant tax today and schedule discussion of the other details by the full council in a future meeting. Mayor Miller suggested that staff present the council with a list of items with regard to the restaurant tax to facilitate decision making by the full council. Mr. Nicholson urged the council to hold its discussion as soon as possible to avoid public confusion. Mr. Boles suggested the following staff directives: 1) use a broad definition of restaurant; 2) determine the associated administrative burden; and 3) estimate compensation for collection of the tax, based on gross receipts. Mayor Miller directed staff to report to the council on the following: tax rate, collection, scope, exemptions, administrative costs, and compensation for collection. He said other issues include the charter amendment, with a 5 percent limit. Mayor Miller added that timing is also a factor. Responding to a question from Mr. Nicholson, City Attorney Bill Gary said that a charter election can be held at any time, with 47 days notice to the County Clerk. Mr. Nicholson urged the council to hold the election as soon as e MINUTES--Eugene City Council September 28, 1992 Page 3 5:30 p.m.