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Proposed Food and Drink Tax Looming

By: Charlie De Mar
Updated: February 9, 2013
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    A proposed bill could have you paying more for food and drinks.  House bill 1071 would give cities throughout Indiana the option to tax up to 1% on all food and beverage purchases. 

 

"As a small business we have to worry about our customers and return customers," said Jessica Palumbo.

 

Jessica Palumbo's family owns Oley's pizza. She's not on-board with the proposed tax hike.  

 

"It causes problems because of food costs going up we need to raise prices on our own for that and customers aren't going to be happy if we have to add more taxes. 

 

The bill would allow cities to tax a maximum of one percent on food and beverage transactions.  Customers we spoke with have mixed feelings on the bill.

 

"I'm all about stimulating the economy but it seems like us small people keep getting taxed," said John Knoblaugh. 

 

"One percent doesn't seem like that big of a deal but again it's the message you try to send to the community," said Ron Norton. 

 

Currently 12 cities across Indiana have opted in on the food and beverage tax generating over $7 million for its local economies. 

 

"It would raise a lot of money for our city which is always a good thing because I we are trying to move forward so there  are benefits but it's like do we really have to," said Palumbo. 

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