Introduced Version
SENATE BILL No. 250
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-9-58.
Synopsis: Union County food and beverage tax. Authorizes Union
County to impose a food and beverage tax.
Effective: July 1, 2024.
Raatz
January 11, 2024, read first time and referred to Committee on Tax and Fiscal Policy.
2024 IN 250—LS 6887/DI 134 Introduced
Second Regular Session of the 123rd General Assembly (2024)
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SENATE BILL No. 250
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 6-9-58 IS ADDED TO THE INDIANA CODE AS
2 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
3 1, 2024]:
4 Chapter 58. Union County Food and Beverage Tax
5 Sec. 1. This chapter applies to Union County.
6 Sec. 2. The definitions in IC 6-9-12-1 apply throughout this
7 chapter.
8 Sec. 3. (a) The fiscal body of the county may adopt an ordinance
9 to impose an excise tax, known as the county food and beverage
10 tax, on transactions described in section 4 of this chapter. The
11 fiscal body of the county may adopt an ordinance under this
12 subsection only after the fiscal body has previously held at least
13 one (1) separate public hearing in which a discussion of the
14 proposed ordinance to impose the county food and beverage tax is
15 the only substantive issue on the agenda for the public hearing.
16 (b) If the county fiscal body adopts an ordinance under
17 subsection (a), the county fiscal body shall immediately send a
2024 IN 250—LS 6887/DI 134 2
1 certified copy of the ordinance to the department of state revenue.
2 (c) If the county fiscal body adopts an ordinance under
3 subsection (a), the county food and beverage tax applies to
4 transactions that occur after the later of the following:
5 (1) The day specified in the ordinance.
6 (2) The last day of the month that succeeds the month in
7 which the ordinance is adopted.
8 Sec. 4. (a) Except as provided in subsection (c), a tax imposed
9 under section 3 of this chapter applies to a transaction in which
10 food or beverage is furnished, prepared, or served:
11 (1) for consumption at a location or on equipment provided by
12 a retail merchant;
13 (2) in the county; and
14 (3) by a retail merchant for consideration.
15 (b) Transactions described in subsection (a)(1) include
16 transactions in which food or beverage is:
17 (1) served by a retail merchant off the merchant's premises;
18 (2) sold in a heated state or heated by a retail merchant;
19 (3) made of two (2) or more food ingredients, mixed or
20 combined by a retail merchant for sale as a single item (other
21 than food that is only cut, repackaged, or pasteurized by the
22 seller, and eggs, fish, meat, poultry, and foods containing these
23 raw animal foods requiring cooking by the consumer as
24 recommended by the federal Food and Drug Administration
25 in chapter 3, subpart 3-401.11 of its Food Code so as to
26 prevent food borne illnesses); or
27 (4) sold with eating utensils provided by a retail merchant,
28 including plates, knives, forks, spoons, glasses, cups, napkins,
29 or straws (for purposes of this subdivision, a plate does not
30 include a container or package used to transport food).
31 (c) The county food and beverage tax does not apply to the
32 furnishing, preparing, or serving of a food or beverage in a
33 transaction that is exempt, or to the extent the transaction is
34 exempt, from the state gross retail tax imposed by IC 6-2.5.
35 Sec. 5. The county food and beverage tax rate:
36 (1) must be imposed in an increment of twenty-five
37 hundredths percent (0.25%); and
38 (2) may not exceed one percent (1%);
39 of the gross retail income received by the merchant from the food
40 or beverage transaction described in section 4 of this chapter. For
41 purposes of this chapter, the gross retail income received by the
42 retail merchant from a transaction does not include the amount of
2024 IN 250—LS 6887/DI 134 3
1 tax imposed on the transaction under IC 6-2.5.
2 Sec. 6. A tax imposed under this chapter is imposed, paid, and
3 collected in the same manner that the state gross retail tax is
4 imposed, paid, and collected under IC 6-2.5. However, the return
5 to be filed with the payment of the tax imposed under this chapter
6 may be made on a separate return or may be combined with the
7 return filed for the payment of the state gross retail tax, as
8 prescribed by the department of state revenue.
9 Sec. 7. The amounts received from the tax imposed under this
10 chapter shall be paid monthly by the treasurer of state to the
11 county treasurer upon warrants issued by the state comptroller.
12 Sec. 8. (a) If a tax is imposed under section 3 of this chapter, the
13 county treasurer shall establish a food and beverage tax receipts
14 fund.
15 (b) The county treasurer shall deposit in the fund all amounts
16 received under this chapter.
17 (c) Money earned from the investment of money in the fund
18 becomes a part of the fund.
19 Sec. 9. Money in the food and beverage tax receipts fund must
20 be used by the county only for the following purposes:
21 (1) The promotion of conventions and tourism, the attraction
22 of visitors, or the improvement of quality of life, including:
23 (A) mixed use development projects;
24 (B) quality public spaces;
25 (C) multiple transportation options;
26 (D) multiple housing options;
27 (E) revitalization of historic, blighted, or vacant
28 properties;
29 (F) arts, culture, and creativity; and
30 (G) recreation and green spaces.
31 (2) The pledge of money under IC 5-1-14-4 for bonds, leases,
32 or other obligations incurred for a purpose described in
33 subdivision (1).
34 Revenue derived from the imposition of a tax under this chapter
35 may be treated by the county as additional revenue for the purpose
36 of fixing its budget for the budget year during which the revenues
37 are to be distributed to the county.
38 Sec. 10. With respect to obligations for which a pledge has been
39 made under section 9 of this chapter, the general assembly
40 covenants with the holders of the obligations that this chapter will
41 not be repealed or amended in a manner that will adversely affect
42 the imposition or collection of the tax imposed under this chapter
2024 IN 250—LS 6887/DI 134 4
1 if the payment of any of the obligations is outstanding.
2 Sec. 11. (a) If the county imposes the tax authorized by this
3 chapter, the tax terminates on July 1, 2047.
4 (b) This chapter expires July 1, 2049.
2024 IN 250—LS 6887/DI 134