The City relies on two key taxes that support our local community: The Food & Beverage Tax (F&B) and the Transient Lodging Tax (TLT). These taxes play an essential role in funding capital improvement projects, supporting local businesses and benefiting community programs. This City News post focuses on the F&B Tax.
Better Together: How Ashland’s Food & Beverage Tax Supports Our Community
This 5-percent tax applies to prepared foods and non-alcoholic beverages sold at restaurants, grocery store delis, caterers and coffee shops in Ashland, including takeout and delivery orders. Businesses retain five percent of the tax collected to cover their accounting expenses. The City collects roughly $3 million in F&B Tax per year.
The funds collected through the F&B Tax support essential city projects, such as street repairs, land acquisition and capital improvements. Notably, 25 percent of these funds go directly to Parks and Recreation to support the development and rehabilitation of local parks and open spaces, and 75 percent go toward maintaining and repairing our streets.
FOOD & BEVERAGE HISTORY
The F&B tax was originally approved by voters in 1993 to help acquire additional land for Parks and Recreation. In 2009, voters redirected 80 percent of the tax revenue to pay down the debt on the City’s Wastewater Treatment Plant, leaving 20 percent for Parks.
In 2016, voters adjusted the allocation again, increasing Parks' share to 25 percent. The remaining 75 percent continued to fund wastewater debt, with any excess revenues not needed for that purpose redirected to the Street Fund for a pavement management program.
In 2023, a measure to amend the ordinance to allow funds to be used for Parks & Recreation operations and extend the sunset date to December 31, 2040, narrowly failed. Today, 75 percent of the F&B Tax is used to fund street projects and 25 percent is used for the acquisition, planning, development, repair and rehabilitation of City parks. The tax is scheduled to sunset in December 2030.
PROJECTS FUNDED BY Food & Beverage OVER THE PAST 10 YEARS
PUBLIC WORKS (Street Reconstruction: Administration, design and construction)
- Hersey Street - $4.18 Million
- Ashland Street - $4.66 Million
Future Public Works projects include:
- North Mountain Ave (2025)
- Oak Street (2026)
- Siskiyou Boulevard (2027)
More on Public Works at ashlandoregon.gov/PublicWorks.
PARKS & RECREATION
- Daniel Meyer Memorial Pool & Rebuild, $166,789
- East Main Park Development, $317,004
- Garfield Park Splash Pad, $864,482
- Hunter Park Playground, $67,219
- Hunter Park Tennis Court Rehabilitation, $19,757**
- Hunter Park Tennis Court Resurfacing, $97,743
- Irrigation (alternative sources), $22,133
- Irrigation Central Controller, $262,095
- Japanese Garden in Lithia Park, $1.9 Million (picture below courtesy Bob Palermini)
- Kestrel Pedestrian Bridge, $42,384*
- Lithia Park Improvements, $28,500
- Lithia Park Master Plan, $250,283
- North Mountain Park Culvert Failure, $152,104
- North Mountain Park Nature Play Area, $27,725.00*
- Oak Knoll Golf Course / Clubhouse Improvements, $85,883
- Oak Knoll Golf Course Irrigation & Drainage, $93,166
- Parks (all inclusive) Master Plans, $45,756**
- Playground Slide at Briscoe Park, $266,893**
Please note: The Parks & Recreation projects listed above include only those with payouts of approximately $20K or more.
*F&B and grant funded Parks & Recreation projects
** Parks & Recreation Projects to be completed within the next two years
More on Parks & Recreation at ashlandoregon.gov/Parks.
This tax contributes to a variety of community-focused projects. Stay informed, view a year-by-year snapshot of the F&B tax revenue and learn about the TLT at ashlandoregon.gov/YourTaxesatWork.
Thank you for being a vital part of our vibrant community! We are Better Together!
(Photo Courtesy Bob Palermini)