Merrillville food and beverage tax moves forward
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The town of Merrillville is one step closer to implementing a 1% food and beverage tax. The Merrillville Town Council on Wednesday passed a first reading of the tax proposal, which would go into effect on Jan. 1 if it receives final approval next week.
The Indiana General Assembly approved a bill earlier this year allowing the town to adopt a food and beverage tax, though it must be done before Dec. 31.
According to the town’s website, initial plans for the revenue generated by the tax include supporting initiatives in parks and recreation, as well as tourism.
Some of those initiatives include building neighborhood parks in areas were no parks are available to residents, expanding the Dean and Barbara White Community Center by adding new basketball/volleyball courts so the facility can host regional tournaments, and identifying and building a new town square-type downtown area.
The first reading of the proposal passed by a 6-1 vote. The council heard public testimony from two people opposing the tax, including Merrillville Clerk-Treasurer-elect Eric January, who questioned the need for the tax.
“We may eventually be able to use the tax, but I believe that is almost like giving a match to an arsonist,” January said. “We have not done everything that we can as a town in order to make sure that our fiscal house is in order. Before we actually get some more money, we need to actually start doing a better job with what we have.”
The lone “no” vote came from Councilor Leonard White, who questioned by the issue of the food and beverage tax wasn’t brought up in May after the bill was signed by Gov. Eric Holcomb.
White also noted that while he isn’t against the 1% tax in principle, he would prefer the new council take up the issue after the new year.
The council must still approve the proposal in a second reading, which is scheduled for Dec. 26 at 6:30 p.m. The council will accept public comment on the proposal during the meeting.
You can watch Wednesday’s special meeting of the Merrillville Town Council in full below:
Merrillville is not the only northwest Indiana community mulling over a food and beverage tax. Our partners at Lakeshore Public Media reported this week that the Hammond City Council has approved a resolution supporting legislation at the Statehouse to authorize the city to implement a 1% tax.
Mayor Tom McDermott told the council he hopes the tax would raise enough funds to support $30 million worth of projects over a 20-year period, including an expansion at the Hammond Sportsplex.
Other Indiana cities over the years have made similar moves. In 2017, the city of Bloomington approved a 1% food and beverage tax to support an expansion of the Monroe Convention Center and recently moved forward with the establishment of a capital improvement board to oversee the project.