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meetsome,butnotalloftheCityofƵŐĞŶĞ͛ƐGeneralFundneedif <br />imposedat1.0%level.Ifimposedatahigherrate,thistaxmay <br />meetalloftheGeneralFundneeds,dependingontherate. <br />AdministrativeEffortIfpatternedafterƐŚůĂŶĚ͛ƐprocessandtheŝƚLJ͛Ɛ <br />TelecommunicationsTax,businesseswouldremitthetaxquarterly <br />totheCity.Aftertheinitialregistrationofalleligiblebusinesses, <br />stafftimewouldberequiredtopostpayments,workwithbusiness <br />ownersandenforcethetaxuniformly.Dedicatedstaffwouldbe <br />tion.Aneffortwillneedtobemadeto <br />neededtoperformthisfunc <br />clearlyidentifyfoodsandbeveragesthataresubjecttothistaxto <br />makecomplianceeasierforlocalbusinesses.Aportionofthe <br />proceedsmayberetainedbytherestaurantstohelpdefraythe <br />costsassociatedwithcollectionsandremittanceactivities. <br />TimelineThistaxcouldbeimplementedbyFY12.Thetaxwouldmostlikely <br />bereferredtothevotersforapproval.Leadtimewouldalsobe <br />necessarytoestablishadministrativeandenforcement <br />mechanisms. <br />Incidence&EquityDesignedtobeasingle,proportionalrate.Inthepoliticalcampaign <br />of199293,itwasarguedthatthistaxisregressivebecauselow <br />incomehouseholdsspendahighproportionoftheirincomeon <br />͞ĨĂƐƚĨŽŽĚ͘͟However,accordingtotheEconomicResearch <br />Service/USDA,͞dŚĞwealthiesthouseholdstendtospendagreater <br />shareoftheirfoodbudgetoneatingawayfromhomethantheleast <br />wealthyhouseholds:47%versus36%in2008ʹalmostdoublethe <br />shareoflowincomehouseholds." <br />Arelativelylargeproportionofthistaxwouldbepaidbyvisitors, <br />similartothetransientroomtax. <br />NexusThistaxwouldbepaidbybothresidentsandnonresidentsofthe <br />City.Bothresidentsandnonresidentsuseandbenefitfromawide <br />varietyofcityservicesincludingpublicsafety,parksandcultural <br />services. <br />ConsistencywithCouncilGoals&ArestauranttaxwouldbeconsistentwithCityCouncilgoalsand <br />Policiespolicies. <br />Fairness&PoliticalFeasibilityInthecurrenteconomicenvironment,anadditionaltaxonfoodand <br />beveragesmaybeseenasunfairbysomesegmentsofthelocal <br />community,includingbusinessesandthoserepresentinglow <br />incomepopulations.Oppositiontothistaxislikelyfromindustry <br />groupssuchastheOregonRestaurantAssociation. <br />SustainabilityImpactArestauranttaxwouldnotcreateanundueburdenonfuture <br />generations. <br />