HomeMy WebLinkAboutExplanatory Statement
EXPLANATORY STATEMENT FOR COUNTY VOTERS' PAMPHLET
NAME OF PERSON RESPONSIBLE FOR CONTENT: Richard Appicello, City Attorney, City of Ashland, Oregon.
NAME OF ORGANIZATION PERSON REPRESENTS, IF ANY: City of Ashland, Oregon
BALLOT TITLE CAPTION: Extend the 5% tax on food and beverage to 2030
MEASURE NUMBER: I ~ -'1' :r
Passage of this measure extends the tax that provides funds for park acquisition and for capital improvements for parks and
the wastewater treatment plant. Projects are required to be in the adopted Capital Improvement Plan.
Since its passage in 1993, park acreage in Ashland has increased from 425 acres to 785 acres. If the tax is extended, the
Parks and Recreation Commission will use the revenue to complete projects in the Capital Improvement Plan.
To comply with environmental requirements, the City constructed a new wastewater treatment plant for $34 million. The
City paid $ 1 0 million using Food and Beverage tax revenue and borrowed $24 million for the balance. The annual loan
payment is $1.8 million including principal and interest. The Food and Beverage tax provided about $1.5 million in 2008
for the payment. The loan will be paid in 2022. If the tax is not extended, the City will make payments with other
revenues which may include an increase in wastewater utility rates.
All businesses in the city limits that sell prepared food and beverages must coHect the tax. This includes restaurants,
grocery store delis, coffee shops, catering services and food sold by independent contractors.
Food and beverage providers keep 5% ofthe total collected to cover their administrative costs and the balance is sent to the
City. Of that amount, up to 2% may be retained by the City for administrative costs. Of the balance 210% is for park
improvements and 20% of that amount must be used for acquisition. 80% is for capital improvements for the wastewater
treatment plant and debt repayment.
Alcoholic beverages and whole cakes, pies and loaves of bread consumed off premises are exempted.
$250 for events that exceed $5,000 in food and beverages sold. ~
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The tax will not be assessed on food or beverages:
· Sold by school campuses;
· Sold on hospital grounds;
· Provided by bed and breakfast inns and hotels/motels as part of their lodging;
· Sold in vending machines;
· Sold by nonprofit organizations or service clubs as a temporary fundraiser;
· Provided by convalescent homes, nursing homes and retirement homes;
· Provided by a senior citizen nutritional program;
· Sold for resale to the public;
· Sold in bulk for consumption off the premises such as ice cream packed in a container of one-half gallon or more;
· Candy, popcorn, nuts, chips, gum or other confections but not including ice cream, frozen yogurt, cakes, pies and
other desserts.
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Businesses wiJI coHect the tax at the same time as the amount for the food and beverage is colJected.
Each business provides the tax collected to the City before the last day ofthe month following the end of each quarter.
Businesses may arrange with the City to remit the tax monthly.
This tax expires in 2030 unless the City Council eliminates the tax. Funds generated after 2022 not designated for parks
will be used for wastewater treatment capital improvement projects.
WORD COUNT TOTAL: 495
THE TOTAL WORD COUNT CANNa EXCEED 500 WORDS.
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