GRANTS PASS, Ore. – On Wednesday February 21st, the Grants Pass City Council rejected an opportunity to create a food and beverage tax in an effort to fund public safety. It will now likely be put up to voters in the November 2024 general election.
City hall was packed with local residents eager to know if council would pass these ordinances. After more than an hour of public comment, the motion to pass the food and beverage tax failed. The council now intends to push this tax to a public vote. The meals tax and monthly utility fee were originally created in an effort to close a 3-million-dollar funding gap for public safety. Many local restaurant owners and workers showed up to city hall to protest, claiming the three percent meals tax unfairly targeted the food industry.
“Just trying to make a little bit of money in the restaurant business is already tough, but you add in a sales tax and people are going to stay away a little harder than they’re already starting to. This last year we’ve definitely seen a downturn,” says Katurah Alger, owner of The Laughing Clam.
The outrage was largely due to how citizens were unable to vote on the matter. Mayor Sarah Bristol says members of the Oregon Restaurant and Lodging Association suggested they would apply for a referendum if the motion did indeed pass.
“We recognize that we need police and fire to keep our community safe, but to target this on one industry that’s already struggling coming out of COVID-19, notoriously low margins, and especially without the vote of the people, is just absolutely beyond belief to me,” says ORLA representative Terry Hopkins.
Supporters of the tax say it’s a necessary step in ensuring the effectiveness of police and fire departments, especially in the face of record low staffing issues. City Councilor Joel King voted to move the meals tax to the ballot but says he’s ultimately in favor of it. He emphasizes the city is trying to avoid putting a new tax on everyone, and that people can at least choose to purchase a taxed meal.
“It’s the need to build a sense of community where we support each other, and we don’t have one segment of the community paying for it,” Councilor King says.
Mayor Bristol’s vote broke the tie in favor of a 12-dollar utility fee that will be tied to Grants Pass residents’ water bills, but it will require a second vote. The utility fee has different categorizations for businesses, which will be taxed more. The motion to approve the meals tax without a public vote, ultimately failed 5-3. Mayor Bristol says it’s the council’s intent to put it on the November ballot, but things could always change. The council has until August 7th to prepare the ordinance for the ballot, and they must still vote on the logistics and language of the meals tax beforehand. Mayor Bristol says council may start workshopping this at their next meeting.
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