Food and beverage tax starting in 2024 in Merrillville
A 1% food and beverage tax is starting Feb. 1 in Merrillville, and the estimated $1.8 million it will generate annually will enhance parks and recreation in Town and promote tourism. The Town Council on Tuesday, Dec. 26, adopted an ordinance establishing the tax that will collect a penny on every dollar spent on all prepared food and drink sales at local restaurants, bars, and other outlets in Merrillville.
“The food and beverage tax is a small but significant investment in our Town’s future,” Town Council President Rick Bella said. “It will allow us to provide more opportunities for recreation, entertainment, and economic development for our community.”
The implementation of the food and beverage tax aligns with Merrillville's commitment to sustainable growth and the well-being of its residents. As the Town continues to evolve, this strategic fiscal measure will play a crucial role in shaping Merrillville's future.
The Town Council will determine how the funding will be used. There are a variety of ideas being considered to attract visitors and enhance the quality of life for residents, and they can be viewed on the Town’s website.
They include a proposed expansion of the indoor recreational amenities at the Dean and Barbara White Community Center, the creation of a bandstand-type park for outdoor concerts, and the development of a splashpad, among other ideas. Residents are encouraged to visit https://www.merrillville.in.gov/government/town_council/food_and_beverage_tax/index.php to review information available about the tax. The webpage includes a link so residents can provide suggestions electronically regarding proposed uses of food and beverage tax funding. The Town Council will ultimately determine the uses of new revenue source.
For business owners, the webpage also features a link to a guide prepared by the State of Indiana to explain a variety of matters such as which transactions are subject to the tax, how to register your business, and how to pay the tax. The guide also has Indiana Department of Revenue contact information if you need additional assistance.
After the Town Council’s action on Tuesday, Merrillville joins 33 other communities in Indiana that have a food and beverage tax in place. The Town of Munster and the City of Hammond are also considering the enactment of their own food and beverage tax.
Merrillville received the authority to move forward with the food and beverage tax after the Indiana General Assembly approved House Enrolled Act 1454.
“We appreciate the support of our state legislators for this important initiative,” Bella said. “One of the invaluable byproducts of this initiative will be the expansion of our customer base, providing a substantial boost to local businesses. As the Town flourishes, so too will the opportunities for economic prosperity for our enterprising community.”