Meetings scheduled for food and beverage tax ordinance
An estimated $1.8 million in annual revenue is on the table with a food and beverage tax in Merrillville.
The Town Council will have a special meeting at 4:30 p.m. Dec. 20, and the food and beverage tax is the sole topic on the agenda. The session will take place at Town Hall, 7820 Broadway.
The Indiana General Assembly approved House Enrolled Act 1454, which authorizes the Town to enact a food and beverage tax of up to 1% on all dine-in and take-out prepared food and drinks sold at Merrillville eateries, bars, and similar outlets. If the council adopts a food and beverage tax ordinance on two readings this month, it could become effective Jan. 1, 2024.
The excise tax would cost a penny on every dollar spent on prepared food and beverage purchases. It won’t add a significant amount to food and beverage tabs, but the combined impact would be tremendous for Merrillville by generating an estimated $1.8 million each year.
That funding is essential for the municipality because Merrillville has limited options to generate new revenue.
The state legislation allows Merrillville to use the food and beverage tax funding for two specific purposes -- Parks and Recreation as well as tourism.
"Introducing a food and beverage tax in our Town is a fantastic opportunity to enhance our community without putting the burden on residents,” Town Council President Rick Bella said. “By encouraging visitors to contribute through this tax, we can unlock resources for projects that would otherwise strain our general fund or existing revenue sources. This means we can significantly boost our Parks and Recreation programs, creating more enjoyable spaces for everyone.”
To prepare for the Dec. 20 special Town Council meeting, residents are encouraged to visit https://www.merrillville.in.gov/government/town_council/food_and_beverage_tax/index.php to review a variety of information available about the tax. It also includes a link so residents can provide input electronically regarding how they would like to use food and beverage tax funding.
In addition to helping add park programs and create new facilities, the tax can also promote tourism in the community.
“The increased tourism not only adds vibrancy to our town but also supports our local businesses,” Bella said. “With the revenue generated, we can develop and maintain attractive attractions, events, and facilities that benefit residents and visitors alike. It's a smart way to improve our community without placing additional financial pressure on those who call it home.”
At the Dec. 20 session, the council will accept public comments about the food and beverage tax. The panel is also expected to vote on the first reading of an ordinance establishing the excise tax.
If the ordinance passes on the first reading, the council will consider adopting it on the second reading at the Dec. 26 regular Town Council meeting. That meeting starts at 6:30 p.m. at Town Hall. As with all second reading ordinances, public comment will be offered before voting on the measure. If the ordinance advances, the tax would become effective on Jan. 1, 2024.
Bella said 33 other communities in Indiana have a food and beverage tax in place, and Merrillville is appreciative of the opportunity to generate additional revenue to not only enhance services but also provide more to the Town, its residents, and visitors.
“Many thanks to our state legislators for the opportunity,” Bella said. “Merrillville can stand with 33 other cities and towns utilizing this approach. We will work with those who are using the tool for insights.”