Exploring a Permanent Food and Beverage Tax: What It Means for Ashland’s Community – Insider Insights from Ashland News

A discussion is brewing among Ashland City Council members about a potential permanent food and beverage tax. The current 5% tax, which voters approved in 1993, generates around $3 million annually and is set to expire in 2030.

This tax applies to prepared foods and nonalcoholic drinks sold at restaurants, grocery stores, and coffee shops. It helps fund various community projects, including parks and street improvements. Businesses keep 5% of the tax collected to manage their accounting.

Councilor Eric Hansen expressed a desire to make the tax permanent. “It’s an amazing amount of money that’s gone into our community,” he said. Currently, 25% of the revenue supports the Parks & Recreation Department, while the remaining 75% goes toward street maintenance and repairs.

In the last decade, the tax has funded several key projects. For example, repaving Hersey and Ashland streets cost nearly $9 million. It also financed upgrades to the Japanese Gardens, which received $1.9 million, and the splash pad at Garfield Park, costing $864,482. Future projects on the books include repaving North Mountain Avenue and Oak Street.

Councilor Jeff Dahle raised a point about possibly expanding the tax’s use beyond just capital projects. “Could we modify it to cover operational costs as well?” he asked, highlighting concerns about city budget pressures.

Parks Commissioner Rick Landt acknowledged the broad definition of “capital projects” and suggested that the tax could be applied to essential maintenance, like roof repairs or painting. However, changing how the funds are spent could be politically risky.

There’s also a proposal from Councilor Dylan Bloom to allocate up to 25% for ongoing park operations while designating funds for a new water treatment plant and capital projects. This flexibility could ease financial strain on city services and reduce the burden on utility ratepayers.

Yet not everyone is convinced that altering the funding structure would be beneficial. Parks Commissioner Dan Weiner mentioned that parks projects are often planned years ahead, complicating any shifts in funding use.

The discussion around the food and beverage tax represents more than just budgetary concerns. It reflects a broader debate about priorities in Ashland. The community’s needs are changing, and the way funds are managed could have lasting impacts.

In 2023, voters narrowly rejected a proposal to amend the existing tax to support parks operations, illustrating some resistance to change. As 2030 approaches, Mayor Tonya Graham emphasizes the need for transparency, urging the council to clearly outline how tax revenue will be spent. “People want to know what it will be used for,” she noted.

With public opinion critical to shaping future decisions, a town hall meeting is planned to gather community feedback on the food and beverage tax. As the council prepares for these discussions, the challenge will be striking a balance between maintaining necessary services and fostering community growth.



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