*HB1080.1*
January 30, 2025
HOUSE BILL No. 1080
_____
DIGEST OF HB 1080 (Updated January 29, 2025 6:07 pm - DI 125)
Citations Affected: IC 6-9; IC 35-52.
Synopsis: Innkeeper's and food and beverage taxes. Provides that the
fiscal body of the town of Ellettsville (town) may, not later than
December 31, 2025, adopt an ordinance to receive revenue collected
from the food and beverage tax. Specifies the distribution of revenue.
Provides that the ordinance must specify that the town's collection of
the revenue terminates not later than July 1, 2027. Authorizes
LaGrange County to impose an innkeeper's tax to replace the
innkeeper's tax the county currently imposes under the uniform
innkeeper's tax law. Allows a maximum tax rate of 8%. Allows the city
of Shelbyville to impose a food and beverage tax. Allows Brown
County to impose its innkeeper's tax at a rate that does not exceed 8%
(instead of 5% under current law) under its enabling statute.
Reallocates the amounts of revenue received from the Vanderburgh
County innkeeper's tax to be deposited in the convention and visitor
promotion fund, the tourism capital improvement fund, and the
convention center operating, capital improvement, and financial
incentive fund. Authorizes Delaware County to increase the county's
innkeeper's tax rate from 5% to not more than 8% under the uniform
innkeeper's tax statute.
Effective: Upon passage; July 1, 2025.
Mayfield, Heaton
January 8, 2025, read first time and referred to Committee on Ways and Means.
January 30, 2025, amended, reported — Do Pass.
HB 1080—LS 6407/DI 125 January 30, 2025
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
HOUSE BILL No. 1080
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 6-9-2.5-7, AS AMENDED BY P.L.168-2005,
2 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]: Sec. 7. (a) The county treasurer shall establish a
4 convention and visitor promotion fund.
5 (b) The county treasurer shall deposit in the convention and visitor
6 promotion fund the amount of money received under section 6 of this
7 chapter as follows:
8 (1) Before January 1, 2026, the county treasurer shall deposit
9 in the convention and visitor promotion fund the amount of
10 money received under section 6 of this chapter that is
11 generated by a two and one-half percent (2.5%) rate.
12 (2) After December 31, 2025, the county treasurer shall
13 deposit in the convention and visitor promotion fund the
14 amount of money received under section 6 of this chapter that
15 is generated by a three percent (3%) rate.
16 (c) Money in this fund shall be expended only as provided in this
17 chapter.
HB 1080—LS 6407/DI 125 2
1 (d) The commission may transfer money in the convention and
2 visitor promotion fund to any Indiana nonprofit corporation for the
3 purpose of promotion and encouragement in the county of conventions,
4 trade shows, visitors, or special events. The commission may transfer
5 money under this section only after approving the transfer. Transfers
6 shall be made quarterly or less frequently under this section.
7 SECTION 2. IC 6-9-2.5-7.5, AS AMENDED BY P.L.290-2019,
8 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9 JULY 1, 2025]: Sec. 7.5. (a) The county treasurer shall establish a
10 tourism capital improvement fund.
11 (b) The county treasurer shall deposit money in the tourism capital
12 improvement fund as follows:
13 (1) Before January 1, 2026, the county treasurer shall deposit in
14 the tourism capital improvement fund the amount of money
15 received under section 6 of this chapter that is generated by a
16 three and one-half percent (3.5%) rate.
17 (2) After December 31, 2025, and before January 1, 2029, the
18 county treasurer shall deposit in the tourism capital improvement
19 fund the amount of money received under section 6 of this chapter
20 that is generated by a four and one-half percent (4.5%) three
21 percent (3%) rate.
22 (3) After December 31, 2028, the county treasurer shall
23 deposit in the tourism capital improvement fund the amount
24 of money received under section 6 of this chapter that is
25 generated by a four percent (4%) rate.
26 (c) The commission may transfer money in the tourism capital
27 improvement fund to:
28 (1) the county government, a city government, or a separate body
29 corporate and politic in a county described in section 1 of this
30 chapter; or
31 (2) any Indiana nonprofit corporation;
32 for the purpose of making capital improvements in the county that
33 promote conventions, tourism, or recreation. The commission may
34 transfer money under this section only after approving the transfer.
35 Transfers shall be made quarterly or less frequently under this section.
36 SECTION 3. IC 6-9-2.5-7.7, AS AMENDED BY P.L.290-2019,
37 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
38 JULY 1, 2025]: Sec. 7.7. (a) As used in this section, "fund" refers to the
39 convention center operating, capital improvement, and financial
40 incentive fund established under subsection (b).
41 (b) The county treasurer shall establish a convention center
42 operating, capital improvement, and financial incentive fund.
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1 (c) Before January 1, 2026, 2029, the county treasurer shall deposit
2 in the fund the amount of money received under section 6 of this
3 chapter that is generated by a two percent (2%) rate.
4 (d) After December 31, 2025, 2028, the county treasurer shall
5 deposit in the fund the amount of money received under section 6 of
6 this chapter that is generated by a one percent (1%) rate.
7 (e) Money in the fund may be expended only for the following:
8 (1) Operating expenses of a convention center located in the
9 county.
10 (2) Capital improvements to a convention center located in the
11 county.
12 (3) Financial incentives to attract, promote, or encourage new
13 business conventions, trade shows, or special events held at a
14 convention center located in the county.
15 (f) A financial incentive described in subsection (e)(3) may not be
16 distributed to a new business for at least thirty (30) days after the
17 conclusion of a convention, trade show, or special event that is held by
18 the new business at a convention center located in the county.
19 SECTION 4. IC 6-9-14-6, AS AMENDED BY P.L.9-2024,
20 SECTION 232, IS AMENDED TO READ AS FOLLOWS
21 [EFFECTIVE JULY 1, 2025]: Sec. 6. (a) The county council may levy
22 a tax on every person engaged in the business of renting or furnishing,
23 for periods of less than thirty (30) days, any room or rooms, lodgings
24 or accommodations in any hotel, motel, inn, conference center, retreat
25 center, or tourist cabin located in the county. However, the county
26 council may not levy the tax on a person for engaging in the business
27 of providing campsites within a state or federal park or forest. The tax
28 may be imposed at any rate up to and including five that does not
29 exceed eight percent (5%). (8%). The tax shall be imposed on the
30 gross retail income derived from lodging income only and shall be in
31 addition to the state gross retail tax imposed on those persons by
32 IC 6-2.5.
33 (b) The county fiscal body may adopt an ordinance to require that
34 the tax shall be paid monthly to the county treasurer. If such an
35 ordinance is adopted, the tax shall be paid to the county treasurer not
36 more than twenty (20) days after the end of the month the tax is
37 collected. If such an ordinance is not adopted, the tax shall be imposed,
38 paid and collected in exactly the same manner as the state gross retail
39 tax is imposed, paid, and collected pursuant to IC 6-2.5.
40 (c) All of the provisions of IC 6-2.5 relating to rights, duties,
41 liabilities, procedures, penalties, definitions, exemptions, and
42 administration apply to the imposition and administration of the tax
HB 1080—LS 6407/DI 125 4
1 imposed under this section, except to the extent those provisions are in
2 conflict or inconsistent with the specific provisions of this chapter or
3 the requirements of the county treasurer. Specifically and not in
4 limitation of the foregoing sentence, the terms "person" and "gross
5 retail income" shall have the same meaning in this section as they have
6 in IC 6-2.5. If the tax is paid to the department of state revenue, the
7 returns to be filed for the payment of the tax under this section may be
8 either a separate return or may be combined with the return filed for the
9 payment of the state gross retail tax as the department of state revenue
10 may, by rule or regulation, determine.
11 (d) If the tax is paid to the department of state revenue, the amounts
12 received from the tax shall be paid quarterly by the treasurer of state to
13 the county treasurer upon warrants issued by the state comptroller.
14 (e) The tax imposed under subsection (a) does not apply to the
15 renting or furnishing of rooms, lodgings, or accommodations to a
16 person for a period of thirty (30) days or more.
17 SECTION 5. IC 6-9-18-3, AS AMENDED BY P.L.136-2024,
18 SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
19 UPON PASSAGE]: Sec. 3. (a) The fiscal body of a county may levy a
20 tax on every person engaged in the business of renting or furnishing,
21 for periods of less than thirty (30) days, any room or rooms, lodgings,
22 or accommodations in any:
23 (1) hotel;
24 (2) motel;
25 (3) boat motel;
26 (4) inn;
27 (5) college or university memorial union;
28 (6) college or university residence hall or dormitory; or
29 (7) tourist cabin;
30 located in the county.
