Voters in Newport could decide whether to create a new tax on restaurant meals, as well as to increase the city’s gas tax. The Newport City Council will hold a public hearing on the proposals Monday evening.
The restaurant tax would be five percent and would make Newport just the third Oregon city with a sales tax on prepared food. Ashland and Yachats already have such a tax, and Cannon Beach is considering a similar proposal.
Separately, Newport’s local gas tax could go up from three cents a gallon in the summer and one cent in the winter to a year-round rate of five cents a gallon.
Newport City Manager Spencer Nebel said both taxes would help pay for city services such as police and fire.
“It shares the burden with local residents as well as visitors to the community to fund things that are critical both to our residents as well as to folks that come to this city,” he said.
If approved by city council, the proposed tax measures would go before Newport voters either this November or next May. If voters approve, both tax proposals would take effect in Julyl, 2022.
This isn't the first attempt to improve the city's revenue outlook this year through a tax increase. The Newport City Council raised the lodging tax from 9.5 percent to 12 percent last month. The new rate takes effect in September.
