Indiana 2024 Regular Session

Indiana Senate Bill SB0250 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	SENATE BILL No. 250
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-9-58.
7	7	Synopsis: Union County food and beverage tax. Authorizes Union
8	8	County to impose a food and beverage tax.
9	9	Effective: July 1, 2024.
10	10	Raatz
11	11	January 11, 2024, read first time and referred to Committee on Tax and Fiscal Policy.
12	12	2024 IN 250—LS 6887/DI 134 Introduced
13	13	Second Regular Session of the 123rd General Assembly (2024)
14	14	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
15	15	Constitution) is being amended, the text of the existing provision will appear in this style type,
16	16	additions will appear in this style type, and deletions will appear in this style type.
17	17	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
18	18	provision adopted), the text of the new provision will appear in this style type. Also, the
19	19	word NEW will appear in that style type in the introductory clause of each SECTION that adds
20	20	a new provision to the Indiana Code or the Indiana Constitution.
21	21	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
22	22	between statutes enacted by the 2023 Regular Session of the General Assembly.
23	23	SENATE BILL No. 250
24	24	A BILL FOR AN ACT to amend the Indiana Code concerning
25	25	taxation.
26	26	Be it enacted by the General Assembly of the State of Indiana:
27	27	1 SECTION 1. IC 6-9-58 IS ADDED TO THE INDIANA CODE AS
28	28	2 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
29	29	3 1, 2024]:
30	30	4 Chapter 58. Union County Food and Beverage Tax
31	31	5 Sec. 1. This chapter applies to Union County.
32	32	6 Sec. 2. The definitions in IC 6-9-12-1 apply throughout this
33	33	7 chapter.
34	34	8 Sec. 3. (a) The fiscal body of the county may adopt an ordinance
35	35	9 to impose an excise tax, known as the county food and beverage
36	36	10 tax, on transactions described in section 4 of this chapter. The
37	37	11 fiscal body of the county may adopt an ordinance under this
38	38	12 subsection only after the fiscal body has previously held at least
39	39	13 one (1) separate public hearing in which a discussion of the
40	40	14 proposed ordinance to impose the county food and beverage tax is
41	41	15 the only substantive issue on the agenda for the public hearing.
42	42	16 (b) If the county fiscal body adopts an ordinance under
43	43	17 subsection (a), the county fiscal body shall immediately send a
44	44	2024 IN 250—LS 6887/DI 134 2
45	45	1 certified copy of the ordinance to the department of state revenue.
46	46	2 (c) If the county fiscal body adopts an ordinance under
47	47	3 subsection (a), the county food and beverage tax applies to
48	48	4 transactions that occur after the later of the following:
49	49	5 (1) The day specified in the ordinance.
50	50	6 (2) The last day of the month that succeeds the month in
51	51	7 which the ordinance is adopted.
52	52	8 Sec. 4. (a) Except as provided in subsection (c), a tax imposed
53	53	9 under section 3 of this chapter applies to a transaction in which
54	54	10 food or beverage is furnished, prepared, or served:
55	55	11 (1) for consumption at a location or on equipment provided by
56	56	12 a retail merchant;
57	57	13 (2) in the county; and
58	58	14 (3) by a retail merchant for consideration.
59	59	15 (b) Transactions described in subsection (a)(1) include
60	60	16 transactions in which food or beverage is:
61	61	17 (1) served by a retail merchant off the merchant's premises;
62	62	18 (2) sold in a heated state or heated by a retail merchant;
63	63	19 (3) made of two (2) or more food ingredients, mixed or
64	64	20 combined by a retail merchant for sale as a single item (other
65	65	21 than food that is only cut, repackaged, or pasteurized by the
66	66	22 seller, and eggs, fish, meat, poultry, and foods containing these
67	67	23 raw animal foods requiring cooking by the consumer as
68	68	24 recommended by the federal Food and Drug Administration
69	69	25 in chapter 3, subpart 3-401.11 of its Food Code so as to
70	70	26 prevent food borne illnesses); or
71	71	27 (4) sold with eating utensils provided by a retail merchant,
72	72	28 including plates, knives, forks, spoons, glasses, cups, napkins,
73	73	29 or straws (for purposes of this subdivision, a plate does not
74	74	30 include a container or package used to transport food).
