Crown Point considering food and beverage tax; Chamber of Commerce opposes it

Crown Point could be the next community in Northwest Indiana to impose a 1% food and beverage tax.

It’s a proposed tax, which must first receive state approval and then proceed through public hearings and input at the local level, that is opposed by the Crown Point Chamber of Commerce.

A statement issued on Friday by Chamber President Ken Michaels said, in part: “On Tuesday, Jan. 7, we sent a poll exclusively to our business members. This email included detailed information about the proposed tax to ensure transparency and enable informed responses. The poll quickly gained attention throughout the business community, and the feedback was overwhelming. The Crown Point Chamber of Commerce deeply values the hard work it takes to run a small business. We are devoted and committed to representing your best interests. Based on the data we collected and the clear message from our members, we stand with you in opposing the proposed 1% food and beverage tax.”

State Rep. Julie Olthoff, R-Crown Point, told the Post-Tribune she believes the 1% tax would be a great way for the city to collect revenue which could be used for such needed things as expansion and improvement of both the historic Lake County Courthouse and the Lake County Jail.

If the bill is approved, the city of Crown Point could impose a food and beverage tax at a rate not to exceed 1% of gross retail income from food and beverage transactions in the city.

Olthoff said she was contacted in November by Mayor Peter Land and city attorneys and asked to move forward with the proposal.

She didn’t have any second thoughts.

“I didn’t have a problem authoring the bill for them,” she said.

House Bill 1236, which Olthoff presented in the State House on Thursday, has been assigned to the Ways and Means Committee and will include several more steps including approval by the House and Senate and signature by the governor.

“I see no reason it wouldn’t pass,” she said.

After July 1, the Crown Point City Council would be able to read an ordinance at a public meeting, and if approved, the tax could go into effect as early as Sept. 1, she said.

Money collected from the tax, estimated at $1.182 million in 2026, could be used only for the following purposes: expansion and improvement of the Crown Point Sportsplex, Bulldog Park and Sauerman Woods Park; repairs and future development of the historic Lake County Courthouse and Lake County Jail; development and expansion of downtown parking capacity and amenities near the square and courthouse; and development and expansion of multi-use trails.

“These are things that people want,” she said.

If the 1% tax is approved, Crown Point would be the third community in Northwest Indiana joining Merrillville and Hammond.

Hammond last year was the second Indiana city to receive the General Assembly’s go-ahead for a food and beverage tax. In April 2023, the governor signed a bill giving Merrillville the ability to impose a 1% tax on prepared foods, and the Merrillville Town Council adopted an ordinance that December.

Presently, there are 38 municipalities in the state of Indiana that have approved a 1% tax, Olthoff said.

Deborah Laverty is a freelance reporter for the Post-Tribune.