Eating out in Merrillville will cost a bit more, starting February 1.* The town council voted five-to-one Tuesday to enact a one-percent food and beverage tax, after getting permission from the Indiana General Assembly during the 2023 session.
The town can use that revenue on parks and recreation, as well as tourism. Some ideas listed on the town website include expanding the Dean and Barbara White Community Center, building an outdoor bandstand and creating a new downtown area.
But the new tax drew opposition from Clerk-Treasurer-Elect Eric January. He suggested partnering with other government entities to expand park and recreation facilities.
"The community center is directly across the street from the high school," January told council members. "It's got a state of the art field house. There's no reason for us to be building more basketball courts, when we can work with them and work with the Ross Township Board and just do some things and use the resources that we have, without imposing an additional burden on the taxpayers of Merrillville."
He felt Merrillville could save money by being more disciplined with its finances — like granting shorter tax abatements and reviewing its financial commitment to the West Lake Corridor project, among other examples.
Meanwhile, resident Don Koliboski felt the tax would drive small businesses to neighboring communities. "This will put Merrillville at a disadvantage," Koliboski said. "It will cost people in Merrillville. It will take people who live in Merrillville to go to Crown Point and move outside the community."
He also felt the revenue should go toward public safety, rather than parks.
January and Koliboski criticized the council for voting on the tax at the end of the year, just before new members take office, but council president Rick Bella said the incoming members supported the measure.
Merrillville's one-percent food and beverage tax is scheduled to remain in place through the end of 2044. Hammond and Munster are currently asking the General Assembly for permission to enact food and beverage taxes of their own.
Editor's Note: A previous version of this story stated that Merrillville's food and beverage tax would take effect January 1, the date initially announced by town officials and listed in the ordinance. However, the state law allowing the town to enact the tax requires at least a full month between the ordinance's adoption and when it starts being applied, which was also acknowledged in the ordinance language. Since the town council adopted the ordinance on December 26, that means the earliest it could take effect is February 1. Town spokesperson Chas Reilly says that later date was confirmed Thursday morning, when Interim Town Manager Michael Griffin received confirmation of the certified filing of the ordinance.
