City sales tax will increase: Referendum passes with 84% of the vote
Voters overwhelmingly approved a measure which will increase the sales tax in McMinnville by three-quarters of a cent in a referendum in which only 18 percent of the electorate participated.
The vote was one of the most lopsided in recent history as 1,015 people, or 84 percent, voted for the increase while only 199, or 16 percent, voted against the measure. Ironically, the same referendum question failed by a slim margin when it was voted down in August, 2002.
The end result of Thursday’s vote will mean the local option sales tax rate will go from 2 percent to 2.75. The total sales tax on items purchased inside the city is now 9.75 percent. The entire county is tentatively slated to vote on the same issue Feb. 10.
Another immediate result of the referendum will be the reduction in city property taxes as the McMinnville Board of Mayor and Aldermen intends to pass a measure today dropping the tax rate by 34 cents from $1.94 to $1.60. Had the referendum failed, taxes would have increased to $2.05.
“We appreciate the people who got out and voted,” said McMinnville Mayor Royce Davenport. “This will be helpful to the city plus it enables us to reduce property taxes. It also diversifies our revenue source whereby we formerly relied overwhelmingly on property taxes. This makes us more flexible.”
The raise in local option sales tax will generate an estimated $900,000 to $1.1 million a year for the city. However, the number may be lessened if the county approves a similar measure this February since the county would then get a share of the proceeds. The new sales tax will go into effect 30 days after the referendum is certified. The property tax reduction will be reflected on the next property tax bills.
“We will be remembered as the board of mayor and aldermen who cut property taxes, but it was the voters who made it possible,” Davenport said. “The property taxpayers will see an immediate benefit through lower taxes.”
While approval of the sales tax increase is being applauded by city officials, the number of people who turned out to vote was disappointing to election officials.
“It was pretty bad,” said Election Administrator Donna Yates, noting only 18 percent of the city’s 6,905 registered voters bothered to vote. Almost half of those voting in the referendum did so during early voting sessions, meaning a sparse turnout for yesterday’s referendum.
“I hate to see people sit by and not participate, but if they want to let 18 percent decide something like this for 100 percent of the people, then that’s their priority,” Yates added.
Mayor Davenport said he believes the measure passed this time because only the people who had strong feelings about the referendum voted.
“Last time, when it failed last August, there were a lot of elections on the ballot and I think many people looked down, while they were voting for other things, and just pushed ‘no’ to a tax increase,” Davenport said. “This time, people had to make a special effort to get out and vote on this particular issue.”