Indiana lawmakers are considering a bill that would impose a 1% food and beverage tax in Monroe County to finance an expansion of the Bloomington-Monroe County Convention Center.

The tax would generate roughly $1.8 million in revenue next year and $2.5 million annually after that, according to a fiscal analysis of the bill. Nearly all the money would go to Bloomington as most of the county’s restaurants are located in the town.

The county would be allowed to use the revenue for tourism and economic development projects, including a $27 million expansion of the city-county convention center. The expansion would boost annual tourism revenue and lead to the construction of at least two new hotels, according to local reports.

Two earlier efforts to impose a food and beverage tax in Monroe County failed in the state General Assembly.

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