SANDPOINT — A proposed booze tax is in limbo after the City Council opted to table the item at its February meeting.

The two-percent tax increase, which was designed to raise money for facility upgrades at Memorial Park, would have affected all alcoholic beverages sold by the drink within the city.

The tax was spearheaded by Parks and Recreation Director Kim Woodruff, who said funds are needed to improve crumbling facilities at the park.

The council voted four-to-two in favor of tabling the item, with Councilmen John Reuter and Michael Boge dissenting.

Reuter, who spoke out against the tax, proposed giving the issue an up-or-down vote to eliminate the possibility of it reappearing on subsequent council agendas.

“I don’t consider this an option right now, particularly in these times, when so many local restaurants are going out of business,” Reuter said.

Had the council voted in favor of the tax, the issue would have been put on a city-wide ballot, where Sandpoint residents would be given the final word.

A similar two-percent booze tax was voted down in November 2007, which Boge cited as a reason for his disapproval of the proposal.

“I think what everyone forgets is that the citizens already voted on this once,” Boge said. “They sent a very clear message — it wasn’t close — it was a very clear message and I think we’d be wise to follow that.”

Woodruff has not removed the tax option from the table, but said he has and will continue to work with local restaurant and bar owners on finding alternative funding sources.

“The bottom line is that if I can avoid pitting one segment of the population against another, I’m going to do that,” Woodruff said. “I’m going to exhaust all resources before we come to that.”

The council will have another chance to discuss the future of the tax later this month when the item returns to the council agenda.