31 (b) The tax does not apply to gross income received in a transaction
32 in which:
33 (1) a student rents lodgings in a college or university residence
34 hall while that student participates in a course of study for which
35 the student receives college credit from a college or university
36 located in the county; or
37 (2) a person rents a room, lodging, or accommodations for a
38 period of thirty (30) days or more.
39 (c) The tax may not exceed:
40 (1) the rate of five percent (5%) in a county other than a county
41 subject to subdivision (2), (3), or (4), or (5);
42 (2) after June 30, 2019, and except as provided in section 6.7 of
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1 this chapter, the rate of eight percent (8%) in Howard County;
2 (3) after June 30, 2021, the rate of nine percent (9%) in Daviess
3 County; or
4 (4) after June 30, 2023, the rate of eight percent (8%) in Parke
5 County; or
6 (5) after June 30, 2025, the rate of eight percent (8%) in
7 Delaware County.
8 The tax is imposed on the gross retail income derived from lodging
9 income only and is in addition to the state gross retail tax imposed
10 under IC 6-2.5.
11 (d) The county fiscal body may adopt an ordinance to require that
12 the tax shall be paid monthly to the county treasurer. If such an
13 ordinance is adopted, the tax shall be paid to the county treasurer not
14 more than twenty (20) days after the end of the month the tax is
15 collected. If such an ordinance is not adopted, the tax shall be imposed,
16 paid, and collected in exactly the same manner as the state gross retail
17 tax is imposed, paid, and collected under IC 6-2.5.
18 (e) All of the provisions of IC 6-2.5 relating to rights, duties,
19 liabilities, procedures, penalties, definitions, exemptions, and
20 administration are applicable to the imposition and administration of
21 the tax imposed under this section except to the extent those provisions
22 are in conflict or inconsistent with the specific provisions of this
23 chapter or the requirements of the county treasurer. If the tax is paid to
24 the department of state revenue, the return to be filed for the payment
25 of the tax under this section may be either a separate return or may be
26 combined with the return filed for the payment of the state gross retail
27 tax as the department of state revenue may, by rule, determine.
28 (f) If the tax is paid to the department of state revenue, the amounts
29 received from the tax imposed under this section shall be paid monthly
30 by the treasurer of state to the county treasurer upon warrants issued by
31 the state comptroller.
32 SECTION 6. IC 6-9-41-4.5 IS ADDED TO THE INDIANA CODE
33 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
34 UPON PASSAGE]: Sec. 4.5. As used in this chapter, "town" means
35 the town of Ellettsville.
36 SECTION 7. IC 6-9-41-5, AS AMENDED BY P.L.236-2023,
37 SECTION 104, IS AMENDED TO READ AS FOLLOWS
38 [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) Subject to section 15.5 of
39 this chapter, The fiscal body of the county may adopt an ordinance to
40 impose an excise tax, known as the county food and beverage tax, on
41 those transactions described in section 6 of this chapter. The effective
42 date of an ordinance adopted under this subsection must be after
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1 December 31, 2009.
2 (b) If the fiscal body adopts an ordinance under subsection (a), the
3 fiscal body shall immediately send a certified copy of the ordinance to
4 the commissioner of the department of state revenue.
5 (c) If the fiscal body adopts an ordinance under subsection (a), the
6 county food and beverage tax applies to transactions that occur after the
7 last day of the month that succeeds the month in which the ordinance
8 is adopted. However, if an ordinance is adopted before December 1,
9 2009, and the ordinance takes effect January 1, 2010, the tax applies to
10 transactions after December 31, 2009.
11 SECTION 8. IC 6-9-41-12.5 IS ADDED TO THE INDIANA CODE
12 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
13 UPON PASSAGE]: Sec. 12.5. (a) If an ordinance is adopted under
14 section 5 of this chapter, the fiscal body of the town may, not later
15 than December 31, 2025, adopt an ordinance to receive revenue
16 collected from the tax imposed in the county. An ordinance
17 adopted under this subsection must specify that the collection of
18 revenue by the town from the tax imposed under this chapter
19 terminates not later than July 1, 2027.
20 (b) If an ordinance is adopted under section 5 of this chapter
21 and subsection (a), the fiscal officer of the town shall establish a
22 food and beverage tax receipts fund.
23 (c) The fiscal officer shall deposit in the fund county food and
24 beverage tax revenue that the fiscal officer receives.
25 (d) Any money earned from the investment of money in the fund
26 becomes part of the fund.
27 (e) Money in the fund at the end of the town fiscal year does not
28 revert to the town general fund.
29 (f) If the fiscal body of the town adopts an ordinance under
30 subsection (a), the fiscal body of the town shall immediately send
31 a certified copy of the ordinance to the department of state
32 revenue, the county fiscal body, and the city fiscal body.
33 SECTION 9. IC 6-9-41-13, AS ADDED BY P.L.176-2009,
34 SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
35 UPON PASSAGE]: Sec. 13. (a) Each month, the county auditor shall
36 distribute the county food and beverage tax revenue received by the
37 county treasurer between the city and the county according to the
38 location where the county food and beverage tax was collected. If the
39 county food and beverage tax was collected in the city, the city must
40 receive the revenue. If the county food and beverage tax was collected
41 in the part of the county that is outside the city, the county must receive
42 the revenue. revenue must be distributed according to the
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1 following:
2 (1) If the town adopts an ordinance under section 12.5 of this
3 chapter, of the revenue collected in the part of the county that
4 is outside the city before July 1, 2027, the county auditor shall
5 distribute:
6 (A) fifty percent (50%) of the revenue to the county; and
7 (B) fifty percent (50%) of the revenue to the town.
8 (2) After June 30, 2027, or, if the town has not adopted an
9 ordinance under section 12.5 of this chapter, the county
10 auditor shall distribute to the county all of the revenue
11 collected in the part of the county that is outside the city.
12 (b) Distribution of county food and beverage tax revenue to the city
13 and the town must be on warrants issued by the county auditor.
14 SECTION 10. IC 6-9-41-14, AS AMENDED BY P.L.236-2023,
15 SECTION 105, IS AMENDED TO READ AS FOLLOWS
16 [EFFECTIVE UPON PASSAGE]: Sec. 14. (a) The county's share of
17 county food and beverage tax revenue deposited in the county food and
18 beverage tax receipts fund may be used only to finance, refinance,
19 construct, operate, or maintain a convention center, a conference
20 center, or related tourism or economic development projects. However,
21 before July 1, 2027, money deposited in the county food and
22 beverage tax receipts fund may not be pledged as money under
23 IC 5-1-14-4 or any other law for bonds, leases, or other obligations
24 incurred for any purpose.
25 (b) The county must develop a written plan before December 1 of
26 each year that includes the:
27 (1) proposed use of funds under subsection (a) for the upcoming
28 calendar year;
29 (2) detailed use of funds under subsection (a) in the current and
30 prior calendar years; and
31 (3) fund balance as of January 1 of the current calendar year.
32 The written plan described in this subsection must be submitted to the
33 state board of accounts and be made available on the department's
34 computer gateway within thirty (30) days of submission.
35 (c) The county may not spend money in the county food and
36 beverage tax receipts fund unless a written plan has been
37 developed in the manner required under subsection (b). If a written
38 plan has been developed in the manner required under subsection
39 (b), the county must spend the money in the county food and beverage
40 tax receipts fund in accordance with the written plan. required by
41 subsection (b). If no funds have been expended from the county food
42 and beverage tax receipts fund in accordance with the written plan
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1 required by subsection (b) before July 1, 2025, then section 15.5 of this
2 chapter applies.
3 SECTION 11. IC 6-9-41-15, AS AMENDED BY P.L.236-2023,
4 SECTION 106, IS AMENDED TO READ AS FOLLOWS
5 [EFFECTIVE UPON PASSAGE]: Sec. 15. (a) Money deposited in the
6 city food and beverage tax receipts fund may be used only to finance,
7 refinance, construct, operate, or maintain a convention center, a
8 conference center, or related tourism or economic development
9 projects.
10 (b) The city must develop a written plan before December 1 of each
11 year that includes the:
12 (1) proposed use of funds under subsection (a) for the upcoming
13 calendar year;
14 (2) detailed use of funds under subsection (a) in the current and
15 prior calendar years; and
16 (3) fund balance as of January 1 of the current calendar year.
