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HomeMy WebLinkAboutminutes.council.20170905Special Meeting Aspen City Council September 5, 2017 1 RESOLUTION #122, SERIES OF 2017 – Ballot Language for proposed tobacco sales tax ...................... 2 Special Meeting Aspen City Council September 5, 2017 2 At 4:00 p.m. Mayor Skadron called the special meeting to order with Councilmembers Mullins, Myrin, Hauenstein and Frisch present. RESOLUTION #122, SERIES OF 2017 – Ballot Language for proposed tobacco sales tax Sara Ott, assistant city manager, told the Council this resolution will place a local tobacco tax on the ballot. Council reviewed this at work sessions August 8th and 21st. It is a three dollar per pack tax. It will increase 10 cents per year up to a four dollar maximum. There will be a 40 percent tax on all other tobacco products. The effective date will be January 1, 2018. The estimated year one revenue would be 325,000 dollars. Additionally, the whereas clauses state the revenue would be in the general fund. There is a preference toward financing health and human services, education and mitigation of services. Councilman Frisch said this is 100 percent to do with a healthier community not a money grab. Dr. Kim Levin is spearheading a state initiative to raise the age from 18 to 21. We did this a few months ago. I raised at that meeting that the price has a huge effect on the demand. The manufacturers have a contract with vendors that they can only ssll at a certain price. The industry knows the more expensive the fewer units they will sell. We have a resolution that will go to the voters and ask them to support a certain amount of tax and my suggestion was to focus on education, prevention and drug abuse. We have all had discussion on the gaps we have in the community. There is a slight change in the where does the money go. I want to lock in where the money goes. If a future council wants to go to the voters to stop it, they can. This is a nice way to commit to the public. Ms. Ott said the resolution specifically directs the funds to amend the language to include it. Mayor Skadron said the amendment does not require the creation of a new fund. Ms. Ott replied it does not establish a new fund. Councilman Myrin said to fast forward 30 years the fixed dollar amount will be an incentive for tobacco users to all switch to cigarettes. We have built in an incentive to switch to a fixed dollar amount with a percent amount. He will support this regardless but would like to change that. Ms. Ott stated that most cigarettes are taxed on a per pack basis rather than percentage. It is a more effective approach as a deterrent. Councilman Frisch said we received some input from the tobacco use lobby and they are the ones who made the recommendation. When it comes to cigarettes it is a per pack dollar amount everything else is a percentage. We are asking to have approval to get to four dollars over 10 years. The cruise control is it will go up 10 cents every year. I support the intention of what Bert is trying to do. This is a good solution. Councilman Myrin said he wants to say if it is me I would do it because it is consistent. The other suggestion I have is to add the amount collected to the food tax refund and administrate it to the community. Councilman Hauenstein said he agrees with Bert. It should be a percentage for all tobacco products. It was becoming an administrative problem. Just for the ease of administering it the price per pack is easier to administer. 10 years from now four dollars per pack isn’t going to be the same and we can revisit that. I agree with the amendment on having the proceeds go towards tobacco related health issues and addiction mitigation. Councilwoman Mullins gave a thank you to Dr. Levin for bringing this up. I’m sure it will be supported. The goal is to reduce the number of young smokers. We have done a really good thing. It is quite a lot of revenue. I think it is written loosely enough to be able to direct it to new programs that arise in the best way to prevent smoking in young people. Special Meeting Aspen City Council September 5, 2017 3 Mayor Skadron said he concurs in the comments that have been made and support this as well. CJ Oliver, environmental health, said this is a great move towards public health. Going to 21 to purchase and this are both excellent moves. Councilman Hauenstein a number of people have told me that this is a three dollar per pack tax and no one is opposed to this. Councilman Frisch said he is happy. Jim True, city attorney, said to be most careful we should have someone move and second the resolution in the packet then move to amend to add the provision for the revenue to be used for the specific purposes of financing health and human services, tobacco related health issues and addiction and substance abuse education and mitigation. Councilwoman Mullins moved to adopt Resolution #122, Series of 2017; seconded by Councilman Frisch. Councilman Frisch moved to amend Resolution #122, Series of 2017 with the above stated amendments; seconded by Councilman Hauenstein. All in favor, motion carried. Councilman Myrin said one thing that did not get on the ballot is city office financing. Councilman Hauenstein agreed that he would have like to see GO bonds on the ballot. Councilman Frisch moved to adjourn at 4:30 p.m.; seconded by Councilwoman Mullins. All in favor, motion carried. Linda Manning City Clerk