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 6887 NOTE PREPARED: Jan 4, 2024
BILL NUMBER: SB 250 BILL AMENDED:
SUBJECT: Union County Food and Beverage Tax.
FIRST AUTHOR: Sen. Raatz BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: The bill authorizes Union County to impose a food and beverage tax.
Effective Date: July 1, 2024.
Explanation of State Expenditures: The Union County food and beverage tax would be collected and
remitted to the Department of State Revenue (DOR) in the same manner as the state Sales Tax. 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: Union County could potentially incur a one-time increase in costs if
it holds an additional public hearing to discuss a proposed ordinance to impose a food and beverage tax.
If the county imposes a food and beverage tax, the county treasurer would establish a food and beverage tax
receipts fund, in which all revenue from the tax would be deposited. Money in this fund may only be used
for the following purposes:
• Promotion of conventions and tourism, the attraction of visitors, or the improvement of quality of
life.
• The pledge of money for bonds, leases, or other obligations incurred for a purpose listed above.
Explanation of Local Revenues: The bill authorizes Union County to impose a food and beverage tax at
a rate not to exceed 1% of gross retail income from food and beverage transactions in the county. If the
SB 250 1 county adopts an ordinance to impose the tax in July 2024, the tax could go into effect as early as September
1, 2024. The following table shows the estimated potential revenue for CY 2024 through CY 2026.
Estimated Potential Union County Food and Beverage Tax Revenue, 1%
CY 2024 CY 2025 CY 2026
$13,000 $46,000 $45,000
These estimates are based on employment data for Union County; sales data for the food services industry,
as published in the 2017 Economic Census; and actual revenue of counties that currently collect food and
beverage taxes. The Union County food and beverage tax expires on July 1, 2049.
State Agencies Affected: Department of State Revenue.
Local Agencies Affected: Union County.
Information Sources: U.S. Census Bureau; 2017 Economic Census. Legislative Services Agency, Indiana
Handbook of Taxes, Revenues, and Appropriations, FY 2023. OFMA Quarterly Census of Employment and
Wages Data.
Fiscal Analyst: Qian Li, 317-232-9671.
SB 250 2