Gas dealers' rep argues gas tax is void

Paul Romain, of the Oregon Petroleum Association, says that the City of Sisters cannot collect the three-cents-per-gallon gas tax that voters approved in the March 9 election.

"The tax vote is meaningless and the tax is void," Romain told The Nugget. "It cannot be collected based upon this ordinance. The city can pass a local tax after January 2, 2014, if the voters approve after that date."

A lawsuit was filed in Deschutes County on March 12 on behalf of American Energy, which operates the Mainline Station Chevron dealership at the west edge of Sisters.

The complaint notes that the Sisters City Council adopted Ordinance 388 on August 13, imposing the gas tax in advance of a September 28 deadline for a statewide moratorium on local gas taxes. That moratorium runs through January 2, 2014.

The election occurred well after the moratorium deadline.

Romain argues that because the enactment of the law occurred after the moratorium took effect, the ordinance and the tax are void, despite public approval. He contends that the city would have to place another

referendum on the ballot after the moratorium expires in order to legally collect a tax.

Sisters City Manager Eileen Stein declined to discuss the city's legal response.

"I'm not going to argue the legal points in the newspaper," she said. "We'll save that for court. I'll just characterize it that there is a disagreement over the enactment date."

The city's position is that the August 12 decision of the council is the enactment date and the city plans to move forward with collection of the tax.

Preliminary hearings on the dealer's suit are scheduled in June.