Greenwood is partnering with Clarksville, a town in southern Indiana, on getting a bill before state legislators that would add a tax to meals and drinks that are purchased in the city.
Greenwood Mayor Mark Myers told council members Monday night that Sen. Jack Sandlin (R), who represents District 36 which includes a portion of Greenwood, is teaming up with Sen. Ronald Grooms (R) on the bill which would include both municipalities.
The city also has Barnes and Thornburg, a law and lobbying firm in Indianapolis, on retainer to lobby for the bill, Myers said. The city pays the firm $5,000 a month for up to six months during legislative sessions, Myers said.
This is the sixth year in a row that the city will ask state lawmakers to consider allowing Greenwood to add a 1 percent food and beverage tax.
It is needed because the county doesn’t have economic development or public safety income taxes, and because many of the city’s departments — most notably police and fire — are understaffed, he said.
If the tax is approved by state legislators, residents and visitors will pay a few extra cents at eateries in the city. But that difference would be enough to pay for more police officers and firefighters, which is necessary if the city hopes to keep up with its rapidly growing population, officials have said.
The new tax would bring in about $1.4 million the first year. That could pay for up to 18 new firefighters or police officers, including their benefits. But the city won’t see any of that additional money for at least six months, said Greg Wright, city controller.
Council members would have to vote on the tax again if it does pass through the statehouse. They voted 8-1 to add Greenwood to the bill for consideration.
The deadline to file a bill in the statehouse is today.
