Eatery owners jubilant over sales tax win in Geneva

GENEVA – With the passage of a city-wide .5 percent sales tax increase on March 20, the Geneva Food and Beverage Association is claiming a win-win for themselves and the city, member Michael Olesen said.

In unofficial results March 20, the votes were 3,015 yes votes to 1,917 no. The .5 percent sales tax increase will go into effect July 1, putting the city’s sales tax at a uniform 8 percent, officials said.

“We are all happy,” Olesen said. “We really think this is a win-win for the community as a whole. The [Geneva] Chamber of Commerce, the Geneva Food and Beverage Association – the restaurants – we basically feel this is the best way for the city to receive the revenue it needs to help maintain the infrastructure we have in the city.”

The downtown restaurants and beverage sellers supported the sales tax increase because they opposed the city’s plan to impose a 2 percent Places for Eating Tax.

Though it was a pass-through tax to its customers, restaurant owners complained that it would have put them at a competitive disadvantage with neighboring communities.

City officials said they needed the additional revenue for capital projects and major purchases, such as fire trucks.

“It’s a small investment – we call it – in the community to keep Geneva the great place that it is,” said Olesen, who owns Stockholm’s in the downtown, a restaurant and bar.

When aldermen voted to put the question on the ballot, they also enacted the Places for Eating Tax, as a fail-safe in case voters did not approve the referendum.

Olesen attributed the support to its promotional campaign of placing vote yes signs at various properties and having the chamber send out a newsletter to the entire community.

The business owners also used their customer email lists to urge support, relied on social media, local news media and hosted four community forums, Olesen said.

“We worked hard to get the word out,” Olesen said. “The public resoundingly understood the issues and voted accordingly. … A uniform tax puts us on a par with neighboring communities and does not segregate one part of the business community for others. It’s a true win-win.”

The .5 percent sales tax is estimated to raise about $2 million in revenue; 2 percent of what the city collects will go to the state, officials said.

Geneva Mayor Kevin Burns said he was grateful to the voters for their support.

"The city is grateful to the voters' clear and convincing message that Geneva is worth their investment," Burns said. "And that our stewardship of their resources is valued and appreciated."