Greenwood weighs food, beverage tax — again

<p>For the sixth year in a row, Greenwood Mayor Mark Myers wants to ask state lawmakers to consider allowing Greenwood to add a 1 percent food and beverage tax.</p><p>If the tax is approved by state legislators, residents and visitors will pay a few extra cents for a meal or drink at an eatery in the city. But that difference would be enough to pay for more police officers and firefighters.</p><p>The first decision on the new tax is up to the city council, which has to decide whether to ask a legislator to file a bill in the next legislative session, which begins in less than three weeks.</p><p>The new tax would bring in about $1.4 million the first year, which, for example, could pay for up to 18 new firefighters or police officers, including their benefits.</p><p>“As we look at our needs for police, fire and also for expanding our parks and recreation, we realize that we need another revenue source coming in,” said Greg Wright, city controller.</p><p>This tax is needed because the county doesn’t have economic development or public safety income taxes, Wright said.</p><p>“If we had the local option food and beverage tax, it would give Greenwood something that we could actually use for our public safety needs, particularly our staffing both for fire and police,” he said.</p><p>“We want to eventually be able to build Station No. 95 and staff it. But right now, our fire fund doesn’t have the capacity to take on more firefighters.”</p><p>The city has considered building an additional fire station on the southeast side of the city, but decided they would rather spend money to move Station No. 93 about a mile west of where it currently sits to increase response times in the southwest corner. Now, city leaders are saying an additional fire station isn’t likely in the next few years unless they can find new revenue to pay for it and the additional staff it would require.</p><p>In 2006 — the last time the city added a fire station — they pulled firefighters from the other three stations to staff it. That wouldn’t be possible now as all of the stations are stretched thin, Fire Chief Darin Hoggatt has said.</p><p>Myers has been pushing for a food and beverage tax for several years because it would bring in more money for public safety, which gets the bulk of city funding now but remains understaffed.</p><p>“We have a lot of traffic from people outside of the city who come in and spend money at our restaurants. They utilize some of our services. We’d like to have a chance to recover some costs of those services as well,” Wright said.</p><p>Greenwood residents who buy prepared meals at fast food chains, restaurants or grocery stores across County Line Road already pay a food and beverage tax. Several communities around Indianapolis have it as well, he said.</p><p>“So this really gives us a fair playing field with a lot of the other communities that already have this,” Wright said.</p><p>Council president Mike Campbell has noticed the difference, he said.</p><p>“Believe it or not, I eat at restaurants a lot. If I go to the same chain and buy the same thing, if I buy it in Indianapolis, I pay 1 percent more than I do if I buy it in Greenwood,” Campbell said.</p><p>“In the past when this has come up, people have said we’re going to run all of the restaurants out of Greenwood. But if we add this tax, we won’t because it already is being paid in Marion County.”</p><p>On a $10 meal, diners already pay $10.70 once tax is included. If the new tax is approved, that cost would tick up to $10.80.</p><p>The last day to file bills in the House is Jan. 9. The council would have to give the city its blessing to move forward at its next meeting on Jan. 7 if they hope to have the tax considered next year.</p><p>If approved, the city wouldn’t see any of the money for at least six months, Wright said.</p><p>If the state approves it, the Greenwood city council still has final say on whether to implement it. They would also be responsible for setting up a separate fund for it and determining what that money could be used for.</p>[sc:pullout-title pullout-title="At a glance" ][sc:pullout-text-begin]<p>Food and beverage tax</p><p>Greenwood is considering asking state legislators to give the city OK to implement a food and beverage tax.</p><p>What you’d pay: Another 1 percent on meals or drinks</p><p>How the new tax money would be spent: Public safety costs, such as police and fire departments, and parks and recreation expenses</p>[sc:pullout-text-end]