17 The written plan described in this subsection must be submitted to the
18 state board of accounts and be made available on the department's
19 computer gateway within thirty (30) days of submission.
20 (c) The city may not spend money in the city food and beverage
21 tax receipts fund unless a written plan has been developed in the
22 manner required under subsection (b). If a written plan has been
23 developed in the manner required under subsection (b), the city
24 must spend the money in the city food and beverage tax receipts fund
25 in accordance with the written plan required by subsection (b). If no
26 funds have been expended from the city food and beverage tax receipts
27 fund in accordance with the written plan required by subsection (b)
28 before July 1, 2025, then section 15.5 of this chapter applies.
29 SECTION 12. IC 6-9-41-15.3 IS ADDED TO THE INDIANA
30 CODE AS A NEW SECTION TO READ AS FOLLOWS
31 [EFFECTIVE UPON PASSAGE]: Sec. 15.3. (a) Money deposited in
32 the town food and beverage tax receipts fund may be used only for
33 transit related purposes. However, before July 1, 2027, money
34 deposited in the town food and beverage tax receipts fund may not
35 be pledged as money under IC 5-1-14-4 or any other law for bonds,
36 leases, or other obligations incurred for any purpose.
37 (b) Revenue derived from the imposition of a tax under this
38 chapter may be treated by the town as additional revenue for the
39 purpose of fixing its budget for the budget year during which the
40 revenues are to be distributed to the town.
41 SECTION 13. IC 6-9-41-15.5 IS REPEALED [EFFECTIVE UPON
42 PASSAGE]. Sec. 15.5. (a) This section applies only if the county and
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1 city do not spend money from the county or city food and beverage tax
2 receipts fund as required by sections 14(c) and 15(c) of this chapter.
3 (b) The ordinance adopted under section 5 of this chapter to impose
4 the food and beverage tax is void and food and beverage tax revenue
5 may not be collected after June 30, 2025. The county may not adopt a
6 new ordinance under section 5 of this chapter after June 30, 2025.
7 (c) The following apply to the distribution of the unexpended money
8 in the county food and beverage tax receipts fund and city food and
9 beverage tax receipts fund:
10 (1) The:
11 (A) county treasurer shall certify to the county auditor the
12 balance in the county food and beverage tax receipts fund; and
13 (B) city fiscal officer shall certify to the county auditor the
14 balance in the city food and beverage tax receipts fund.
15 (2) After the county auditor receives the certified fund balances
16 under subdivision (1), the county auditor shall distribute, before
17 October 1, 2025, the money in each fund according to the ratio
18 that the maximum permissible ad valorem property tax levy under
19 IC 6-1.1-18.5 for property taxes first due and payable in 2025 for
20 each taxing unit in the county bears to the sum of all maximum
21 permissible ad valorem property tax levies under IC 6-1.1-18.5 for
22 property tax first due and payable in 2025 in the county.
23 SECTION 14. IC 6-9-41-17, AS ADDED BY P.L.236-2023,
24 SECTION 109, IS AMENDED TO READ AS FOLLOWS
25 [EFFECTIVE UPON PASSAGE]: Sec. 17. (a) Except as otherwise
26 provided in sections 14, 15, and 15.5 of this chapter, The tax authorized
27 under this chapter expires on the later of:
28 (1) January 1, 2045; or
29 (2) the date on which all bonds or lease agreements outstanding
30 on May 7, 2023, for which a pledge of tax revenue is made under
31 this chapter are completely paid.
32 (b) Not later than December 31, 2023, the fiscal officer of the
33 county and the fiscal officer of the city shall provide to the state board
34 of accounts:
35 (1) a list of each bond or lease agreement outstanding on May 7,
36 2023, for which a pledge of tax revenue is made under this
37 chapter; and
38 (2) the date on which each bond or lease agreement identified in
39 subdivision (1) will be completely paid.
40 The information received under this subsection shall be published on
41 the department of local government finance's interactive and searchable
42 website containing local government information (the Indiana gateway
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1 for governmental units).
2 SECTION 15. IC 6-9-60 IS ADDED TO THE INDIANA CODE AS
3 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
4 1, 2025]:
5 Chapter 60. LaGrange County Innkeeper's Tax
6 Sec. 1. (a) This chapter applies to LaGrange County, if the
7 county had adopted an innkeeper's tax under IC 6-9-18 before July
8 1, 2025.
9 (b) The:
10 (1) convention, visitor, and tourism promotion fund;
11 (2) convention and visitor commission;
12 (3) innkeeper's tax rate; and
13 (4) tax collection procedures;
14 established under IC 6-9-18 before July 1, 2025, remain in effect
15 and govern the county's innkeeper's tax until amended under this
16 chapter.
17 (c) A member of the convention and visitor commission
18 established under IC 6-9-18 before July 1, 2025, shall serve a full
19 term of office. If a vacancy occurs, the appointing authority shall
20 appoint a qualified replacement as provided under this chapter.
21 The appointing authority shall make other subsequent
22 appointments to the commission as provided under this chapter.
23 Sec. 2. As used in this chapter:
24 (1) "executive" and "fiscal body" have the meanings set forth
25 in IC 36-1-2; and
26 (2) "gross retail income" and "person" have the meanings set
27 forth in IC 6-2.5-1.
28 Sec. 3. (a) The fiscal body of the county may levy a tax on every
29 person engaged in the business of renting or furnishing, for periods
30 of less than thirty (30) days, any room or rooms, lodgings, or
31 accommodations in any:
32 (1) hotel;
33 (2) motel;
34 (3) boat motel;
35 (4) inn;
36 (5) college or university memorial union;
37 (6) college or university residence hall or dormitory; or
38 (7) tourist cabin;
39 located in the county.
40 (b) The tax does not apply to gross income received in a
41 transaction in which:
42 (1) a student rents lodgings in a college or university residence
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1 hall while that student participates in a course of study for
2 which the student receives college credit from a college or
3 university located in the county; or
4 (2) a person rents a room, lodging, or accommodations for a
5 period of thirty (30) days or more.
6 (c) Subject to section 4 of this chapter, the tax may not exceed
7 the rate of eight percent (8%) on the gross retail income derived
8 from lodging income only and is in addition to the state gross retail
9 tax imposed under IC 6-2.5.
10 (d) The county fiscal body may adopt an ordinance to require
11 that the tax shall be paid monthly to the county treasurer. If such
12 an ordinance is adopted, the tax shall be paid to the county
13 treasurer not more than twenty (20) days after the end of the
14 month the tax is collected. If such an ordinance is not adopted, the
15 tax shall be imposed, paid, and collected in exactly the same
16 manner as the state gross retail tax is imposed, paid, and collected
17 under IC 6-2.5.
18 (e) All of the provisions of IC 6-2.5 relating to rights, duties,
19 liabilities, procedures, penalties, definitions, exemptions, and
20 administration are applicable to the imposition and administration
21 of the tax imposed under this section except to the extent those
22 provisions are in conflict or inconsistent with the specific
23 provisions of this chapter or the requirements of the county
24 treasurer. If the tax is paid to the department of state revenue, the
25 return to be filed for the payment of the tax under this section may
26 be either a separate return or may be combined with the return
27 filed for the payment of the state gross retail tax as the department
28 of state revenue may, by rule, determine.
29 (f) If the tax is paid to the department of state revenue, the
30 amounts received from the tax imposed under this section shall be
31 paid monthly by the treasurer of state to the county treasurer upon
32 warrants issued by the state comptroller.
33 Sec. 4. (a) After June 30, 2025, the county fiscal body may adopt
34 an ordinance to increase the tax rate imposed under section 3 of
35 this chapter to a tax rate that exceeds five percent (5%) but does
36 not exceed eight percent (8%). If the county imposes a tax rate that
37 exceeds five percent (5%), the portion that exceeds five percent
38 (5%) terminates December 31, 2045.
39 (b) If the county fiscal body adopts an ordinance for an increase
40 under this section:
41 (1) it shall immediately send a certified copy of the ordinance
42 to the department of state revenue; and
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1 (2) the increase applies to transactions after the last day of the
2 month in which the ordinance is adopted, if the county fiscal
3 body adopts the ordinance on or before the fifteenth day of a
4 month. If the county fiscal body adopts the ordinance after
5 the fifteenth day of a month, the tax applies to transactions
6 after the last day of the month following the month in which
7 the ordinance is adopted.
8 Sec. 5. (a) The county treasurer shall establish a convention,
9 visitor, and tourism promotion fund. The county treasurer shall
10 deposit in this fund all amounts the county treasurer receives
11 under this chapter.
