County food tax raises concern

Monroe County residents might see their food become a little more expensive soon.

The Monroe County Council took steps toward expanding the Monroe County Convention Center by introducing a bill last week that could increase the tax on food and beverages in restaurants within Monroe County by 1 percent.

But the change has brought up mixed feelings among local restaurant owners. Most like the idea of promoting county tourism, but some question where the money will go.

Gregg Rago, owner and general manager of Nick’s English Hut, said it’s not the increase that worries most owners, but how the additional tax revenue will be spent.

Rago said one of the main reasons for the bill is to attract tourists and various businesses to the area.

“Monroe County is the third-largest tourist county in the state,” Rago said. “It’s natural to hold conventions here.”

The renovations on the center include expanding the current space from 20,000 to 60,000 square feet and creating an adjacent parking lot. Currently, the center does not have the capacity to hold certain conventions that could be a major source of income for Monroe County.

Revenue from the tax will “only be used to finance, refinance, construct and operate or maintain a convention center, a conference center or economic development projects,” according to the bill.

Monroe County Councilman Vic Kelson said he’s interested to see where all the money will go as well.

Kelson said that deciding the money’s endpoint is going to be challenging, but the council will plan projects related to the county’s tourism.

“The council will put up its project ideas,” Kelson said. “But I’m open for suggestions as well.”

With its intention to increase area tourism, some restaurant owners say the bill could benefit them in the long run.

“I’m never in favor of taxes,” said John Bailey, a managing partner at Malibu Grill. “But if we’re going to get a tax increase, and it’s specifically designed to expand the convention center and promote tourism within the county, that would benefit everybody.”

Scott Morris, a managing partner at Cheeseburger in Paradise, echoed the possibility for a win-win.

“Bloomington definitely benefits from the things that happen in town,” Morris said. “It’s a smaller town, and the most revenue we get is from tourism.”

But Morris also said the bill should be more specific about how the money will be spent.

“It’s a low-hanging fruit,” Bailey said. “If you’re going to get taxed, you might as well do it for the good of the economy.”

The biggest concern for most restaurant owners is that the revenue from the bill will not actually go toward developing the convention center.

“If the bill says it’s going to develop a convention center, that’s what needs to happen,” Rago said. “They should not be able to change where that money goes.”

Kelson said he shares the residents’ concern.

“I understand their concerns, and I honor their concerns,” Kelson said. “These are hard economic times.”

Another major worry for restaurants is that the tax increase may deter customers from dining out. But sophomore Lauren Stern’s opinion differs.

“The increase is very minimal,” Stern said. “(It) won’t affect how often I go out to eat.”