75	75	31 (c) The county food and beverage tax does not apply to the
76	76	32 furnishing, preparing, or serving of a food or beverage in a
77	77	33 transaction that is exempt, or to the extent the transaction is
78	78	34 exempt, from the state gross retail tax imposed by IC 6-2.5.
79	79	35 Sec. 5. The county food and beverage tax rate:
80	80	36 (1) must be imposed in an increment of twenty-five
81	81	37 hundredths percent (0.25%); and
82	82	38 (2) may not exceed one percent (1%);
83	83	39 of the gross retail income received by the merchant from the food
84	84	40 or beverage transaction described in section 4 of this chapter. For
85	85	41 purposes of this chapter, the gross retail income received by the
86	86	42 retail merchant from a transaction does not include the amount of
87	87	2024 IN 250—LS 6887/DI 134 3
88	88	1 tax imposed on the transaction under IC 6-2.5.
89	89	2 Sec. 6. A tax imposed under this chapter is imposed, paid, and
90	90	3 collected in the same manner that the state gross retail tax is
91	91	4 imposed, paid, and collected under IC 6-2.5. However, the return
92	92	5 to be filed with the payment of the tax imposed under this chapter
93	93	6 may be made on a separate return or may be combined with the
94	94	7 return filed for the payment of the state gross retail tax, as
95	95	8 prescribed by the department of state revenue.
96	96	9 Sec. 7. The amounts received from the tax imposed under this
97	97	10 chapter shall be paid monthly by the treasurer of state to the
98	98	11 county treasurer upon warrants issued by the state comptroller.
99	99	12 Sec. 8. (a) If a tax is imposed under section 3 of this chapter, the
100	100	13 county treasurer shall establish a food and beverage tax receipts
101	101	14 fund.
102	102	15 (b) The county treasurer shall deposit in the fund all amounts
103	103	16 received under this chapter.
104	104	17 (c) Money earned from the investment of money in the fund
105	105	18 becomes a part of the fund.
106	106	19 Sec. 9. Money in the food and beverage tax receipts fund must
107	107	20 be used by the county only for the following purposes:
108	108	21 (1) The promotion of conventions and tourism, the attraction
109	109	22 of visitors, or the improvement of quality of life, including:
110	110	23 (A) mixed use development projects;
111	111	24 (B) quality public spaces;
112	112	25 (C) multiple transportation options;
113	113	26 (D) multiple housing options;
114	114	27 (E) revitalization of historic, blighted, or vacant
115	115	28 properties;
116	116	29 (F) arts, culture, and creativity; and
117	117	30 (G) recreation and green spaces.
118	118	31 (2) The pledge of money under IC 5-1-14-4 for bonds, leases,
119	119	32 or other obligations incurred for a purpose described in
120	120	33 subdivision (1).
121	121	34 Revenue derived from the imposition of a tax under this chapter
122	122	35 may be treated by the county as additional revenue for the purpose
123	123	36 of fixing its budget for the budget year during which the revenues
124	124	37 are to be distributed to the county.
125	125	38 Sec. 10. With respect to obligations for which a pledge has been
126	126	39 made under section 9 of this chapter, the general assembly
127	127	40 covenants with the holders of the obligations that this chapter will
128	128	41 not be repealed or amended in a manner that will adversely affect
129	129	42 the imposition or collection of the tax imposed under this chapter
130	130	2024 IN 250—LS 6887/DI 134 4
131	131	1 if the payment of any of the obligations is outstanding.
132	132	2 Sec. 11. (a) If the county imposes the tax authorized by this
133	133	3 chapter, the tax terminates on July 1, 2047.
134	134	4 (b) This chapter expires July 1, 2049.
135	135	2024 IN 250—LS 6887/DI 134