Hammond food and beverage tax bill advances
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The Indiana House has approved a bill that would allow the city of Hammond to implement a 1% food and beverage tax. House Bill 1121, which includes a number of tax-related provisions, passed this week by a vote of 67-29 and now moves to the Senate.
If approved by the legislature and signed into law by Gov. Eric Holcomb, the city would be able to enact an additional 1% tax on all sales of dine-in and carry-out food and drinks, beginning July 1.
Our partners at The Times of Northwest Indiana report the revenue generated from the tax would be used for the West Lake Corridor extension project, downtown redevelopment, and expansion or improvement of the Hammond Sportsplex or Wolf Lake Pavilion.
Hammond Mayor Tom McDermott told the publication a 1% tax could generate up to $2 million in new revenue annually. The bill would also allow the Hammond City Council to enact a smaller tax rate of 0.25%, 0.5% or 0.75%.
The city would become the second community in northwest Indiana to enact a food and beverage tax over the last year, if the bill is approved. In late December, the town of Merrillville approved a 1% tax after receiving similar support from last year’s Indiana General Assembly.
House Bill 1121 would also allow the Hamilton County town of Cicero to implement a food and beverage tax if approved.