Lee said the increase could bring in a total of $3.5 million, part of which would go to the state for administration and part to the county as well, but it would still offer a major cushion in the city budget.
Ward 4 Councilor Joe Hayes said he would support the measure.
"We need some more money somewhere," he said. "It’s going to hurt which ever way it goes – either we cut services or we raise taxes."
But Ward 3 Councilor William Farmer said he would not support the increase.
"I don’t think wee need to be asking the citizens of Lebanon for a tax increase of any type, until we have made changes in Lebanon city government to be more efficient and cut out the waste," Farmer said.
Ward 6 Councilor Kathy Warmath said, "I am always for consumption taxes, not property tax, but if you really need to have it, you need to prove it. First you have to prove you’re spending what you have wisely."