The Hobart City Council moved further in its quest for a food and beverage tax, passing a formal resolution Wednesday requesting legislative approval.
The resolution stated money generated by the tax would be used to develop and improve the U.S. 30 corridor including a sports complex, plus sidewalks, trails and greater connectivity to surrounding municipalities.
The council had previously given its informal thumbs-up for Mayor Brian Snedecor to proceed in asking the state Legislature to approve the tax for the city, which would be used for economic development purposes.
If it goes into effect, the tax would be added to every bill in which food and beverages are furnished, prepared or served by a retail merchant for payment. This includes foods served in a restaurant, cooked or heated at a grocery deli counter or catered, according to the Indiana Department of Revenue.
The city has not said what percentage of the bill they’re seeking, but the tax is typically 1% or 2%.
“This is a way of telling the public this is your plan. It’s step one of telling the General Assembly you’re really serious about this,” said Ann Cottongim, director of Municipal & Legislative Relations, Taft Stettinius & Hollister LLP in Indianapolis, of the resolution.
Cottongim said if approved, money generated from the tax would go into a new, special fund and money from that fund could only be used for reasons allowed under Indiana code.
“For the last five or six years, it’s really been focused on economic development. I’ve not seen a single request go through for the general fund,” she said.
Cottongim said the language in the resolution is similar to that of other municipalities in the state that have received approval to pass the tax.`
Snedecor said the U.S. 30 corridor will probably receive 70% to 80% of the money generated from the tax.
“I want to give back to the businesses that will generate the tax money and I certainly talked about having a sportsplex there,” Snedecor said.
He said the money wouldn’t be used for neighborhoods and sidewalks.
“I want to invest in some type of destination. This needs to target something that will bring people to our community,” he said.
Councilman Lino Maggio, D-3rd, said he’d like to see the money spent all over the city, however.
“There are other areas we need to revitalize and use the money there, too,” Maggio said.
Snedecor said the money also could be used for Brickie Bowl, for facade grants and for the lakefront area.
Councilman Dave Vinzant, D-4th, said if a sports facility is built off U.S. 30 as hoped, it would benefit the whole community. He said, for instance, there may be a need to expand Hillman Park as a result of events taking place at the sports facility.
The resolution passed on a 5-1 vote, with Councilman Chris Wells, R-5th, casting the lone no vote. Councilman Matt Claussen, D-At large, was absent.
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