Councilmembers tasked City Manager Tom Coleman to find new revenue sources ahead of a difficult budget year coming up.
Coleman has several irons in the fire. He’s proposed raising the maximum lodging tax, levying a tax on retail alcohol sales and turning to state legislators to get a piece of marijuana product tax.
A change to the city’s charter requires three-quarters of Councilmembers, or six out of seven members to advance any idea. Coleman hasn’t been able to swing enough votes so far. He said he hopes a changing of the guard on Council turns the tide.
“Specifically with the lodging tax one, I believe it failed five to two, but one of the council members that voted no, Marge Hadden, has specifically requested that it come back for another vote because she wanted to have more discussion about it and reconsider it,” Coleman said.
Newark did not hold an election this year because only one candidate ran for each seat up for grabs.
Coleman said at least one of the no votes for the alcohol tax resolution came from a now-retired Councilmember.
Both resolutions are up for a vote at a special Council meeting Wednesday. Coleman and Councilmembers will also discuss levying a tax on rent or lease payments from residential premises, but that will not be voted on.
Coleman said the rent tax is the most lucrative idea so far, but he’s not sure it will garner enough support.
“So the lodging tax and the alcohol tax, back of the napkin, we're estimating would bring in maybe $300,000 a year,” Coleman said. “The lease tax would probably be more than a million and a half dollars per percent. So that is a much larger item.”
Newark’s general fund budget faces a $1.9 million increase largely due to police salaries.
Coleman said Newark needs a large source of new revenue to avoid considerable property tax increases or service reductions.
