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Alcohol Tax Could Double To Fund CIB Bailout
Plan Would Also Raise Handful Of Taxes, Fees
POSTED: 6:29 pm EDT April 1, 2009
UPDATED: 7:29 pm EDT April 1, 2009
INDIANAPOLIS -- State lawmakers will soon be asked to double the tax on alcohol in an effort to help bail out the massive operating deficit of Indianapolis' professional sporting venues.Doubling the wholesale tax on beer, wine and spirits would bring in $42 million a year, or just about enough to cover the worst-case cost of operating Lucas Oil Stadium, Conseco Fieldhouse, Victory Field and the Indiana Convention Center put forth by the Indianapolis Capital Improvement Board, 6News' Norman Cox reported.
However, under the plan that will be proposed to lawmakers, only about $8 million from the alcohol tax would go to shoring up the deficit. The rest would be split up by cities and towns around the state.To cover the rest of the deficit, lawmakers will also be asked to raise local hotel and motel taxes, as well as the food and beverage tax, and impose higher fees on tickets to stadium events.But many lawmakers from Marion County and surrounding areas said Wednesday that their constituents are skeptical about bailing out the CIB when the professional teams aren't committed to giving anything back."People in Morgan County, and in general in my representative district, are opposed to that because of the popular perception that we're helping millionaire athletes and millionaire team owners," said Rep. Ralph Foley, R-Martinsville.Colts executives wouldn't comment on what they might pitch in or even if they've been asked.But the head of the CIB told Cox Wednesday that the team had been asked to contribute, but had not responded."They haven't told me that they're participating yet, but I'm hopeful that they will," said CIB President Bob Grand.The Senate Appropriations Committee will vote on the bailout measure Thursday. The wholesale alcohol tax has not been changed in 28 years.
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