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Ballard Proposes Boosting Alcohol Tax To Bail Out CIB

Marion County Hike Would Go Towards CIB

POSTED: 8:08 pm EDT May 20, 2009
UPDATED: 8:16 pm EDT May 20, 2009

A new proposal from Indianapolis Mayor Greg Ballard would raise the alcohol tax in Marion County to bail out the financially strapped Capital Improvement Board.

The proposal would also allow the surrounding counties to raise their alcohol taxes, but they would be able to keep the cash to use toward community projects.

Officials said it would be a way to keep bars and restaurants in Marion County from being put at a disadvantage with competitors across county lines, while helping other counties with local problems.

"Maybe then they would be more favorably inclined to vote for the CIB fix that we're trying to put into the budget bill," said Sen. Luke Kenley, R-Noblesville.

But bar owners said they still think it would be unfair because they would be paying more than their share.

"My impression is (Ballard's) kind of shopping this around," said Brad Klopfenstein of the Licensed Beverage Association. "He really needs to put this back up on the shelf."

From the beginning, Ballard has been lukewarm about most of the tax hikes in his own package, and comments by his aides indicate there's no difference this time.

"I wouldn't call it new at this point. I mean, really it's about taking the temperature to see what options exist," said chief of staff Paul Okeson.

The CIB, which manages Lucas Oil Stadium, Conseco Fieldhouse, Victory Field and the Indiana Convention Center, is expected to be $47 million in debt.

A bailout bill failed to pass the Legislature before lawmakers adjourned the regular session, but Gov. Mitch Daniels has said he intends for lawmakers to approve a fix during the upcoming special session.
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