WHITESTOWN, Ind. -- Another reason to pay close attention to your receipts – a vigilant restaurant customer alerted Whitestown officials to a tax being collected by local restaurants, that shouldn’t have been.
Whitestown restaurants have erroneously been collecting a one percent food and beverage tax for the city of Zionsville.
“We can’t fix something we don’t know is broken,” said Whitestown Town Manager Dax Norton.
Norton credits a vigilant restaurant customer for bringing the problem to his attention.
“People are still going to our restaurants and they are having to pay a tax that doesn’t exist,” said Norton.
Most patrons have no idea they paid money they shouldn’t have been charged.
Norton suspects the cause of the error has to do with zip codes.
Several restaurants that sit in the shopping plaza with Caplinger’s Fresh Catch are in the town of Whitestown, but their zip codes are connected to neighboring Zionsville which led the State Department of Revenue to collect a one percent tax from them.
Both municipalities the restaurants and the state recognize that the tax is an error.
Some managers have already stopped charging it and others say it will be removed in the coming days.
Once the tax is completely removed, the Department of Revenue will work on a way to get the already collected money back to the taxpayers.
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