Hammond council gives initial approval for 1% food and beverage tax, sets public hearing date

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The Hammond City Council gave initial approval to a 1% food and beverage tax Monday that would go toward expanding the Hammond Sportsplex and building a downtown South Shore train station.

The Indiana General Assembly passed a bill this year that would allow Hammond to place a 1% tax on prepared food and beverages, said Hammond Mayor Tom McDermott. The tax would be added on to the state’s 7% sales tax, he said.

The city can utilize the tax for 20 years, and it cannot increase beyond 1%, McDermott said. The tax would not be added to a grocery bill, McDermott said. It is estimated that the tax will generate $2 million a year for 20 years, McDermott said. Given the cost, McDermott said the city would only allocate money for the sportsplex and the train station.“We feel pretty confident there’s not going to be much money left for the pavilion expansion, which, I love that idea. But I think that’s a much bigger discussion. We’re not going to be able to finance that on our own in Hammond,” McDermott said.

 

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