By Matt Neznanski
Gazette-Times reporter | Posted: Thursday, August 23, 2007 12:00 am
Committee wants to raise funds to boost Corvallis economic vitality
In order to boost the city's economic well-being, one think-tank is considering asking people to put their money where their mouth is - literally.
The city's Downtown and Economic Vitality Plans Implementation Committee today will discuss adding a one-third of a percent tax on prepared food sold within the city, among other ideas for raising money to boost economic clout in Corvallis.
"If they're going to have a restaurant tax, why not have a sales tax?" said Gary Evans, manager of Clodfelter's restaurant on Monroe Avenue near campus. "Why tax one industry?"
A tax like the one up for discussion would generate a three-cent tax on a $10 food bill, paid by the eatery. Not all food would be taxed under the proposal. Only prepared food is eligible, no matter where it is purchased.
For example, restaurants would be subject to the tax. Deli sandwiches from a grocery store would be taxed. But groceries sold in a supermarket would not.
Evans said that while the small restaurant tax might not be immediately felt by customers in their bill, when added to other fees and taxes, it adds to the cost of doing business.
The committee's name is a long way of describing a group that is working to put into place the plans dreamt up in the city's Prosperity that Fits plan. The plan is the city's master plan for economic development and describes what kinds of business Corvallis wants to attract with a minimum of negative impacts.
Prosperity that Fits focuses on strengthening existing local business and recruiting targeted companies, building up the city's workforce and doing all this with sustainability in mind.
Those goals need money. The city figures it will cost about $170,000 to begin putting plans into place. The committee realized that it could raise more than that and then offer grants to businesses with plans that fit with city goals.
City Councilor Patricia Daniels, who is a member of the economic vitality committee, said the group has gone through many different ideas for raising money including a local sales tax, which didn't last long in discussion.
"Each thing has its problems," Daniels said. "If they want economic development, the private sector is going to have to pay for it; we just need to decide what fits."
IF YOU GO
What: Downtown and Economic Vitality Plans Implementation Committee meeting
When: 4 p.m. today
Where: Madison Avenue Meeting Room, 500 S.W. Madison Ave.
Reporter Matt Neznanski can be reached by calling 758-9518 or at matt.neznanski@lee.net