Centerville continues tax conversation

A food and beverage tax might be a new idea for Centerville, but one official discovered other nearby communities have charged that tax for decades.

At Centerville council’s March 10 meeting, councilor Jack Bodiker said he researched other area food and beverage taxes in the two weeks after council’s public hearing about the possibility of adding a 1% tax on prepared foods and beverages.

Nearly 45 Indiana cities or counties charge at least 1%, he said.

Delaware and Allen counties, which include Muncie and Fort Wayne, respectively, enacted a 1% tax in 1986. Indianapolis and surrounding Marion County have a 2% tax. Richmond’s 1% tax began March 1.

Bodiker said he believed rising prices for gas, food and trucking will impact consumers more than the 1% tax.

As part of the Feb. 24 public hearing, several Centerville eatery owners asked questions about how the tax would be implemented or spent, while a few raised concerns about the tax’s impact on residents and businesses.

On March 9, Shari Markley, Main Street Centerville board president, issued a statement noting that the nonprofit, nonpolitical organization works to improve the community and won’t take a position for or against the proposal.

Any monies raised would need to be spent on items in Wayne County’s strategic plan, which for Centerville are downtown beautification or parks.

Council President Dan Wandersee said council asked state legislators to allow Centerville to pursue the tax because of upcoming budget cuts to its general fund, especially in 2028.

Although tax funds will take time to accumulate, Wandersee said funds could be leveraged for 10-20% matches for grants to fund projects.

“Unfortunately, with the cuts coming, in order to maintain our downtown and keep parks up, if we want grant money to do that, this is the way we’ve got to go,” Wandersee said.

Bodiker noted the need for transparency regarding where the money would be spent.

Council is expected to vote on the food/beverage tax at its 7 p.m. Tuesday, March 24, work session at town hall, 220 E. Main St. The public is invited.

Bodiker said he hoped all councilors would be able to attend March 24. Gary Holbert and David Cate were absent March 10.

In other business

• Wandersee said he doesn’t understand Gov. Mike Braun’s proposal to charge a 10-cent-per-mile toll for passenger vehicles and 54 cents for semis starting in 2029. Statewide trips would be $15.60 and $84.24, respectively, with funds used to pay for widening Interstate 70. Wandersee and Bodiker are concerned the toll will send more drivers to U.S. 74 or onto U.S. 40, which could back up traffic in town where the highway goes from four lanes to two. Wandersee encouraged residents to contact state legislators.
• After quotes were too high for a new Chevy Tahoe, Centerville Police Department found a Ford Explorer for $45,314.68 from Larkin Greenewood Ford. Council unanimously approved that purchase and Centerville Fire/Rescue’s $59,649 quote from Kelley Chevrolet for a Silverado command vehicle.
• Eight code enforcement investigations were cleared without enforcement. Three were unfounded and one received a $250 fine.
• Town Manager Kevin Slick awaits bearings to fix Maplewood Park’s merry-go-round.