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Monroe Co. Businesses Adjusting To New Food And Beverage Tax

By Patrick McGerr

Posted August 30, 2018

Convention-Center2.jpg

The convention center expansion is a project both the city and county are working on, but it’s hit some roadblocks. (Zach Herndon, WFIU/WTIU News)

The City of Bloomington says more restaurants are starting to comply with a countywide food and beverage tax meant to fund an expansion of Monroe Convention Center.

It’s an improvement from late June, when at least half of the county’s restaurants weren’t properly collecting the 1 percent tax.

Deputy Mayor of Bloomington Mick Renneisen says the county is largely responsible for ensuring compliance with the new tax and its efforts are starting to pay off.

“They’re reaching out to them individually to try to make sure they understand,” Renneisen says. “A, there’s a new tax, you have to collect it, and B, you don’t want to get behind because there are fines associated with that we don’t want you to have.”

Renneisen says the number of businesses in official compliance is likely higher than reported, as larger grocery chains with multiple stores in town only count as one entity.

He says the county’s collected $1.1 million through the tax during its first five months in effect. He says that puts the community on track to hit its fundraising goals for the new convention center.

The convention center expansion is a project both the city and county are working on, but it’s hit some roadblocks.

Monroe County commissioners sent Bloomington Mayor John Hamilton a letter earlier this summer saying he violated a Memorandum of Understanding that stipulates they collaborate on the project.

Renneisen says the city is working to reach a new agreement with the county.

“The county took exception to something the city did in reaching out to one of the potential partners and decided that they wanted to revise the MOU,” Renneisen says. “We’re waiting for the county’s response to a counterproposal that we sent them.”

The $72 million convention center project includes plans for a privately funded hotel.

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