SEEKING EQUITY ON THE RESTAURANT TAX

It is all a matter of fairness.

Since its inception, Cape Girardeau's restaurant tax has stirred hard feelings among those who pay or don't pay. The problems stemmed both from the wording of the original ordinance and the changing eating patterns of Americans.

A committee is currently examining the tax, looking to rewrite the ordinance with greater equity. Its recommendation must be approved by the City Council and, in turn, the voters.

This ordinance redrafting is long overdue. It should bring more money into city coffers. But more importantly, those who pay should feel better knowing the tax will be assessed fairly among all establishments that serve prepared food.

The existing ordinance levies a 1 percent restaurant tax on any "inn or establishment engaged solely or chiefly in the sale and serving of meals or lunches, where table or chairs area provided for the customers."

As they say, the devil is in the details.

A number of places serve food, but food sales are not their chief business. Many businesses fall through the cracks, including convenience stores, department store coffee shops or motels and hotels.

Secondly, a growing number of establishments serve prepared food but offer no tables and chairs. Take-out restaurants, grocery stores, caterers pay no tax under this exception.

Tomorrow the full advisory commission will work to nail down the definition of a restaurant. At this point the new definition reads: "any inn, establishment, person or entity engaged in the retail sale of food prepared by the restaurant, or by using the restaurant's facilities, on or off the premises and sold for consumption within or away from the premises." The ordinance could receive further editing this week. This new definition will include food that is heated, assembled or served and soft drinks dispensed from a fountain.

The committee is taking a look at what other communities are doing in an effort to draft an equitable ordinance. The city attorney is also researching whether the tax can apply to out-of-town caterers who work events within the city.

While the ordinance must be all-encompassing, it must also exempt governmental agencies, schools, church groups, hospital meals for patients, nursing homes and meals-on-wheels type programs. The current tax doesn't accommodate these exemptions, which are required by state law.

This restaurant tax re-drafting is certainly a sticky wicket. But the committee seems up to the challenge. Eventually, the debate will continue to the City Council and the voters.

It is a discussion worth the time and attention of this fair city. It is time to fine tune Cape Girardeau's restaurant tax.