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Legislators call for tax oversight of Bloomington, Monroe County

By Liz DeSantis

Posted April 12, 2023

https://indianapublicmedia.org/email/04-12-2023-daily-news-headlines.html

Travis Holdman (R-Markle) speaks at a Senate Tax and Fiscal Policy Committee meeting. (Indiana General Assembly)

Several senators criticized Monroe County and Bloomington’s lack of transparency in food and beverage tax spending; they spoke at a Senate Tax and Fiscal Policy Committee meeting Tuesday.

Sens. Mike Gaskill (R-Pendelton) and Travis Holdman (R-Markle) said the city and county engaged in unauthorized use of food and beverage tax revenues for COVID-19 relief.

The County and City spent more than $200,000 on 40 entities during the pandemic to keep tourism and businesses afloat according to County Commissioner Penny Githens (D).

Gaskill said, “Although what you did with the restaurants during the COVID crisis was laudable and a good thing to do, I think you had to do it with other funds.”

Holdman agreed, saying, “I don’t mean to scold you, or the City of Bloomington or Monroe County, but you have been collecting tax off of the taxpayer for almost five years and haven’t been using the money for its intended purpose.”

Holdman proposed a new amendment to HB 1499 which covers various tax provisions including property tax caps, state income tax and local tax levies– that would add increased oversight for counties that levy a food and beverage tax. Many of these changes are aimed specifically at Monroe County.

Amendment 22 would make the county and city maintain a website that would show taxpayers how their taxes are being allocated.

“It seems right now that Monroe County and the City of Bloomington needs a dad to tell them what to do,” Holdman said to Matt Norris who was representing the City of Bloomington at the meeting.

Gaskill says he thinks the additional oversight on the funds will be beneficial to the county and city. “I think it’s good for Bloomington. It puts a little more accountability on Monroe County and Bloomington based on what’s happened the last couple of years, and it sets a uniform tax policy that’s similar for the rest of the state,” he said.

The amendment also expands and defines the permitted uses for these funds to include public spaces, transportation, housing, revitalization, arts and culture, and recreation.

Before, these funds were limited in use to maintaining and developing a conference or convention center and related tourism and development projects.

Monroe Convention Center sign — (WFIU/WTIU news)

Bloomington city officials and Monroe County say they oppose the amendment because of the new timetables it imposes on spending and planning.

The amendment would require the city and county to compile a written plan before Dec. 1 outlining tax revenue spending plans. And, it outlines that they must spend the money before April 1, 2024 for funds to continue to be collected through the tax.

According to Norris, the city and county have been struggling “to get officials on the same page” about improvements to the Monroe Convention Center for some time, and Githens says that more time is needed for the project to move forward smoothly.

She said the progress on the center has been slowed because of the pandemic and “stonewalling” by Mayor John Hamilton. “We are intent on getting this through. We just need more time. I’m sorry it’s been slow. It’s not on the timetable that we’ve liked to have it on, too,” she said.

Githens says that the amendment is premature since Hamilton will not be seeking election for another term, and she says she believes that potential candidates for the role are amenable to creating a capital improvements board that she says would expedite the convention center’s construction.

HB 1499 next faces a second reading in the Senate.