HASTINGS, Neb. (KSNB) -The Hastings City Council on Monday passed the first reading of an ordinance to impose a 2.5% occupation tax on diners.
The city council approved the measure with a 6-2 vote at a meeting held at the Hastings Airport on Monday.
The tax will be added to everything purchased at a restaurant or bar, including dining out, drive-through orders, prepared food at grocery stores and coffee shops.
The city said the tax is fair because people use city services when they go out, such as roads and police services. A city leader said the ordinance is needed as the city battles a financial deficit.
Local reactions mixed
Some locals said the tax does not bother them.
“Kearney and Grand Island both have taxes on their restaurant products so we would be just with the rest of the competition in the tri-city area,” said Micheal Bruns, owner of Big Dally’s Deli. “So it’s okay in my opinion now.”
Deb Frazier and Gary Kamper, residents, said there comes a point where prices have to be raised, but people still have to enjoy life.
Others expressed concern about the tax’s impact.
“I just feel the way our community is now, the people that come out three to four times are only coming out two to three times,” said Jamison Murphy, owner of Murphy’s Wagon Wheel.
Edward Krontz, running for city council in Ward 4, said the tax may shortchange waiters and waitresses on their tips.
“I don’t want to see those people get hurt,” said Krontz. “I don’t want to see the business get hurt.”
City leaders said they plan to hear public feedback about the tax before they make their final decision.
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