11/23/1992 Meeting - Laserfiche WebLink

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pay a hotel and motel room tax. . Mr. Wong stated that the City has received a letter from the Lane Council of Governments (L-COG) requesting that the Senior Nutrition Program be exempted from the tax. Mr. Boles moved to exempt the L-COG Senior Nutrition Program from the restaurant tax. The motion passed unanimously, 7:0. Mr. Klein explained two options for referring the tax to the voters. One consists of a charter amendment imposing a five-percent limit on any excise tax on restaurant sales, and a separate ordinance imposing a tax of three percent, defining a restaurant, etc. The ordinance could be adopted at the time the council refers the charter amendment, becoming effective only if the charter amendment passes. The second option is the charter amendment with two parts, the first imposing the five-percent limit and the second levying the three-percent tax for up to ten years, with the same definition of restaurants. The administration of the restaurant tax would be delegated to the City Manager through administrative rule-making; the council would retain the authority to oversee and change the rules. The council would put to a vote whether there should be a limitation of five percent and a restaurant tax of three percent. No subsequent ordi- nance would be referred. Mr. Boles moved, seconded by Mr. Green, to refer the charter . amendment with two parts. Mr. MacDonald asked whether the two-part charter amendment would violate the two-subject rule, and Mr. Klein answered that it would not. Mr. Rutan favored the motion, saying that separation of the charter amendment and ordinance might be confusing to voters. Mr. Klein clarified that the amendment would add approximately a page and.,a half to the City's charter, including the definition of restaurant and the exemptions. Mr. Nicholson asked whether incorporating both the limitation and the tax in the charter amendment would make it more difficult to enact changes, such as modifications of the definition of restaurant. Mr. MacDonald said that the advantage of voters having the full question before them outweighs that drawback, and a serious problem could be referred to the voters later. The motion passed 5:2, with Councilors Bascom and Nicholson opposed. Mr. Boles moved, seconded by Mr. Green, that the council set the election date on the tax as March 23, 1993, and take final action on the resolution calling for the election on December 7, 1992. . MINUTES--Eugene City Council November 23, 1992 Page 9 5:30 p.m.