x
Breaking News
More () »

Higher property taxes could affect local restaurants

WTHR.com is the news leader for Indianapolis and Central Indiana. Get the best news, weather, sports and traffic information from Channel 13.
6764615_BG1

Mary Milz/Eyewitness News

Indianapolis - Mid-July is typically slow for restaurants, so more than two dozen are taking part in Devour Downtown again this year. 

Participating restaurants offer three course meals for $30 a person as they showcase downtown dining, but this promotion also comes as many homeowners are swallowing hard after a big jump in property taxes.   

"Of course it will have some impact on the restaurant industry," said John Livengood of the Indiana Restaurant Association about the recent increase in property taxes throughout Marion County.

The manager of McCormick and Schmicks isn't overly concerned about the effect taxes will have on business.  He says being part of a national chain and catering to conventions helps.

"There's no doubt conventions are a huge part of our business, and people who come in from out of town don't have to deal with property taxes, so hopefully they'll be out multiple times while they're in town," said Scott Kennedy. 

However, the owner of Shelbi Street Café worries taxes will indeed take a slice of his business.

"I think there will be an impact initially. I hope it doesn't last long, I think given a year or so it will be the norm, but right now it will be a factor," Linton Calvert said. 

Customers are not the only ones who are feeling the property tax pinch. Calvert himself is also paying more in property taxes. He says the taxes on his restaurant building jumped about 25 percent.

Livengood says this season will be especially tough coming off last summer when restaurants were hurt by high gas prices, daylight savings time, an increase in the food tax and a new smoking ban.

"We just kind of had the perfect storm of things, and now this year, we're adding this incredible property tax increase and also in a couple of weeks we're going to have a minimum wage increase to deal with," Livengood said.   

Now in its third year, Devour Downtown coincides with Black Expo as it runs from July 9 - July 22. 

For more information, visit Devour Downtown's website

Before You Leave, Check This Out