04/22/1992 Meeting (2) - Laserfiche WebLink

Home Browse Search

e e e Mr. Green indicated his opposition to a restaurant tax due to the burden it would place on business. He reiterated his interest in a retail sales tax. Mr. Boles pointed out that the tax was not a tax on restaurants, but rather a tax on those who ate in restaurants. He likened the arguments made by Mr. Green and Mr. Rutan to those made 15 years previously in relationship to the room tax from the hospitality industry. He supported Mr. Nicholson's desire to widen the base of the tax. The council took a straw poll on the proposal in support of a five-percent restaurant tax, which failed to gain the support of five councilors. Mr. Green proposed a 1/2-of-one-percent retail sales tax to support the library. He said that the tax would exclude food, medicine, rent, and utilities. Mr. Nicholson suggested that the yield from the tax would not justify the high externalized administrative costs for business. Mr. Rutan believed that a retail sales tax was sensible, broad-based, and would yield sufficient revenue to support the library, while questioning the appeal of the tax to the electorate. Ms. Ehrman said that Eugene would be the only community in Oregon with a retail sales tax, which she believed would put the community at an economic disadvantage. Mr. Boles added that the tax was not discretionary and would disproportionately affect low-income residents. Noting that he had moved to Eugene from a state with a sales tax that had originally been one percent and had moved to 4-3/4 percent without voter approval, Mr. Boles considered a sales tax dangerous as it raised revenues without accountability. Mr. Nicholson indicated his agreement with Mr. Boles' remarks. Mr. Miller suggested that a sales tax could be capped through the charter. He said that in informal polling of audiences he addressed, about 80 percent of the audience indicated support for a sales tax. Ms. Bascom said she preferred to present the community with a range of options to fund the library. She did not support a retail sales tax unique to Eugene. Professor Ed Weeks indicated that the next survey would test the community's reactions to the range of suggested revenues as well as the specific strategies. Mr. Robinette said that although he could support a retail sales tax in conjunction with Springfield and lane County, he could not support a sales tax unique to Eugene as he believed it would drive consumers outside the city limits. Mr. Green's proposal for a retail sales tax failed to gain adequate support for inclusion in Strategy Package B. MINUTES--Eugene City Council 5:30 p.m. April 22, 1992 Page 7