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Oak Harbor council pauses vote on local B&O tax after marathon debate over marina dredging, breakwater and rec center funding
Summary
City council opened a public hearing on a proposed local business-and-occupation (B&O) tax but voted to table final action to Aug. 6 after hours of testimony from the public and council questions about bond timing, permit windows and whether a tax would be enough to fund marina repairs and a possible recreation center.
Oak Harbor officials opened a public hearing on two ordinances to adopt a local business-and-occupation tax and its administrative code but tabled final action to Aug. 6 after a lengthy council debate and public comment on how the money would be used.
The proposed tax, described by David Goldman, deputy city administrator and finance director, would levy "1 fifth of 1% or 0.002 times a business's gross receipts," with an exemption threshold under the draft ordinance at $5,000,000 (other scenarios discussed included a $2.5 million threshold). Goldman told the council the ordinance sets an effective date of July 1, 2025, with the first collections due Jan. 31, 2026, and that the threshold at $5 million was estimated to affect about 26 businesses and generate roughly $825,000 a year in gross revenue under staff assumptions.
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