Monroe County proposes food, beverage tax

Monroe County Council proposed a 1-percent food and beverage tax increase to fund expansions of the Bloomington Monroe County Convention Center.

The increase would tax sales of prepared food, such as in restaurants or at the deli section of a grocery store, and would affect Monroe County.

Monroe County Council Member Shelli Yoder said she would like to see economic development.

“I actually want to see the convention center expand,” she said. “I am open to the food and beverage tax.”

The proposal is written so most of the money collected would go to the City of Bloomington, although everybody throughout the county would pay the tax, Monroe County Council Member Marty Hawk said.

Instead of a food and beverage tax, others are considering an innkeeper’s tax— levied on places such as hotels and motels — to raise the funds. Monroe County has a 5 percent innkeeper’s tax.

“I believe that there is a majority of the council who might prefer to have an increase in innkeepers tax,” Hawk said.

Likewise, Yoder said she has heard from constituents and commissioners who say they do not want to put forth a food and beverage tax before increasing an innkeeper’s tax.

Yoder said the innkeeper’s tax would affect the people using Monroe County’s hotels and motels, the same individuals using the convention center.

“It isn’t that folks don’t want an expansion on the convention center,” Yoder said. “It is that they would rather have it in the way of an innkeeper’s tax.”

Hawk also said his constituents oppose the tax.

“My district has made it very clear that in order to represent their wishes that I would vote against this tax,” Hawk said. “I’m there to vote to represent my district, and they have not been convinced that this additional tax they would pay would have benefit.”

According to the food and beverage tax ordinance, the use of county revenues may only finance, refinance, construct, operate or maintain a convention center, a conference center or related tourism or economic development projects.

County fund revenue not needed for expenses associated with the convention center may go to other economic development or tourism development activities.
Yoder said she sees there might be an issue with the way the legislation was
written.

“The legislation is written that the money collected from the food and beverage tax would first be put forth for the expansion of the convention center or other economic development tourism-related projects,” Yoder said, “That can be interpreted in many different ways.”

Yoder said in order to move forward with the tax, the citizens of Monroe County might need a more formal announcement of what the city intends to do with the funds collected.

“I believe in the intentions of the city and county in wanting to expand the convention center,” Yoder said.

William Ellis, moderator for Monroe County Citizens Against the Food and Beverage Tax said the group does not believe outlying areas will benefit.

“Some of us feel the case has not been made for expansion and the numbers given have had some serious questions about them.”

The Council will vote on the proposed food and beverage tax Sept. 10.

Follow reporter Mary Hauber on Twitter
@mary_hauber.