Why are diners taxed extra at Omaha restaurants?

Every time you sit down for a whiskey steak at The Drover or snag an ice cream cone at Ted & Wally’s, you’re contributing a small sum to a once-controversial stream of revenue for Omaha’s government.

The restaurant tax, a 2.5% levy on food and drink prepared at eateries, bars and catering businesses, came on the books during a recession-induced budget crunch.

The tax quickly helped stabilize the city’s finances. It also rankled restaurateurs and sparked an effort to oust the mayor who championed it. For most Omahans, the hot issue cooled over time, fading into an unnoticed line at the bottom of receipts.