South Bend City Council makes adjustment to proposed B&O tax



Ordinance #1485, 1486 and 1487, all went through a second reading vote by the city council with only 1486 needing additional discussion. 1485 - the annual 1% increase, voted, passed. 1487, administration provisions for certain taxes, voted, passed. It would be 1486, the establishment of the new B&O Tax that would bring out some discussion among the council.

In the proposed Ordinance the new marijuana industry was probably impacted the most. The original proposed B&O tax for manufacturers, producers, wholesalers and retail outlets of the new industry were penciled in with a .002% gross revenue tax.

After comments by Mayor Julie Struck, who had received communications from members of the producer/processor group, it was validated that that group of businesses would be paying an unfair amount of the new tax.

"They did show that the rate was disproportionate," said Mayor Struck.

The tax level is scheduled to be reduced to .0001% for the producer/processor, but remain at .0002% for the wholesale/retail businesses. The council voted and passed the change to the ordinance. The new B&O tax is scheduled to start in January 2015.

There was one item during the public comment period, that of parking in South Bend and how it may now start to be a problem. It was suggested that to help elevate those that "hold a spot all day long", that a few "limited time" parking spaces be created, to allow others to utilize the lack of parking spots.

After a short discussion it was brought out that the current policies would have to be changed to be able to enact such a policy. But the council understood the current issue and is willing to have a look at what can be done.

The next South Bend City Council meeting is scheduled to be Nov. 24, at 5:30 pm.