Gary Mayor Jerome Prince’s administration is heading back to Indianapolis with the coming legislative session for a second attempt to enact a food and beverage tax in the city with proceeds dedicated toward public safety capital purchases.
“This is the second attempt to capture revenue from an area that has previously not been available to us and to that extent use it to enhance our public safety efforts,” Mayor Jerome Prince said.
Prince said the money will be used to enhance technology available to law enforcement, such as license plate readers and ShotSpotter technology, which triangulates the location of shots fired in the city, improving officer response. It was also be used for other equipment and other capital purchases including new vehicles.
Revenues will not be used to pay for new officers or salaries because it will not be a consistent source of revenue. Moving capital purchase out of the general fund will help free up money for other purposes.
Prince said the administration is seeking a 1% to 2% citywide food and beverage tax, but negotiations about how the final legislation will look are ongoing. The legislation introduced last year sought a 1% food and beverage tax applicable to a 1-square-mile area surrounding the new Hard Rock Northern Indiana casino.
Deputy Mayor Trent McCain said the administration would like to see the tax applied to the whole city to maximize the revenues available for public safety. He said the original bill introduced last year also included the entire city but by the end of the session the area had been whittled down to the casino footprint.
Improving public safety ultimately will help lower insurance rates for businesses throughout the city, McCain said.
“The administration feels Gary is uniquely qualified for the food and beverage tax because of the deficits it has in the public safety area,” McCain said. “Based on the number of police officers on the street, we can really use this technology to help us in our efforts to improve public safety.”
Prince said the administration will continue to lobby legislators both in and outside of the Northwest Indiana delegation.
State Rep. Vernon Smith, D-Gary, who has been in discussions with the city concerning the legislation, said the proposal this year is a little different from the one that went before the legislature. He does not support enacting the tax throughout the entire city.
“Unless the constituents tell me otherwise, I can’t support that,” Smith said, adding the tax should be limited to the area surrounding the new Hard Rock casino.
Smith said Gary residents will have to spend more in 2021 already with the recently approved school referendum, an increase in trash collection services and an expected rate hike from NIPSCO.
“It’s too much on the community at one time,” Smith said.
Smith said he and fellow legislators will also want to know who supports this measure locally. The matter has not been before the Gary Common Council.
If the food and beverage tax is enacted, Smith does support using any revenues gained to support public safety.
State Rep. Earl Harris Jr., D-East Chicago, who also has been working with the city on the project, said legislation to create a food and beverage tax in Gary is still a work in progress.
“Nothing is concrete. We are still having conversations. I am not in support of a citywide tax for the city of Gary,” Harris said. He shares Smith’s concerns about the impact to residents in the wake of other tax increases and rate hikes.
While a 1% or 2% tax may not seem like much to some, for a struggling single parent raising three kids who want McDonald’s one person is a lot.
Harris said he supports enacting the tax in the casino district since the burden will be external to city residents.
“If we do something that just centers around the casino, it won’t be as big a burden on residents,” Harris said.
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