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New restaurant tax can be confusing

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Mary Milz/Eyewitness News

Central Indiana, Aug. 1 - The new food and beverage tax went largely unnoticed at McAlister's Deli in Carmel, where the average meal increased about 20 cents.

Mark Bryan points out, "We had a week's notice to get it done and it's taken effect and no one's noticed so far."

When told of it, the Nocco family called the extra two cents on the dollar, small change. "I don't think it will make a significant difference of when we eat at home versus eating out," says Donna Nocco.

The new tax is part of a funding package the doughnut counties surrounding Marion approved to help pay for a new Indianapolis Colts Stadium.

That same legislation also allowed cities to adopt a one percent food and beverage tax.

That's why in Hamilton County you'll pay two percent more when eating in Carmel and one percent in Fishers, which hasn't passed the tax.

Adding to the confusion, the tax applies to all prepared food, including carryout pizza and supermarket salad bars.

Even golfers must chip in, if they stop at the snack bar.

Gordon Deschambalt at the Plum Creek Golf Course says, "We had to check with the government to make sure we weren't exempt from the tax. Turns out we weren't, we're just like any other restaurant."

Elsewhere, a Carmel coffee shop tacked on an extra one percent instead of the required two percent, while a Fisher's pizza place was unaware the tax had even taken effect.

Andy Hardin with Cici's Pizza says, "No, I didn't know anything about it until you came in and told me," an oversight he vowed to quickly remedy. "It's going to be relatively simple and I'm sure our customer flow won't notice too much."

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