LOUISVILLE, Ky. (WDRB) -- At Hillcrest Tavern on Frankfort Avenue, a chef whipped up one of the new restaurant's specialties Wednesday afternoon. Known as the 'Fancy Pants' burger, it costs a few dollars more than some of the other creations due to premium toppings such as white truffle oil, herbed goat cheese and wild mushrooms.
Soon, the 'Fancy Pants' could cost more — along with everything on the menu — if Louisville passes a new restaurant tax.
Restaurateur Dan Borsch, who owns the Hillcrest Tavern and four other Louisville eateries, said such a tax would unfairly target his industry and its customers.Â
"Unfortunately, I would have to pass that cost on to my customers," he said.
While some cities have the ability to levy such a tax, Louisville and others legally can't. However, just days ago, a bill was filed in the Kentucky House of Representatives to change that. It would allow cities such as Louisville to levy a restaurant tax of up to 3%.
Borsch said he and others are ready to fight the effort.
"You're lucky in the restaurant business to be running a 5% margin," he said. "There's some restaurants that get by on even less."
The 'Fancy Pants' burger at Hillcrest Tavern. (WDRB Photo)
Borsch said a new tax would change his entire operation and possibly jeopardize his five Louisville restaurants.
"I will have to cut back on hours and people will tip less, and my servers, who rely on tips for their pay, will get less money," he said.
Metro Councilman Bill Hollander, D-9, has heard that fear loud and clear.
"Well, I don't think anyone likes to see their service or their product taxed. I completely understand that," said Hollander, the Council's budget chair.
However, Hollander said something has to give, because the city needs more cash to avoid cuts.
"I don't know that, you know, people who are saying, 'It's going to hurt me too much,' are hearing from the neighborhoods that are also saying, 'We're at risk because of the fire house that you changed, because you eliminated 15 firefighter positions' or the people who are saying, 'I don't get as rapid police response as I used to, because there are fewer police officers on the street,'" the councilman said.
Aside from the bill that would allow Louisville to pursue a restaurant tax, another bill was filed that would grant more tax options to local governments. The Kentucky League of Cities is urging its members to support both efforts.
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