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Hastings council asks staff to draft restaurant-tax ordinance, leans toward 1%
Summary
City staff presented revenue estimates and legal guidance on a proposed local restaurant tax; council members generally supported directing staff to draft an ordinance and to return with clarified taxable categories, collection mechanics and implementation timing, with several members favoring a 1% rate as a starting point.
At a Hastings City Council work session on 2025-10-20, council members directed staff to draft an ordinance for a local restaurant tax and return with more detailed analysis, including taxable categories, exemptions and implementation timing. The council signaled a preference to start at 1% on a trial basis while staff prepares a formal ordinance and outreach plan.
The proposal was presented by Jesse Oswald, city staff, who said the restaurant tax is one of several revenue options requested during the budget process and that the city needs direction on whether to pursue it and, if so, at what percentage. "That is one of the good things about the restaurant tax ... It is allowed to go just to the general fund, to be spent, how council ultimately would dictate through the adoption of the budget process," Oswald said, explaining the levy-flexible nature of the revenue.
Council…
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