MIDTOWN (CBS13) — Whether you know it or not, if you decide to frequent a certain area of Midtown, you’re being charged a 1.5 percent tax on food, and retailers are charged a separate fee.

The money is meant to improve the Handle District, an area just about a square block.

Most customers don’t even realize they’re paying 1.5 cents on the dollar.

“Personally, I don’t see any benefit, for an individual such as mine or for the community at large,” said Josh Varner of Zanzibar Crafts.

He and other retailers pay between $25 and $50 a month to operate in the district, instead of taxing their sales.

“It feels like a strong-arm tactic to me,” he said.

Seann Rooney with the Handle Business Improvement Program says about $160,000 has gone into items such as bike racks.

“We’ve really been focusing on improvements that make it more safe, more secure, but also make it more attractive to our customers and the surrounding area,” he said.

According to the budget, the bulk of it—$72,000—goes to keeping the area clean and safe, including security. About $56,000 goes to events and marketing the district.

Varner says he expects more.

“On my street, here on L Street, there’s no improvements to be seen,” he said.

Rooney says hang tight, as the district has been saving money to start a $175,000 streetlight improvement project and even a parklet on L Street.

“I think people get a real big bang for their buck,” he said. “We’re able to focus our resources on one square block, which feel really doable.”

The fee is up for renewal in 2016.