The Monroe County Council said it was open to discussing a county tax levy of up to 1% on food and beverages during a Feb. 26 meeting.
The estimated $2.5 million raised by the tax each year would be used to expand the Bloomington-Monroe County Convention Center, which has an 800-person capacity.
“From the beginning, we have talked about expansion,” said Jim Murphy, a member of the board of directors for Monroe County Convention Building Corp.
Many of the organizations that want to hold conventions in Bloomington cannot because it’s too small, Murphy added. Increasing the building’s capacity would draw those organizations into Bloomington.
Supporters said bringing more conventions to Bloomington would stabilize the downtown economy. Talisha Coppock, executive director of Downtown Bloomington, estimated the expansion would create 260 jobs and bring $14.2 million into the community annually.
President of the Ellettsville Chamber of Commerce Gary Brinley said the Chamber has not had an opportunity to talk about it as a group, but he thinks it could be beneficial for Bloomington.
“I don’t know that the residents of Ellettsville will feel that the tax is beneficial to them as it impacts them going to restaurants in the county. I can see that as being a negative,” he added.
The Chamber president said he does not believe a 1% tax will be significant enough to deter business at Ellettsville restaurants and bars.
“For a $5 purchase, you’re talking an extra 5 cents,” Brinley said.
The power to levy the tax on restaurant purchases comes from a provision added to a 2009 bill that sought tax money to bail out Indianapolis’ Capital Investment Board. The CIB operates Lucas Oil Stadium and Bankers Life Fieldhouse, among other tourism-centered operations in the city.
In order to get the bailout passed, lawmakers had to concede to a number of demands from other municipalities, including one for the food and beverage tax from then-District 60 state Rep. Peggy Welch.
“This is really the first step in a very long process,” said Monroe County Council President Geoff McKim.
Originally published in Ellettsville Journal, 2013. Republished here for archival and portfolio purposes.