MERRILLVILLE — A proposed 1% food and beverage tax in Merrillville has support from multiple entities.
The Town Council recently adopted a resolution endorsing the tax. It came after the Crossroads Regional Chamber of Commerce board of directors voted to support the proposal, Councilman Shawn Pettit said.
Documents associated with the action by both entities now head to state lawmakers as they consider legislation that would give Merrillville the authority to enact a food and beverage tax on sales at restaurants and bars.
If it advances, funding generated from the tax would be used to help Merrillville attract a convention center and other developments that could bring economic growth and tourism to the area, town officials said.
“This proposed Food and Beverage Tax would be focused on stimulating needed economic growth and development in and around the U.S.30 and Interstate 65 corridor, which is one of the most sought-after commercial destinations within the United States, but currently possesses existing redevelopment opportunities,” the town’s resolution states.
The 40 acres of land where the Star Plaza Theatre, the Radisson Hotel and the Twin Towers once sat is a prime area the town wants to see new growth.
Merrillville could help attract projects there or other locations by pledging funding that could assist in financing, constructing, operating and maintaining new developments.
The food and beverage tax money also could be used for infrastructure work associated with projects.
Town Council President Rick Bella described the proposed tax as “creative financing” necessary to bring a convention center and other projects to Merrillville.
“This isn’t going to be extra money just to go in the general fund,” Bella said. “This is for specific development.”
He said the proposed tax wouldn’t create a major financial burden that would prevent people from going to restaurants.
“It’s a dime on a $10 ticket,” Bella said.
He also said the projects the tax money would bring more visitors to the area, which would generate more customers at local restaurants and bars.
Besides Merrillville, the city of Hobart also is seeking legislation that would allow Hobart to enact a food and beverage tax.
Like Merrillville, Hobart would use tax funding for economic development.
The Merrillville council last month indicated it supported jointly pursuing a food and beverage tax with Hobart.
Bella said the communities will pursue separate legislation, but both will be heard this session.
Although they aren’t collaborating on the tax proposal, Bella said both communities could work together on economic development projects involving the U.S. 30 corridor.
He also believes potential projects that could bring major events to Merrillville or Hobart would benefit Northwest Indiana as a whole.
“We’ve got to think regionally now,” Bella said. “We can’t just think of our own little town, our own little borders, we’ve got to think bigger than that.”
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