Beverage, food tax bill OK’d by committee

Plans for a proposed food and beverage tax in Merrillville to help further develop the Dean and Barbara White Community Center on Tuesday made its way out of the Senate Committee on Tax and Fiscal Policy.

Senate Bill 428, originally authored by Sen. Eddie Melton, D-Gary, picked up a new primary author Sen. Mark Messmer, R-Jasper, and an amendment Tuesday that added the city of Jasper to the measure.

The bill creates the ability for the town or city to enact a food and beverage tax of up to 1% in .25% increments to be used in Merrillville’s case to expand the community center and in Jasper’s case to create a $34 million multi-use community facility.

Melton said a food and beverage tax in Merrillville has been a long time coming. The town has tried for several years to add tools to its toolbox to help spur development.

“We know the pandemic hit communities hard and Merrillville is no different,” Melton said.

The town has done a great job trying to recover, add new amenities and attract new businesses, he said, and a food and beverage tax would be another tool in the community’s belt.

Town Council president Richard Bella was among a delegation from the town including fellow Councilman Richard Hardaway, Interim Police Chief Kosta Nuses and Town Attorney Amalia Gemalas with Kopka Pinkus Dolin to testify on behalf of the legislation

“We are very pleased it was approved unanimously by the committee,” Bella said.

He said the town did a study and discovered the tax — if enacted at the full 1% — would generate between $1 and $1.3 million annually.

After the hearing, Bella said the bill concentrates on building an 18,000-square-foot addition to the community center. When the center was built, footings and

a cement foundation were poured for future growth.

“We didn’t think the future would be so quick upon us,” Bella said.

The expansion would allow for two additional basketball courts that could be converted into four additional volleyball courts. The additional court space would enable the town to play host to regional sports tournaments that would encourage tourism.

“Some of those are two and three-day events. People will be spending the night and supporting local businesses,” Bella said. Additional space would also create the ability to serve more young people.

He said the Nuses testified that the more 13- to 17-yearolds that can be kept busy at the center playing sports, the less time they have to be getting into mischief.

Bella said the proposal has the support of the Crossroads Regional Chamber and multiple town restaurants, whose letters of support were entered into the record.