Crystal Thomas
The State Journal-Register
Restaurant owners flocked to the Springfield City Council chamber Thursday to express their opposition to a 2 percent dine-in tax that had been privately discussed by some aldermen. But before their seats were warm, Ward 1 Ald. Chuck Redpath cleared the air. “Is there any aldermen in here proposing a dine-in tax? Mayor, are you proposing a dine-in tax?” Redpath asked.
No aldermen raised their hands. Mayor Jim Langfelder said no but also said he informed Godfather’s Pizza owner Mike Monseur earlier there was discussion with the aldermen. He added that no dine-in tax ordinance had been drafted.
The Greater Springfield Chamber of Commerce and the Illinois Restaurant Association sent out an e-mail to its members letting them know about the dine-in tax discussion.
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Langfelder said an alderman would have to propose the dine-in tax because he would not. Instead, Langfelder said he was in favor of quarter-cent sales tax increase that would raise the city’s total sales tax from 8.5 percent to 8.75 percent and would generate $4.3 million annually. He has also proposed raising the telecommunication tax from 4 to 6 percent, and the almost $1.2 million in revenue would be dedicated to funding the city’s public library.
Though the city has pared back over the years and his budget proposal included more than $3.7 million in cuts, Langfelder said the tax increases would be a structural fix to Springfield’s possible $11.4 million deficit and declining sales tax intake. He said he welcomed ideas from the aldermen and the public, as well.
If implemented on 400 Springfield businesses, the 2 percent dine-in tax would raise $5 million annually.
In an interview, Ward 7 Ald. Joe McMenamin said he had researched the tax and brought it up to the mayor for discussion. He said he had not formally proposed the tax.
“Everything should be on the table,” McMenamin said. He added, “I’m not voting for a sales tax of any kind unless there is a shared sacrifice of a wage freeze, which creates structural reform by lowering the wage base and pensions.”
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