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Indiana mayor pushes for bump in food & beverage tax at city restaurants

In Greenwood, would fund more police & fire crews
Posted at 12:19 PM, Jan 06, 2017
and last updated 2017-01-06 17:59:29-05

GREENWOOD, Ind. –- Greenwood Mayor Mark Myers is hoping state lawmakers will finally pass a bill that would allow cities in Indiana to increase their food and beverage tax.  Greenwood would use the extra funds to hire more police officers and firefighters.

Our news-gathering partners at WIBC report Rep. Woody Burton (R-58) introduced House Bill 1096 Thursday. It would allow for cities across Indiana to approve an additional 1-percent food and beverage tax.

If it becomes law, cities like Greenwood would have to get approval from their city council before the increase would take effect at restaurants and bars.

In Greenwood, that would mean that 1-percent bump would be added to the 7-percent state sales tax and the 1-percent Johnson County sales tax. That last increase was implemented in 2005 to help pay for Lucas Oil Stadium.

While Mayor Myers understands you may not want to pay more, he says the city is at a critical staffing level with fire and police crews.

“We’re trying to find different ways to be able to afford more officers – more firefighters – on the road to protect our citizens of Greenwood,” said Myers.

Carmel, Avon, Noblesville and Zionsville are a few of the cities in the area that already have an additional 1-percent food and beverage tax in place.

There are also 13 counties in Indiana that also have the tax already. Marion County actually has a 2-percent tax on food and beverage sales in restaurants and bars.

In the last two sessions when this bill was introduced, it was voted down by the House Ways and Means Committee.

Head to our Facebook page to participate in our poll on whether this tax increase would affect how you go out to eat!

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Follow Lydia Williams on Twitter: @LydiaRTV6