STORE OWNERS READY TO PAY

Convenience stores, pizza delivery places and supermarkets could find themselves collecting the city of Cape Girardeau's restaurant tax.

If changes now being studied go into effect, those businesses will be considered restaurants, under the ordinance which governs the special use tax.

A special subcommittee of the Convention and Visitors Bureau advisory commission has recommended several revisions to the hotel, motel and restaurant tax in what they call an effort to make it more fair.

Right now, if a customer goes to a fast food restaurant and buys a sandwich or soda, he pays the 1 percent restaurant tax.

If he goes to a convenience store and buys the same sandwich and soft drink, the tax isn't collected, because the convenience store isn't a restaurant, according to the current ordinance.

Bob Blank, president of Bi-State Southern Oil Co., said he can understand the logic behind making the changes.

"I can understand where they're coming from. If I have to pay it, so should he," Blank said. "But every time I pick up the paper they've added another thing to it."

He said the tax is "trying to be too many things to too many people. Surely it can be simplified."

"It almost seems like a witch hunt," he added. "It's like they're trying to make sure everyone pays for every little thing."

If the changes go into effect, say some merchants, collecting the restaurant tax could get a little hairy.

Paul Harper, supermarket manager at Schnucks, wondered what items from the store's deli will be subject to the tax.

"It's a little confusing," he said.

Consumers are buying more and more ready-to-eat foods, including salads, sandwiches and other items, at grocery stores.

Schnucks now does "pretty good" on sales of those types of items, Harper said, especially things like ready-to-eat barbecued or fried chicken.

Exactly what ready-to-eat items will be subject to the revised restaurant tax is causing some questions.

For example, if a customer goes to a supermarket and buys a bag of ready-to-eat fried chicken from the deli section and a quart of potato salad to go with it for dinner that night, the restaurant tax is applicable, because both were prepared at the supermarket.

But the new definition of "prepared" includes food cooled on the premises. So would the restaurant tax apply if the customer bought name-brand potato salad from the refrigerated foods section of the store, where it's sold in gallon-size cartons?

"Probably not," said Eric Cunningham, the city's attorney.

"A thought has occurred of late. The definition of prepared (in the revised ordinance) does include the word `cooled.' I suppose in that situation, `cooled' could end up catching it. The word `cooled' may end up needing to be deleted from the definition."

"The confusion is going to be terrible, as far as deciding what (the tax) is going to be put on and what it's not," said Kevin Stanfield, co-owner and president of Wink's Convenience Stores.

"It's already complicated as it is, with the state reducing the sales tax by 3 percent (on certain food items). Now adding this problem with the city I think will add even more confusion, not only to the customers, but to my employees and everybody else having to deal with the problem."

The customers will pay the tax, said Stanfield and Blank.

"It doesn't hurt me as a business owner, but it hurts the consumer once again. I think this country and this state and this city are overtaxed, and here we go again, adding another tax to the consumer," Stanfield said.

"We can't print the money, so we just have to pass it on," Blank said. "It really makes me no difference. If it's another consumer tax, so be it. There's a ton of them out there already."

The CVB advisory commission will decide whether to recommend accepting or rejecting the proposed revision in a special meeting today at noon.