LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6928 NOTE PREPARED: Jan 25, 2022
BILL NUMBER: SB 390 BILL AMENDED: Jan 25, 2022
SUBJECT: Food and Beverage and Innkeeper's Taxes.
FIRST AUTHOR: Sen. Gaskill BILL STATUS: CR Adopted - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: (Amended) The bill requires each local unit that imposes an innkeeper's tax or
food and beverage tax to annually report information concerning distributions and expenditures of amounts
received from the innkeeper's tax or food and beverage tax.
The bill extends the Nashville food and beverage tax expiration date from July 1, 2023, to July 1, 2043. It
also provides that food and beverage taxes currently authorized under IC 6-9 and that do not otherwise
contain an expiration date (other than the stadium and convention building authority food and beverage tax
and the historic hotels food and beverage tax) shall expire on the later of: (1) January 1, 2042; or (2) the date
on which all bonds or lease agreements outstanding on March 15, 2022, are completely paid.
The bill requires each local unit that imposes a food and beverage tax that is subject to the expiration
provision to provide to the Department of Local Government Finance (DLGF) a list of each bond or lease
agreement outstanding on March 15, 2022, and the date on which each will be completely paid. It requires
the DLGF to publish the information on the gateway Internet web site.
The bill declares the intention of the General Assembly to only authorize local units to impose new food and
beverage taxes based on specified criteria.
Effective Date: (Amended) Upon passage.
Explanation of State Expenditures: (Revised) Department of Local Government Finance (DLGF): The
bill requires the DLGF to prescribe a format and form for local units to report certain information regarding
an innkeeper’s tax or a food and beverage tax and post those reports on the gateway portal.
SB 390 1 There would be a short-term workload increase with the requirement of prescribing a format and form for
local units to report required information regarding the innkeeper’s tax or food and beverage tax. The
workload increase would likely be completed with existing staff and resources.
(Revised) Department of State Revenue (DOR): The Nashville food and beverage tax would continue to be
collected and remitted to the DOR after July 1, 2023. The DOR should be able to implement the bill’s
requirements within existing levels of staff and resources.
Explanation of State Revenues:
Explanation of Local Expenditures: Distributions and Expenditures Reporting: Each local unit that
imposes a food and beverage tax must report certain information to the DLGF. The report must be in the
format prescribed by the DLGF.
Public Hearing Provision: A local unit may need to hold additional public hearings on the imposition of a
new food and beverage tax in the community before adopting the resolution to request General Assembly
authorization. Under this bill, the General Assembly should give preference to requests from local units in
which the fiscal body has held a series of public hearings on the imposition of a new food and beverage tax
in the community.
Explanation of Local Revenues: (Revised) Under this bill, local units must submit a report to the DLGF
providing certain information regarding bonds or lease agreements and expiration dates in a prescribed
format. The bill specifies an expiration date for all local units with an existing food and beverage tax.
The bill also extends the expiration date of the Nashville food and beverage tax. The Nashville food and
beverage tax generated $218,802 in CY 2019 and $217,725 in CY 2020.
State Agencies Affected: Department of Local Government Finance.
Local Agencies Affected: Counties and municipalities.
Information Sources: Indiana Handbook of Taxes, Revenues, and Appropriations, FY 2021.
Fiscal Analyst: Seth Payton, 317- 233-3546.
SB 390 2