12 (b) The county auditor shall issue a warrant directing the
13 county treasurer to transfer money from the convention, visitor,
14 and tourism promotion fund to the treasurer of the commission
15 established under section 6 of this chapter if the commission
16 submits a written request for the transfer.
17 (c) Money in a convention, visitor, and tourism promotion fund,
18 or money transferred from such a fund under subsection (b), may
19 be expended to promote and encourage conventions, visitors, and
20 tourism within the county. Expenditures may include, but are not
21 limited to, expenditures for advertising, promotional activities,
22 trade shows, special events, and recreation.
23 Sec. 6. (a) The county executive shall create a commission to
24 promote the development and growth of the convention, visitor,
25 and tourism industry in the county. If two (2) or more adjoining
26 counties desire to establish a joint commission, the counties shall
27 enter into an agreement under IC 36-1-7.
28 (b) The county executive shall determine the number of
29 members, which must be an odd number, to be appointed to the
30 commission. Each of the members must be:
31 (1) engaged in a convention, visitor, or tourism business; or
32 (2) involved in or promoting conventions, visitors, or tourism.
33 A member who is an owner or an executive level employee of a
34 convention, visitor, or tourism related business located in the
35 county is not required to reside in the county but must reside in
36 Indiana. A member who is not an owner or an executive level
37 employee of a convention, visitor, or tourism related business
38 located in the county must reside in the county. If available and
39 willing to serve, at least two (2) of the members must be engaged
40 in the business of renting or furnishing rooms, lodging, or
41 accommodations (as described in section 3 of this chapter). The
42 county executive shall also determine who will make the
HB 1080—LS 6407/DI 125 13
1 appointments to the commission.
2 (c) All terms of office of commission members begin on January
3 1. Initial appointments must be for staggered terms, with
4 subsequent appointments for three (3) year terms. A member
5 whose term expires may be reappointed to serve another term. If
6 a vacancy occurs, the appointing authority shall appoint a qualified
7 person to serve for the remainder of the term. If an initial
8 appointment is not made by February 1 or a vacancy is not filled
9 within thirty (30) days, the commission shall appoint a member by
10 majority vote.
11 (d) A member of the commission may be removed for cause by
12 the member's appointing authority.
13 (e) Members of the commission may not receive a salary.
14 However, commission members are entitled to reimbursement for
15 necessary expenses incurred in the performance of their respective
16 duties.
17 (f) Each commission member, before entering the member's
18 duties, shall take an oath of office in the usual form, to be endorsed
19 upon the member's certificate of appointment and promptly filed
20 with the clerk of the circuit court of the county.
21 (g) The commission shall meet after January 1 each year for the
22 purpose of organization. It shall elect one (1) of its members
23 president, another vice president, another secretary, and another
24 treasurer. The members elected to those offices shall perform the
25 duties pertaining to the offices. The first officers chosen shall serve
26 from the date of their election until their successors are elected and
27 qualified. A majority of the commission constitutes a quorum, and
28 the concurrence of a majority of the commission is necessary to
29 authorize any action.
30 Sec. 7. (a) The commission may:
31 (1) accept and use gifts, grants, and contributions from any
32 public or private source, under terms and conditions that the
33 commission considers necessary and desirable;
34 (2) sue and be sued;
35 (3) enter into contracts and agreements;
36 (4) make rules necessary for the conduct of its business and
37 the accomplishment of its purposes;
38 (5) receive and approve, alter, or reject requests and
39 proposals for funding by corporations qualified under
40 subdivision (6);
41 (6) after approval of a proposal, transfer money, quarterly or
42 less frequently, from the fund established under section 5(a)
HB 1080—LS 6407/DI 125 14
1 of this chapter, or from money transferred from that fund to
2 the commission's treasurer under section 5(b) of this chapter,
3 to the LaGrange County convention and visitors bureau or to
4 an entity that contracts with the commission to promote and
5 encourage conventions, visitors, and tourism in the county;
6 and
7 (7) require financial or other reports from any corporation
8 that receives funds under this chapter.
9 (b) All expenses of the commission shall be paid from the fund
10 established under section 5(a) of this chapter or from money
11 transferred from that fund to the commission's treasurer under
12 section 5(b) of this chapter. The commission shall annually prepare
13 a budget, taking into consideration the recommendations made by
14 an entity qualified under subsection (a)(6), and submit it to the
15 county fiscal body for its review and approval. An expenditure may
16 not be made under this chapter unless it is in accordance with an
17 appropriation made by the county fiscal body in the manner
18 provided by law.
19 (c) The county fiscal body and an entity that contracts with the
20 commission to promote and encourage conventions, visitors, and
21 tourism in the county may enter into a confidential agreement to
22 share revenue and verify compliance if the state board of accounts
23 first approves the confidential agreement.
24 Sec. 8. All money coming into possession of the commission shall
25 be deposited, held, secured, invested, and paid in accordance with
26 statutes relating to the handling of public funds. The handling and
27 expenditure of money coming into possession of the commission is
28 subject to audit and supervision by the state board of accounts.
29 Sec. 9. (a) A member of the commission who knowingly:
30 (1) approves the transfer of money to any person or
31 corporation not qualified under law for that transfer; or
32 (2) approves a transfer for a purpose not permitted under
33 law;
34 commits a Level 6 felony.
35 (b) A person who receives a transfer of money under this
36 chapter and knowingly uses that money for any purpose not
37 permitted under this chapter commits a Level 6 felony.
38 SECTION 16. IC 6-9-62 IS ADDED TO THE INDIANA CODE AS
39 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
40 1, 2025]:
41 Chapter 62. Shelbyville Food and Beverage Tax
42 Sec. 1. This chapter applies to the city of Shelbyville.
HB 1080—LS 6407/DI 125 15
1 Sec. 2. The definitions in IC 6-9-12-1 apply throughout this
2 chapter.
3 Sec. 3. (a) The fiscal body of the city may adopt an ordinance to
4 impose an excise tax, known as the city food and beverage tax, on
5 transactions described in section 4 of this chapter. The fiscal body
6 of the city may adopt an ordinance under this subsection only after
7 the fiscal body has previously held at least one (1) separate public
8 hearing in which a discussion of the proposed ordinance to impose
9 the city food and beverage tax is the only substantive issue on the
10 agenda for the public hearing.
11 (b) If the city fiscal body adopts an ordinance under subsection
12 (a), the city fiscal body shall immediately send a certified copy of
13 the ordinance to the department of state revenue.
14 (c) If the city fiscal body adopts an ordinance under subsection
15 (a), the city food and beverage tax applies to transactions that
16 occur after the later of the following:
17 (1) The day specified in the ordinance.
18 (2) The last day of the month that succeeds the month in
19 which the ordinance is adopted.
20 Sec. 4. (a) Except as provided in subsection (c), a tax imposed
21 under section 3 of this chapter applies to a transaction in which
22 food or beverage is furnished, prepared, or served:
23 (1) for consumption at a location or on equipment provided by
24 a retail merchant;
25 (2) in the city; and
26 (3) by a retail merchant for consideration.
27 (b) Transactions described in subsection (a)(1) include
28 transactions in which food or beverage is:
29 (1) served by a retail merchant off the merchant's premises;
30 (2) sold in a heated state or heated by a retail merchant;
31 (3) made of two (2) or more food ingredients, mixed or
32 combined by a retail merchant for sale as a single item (other
33 than food that is only cut, repackaged, or pasteurized by the
34 seller, and eggs, fish, meat, poultry, and foods containing these
35 raw animal foods requiring cooking by the consumer as
36 recommended by the federal Food and Drug Administration
37 in chapter 3, subpart 3-401.11 of its Food Code so as to
38 prevent food borne illnesses); or
39 (4) sold with eating utensils provided by a retail merchant,
40 including plates, knives, forks, spoons, glasses, cups, napkins,
41 or straws (for purposes of this subdivision, a plate does not
42 include a container or package used to transport food).
HB 1080—LS 6407/DI 125 16
1 (c) The city food and beverage tax does not apply to the
2 furnishing, preparing, or serving of a food or beverage in a
3 transaction that is exempt, or to the extent the transaction is
4 exempt, from the state gross retail tax imposed by IC 6-2.5.
5 Sec. 5. The city food and beverage tax rate:
6 (1) must be imposed in an increment of twenty-five
7 hundredths percent (0.25%); and
8 (2) may not exceed one percent (1%);
9 of the gross retail income received by the merchant from the food
10 or beverage transaction described in section 4 of this chapter. For
11 purposes of this chapter, the gross retail income received by the
12 retail merchant from a transaction does not include the amount of
13 tax imposed on the transaction under IC 6-2.5.
