City of Shelbyville instituting food and beverage tax for economic development projects

Tuesday, July 22, 2025 at 12:05 PM

The City of Shelbyville is in the process of adopting a food and beverage tax with a rehabilitation project in mind.

The first reading of a new 1% food and beverage tax was approved at Monday’s Shelbyville Common Council meeting.

The money captured by the tax would go toward economic development projects. Mayor Scott Furgeson wants to regain control of the Methodist Building, the tallest building on the Public Square, and turn it into a children’s learning center that would highlight Shelbyville and Shelby County.

“The public may be aware when they go out to eat currently there is already a 1% food and beverage tax that is issued by Shelby County,” explained city attorney Jennifer Meltzer. “That 1% does not stay in Shelby County. It actually goes up to Indianapolis and pays for Lucas Oil Stadium.

“This 1% will actually stay within the city of Shelbyville and be used for economic development.”

The five-story Methodist Building, located at 23 Public Square, has had multiple owners attempt to rehabilitate the structure for retail, office and apartment space but have yet to be successful. The building is currently owned by Ron Kelsay, according to Shelby County GIS.

Furgeson would like to purchase the building and make it an educational space for children and families that features community highlights.

The mayor is not looking to create a museum in downtown Shelbyville. The goal is something interactive similar to kidscommons in Columbus, Indiana.

The new food and beverage tax will likely not go into effect until later in 2025, according to Furgeson. The council must approve it on second reading and meetings will need to take place with local food and drink establishments before the tax can be collected.

In other council business Monday night at City Hall, Furgeson informed the council that the roundabout project at Miller St. and McKay Road at Shelbyville High School could open as soon as this week.

There are still landscaping and clean-up projects going on. Temporary lighting will be used until the decorative lighting arrives and can be installed, likely in late August according to city engineer Tyler Comstock.

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