As expected, the Silverton Town Council voted unanimously Monday to put a one-percent sales-tax increase to the voters, with a mail-in election planned to coincide with the Nov. 4 general election.
Meanwhile, a citizens committee advising the town on how to proceed with the ballot proposal has recommended dedicating the majority of the revenue from the sales-tax increase to capital projects at first, and in five years, dedicating half the money to capital improvements and half to operating expenses.
“That sliding scale needs to be finalized,” Salazar said. “But I think that’s where we’re going to be headed.”
Trustee Jim Lindaman, chairman of the finance committee, said he has opposed specific earmarks for the sales tax increase. He said the scheme to divide the revenue between capital projects and essential services leaves plenty of flexibility for town officials.
Silverton shoppers currently pay a 6.9 percent sales tax, with 4 percent going to the town and 2.9 percent to the state.
Raising the town’s sales tax to five percent would generate an estimated $132,000 a year based on projected 2008 sales of more than $13 million.
Trustee John Schertz said he has “talked to some of the ‘harder cases’” who oppose the sales tax increase.
“This is going to be a tough sell,” Schertz said.
“It should be,” said Mayor Terry Kerwin. “We have a job” to convince voters the move is necessary.
“Some think we’re living too extravagantly as it is,” Schertz said.