The Grants Pass City Council last night said "no" to a 3% food and beverage tax in favor of a $12 utility fee to fund public safety services until the restaurant tax can be put to a public vote in November.
Following a lengthy discussion regarding the amount of the fee, the City Council finally decided on $12 per month for a single-family residence. The vote was a 4-to-4 tie, with Mayor Sara Bristol casting the deciding "yes" vote.
The $12 fee expanded to the average small business will be over $36 monthly. It is designed to sustain public safety at current levels, but will add no new hires in the police and fire departments.
Public testimony was overwhelmingly against the food and beverage tax that would be dedicated exclusively to public safety services. Councilors voted against the tax by a 5-3 margin. Voting for the tax were Vanessa Ogier, Rick Riker and Brian DeLaGrange.
The City Council then voted 7-1 to place the 3% food and beverage tax before Grants Pass voters in the November election, with Councilor Ogier casting the lone dissenting vote.
All prepared foods and beverages -- excluding alcohol -- would be subject to the tax. Bakery goods that are to be consumed off premises are exempt. Operators are to collect the tax and remit the proceeds quarterly to the city. Should the payment be late, the operator could be subject to a 10% penalty plus the tax itself.
(Special Thanks to Chuck Benson for covering this meeting)
