Food, beverage tax approved as parks funding solution

Every meal purchased at a Richmond restaurant soon will help the city’s park system. That’s after Richmond Common Council voted 8-1 during a Dec. 15 special meeting to enact a 1% food and beverage tax.

State legislation passed this year permitted the city to enact up to a 1% tax on food and beverage sales at restaurants, bars and cafes; catered events; and hot food or prepared items sold at grocery store delis. It does not apply to other grocery items.

The money collected — estimated between $1 million and $1.5 million annually — must be used for the city’s parks, trails and Whitewater Gorge improvements. The city will work with the Indiana Department of Revenue and impacted businesses to determine the tax’s start date in 2026.

Denise Retz, the city parks superintendent, wants the community to notice parks changes as soon as the tax money begins coming in. Retz has presented about $7 million in priority projects; now, council will decide how to pursue those projects.

Using the food and beverage tax money to pay bond debt enables work on multiple projects simultaneously. Or council could choose to collect the tax money and pay for one project at a time.

“When you come from my lens, we do a lot every day, we work hard every day, the park team does, and we can always do more,” Retz said. “I know that we all want to give the community more; we all want to make sure that we have the best parks for our community and the people who visit.”

During two special meetings about the tax on Dec. 11 and Dec. 15, attended by about 70 people total, council members heard 14 people speak in favor of the tax and six speak in opposition. They heard from residents about how parks are important to quality of life and hold a special place in their memories. They also heard concerns about whether the money would maintain current parks or expand the parks system, whether there are too many parks, whether the tax is too high, concerns about monitoring expenditures and about the 2047 sunset date.

Mayor Ron Oler said the tax replaces property tax money taken from the city by legislative changes. Previous losses because of property tax caps led to deferred maintenance in the parks system, Oler said, something that leads to complaints about the parks’ conditions.

Council member Jerry Purcell said the most complaints he’s heard as a council member have been about parks conditions. 

“To be quite honest, without this help, there is no way to get the infrastructure up to date in our parks,” Purcell said.

Purcell was joined by Doug Goss, Bill Engle, Anne Taylor, Larry Parker, Jane Bumbalough, Gary Turner and Justin Burkhardt in voting for the ordinance.

Lucinda Wright voted against the tax. She said the tax takes away residents’ option of eating at restaurants. “I understand the parks are important; I get it,” Wright said. “However, I think there are other things that are more important, like the people of our community.”

Council member Justin Burkhardt said that nobody wants to pay an additional tax, but it’s a viable option to refresh the parks system.

“I don’t look at this necessarily as a tax, but as an investment, and it’s the first step of reestablishing pride in our city,” he said.

Read more about the vote and comments from residents for and against the new tax in the December 17 Western Wayne News.