14 Sec. 6. A tax imposed under this chapter is imposed, paid, and
15 collected in the same manner that the state gross retail tax is
16 imposed, paid, and collected under IC 6-2.5. However, the return
17 to be filed with the payment of the tax imposed under this chapter
18 may be made on a separate return or may be combined with the
19 return filed for the payment of the state gross retail tax, as
20 prescribed by the department of state revenue.
21 Sec. 7. The amounts received from the tax imposed under this
22 chapter shall be paid monthly by the treasurer of state to the city
23 fiscal officer upon warrants issued by the state comptroller.
24 Sec. 8. (a) If a tax is imposed under section 3 of this chapter by
25 the city, the city fiscal officer shall establish a food and beverage
26 tax receipts fund.
27 (b) The city fiscal officer shall deposit in the fund all amounts
28 received under this chapter.
29 (c) Money earned from the investment of money in the fund
30 becomes a part of the fund.
31 Sec. 9. Money in the food and beverage tax receipts fund must
32 be used by the city only for the following purposes:
33 (1) Rehabilitation, renovation, repurposing, improvement, or
34 maintenance of historic property.
35 (2) Park and recreation purposes, including the purchase of
36 land for park and recreation purposes.
37 (3) Economic development purposes.
38 (4) The pledge of money under IC 5-1-14-4 for bonds, leases,
39 or other obligations incurred for a purpose described in
40 subdivisions (1) through (3).
41 Revenue derived from the imposition of a tax under this chapter
42 may be treated by the city as additional revenue for the purpose of
HB 1080—LS 6407/DI 125 17
1 fixing its budget for the budget year during which the revenues are
2 to be distributed to the city.
3 Sec. 10. With respect to obligations for which a pledge has been
4 made under section 9 of this chapter, the general assembly
5 covenants with the holders of the obligations that this chapter will
6 not be repealed or amended in a manner that will adversely affect
7 the imposition or collection of the tax imposed under this chapter
8 if the payment of any of the obligations is outstanding.
9 Sec. 11. (a) If the city imposes the tax authorized by this chapter,
10 the tax terminates on July 1, 2047.
11 (b) This chapter expires July 1, 2047.
12 SECTION 17. IC 35-52-6-85 IS ADDED TO THE INDIANA
13 CODE AS A NEW SECTION TO READ AS FOLLOWS
14 [EFFECTIVE JULY 1, 2025]: Sec. 85. IC 6-9-60-9 defines a crime
15 concerning innkeeper's taxes.
16 SECTION 18. An emergency is declared for this act.
HB 1080—LS 6407/DI 125 18
COMMITTEE REPORT
Mr. Speaker: Your Committee on Ways and Means, to which was
referred House Bill 1080, has had the same under consideration and
begs leave to report the same back to the House with the
recommendation that said bill be amended as follows:
Replace the effective dates in SECTIONS 1 through 4 with
"[EFFECTIVE UPON PASSAGE]".
Page 1, between the enacting clause and line 1, begin a new
paragraph and insert:
"SECTION 1. IC 6-9-2.5-7, AS AMENDED BY P.L.168-2005,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 7. (a) The county treasurer shall establish a
convention and visitor promotion fund.
(b) The county treasurer shall deposit in the convention and visitor
promotion fund the amount of money received under section 6 of this
chapter as follows:
(1) Before January 1, 2026, the county treasurer shall deposit
in the convention and visitor promotion fund the amount of
money received under section 6 of this chapter that is
generated by a two and one-half percent (2.5%) rate.
(2) After December 31, 2025, the county treasurer shall
deposit in the convention and visitor promotion fund the
amount of money received under section 6 of this chapter that
is generated by a three percent (3%) rate.
(c) Money in this fund shall be expended only as provided in this
chapter.
(d) The commission may transfer money in the convention and
visitor promotion fund to any Indiana nonprofit corporation for the
purpose of promotion and encouragement in the county of conventions,
trade shows, visitors, or special events. The commission may transfer
money under this section only after approving the transfer. Transfers
shall be made quarterly or less frequently under this section.
SECTION 2. IC 6-9-2.5-7.5, AS AMENDED BY P.L.290-2019,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 7.5. (a) The county treasurer shall establish a
tourism capital improvement fund.
(b) The county treasurer shall deposit money in the tourism capital
improvement fund as follows:
(1) Before January 1, 2026, the county treasurer shall deposit in
the tourism capital improvement fund the amount of money
received under section 6 of this chapter that is generated by a
HB 1080—LS 6407/DI 125 19
three and one-half percent (3.5%) rate.
(2) After December 31, 2025, and before January 1, 2029, the
county treasurer shall deposit in the tourism capital improvement
fund the amount of money received under section 6 of this chapter
that is generated by a four and one-half percent (4.5%) three
percent (3%) rate.
(3) After December 31, 2028, the county treasurer shall
deposit in the tourism capital improvement fund the amount
of money received under section 6 of this chapter that is
generated by a four percent (4%) rate.
(c) The commission may transfer money in the tourism capital
improvement fund to:
(1) the county government, a city government, or a separate body
corporate and politic in a county described in section 1 of this
chapter; or
(2) any Indiana nonprofit corporation;
for the purpose of making capital improvements in the county that
promote conventions, tourism, or recreation. The commission may
transfer money under this section only after approving the transfer.
Transfers shall be made quarterly or less frequently under this section.
SECTION 3. IC 6-9-2.5-7.7, AS AMENDED BY P.L.290-2019,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 7.7. (a) As used in this section, "fund" refers to the
convention center operating, capital improvement, and financial
incentive fund established under subsection (b).
(b) The county treasurer shall establish a convention center
operating, capital improvement, and financial incentive fund.
(c) Before January 1, 2026, 2029, the county treasurer shall deposit
in the fund the amount of money received under section 6 of this
chapter that is generated by a two percent (2%) rate.
(d) After December 31, 2025, 2028, the county treasurer shall
deposit in the fund the amount of money received under section 6 of
this chapter that is generated by a one percent (1%) rate.
(e) Money in the fund may be expended only for the following:
(1) Operating expenses of a convention center located in the
county.
(2) Capital improvements to a convention center located in the
county.
(3) Financial incentives to attract, promote, or encourage new
business conventions, trade shows, or special events held at a
convention center located in the county.
(f) A financial incentive described in subsection (e)(3) may not be
HB 1080—LS 6407/DI 125 20
distributed to a new business for at least thirty (30) days after the
conclusion of a convention, trade show, or special event that is held by
the new business at a convention center located in the county.
SECTION 4. IC 6-9-14-6, AS AMENDED BY P.L.9-2024,
SECTION 232, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 6. (a) The county council may levy
a tax on every person engaged in the business of renting or furnishing,
for periods of less than thirty (30) days, any room or rooms, lodgings
or accommodations in any hotel, motel, inn, conference center, retreat
center, or tourist cabin located in the county. However, the county
council may not levy the tax on a person for engaging in the business
of providing campsites within a state or federal park or forest. The tax
may be imposed at any rate up to and including five that does not
exceed eight percent (5%). (8%). The tax shall be imposed on the
gross retail income derived from lodging income only and shall be in
addition to the state gross retail tax imposed on those persons by
IC 6-2.5.
(b) The county fiscal body may adopt an ordinance to require that
the tax shall be paid monthly to the county treasurer. If such an
ordinance is adopted, the tax shall be paid to the county treasurer not
more than twenty (20) days after the end of the month the tax is
collected. If such an ordinance is not adopted, the tax shall be imposed,
paid and collected in exactly the same manner as the state gross retail
tax is imposed, paid, and collected pursuant to IC 6-2.5.
(c) All of the provisions of IC 6-2.5 relating to rights, duties,
liabilities, procedures, penalties, definitions, exemptions, and
administration apply to the imposition and administration of the tax
imposed under this section, except to the extent those provisions are in
conflict or inconsistent with the specific provisions of this chapter or
the requirements of the county treasurer. Specifically and not in
limitation of the foregoing sentence, the terms "person" and "gross
retail income" shall have the same meaning in this section as they have
in IC 6-2.5. If the tax is paid to the department of state revenue, the
returns to be filed for the payment of the tax under this section may be
either a separate return or may be combined with the return filed for the
payment of the state gross retail tax as the department of state revenue
may, by rule or regulation, determine.
