City Government

04-20-2006 08:32 AM

City Council issues statement about proposed restaurant tax
Statement is a promise by the current Council not to raise the 4.85% rate

By TIM BURLESON

GRANTS PASS, OR - The City Council this week released a statement regarding the proposed restaurant tax they recently placed on the May 16 ballot. It is the Council's hope that the statement will clear up what they feel are misconceptions about their intentions regarding the tax.

The statement is dated April 17, 2006, and reads in entirety: "We the City Councilors for the City of Grants Pass pledge that we will not increase the 4.85% proposed Prepared Food & Beverage Tax." The statement is signed by all eight Councilors: Phil Paquin, Jeff Hyde, Jack Patterson, Tim Cummings, Robert Keith, Brian Thompson, DonnaJean Wendle and Kris Woodburn. The statement was not signed by Mayor Len Holzinger.

Woodburn has emphasized during several public meetings that the tax could have been instituted as an ordinance adopted by the Council without a public vote. Woodburn says the choice to let the voters decide was a voluntary one made by the Council.

The Council's statement was issued in response to arguments from some in opposition to the tax regarding use of the word "intention" in the ordinance regarding the rate of 4.85 percent.

The ordinance reads: "The Council enacts this ordinance and imposes the Prepared Food and Beverage Tax with the intention that its rate shall not be increased without a favorable vote by the residents of the City of Grants Pass."

Woodburn said that the statement is a promise by all current members of the Council that they will not raise the rate without a vote of the people. He did acknowledge, however, that the current Council cannot legislate the actions of future Councils or voters. There are no restrictions in the proposed addition to the City's Municipal Code that would prevent future Councils from raising the rate or otherwise changing the Prepared Food and Beverage Tax code, and such changes would not require a public vote.

The restaurant tax will be voted on by City residents during the Primary Election on May 16. A simple majority is required for the tax to be approved.

Reach reporter Tim Burleson at 761-0195 or tim@grantspassclimate.com

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