Monday, October 11, 2010

Omaha's Restaurant Tax


It seems as though Omaha is not in sync with Mayor Suttle and his many tax decisions after speaking to John Horvatinovich, Chef Instructor at the Institute for the Culinary Arts at Metropolitan Community College.  Omaha has added yet another tax to the list which started Friday, October 1.  The restaurant tax, is not popular with most of the locals.  Horvatinovich told me that it has been created to help pay for the new downtown baseball stadium being built.  He told me that it was easier to create an entertainment tax since it only needs approval from the city council, whereas only the State Legislation can approve sales tax.  Originally Suttle intended to set the entertainment tax at four percent versus the two and a half percent restaurant tax.  This was due to the previous year's entertainment costs in Omaha.  Horvatinovich said that this information is now outdated and not relevant to current conditions in Omaha.  However, the government is able to do whatever they want, like pass taxes on the city.  Many people lobbied against the mayor which consequently made him change the entertainment tax to a strict only restaurant tax.  While the Omaha Restaurant Association collects dues to pay for scholarships that are given to culinary students in the area, they were practically helpless because they were unorganized and unprepared when it came to fighting against the restaurant tax.  Horvatinovich said, "He went after an industry that couldn't help themselves."  He thinks it is an unfair play on the mayor's part.  He also said about Mayor Suttle's move on the restaurant tax decision, "He has taken it to his advantage."  The restaurant tax is the same as the smoking ban, it only affects Omaha.  Omaha is a larger metropolitan area, which is separated from other communities.  It is very easy to go to those other nearby communities to spend money.  In the scheme of things two and a half percent may not seem like a lot of money, but when there are large amounts of money being spent for special occasions then most people are going to look for the best bang for their buck.  Pharmaceutical reps and other people who cater lunches or dinners, will begin to look in other places.   That will not be in Omaha.  People are also spending less because they are working less due to fewer hours offered and less jobs available.  Horvatinovich does not understand the purpose of another tax that the people of Omaha will not benefit from like the trash service.  He lives in the part of Omaha that had been the annexed Elkhorn.  He still pays the Omaha taxes, but does not receive the Omaha perks.  He is forced to pay separately for a privately owned trash service.  It all comes back to decisions made by Mayor Suttle.  He spoke of many promises to lower property taxes, however they have been raised twice.  With this information it is hard to trust and believe the mayor.  It appears as though the mayor raises taxes in order to raise money.  Suttle even hired a firm to help him figure out his budget.  Instead of cutting the budget, the opposite happened.  The only thing that begins to make sense in the mind of Horvatinovich's mind is the wheel tax.  The wheel tax is specifically made to cover the budget for the roads in Omaha.  It does not go to any of the other affiliated groups in Omaha.  Unlike the restaurant tax which pays for the new baseball field downtown.  Horvatinovich said, "Why isn't he taxing the people who are enjoying it?  Tax the people who are benefiting from this."  In which case the Hilton Hotel is receiving money in order to improve and expand so that they will be able to accommodate a larger crowd , which is hoped for from the baseball crowd.  When some Omahans were asked about the possibility of re-election for Suttle they said, "Not if 200,000 restaurant workers have something to say about it."