Meal, hotel, other taxes are not off the table yet

Business owners might be asked to foot the bill for programs designed to boost the economy. But while a meal tax and entertainment tax might not be right for those programs, they could be used to raise money city-wide.

The City Council on Monday weighed in on an advisory committee's ideas on how to pay for economic vitality programs.

Councilor Hal Brauner spoke first and set the tone for the council's discussion.

"Usually on these discussions I'm not one of the first to talk," Brauner said. "On this issue, I have very strong feelings."

Brauner objected to taxing one industry to create programs to benefit all businesses. He also said adding economic development programs to the city's general fund was also unacceptable.

The Downtown Economic Vitality Plans Implementation Committee is considering several options for raising $170,000 to pay for the city's portion of the Prosperity that Fits plan, designed to build targeted economic prosperity in Corvallis.

Other proposals include funding economic programs right out of the city's general fund, which could potentially put such efforts in competition with public safety and social services paid from the same account.

The group nixed a plan to raise funds with a one-third percent meal tax and also dropped an entertainment tax.

Although the economic development committee may have dropped several funding sources from consideration, the council made it clear that those options remain good ideas for other purposes.

Councilor Bill York said the city may yet impose a meal tax, entertainment tax, or raise hotel taxes to pay for city services, should the need arise.

Councilor Mike Beilstein agreed.

"It seems like everyone is saying we need money, but not from me," he said. "We are not taking these taxes out of the equation forever."

Following the council's lead, the economic vitality committee will likely focus on developing a business license fee.

Brauner suggested that a business tax is common, and the money raised might raise enough money to pay for more than just economic development programs.

"Virtually every city in Oregon has business license fees of some sort," he said. "We wouldn't be prowling new ground here."

Reporter Matt Neznanski can be reached at 758-9518 or matt.neznanski@lee.net.