11-30-16 Council Agenda Packet - Laserfiche WebLink

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CE,O|CFFS|M2016 ITY OF UGENEREGON ONSERVATION INANCE EASIBILITY TUDY AY Appendix E:RestaurantTax Implementation, Ballot Language Requirements, and Example Under Oregon’s constitutional home rule powers the Eugene city charter grants the city council broad authority over matters within the city’s boundaries. The city council may implement a restaurant tax by ordinance. Alternatively, the tax may be placed on a ballot by the council or by 67 referendum petition. Ballot Language Requirements and Example The ballot title of any measure, other than a state measure, to be initiated or referred shall consist of: A caption of not more than 10 words which reasonably identifies the subject of the measure; A question of not more than 20 words which plainly phrases the chief purpose of the measure so that an affirmative response to the question corresponds to an affirmative vote on the measure; and A concise and impartial statement of not more than 175 words summarizing the measure 68 and its major effect. If the election is not the May or November election, and thus the “double majority” requirement applies, the ballot must include the following statement as the first statement of the ballot title summary: “This measure may be passed only at an election with at least a 50 percent voter turnout.” 69 The words of this statement do not count towards the word limits described above. There are no specific requirements for sales tax ballot measures. Extend the 5% tax on food and beverage to 2030. Question: Shall 5% tax on prepared food and beverages extend to 2030 for parks and wastewater treatment improvements including debt repayment? This measure extends the five percent tax on prepared foodand beverages sold by restaurants, caterers, grocery store delis, coffee shops and other establishments. Alcoholic beverages are excluded. Tax revenues are dedicated for acquisition of park land and for capital improvements of parks and thewastewater treatment plant including debt repayment. Funds may only be used for park and wastewater capital improvements projects identified in the City’s adopted Capital Improvement Plan. The City Council can reduce or eliminate the tax at anytime. Restaurants retain 5% of the tax collected. The City may use up to 2% for administrative expenses. The tax is not collected on food or beverages sold on school grounds or college campuses (except food sold by an independent contractor or non-educational catered events),on hospital grounds, in vending machines, at senior centers, or by non- profits or service clubs at street booths or concessions. Food provided by bed and breakfast inns is excluded. For single events, such as weddings, costing more than $5,000 the tax is capped at $250. 67 Revenue Team, Report to the City of Eugene Budget Committee, April 2014, http://eugene-or.gov/2582/Revenue-Team 68 Oregon Revised Statutes §250.035 69 Oregon Revised Statutes §250.036 TTPL::CFD39 HE RUST FOR UBLIC AND ONSERVATION INANCE EPARTMENT