(d) If the tax is paid to the department of state revenue, the amounts
received from the tax shall be paid quarterly by the treasurer of state to
the county treasurer upon warrants issued by the state comptroller.
(e) The tax imposed under subsection (a) does not apply to the
renting or furnishing of rooms, lodgings, or accommodations to a
HB 1080—LS 6407/DI 125 21
person for a period of thirty (30) days or more.
SECTION 5. IC 6-9-18-3, AS AMENDED BY P.L.136-2024,
SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 3. (a) The fiscal body of a county may levy a
tax on every person engaged in the business of renting or furnishing,
for periods of less than thirty (30) days, any room or rooms, lodgings,
or accommodations in any:
(1) hotel;
(2) motel;
(3) boat motel;
(4) inn;
(5) college or university memorial union;
(6) college or university residence hall or dormitory; or
(7) tourist cabin;
located in the county.
(b) The tax does not apply to gross income received in a transaction
in which:
(1) a student rents lodgings in a college or university residence
hall while that student participates in a course of study for which
the student receives college credit from a college or university
located in the county; or
(2) a person rents a room, lodging, or accommodations for a
period of thirty (30) days or more.
(c) The tax may not exceed:
(1) the rate of five percent (5%) in a county other than a county
subject to subdivision (2), (3), or (4), or (5);
(2) after June 30, 2019, and except as provided in section 6.7 of
this chapter, the rate of eight percent (8%) in Howard County;
(3) after June 30, 2021, the rate of nine percent (9%) in Daviess
County; or
(4) after June 30, 2023, the rate of eight percent (8%) in Parke
County; or
(5) after June 30, 2025, the rate of eight percent (8%) in
Delaware County.
The tax is imposed on the gross retail income derived from lodging
income only and is in addition to the state gross retail tax imposed
under IC 6-2.5.
(d) The county fiscal body may adopt an ordinance to require that
the tax shall be paid monthly to the county treasurer. If such an
ordinance is adopted, the tax shall be paid to the county treasurer not
more than twenty (20) days after the end of the month the tax is
collected. If such an ordinance is not adopted, the tax shall be imposed,
HB 1080—LS 6407/DI 125 22
paid, and collected in exactly the same manner as the state gross retail
tax is imposed, paid, and collected under IC 6-2.5.
(e) All of the provisions of IC 6-2.5 relating to rights, duties,
liabilities, procedures, penalties, definitions, exemptions, and
administration are applicable to the imposition and administration of
the tax imposed under this section except to the extent those provisions
are in conflict or inconsistent with the specific provisions of this
chapter or the requirements of the county treasurer. If the tax is paid to
the department of state revenue, the return to be filed for the payment
of the tax under this section may be either a separate return or may be
combined with the return filed for the payment of the state gross retail
tax as the department of state revenue may, by rule, determine.
(f) If the tax is paid to the department of state revenue, the amounts
received from the tax imposed under this section shall be paid monthly
by the treasurer of state to the county treasurer upon warrants issued by
the state comptroller.".
Page 1, between lines 4 and 5, begin a new paragraph and insert:
"SECTION 7. IC 6-9-41-5, AS AMENDED BY P.L.236-2023,
SECTION 104, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 5. (a) Subject to section 15.5 of
this chapter, The fiscal body of the county may adopt an ordinance to
impose an excise tax, known as the county food and beverage tax, on
those transactions described in section 6 of this chapter. The effective
date of an ordinance adopted under this subsection must be after
December 31, 2009.
(b) If the fiscal body adopts an ordinance under subsection (a), the
fiscal body shall immediately send a certified copy of the ordinance to
the commissioner of the department of state revenue.
(c) If the fiscal body adopts an ordinance under subsection (a), the
county food and beverage tax applies to transactions that occur after the
last day of the month that succeeds the month in which the ordinance
is adopted. However, if an ordinance is adopted before December 1,
2009, and the ordinance takes effect January 1, 2010, the tax applies to
transactions after December 31, 2009.".
Page 1, line 8, after "chapter," insert "the fiscal body of the town
may, not later than December 31, 2025, adopt an ordinance to
receive revenue collected from the tax imposed in the county. An
ordinance adopted under this subsection must specify that the
collection of revenue by the town from the tax imposed under this
chapter terminates not later than July 1, 2027.
(b) If an ordinance is adopted under section 5 of this chapter
and subsection (a),".
HB 1080—LS 6407/DI 125 23
Page 1, line 10, delete "(b)" and insert "(c)".
Page 1, line 12, delete "(c)" and insert "(d)".
Page 1, line 14, delete "(d)" and insert "(e)".
Page 1, delete lines 16 through 17, begin a new paragraph and
insert:
"(f) If the fiscal body of the town adopts an ordinance under
subsection (a), the fiscal body of the town shall immediately send
a certified copy of the ordinance to the department of state
revenue, the county fiscal body, and the city fiscal body.
SECTION 9. IC 6-9-41-13, AS ADDED BY P.L.176-2009,
SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 13. (a) Each month, the county auditor shall
distribute the county food and beverage tax revenue received by the
county treasurer between the city and the county according to the
location where the county food and beverage tax was collected. If the
county food and beverage tax was collected in the city, the city must
receive the revenue. If the county food and beverage tax was collected
in the part of the county that is outside the city, the county must receive
the revenue. revenue must be distributed according to the
following:
(1) If the town adopts an ordinance under section 12.5 of this
chapter, of the revenue collected in the part of the county that
is outside the city before July 1, 2027, the county auditor shall
distribute:
(A) fifty percent (50%) of the revenue to the county; and
(B) fifty percent (50%) of the revenue to the town.
(2) After June 30, 2027, or, if the town has not adopted an
ordinance under section 12.5 of this chapter, the county
auditor shall distribute to the county all of the revenue
collected in the part of the county that is outside the city.
(b) Distribution of county food and beverage tax revenue to the city
and the town must be on warrants issued by the county auditor.
SECTION 10. IC 6-9-41-14, AS AMENDED BY P.L.236-2023,
SECTION 105, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 14. (a) The county's share of
county food and beverage tax revenue deposited in the county food and
beverage tax receipts fund may be used only to finance, refinance,
construct, operate, or maintain a convention center, a conference
center, or related tourism or economic development projects. However,
before July 1, 2027, money deposited in the county food and
beverage tax receipts fund may not be pledged as money under
IC 5-1-14-4 or any other law for bonds, leases, or other obligations
HB 1080—LS 6407/DI 125 24
incurred for any purpose.
(b) The county must develop a written plan before December 1 of
each year that includes the:
(1) proposed use of funds under subsection (a) for the upcoming
calendar year;
(2) detailed use of funds under subsection (a) in the current and
prior calendar years; and
(3) fund balance as of January 1 of the current calendar year.
The written plan described in this subsection must be submitted to the
state board of accounts and be made available on the department's
computer gateway within thirty (30) days of submission.
(c) The county may not spend money in the county food and
beverage tax receipts fund unless a written plan has been
developed in the manner required under subsection (b). If a written
plan has been developed in the manner required under subsection
(b), the county must spend the money in the county food and beverage
tax receipts fund in accordance with the written plan. required by
subsection (b). If no funds have been expended from the county food
and beverage tax receipts fund in accordance with the written plan
required by subsection (b) before July 1, 2025, then section 15.5 of this
chapter applies.
SECTION 11. IC 6-9-41-15, AS AMENDED BY P.L.236-2023,
SECTION 106, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 15. (a) Money deposited in the
city food and beverage tax receipts fund may be used only to finance,
refinance, construct, operate, or maintain a convention center, a
conference center, or related tourism or economic development
projects.
(b) The city must develop a written plan before December 1 of each
year that includes the:
(1) proposed use of funds under subsection (a) for the upcoming
calendar year;
(2) detailed use of funds under subsection (a) in the current and
prior calendar years; and
(3) fund balance as of January 1 of the current calendar year.
The written plan described in this subsection must be submitted to the
state board of accounts and be made available on the department's
computer gateway within thirty (30) days of submission.
(c) The city may not spend money in the city food and beverage
tax receipts fund unless a written plan has been developed in the
manner required under subsection (b). If a written plan has been
developed in the manner required under subsection (b), the city
HB 1080—LS 6407/DI 125 25
must spend the money in the city food and beverage tax receipts fund
in accordance with the written plan required by subsection (b). If no
funds have been expended from the city food and beverage tax receipts
fund in accordance with the written plan required by subsection (b)
before July 1, 2025, then section 15.5 of this chapter applies.".
