Carbondale leaders have approved a change to the city’s food and beverage tax – a revision from a controversial decision earlier this year.
The updated increase will be 2% at bars and restaurants, as well as on prepared food at grocery stores, convenience stores, and movie theaters. The rate is down from the original 4% the council approved in June.
I see people from Marion, Carterville, Murphysboro, talking about how they're never going to eat in Carbondale again. ~Peter Julian
Peter Julian with the food truck “Rejuvenation Station” says he worries about the overall effect of a higher tax.
“I see people from Marion, Carterville, Murphysboro, talking about how they’re never going to eat in Carbondale again. So we’ve got less people visiting our town, and I just think it’s going to affect us dearly.”
Mayor Mike Henry says while he understands the opposition, a two-percent increase shouldn’t keep people from coming to Carbondale.
“If I’m spending $100- and I’ve done that at restaurants in this town – I don’t care about the two dollars. It’s not going to affect my tip, either. So, I think we’re at a fair position, a good compromise.”
Meanwhile, the council could consider increasing the overall sales tax by a quarter of a percent later this year. Many opposed to the food and beverage tax increase say they’d rather see the tax burden spread to a larger base.
Councilman Navreet Kang and others discussed the possibility of raising the overall sales tax instead.
“That would accomplish exactly – or almost exactly – what we are trying to accomplish with the other two taxes, and it does not burden a specific industry.”
Business owners are largely opposed to the increase – saying it’ll drive customers to other communities. Councilman Lee Fronabarger says he doesn’t expect the effect to be that dramatic:
“The main thing that keeps customers coming to your establishments is good quality food, and good customer service. That’s the two things that people really go for. If you continue to do those things, you won’t lose that many customers.”
In the end, the council unanimously approved the 2% increase, which will take effect in January. They also agreed to have further discussion of a potential increase in the overall sales tax, as leaders try to raise revenue to cover employee pensions, infrastructure, and other needs.
