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Officials: Collection Of Vigo Co. Food And Beverage Tax Is Going Smoothly

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The county council approved the tax in July of this year. (Lindsey Wright, WFIU/WTIU News)

Vigo County restaurants and businesses are adjusting to the new food and beverage tax that went into effect this month.

The 1 percent tax hike will help fund a new convention center in Terre Haute. The $25 million center is a joint project between the city and county, and the tax is expected to bring in between $1.2 million and $2.1 million a year.

Similar taxes are being implemented across Indiana. Monroe County also introduced a 1 percent food and beverage tax earlier this year. City officials said in August that businesses had adjusted to the new tax. But in June, at least half of the county’s restaurants weren’t properly collecting it.

Terre Haute Chamber of Commerce President David Haynes says that isn’t the case in Vigo County. He says, overall, it’s been a smooth transition.

“There has been some cost with maybe reprograming their point of sale tax calculations, but those have been minimal,” Haynes says.

Haynes says local businesses and the government worked together to make the tax a reality, so the response to it is positive.

“There’s a benefit there that our community understands,” Haynes says. “So we’ve really had little, if any, pushback.”

State lawmakers approved the tax during the 2018 legislative session, and the county council approved it in July of this year.

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