A central Indiana mayor plans to take a 10-day trip to Italy in hopes of attracting more foreign businesses to the city
Anderson Mayor Kevin Smith said he'll meet with executives from five manufacturing companies near the city of Milan during the trip that starts Saturday.
Smith told The Herald Bulletin that city officials have been negotiating with one of the companies, which has had executives visit Anderson twice in the past two months. Smith says he hopes the trip will help close a deal with the company.
The city's economic development director and the CEO of its Flagship Enterprise Center are also going on the trip.
A city spokeswoman said the trip's $9,000 cost is being paid from the city's food-and-beverage tax fund.
Restaurants: Let us know what you think. Take our
in the General
The current budget
shortfall in the funds needed to operate Lucas Oil Stadium and
Conseco Fieldhouse has once again placed the hospitality industry at
the center of a debate that could result in an increase in
restaurant and hotel taxes. A 1% increase in either would give
Central Indiana the highest combined hospitality tax rate in the
country. The combined tax on restaurants would be 10%. The
combined tax on hotels would be 17%. Restaurants and hotels
currently account for $82 million per year of the operating budget
for Indianapolis sports and convention facilities (75%). The average
restaurant in Central Indiana currently pays $10,000 to $20,000 in
Capitol Improvement Board operates these facilities and they have
instituted budget cuts in an attempt to address the shortfall but
that only trims their projected operating deficit from $43 million
to $35.6 million.
new funding for the CIB would have to be authorized by the Indiana
General Assembly before they adjourn on April 29th.
Restaurant Association is opposed to increasing hospitality taxes to
fund local government shortfalls. Raising taxes on hospitality
industry is bad for business, jobs and economic development in our
communities especially in our current economy. Innkeeper’s taxes
and food and beverage taxes should be reserved exclusively for
tourism development and promotion.
necessities be taxed?
The Indiana Restaurant
Association believes that necessities such as food, shelter and
medicine should not be subject to the sales tax. Family Meals Taxes
are extremely regressive because they tax a basic necessity of life
that everyone, regardless of income, must find some way to include
in their budget. Family Meals Taxes are often rationalized as a tax
on non-residents or a luxury tax. In fact, residents pay most of a
there a food & beverage tax to begin with?
meals/food and beverage taxes were introduced to fund a special
project generally related to tourism and benefiting the restaurant
industry indirectly. Now a family meals/food and beverage tax is
seen as a painless way to fund local government excesses. It is not
long will we have the food & beverage tax?
Most meals taxes in
Indiana have contained a “sunset” provision that promises the tax
will go away at some future point when the project to be funded is
paid for. As of today none of the existing restaurant taxes have
ever been sunsetted. In Indianapolis, Evansville, Fort Wayne and New
Castle the tax has been extended for new projects instead of
honoring the sunset provision.
Wouldn’t it be refreshing if these promises were kept?
In The Press:
Indiana Economic Digest:
Indianapolis Capital Improvement Board to tackle $20 million deficit
CIB in Crisis
CIB Makes More Cuts