Restaurant Owners Fight Proposed Tax

This is not the first try for a restaurant tax. Three years ago, Mayor Fahey tested the idea. A group called "Strike Two" protested and Fahey backed down. This time might be the final strike in the mind of some restaurant owners.

"I am asking the city council to approve a restaurant tax," said Mayor Jim Suttle. The restaurant industry may take a hit from the mayor's new budget proposal. He wants a new 4% tax on restaurants, bars, and catering. "I still don't understand isolating one industry and saying instead of half a percent for everyone. That's crazy," said Greg Cutchall from the Cutchall Management Company. Cutchall owns several restaurant chains. He says he would rather see a half percent increase in the overall sales tax, instead of just a tax on places where people eat.

"You can eat at a lot of restaurants for less than you can by going to the grocery store. For a lot of people eating out isn't a luxury, it is a necessity," said Cutchall. Three years ago, he teamed with other Omaha bar, food, and hotel owners to form a group called "Strike Two". The group fought down the last attempt at an increase, or at least the business owners thought so.

"In the modified version that we fought in 'Strike Two', he's actually doubled it now to a four percent," said Omaha Restaurant Association President Rich Barmettler. He says the organization is not going to just go along with the rate change. "We are not going to just sit down and watch the rate change pass. We will be actively working on this like we did before," said Barmettler.

For the Omaha Restaurant Association, this means getting the word out to all their supporters. "We will be approaching all restaurant, bar, catering workers and owners to approach their council representatives to fight this," said Barmettler. He says there could be some aggressive tactics coming in the fight against new tax.