Stop Industry Specific Taxes

Background

The City of Ashland currently has a five percent tax on all prepared meals – a “meals tax.” The City of Portland recently looked at a tax on wireless phones. Salem’s city council passed an “entertainment” tax authorizing charging a tax on things like movie tickets. As a candidate, Portland’s new mayor mentioned a new meals tax as a potential revenue source for funding the arts. Many local governments have instituted local lodging taxes. Some of these were supported by the local lodging industry and others were not.

Issue

Due to lean budgets, local governments are increasingly looking to single out industries they see as vulnerable and subjecting them to local taxes. Industry specific taxes create government-imposed competitive boundaries. In many jurisdictions, businesses literally across the street from other similar businesses where a tax is imposed will gain an unfair competitive advantage. Industry specific taxes singles out a particular industry to act as the local government’s tax collector.

ORA Position

The Associations’ are opposed to any industry specific taxes that are not supported by the industry being taxed. New taxes and fees should only be imposed on retail businesses equally, and considerations must be made regarding any competitive disadvantages these taxes may place on local businesses.