Page 2, delete lines 1 through 12.
Page 2, line 15, after "15.3." insert "(a)".
Page 2, line 16, delete "for:" and insert "only for transit related
purposes.".
Page 2, delete lines 17 through 21.
Page 2, line 22, delete "including the pledge of money under
IC 5-1-14-4" and insert "However, before July 1, 2027, money
deposited in the town food and beverage tax receipts fund may not
be pledged as money under IC 5-1-14-4 or any other law".
Page 2, run in lines 16 through 22.
Page 2, line 23, delete "for a purpose described in" and insert "for
any purpose.".
Page 2, line 24, delete "subdivisions (1) through (4).", begin a new
paragraph and insert:
"(b)".
Page 2, after line 28, begin a new paragraph and insert:
"SECTION 13. IC 6-9-41-15.5 IS REPEALED [EFFECTIVE UPON
PASSAGE]. Sec. 15.5. (a) This section applies only if the county and
city do not spend money from the county or city food and beverage tax
receipts fund as required by sections 14(c) and 15(c) of this chapter.
(b) The ordinance adopted under section 5 of this chapter to impose
the food and beverage tax is void and food and beverage tax revenue
may not be collected after June 30, 2025. The county may not adopt a
new ordinance under section 5 of this chapter after June 30, 2025.
(c) The following apply to the distribution of the unexpended money
in the county food and beverage tax receipts fund and city food and
beverage tax receipts fund:
(1) The:
(A) county treasurer shall certify to the county auditor the
balance in the county food and beverage tax receipts fund; and
(B) city fiscal officer shall certify to the county auditor the
balance in the city food and beverage tax receipts fund.
(2) After the county auditor receives the certified fund balances
under subdivision (1), the county auditor shall distribute, before
October 1, 2025, the money in each fund according to the ratio
that the maximum permissible ad valorem property tax levy under
IC 6-1.1-18.5 for property taxes first due and payable in 2025 for
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each taxing unit in the county bears to the sum of all maximum
permissible ad valorem property tax levies under IC 6-1.1-18.5 for
property tax first due and payable in 2025 in the county.
SECTION 14. IC 6-9-41-17, AS ADDED BY P.L.236-2023,
SECTION 109, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 17. (a) Except as otherwise
provided in sections 14, 15, and 15.5 of this chapter, The tax authorized
under this chapter expires on the later of:
(1) January 1, 2045; or
(2) the date on which all bonds or lease agreements outstanding
on May 7, 2023, for which a pledge of tax revenue is made under
this chapter are completely paid.
(b) Not later than December 31, 2023, the fiscal officer of the
county and the fiscal officer of the city shall provide to the state board
of accounts:
(1) a list of each bond or lease agreement outstanding on May 7,
2023, for which a pledge of tax revenue is made under this
chapter; and
(2) the date on which each bond or lease agreement identified in
subdivision (1) will be completely paid.
The information received under this subsection shall be published on
the department of local government finance's interactive and searchable
website containing local government information (the Indiana gateway
for governmental units).
SECTION 15. IC 6-9-60 IS ADDED TO THE INDIANA CODE AS
A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]:
Chapter 60. LaGrange County Innkeeper's Tax
Sec. 1. (a) This chapter applies to LaGrange County, if the
county had adopted an innkeeper's tax under IC 6-9-18 before July
1, 2025.
(b) The:
(1) convention, visitor, and tourism promotion fund;
(2) convention and visitor commission;
(3) innkeeper's tax rate; and
(4) tax collection procedures;
established under IC 6-9-18 before July 1, 2025, remain in effect
and govern the county's innkeeper's tax until amended under this
chapter.
(c) A member of the convention and visitor commission
established under IC 6-9-18 before July 1, 2025, shall serve a full
term of office. If a vacancy occurs, the appointing authority shall
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appoint a qualified replacement as provided under this chapter.
The appointing authority shall make other subsequent
appointments to the commission as provided under this chapter.
Sec. 2. As used in this chapter:
(1) "executive" and "fiscal body" have the meanings set forth
in IC 36-1-2; and
(2) "gross retail income" and "person" have the meanings set
forth in IC 6-2.5-1.
Sec. 3. (a) The fiscal body of the county may levy a tax on every
person engaged in the business of renting or furnishing, for periods
of less than thirty (30) days, any room or rooms, lodgings, or
accommodations in any:
(1) hotel;
(2) motel;
(3) boat motel;
(4) inn;
(5) college or university memorial union;
(6) college or university residence hall or dormitory; or
(7) tourist cabin;
located in the county.
(b) The tax does not apply to gross income received in a
transaction in which:
(1) a student rents lodgings in a college or university residence
hall while that student participates in a course of study for
which the student receives college credit from a college or
university located in the county; or
(2) a person rents a room, lodging, or accommodations for a
period of thirty (30) days or more.
(c) Subject to section 4 of this chapter, the tax may not exceed
the rate of eight percent (8%) on the gross retail income derived
from lodging income only and is in addition to the state gross retail
tax imposed under IC 6-2.5.
(d) The county fiscal body may adopt an ordinance to require
that the tax shall be paid monthly to the county treasurer. If such
an ordinance is adopted, the tax shall be paid to the county
treasurer not more than twenty (20) days after the end of the
month the tax is collected. If such an ordinance is not adopted, the
tax shall be imposed, paid, and collected in exactly the same
manner as the state gross retail tax is imposed, paid, and collected
under IC 6-2.5.
(e) All of the provisions of IC 6-2.5 relating to rights, duties,
liabilities, procedures, penalties, definitions, exemptions, and
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administration are applicable to the imposition and administration
of the tax imposed under this section except to the extent those
provisions are in conflict or inconsistent with the specific
provisions of this chapter or the requirements of the county
treasurer. If the tax is paid to the department of state revenue, the
return to be filed for the payment of the tax under this section may
be either a separate return or may be combined with the return
filed for the payment of the state gross retail tax as the department
of state revenue may, by rule, determine.
(f) If the tax is paid to the department of state revenue, the
amounts received from the tax imposed under this section shall be
paid monthly by the treasurer of state to the county treasurer upon
warrants issued by the state comptroller.
Sec. 4. (a) After June 30, 2025, the county fiscal body may adopt
an ordinance to increase the tax rate imposed under section 3 of
this chapter to a tax rate that exceeds five percent (5%) but does
not exceed eight percent (8%). If the county imposes a tax rate that
exceeds five percent (5%), the portion that exceeds five percent
(5%) terminates December 31, 2045.
(b) If the county fiscal body adopts an ordinance for an increase
under this section:
(1) it shall immediately send a certified copy of the ordinance
to the department of state revenue; and
(2) the increase applies to transactions after the last day of the
month in which the ordinance is adopted, if the county fiscal
body adopts the ordinance on or before the fifteenth day of a
month. If the county fiscal body adopts the ordinance after
the fifteenth day of a month, the tax applies to transactions
after the last day of the month following the month in which
the ordinance is adopted.
Sec. 5. (a) The county treasurer shall establish a convention,
visitor, and tourism promotion fund. The county treasurer shall
deposit in this fund all amounts the county treasurer receives
under this chapter.
(b) The county auditor shall issue a warrant directing the
county treasurer to transfer money from the convention, visitor,
and tourism promotion fund to the treasurer of the commission
established under section 6 of this chapter if the commission
submits a written request for the transfer.
(c) Money in a convention, visitor, and tourism promotion fund,
or money transferred from such a fund under subsection (b), may
be expended to promote and encourage conventions, visitors, and
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tourism within the county. Expenditures may include, but are not
limited to, expenditures for advertising, promotional activities,
trade shows, special events, and recreation.
Sec. 6. (a) The county executive shall create a commission to
promote the development and growth of the convention, visitor,
and tourism industry in the county. If two (2) or more adjoining
counties desire to establish a joint commission, the counties shall
enter into an agreement under IC 36-1-7.
(b) The county executive shall determine the number of
members, which must be an odd number, to be appointed to the
commission. Each of the members must be:
(1) engaged in a convention, visitor, or tourism business; or
(2) involved in or promoting conventions, visitors, or tourism.
A member who is an owner or an executive level employee of a
convention, visitor, or tourism related business located in the
county is not required to reside in the county but must reside in
Indiana. A member who is not an owner or an executive level
employee of a convention, visitor, or tourism related business
located in the county must reside in the county. If available and
willing to serve, at least two (2) of the members must be engaged
in the business of renting or furnishing rooms, lodging, or
accommodations (as described in section 3 of this chapter). The
county executive shall also determine who will make the
appointments to the commission.
