Northwest Indiana Discussion

Here ya go. Just when you thought you had heard everything about taxes in recent months, here'sa a new one.
The Lake County Convention and Visitor's Bureau if lobbying state legislators to approve a new 3% food and beverage tax to be used in part to build a convention center in Lake County.
Here'sa the story from the Post-Tribune. Notice the LCCVB board is planning its strategy at the at a retreat at French Link. What do you want to bet this excursion is publicly financed? Arrogant or what?


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3 percent tax sought for complex

October 3, 2007
By Piet Levy Post-Tribune staff writer

FRENCH LICK -- Tourism officials want a convention and sports center in Lake County by 2015 -- and they want a new

3 percent food and beverage tax to foot the bill.

Speros Batistatos, CEO for the Lake County Convention and Visitors Bureau, told board members on Tuesday that he is proposing the 3 percent tax to state legislators. Board members are at a retreat in this southern Indiana resort town.

He concedes the bureau could be in for a bumpy ride.

The Lake County Council, which under state law would have to approve funding for a new complex, isn't going to help, Batistatos said. He called for early talks with legislators so the complex could be completed in time, should the 2016 Olympics come to Chicago.

"The Lake County Council is the hurdle," he said. "Any group not willing to help ease the burden of property taxes isn't going to pass a food and beverage tax."

Councilman Larry Blanchard, R-Crown Point, took issue with that, however, saying he had not even heard of the proposal for a 3 percent tax.

But he also said he would never support the tax because it is unfair to taxpayers. "You want a convention center, let the private sector pay for it," he said.

Councilman Tom O'Donnell, D-Dyer, said he needed more information, such as whether it would be a public-private partnership or solely public. As of now, he is wary of the proposal.

O'Donnell took issue that when the county proposed a similar tax a few years ago to fund transportation, the hospitality industry balked and said it would be a horrible tax.

"The irony is not lost on me that it was so terrible a few years ago and now it's just great," he said.

The bureau also could face a challenge with state legislators.

Convincing elected officials to approve a new tax is a challenge in itself. To jump straight to 3 percent, when many similar taxes heat up annually from 1 percent, is even more difficult, Batistatos said.

But he said that doesn't mean the bureau shouldn't push for the tax and the relatively high initial starting rate.

"Be done with it," Batistatos argued, claiming elected officials will be less tarnished in the public eye that way.

"We need to bite the bullet and move on."