Rep. Heaton proposes Vigo County food, beverage tax to benefit Hulman Center

Rep. Bob Heaton, R-Terre Haute, says the measure is specifically targeted for renovation of Hulman Center at Indiana State University, with an attached new convention center. The Indiana General Assembly has approved $37.5 million of the $75 million project that includes an attached two-story convention center, with a main floor meeting space with up to 1,250 seats.

Heaton said he plans to propose a 1 percent food and beverage tax, which could generate between $1.4 million and $2.1 million annually. That funding, he said, would go directly to the Capital Improvement Board, which oversees the Hulman Center project and its long-term maintenance.

Heaton said he planned to file the legislation before an announcement of potentially moving gaming positions to Terre Haute into a new casino. While projected funds for local government from the Rising Star casino show a potential of $402,000 from a food and beverage tax going to the city of Terre Haute, Heaton said the funds, if the tax is approved, would actually go to the Vigo County Capital Improvement Board.

Heaton said Terre Haute is a regional hub and much of the funds would be generated from people outside of the county.

“Will this deter someone from going to Monical’s to get a pizza if it costs another 21 cents? I don’t know that it would deter them from doing that,” Heaton said.

”People I have been talking with at restaurants say if they know where the money is going, they are okay with it. This is for a specific project. We will have to see how this goes over the next four to five months in the legislature,” Heaton said.

There are precedents for a food and beverage tax in the Wabash Valley. Rep. Alan Morrison, R-Terre Haute, spearheaded a measure that gave a 1 percent tax to the town of Rockville in 2015, and Rep. Jim Baird, R-Greencastle, spearheaded a 1 percent rate for the town of Cloverdale in 2013.

Vigo County Commissioner Jon Marvel, president of the Vigo County Capital Improvement Board, said the food and beverage funding is needed for the Hulman Center project.

”We have said all along that once the Hulman Center and the attached convention center is up and going, there needs to be a revenue stream to keep it operating and pay the bills,” Marvel said. “Other than venues coming in and leasing space, which is what we hope will happen, there needs to be some additional funding and that is where food and beverage tax comes in,” Marvel said.

”It is an integral component of our efforts for a renovated Hulman Center and a new convention center,” Marvel said. “So much depends on all of this falling into financial notches before we can even put a shovel into the ground. What we don’t want is for this to be a huge drain on (other local) public funds.”

A food and beverage tax generally applies to prepared meals to be eaten on premise or for carry-out.