(c) All terms of office of commission members begin on January
1. Initial appointments must be for staggered terms, with
subsequent appointments for three (3) year terms. A member
whose term expires may be reappointed to serve another term. If
a vacancy occurs, the appointing authority shall appoint a qualified
person to serve for the remainder of the term. If an initial
appointment is not made by February 1 or a vacancy is not filled
within thirty (30) days, the commission shall appoint a member by
majority vote.
(d) A member of the commission may be removed for cause by
the member's appointing authority.
(e) Members of the commission may not receive a salary.
However, commission members are entitled to reimbursement for
necessary expenses incurred in the performance of their respective
duties.
(f) Each commission member, before entering the member's
duties, shall take an oath of office in the usual form, to be endorsed
upon the member's certificate of appointment and promptly filed
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with the clerk of the circuit court of the county.
(g) The commission shall meet after January 1 each year for the
purpose of organization. It shall elect one (1) of its members
president, another vice president, another secretary, and another
treasurer. The members elected to those offices shall perform the
duties pertaining to the offices. The first officers chosen shall serve
from the date of their election until their successors are elected and
qualified. A majority of the commission constitutes a quorum, and
the concurrence of a majority of the commission is necessary to
authorize any action.
Sec. 7. (a) The commission may:
(1) accept and use gifts, grants, and contributions from any
public or private source, under terms and conditions that the
commission considers necessary and desirable;
(2) sue and be sued;
(3) enter into contracts and agreements;
(4) make rules necessary for the conduct of its business and
the accomplishment of its purposes;
(5) receive and approve, alter, or reject requests and
proposals for funding by corporations qualified under
subdivision (6);
(6) after approval of a proposal, transfer money, quarterly or
less frequently, from the fund established under section 5(a)
of this chapter, or from money transferred from that fund to
the commission's treasurer under section 5(b) of this chapter,
to the LaGrange County convention and visitors bureau or to
an entity that contracts with the commission to promote and
encourage conventions, visitors, and tourism in the county;
and
(7) require financial or other reports from any corporation
that receives funds under this chapter.
(b) All expenses of the commission shall be paid from the fund
established under section 5(a) of this chapter or from money
transferred from that fund to the commission's treasurer under
section 5(b) of this chapter. The commission shall annually prepare
a budget, taking into consideration the recommendations made by
an entity qualified under subsection (a)(6), and submit it to the
county fiscal body for its review and approval. An expenditure may
not be made under this chapter unless it is in accordance with an
appropriation made by the county fiscal body in the manner
provided by law.
(c) The county fiscal body and an entity that contracts with the
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commission to promote and encourage conventions, visitors, and
tourism in the county may enter into a confidential agreement to
share revenue and verify compliance if the state board of accounts
first approves the confidential agreement.
Sec. 8. All money coming into possession of the commission shall
be deposited, held, secured, invested, and paid in accordance with
statutes relating to the handling of public funds. The handling and
expenditure of money coming into possession of the commission is
subject to audit and supervision by the state board of accounts.
Sec. 9. (a) A member of the commission who knowingly:
(1) approves the transfer of money to any person or
corporation not qualified under law for that transfer; or
(2) approves a transfer for a purpose not permitted under
law;
commits a Level 6 felony.
(b) A person who receives a transfer of money under this
chapter and knowingly uses that money for any purpose not
permitted under this chapter commits a Level 6 felony.
SECTION 16. IC 6-9-62 IS ADDED TO THE INDIANA CODE AS
A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]:
Chapter 62. Shelbyville Food and Beverage Tax
Sec. 1. This chapter applies to the city of Shelbyville.
Sec. 2. The definitions in IC 6-9-12-1 apply throughout this
chapter.
Sec. 3. (a) The fiscal body of the city may adopt an ordinance to
impose an excise tax, known as the city food and beverage tax, on
transactions described in section 4 of this chapter. The fiscal body
of the city may adopt an ordinance under this subsection only after
the fiscal body has previously held at least one (1) separate public
hearing in which a discussion of the proposed ordinance to impose
the city food and beverage tax is the only substantive issue on the
agenda for the public hearing.
(b) If the city fiscal body adopts an ordinance under subsection
(a), the city fiscal body shall immediately send a certified copy of
the ordinance to the department of state revenue.
(c) If the city fiscal body adopts an ordinance under subsection
(a), the city food and beverage tax applies to transactions that
occur after the later of the following:
(1) The day specified in the ordinance.
(2) The last day of the month that succeeds the month in
which the ordinance is adopted.
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Sec. 4. (a) Except as provided in subsection (c), a tax imposed
under section 3 of this chapter applies to a transaction in which
food or beverage is furnished, prepared, or served:
(1) for consumption at a location or on equipment provided by
a retail merchant;
(2) in the city; and
(3) by a retail merchant for consideration.
(b) Transactions described in subsection (a)(1) include
transactions in which food or beverage is:
(1) served by a retail merchant off the merchant's premises;
(2) sold in a heated state or heated by a retail merchant;
(3) made of two (2) or more food ingredients, mixed or
combined by a retail merchant for sale as a single item (other
than food that is only cut, repackaged, or pasteurized by the
seller, and eggs, fish, meat, poultry, and foods containing these
raw animal foods requiring cooking by the consumer as
recommended by the federal Food and Drug Administration
in chapter 3, subpart 3-401.11 of its Food Code so as to
prevent food borne illnesses); or
(4) sold with eating utensils provided by a retail merchant,
including plates, knives, forks, spoons, glasses, cups, napkins,
or straws (for purposes of this subdivision, a plate does not
include a container or package used to transport food).
(c) The city food and beverage tax does not apply to the
furnishing, preparing, or serving of a food or beverage in a
transaction that is exempt, or to the extent the transaction is
exempt, from the state gross retail tax imposed by IC 6-2.5.
Sec. 5. The city food and beverage tax rate:
(1) must be imposed in an increment of twenty-five
hundredths percent (0.25%); and
(2) may not exceed one percent (1%);
of the gross retail income received by the merchant from the food
or beverage transaction described in section 4 of this chapter. For
purposes of this chapter, the gross retail income received by the
retail merchant from a transaction does not include the amount of
tax imposed on the transaction under IC 6-2.5.
Sec. 6. A tax imposed under this chapter is imposed, paid, and
collected in the same manner that the state gross retail tax is
imposed, paid, and collected under IC 6-2.5. However, the return
to be filed with the payment of the tax imposed under this chapter
may be made on a separate return or may be combined with the
return filed for the payment of the state gross retail tax, as
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prescribed by the department of state revenue.
Sec. 7. The amounts received from the tax imposed under this
chapter shall be paid monthly by the treasurer of state to the city
fiscal officer upon warrants issued by the state comptroller.
Sec. 8. (a) If a tax is imposed under section 3 of this chapter by
the city, the city fiscal officer shall establish a food and beverage
tax receipts fund.
(b) The city fiscal officer shall deposit in the fund all amounts
received under this chapter.
(c) Money earned from the investment of money in the fund
becomes a part of the fund.
Sec. 9. Money in the food and beverage tax receipts fund must
be used by the city only for the following purposes:
(1) Rehabilitation, renovation, repurposing, improvement, or
maintenance of historic property.
(2) Park and recreation purposes, including the purchase of
land for park and recreation purposes.
(3) Economic development purposes.
(4) The pledge of money under IC 5-1-14-4 for bonds, leases,
or other obligations incurred for a purpose described in
subdivisions (1) through (3).
Revenue derived from the imposition of a tax under this chapter
may be treated by the city as additional revenue for the purpose of
fixing its budget for the budget year during which the revenues are
to be distributed to the city.
Sec. 10. With respect to obligations for which a pledge has been
made under section 9 of this chapter, the general assembly
covenants with the holders of the obligations that this chapter will
not be repealed or amended in a manner that will adversely affect
the imposition or collection of the tax imposed under this chapter
if the payment of any of the obligations is outstanding.
Sec. 11. (a) If the city imposes the tax authorized by this chapter,
the tax terminates on July 1, 2047.
(b) This chapter expires July 1, 2047.
SECTION 17. IC 35-52-6-85 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 85. IC 6-9-60-9 defines a crime
concerning innkeeper's taxes.
SECTION 18. An emergency is declared for this act.".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
HB 1080—LS 6407/DI 125 34
(Reference is to HB 1080 as introduced.)
THOMPSON
Committee Vote: yeas 23, nays 1.
HB 1080—LS 6407/DI 125