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.
- The F&B Tax is set at 5 percent on all prepared food items and beverages (excluding alcoholic drinks) served in restaurants, including takeout and delivery orders.
- The TLT is a 10 percent tax on temporary or short-term lodging.
Food & Beverage Tax (F&B)
The F&B tax was approved by voters in 1993 to help acquire more land for Parks and Recreation. In 2009, voters extended the tax's sunset date to December 31, 2030.
This 5 percent tax applies to prepared foods and non-alcoholic beverages sold at restaurants, grocery store delis, caterers and coffee shops in Ashland. Businesses retain 5 percent of the collected tax to cover their accounting expenses.
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.
Transient Lodging Tax (TLT)
The TLT was introduced to support local services and community programs in Ashland. The City imposes a 10 percent TLT on temporary or short-term lodging. Importantly, 31 percent of the tax proceeds are dedicated to promoting tourism or may be used for tourism-related facilities.
Initially approved in the early 1990s, the TLT has been adjusted over time to better meet the needs of the community. The funds generated by the TLT are allocated to local initiatives, including grants for non-profits and support for local businesses. These efforts help strengthen Ashland's economy, support tourism and improve local infrastructure.
Funding Overview
Both taxes contribute to a variety of community-focused projects, from Public Works to tourism development. To see how F&B and TLT funds are being used for projects in Public Works and Parks & Recreation, as well as for TLT grant funding, visit ashlandoregon.gov/YourTaxesAtWork.
Thank you for being a vital part of our vibrant community! “We are Better Together!”
Photo courtesy Bob Palermini – Garfield Park Splash Pad that was funded by F&B in 2017 for $864,481.92
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