Indiana 2025 Regular Session

Indiana House Bill HB1080 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	~~HB1080.1~~
2		-	~~January 30, 2025~~
	1	+
	2	+	Introduced Version
3	3		HOUSE BILL No. 1080
4	4		_____
5		-	DIGEST OF HB 1080 (Updated January 29, 2025 6:07 pm - DI 125)
6		-	Citations Affected: IC 6-9; IC 35-52.
7		-	Synopsis: Innkeeper's and food and beverage taxes. Provides that the
8		-	fiscal body of the town of Ellettsville (town) may, not later than
9		-	December 31, 2025, adopt an ordinance to receive revenue collected
10		-	from the food and beverage tax. Specifies the distribution of revenue.
11		-	Provides that the ordinance must specify that the town's collection of
12		-	the revenue terminates not later than July 1, 2027. Authorizes
13		-	LaGrange County to impose an innkeeper's tax to replace the
14		-	innkeeper's tax the county currently imposes under the uniform
15		-	innkeeper's tax law. Allows a maximum tax rate of 8%. Allows the city
16		-	of Shelbyville to impose a food and beverage tax. Allows Brown
17		-	County to impose its innkeeper's tax at a rate that does not exceed 8%
18		-	(instead of 5% under current law) under its enabling statute.
19		-	Reallocates the amounts of revenue received from the Vanderburgh
20		-	County innkeeper's tax to be deposited in the convention and visitor
21		-	promotion fund, the tourism capital improvement fund, and the
22		-	convention center operating, capital improvement, and financial
23		-	incentive fund. Authorizes Delaware County to increase the county's
24		-	innkeeper's tax rate from 5% to not more than 8% under the uniform
25		-	innkeeper's tax statute.
26		-	Effective: Upon passage; July 1, 2025.
	5	+	DIGEST OF INTRODUCED BILL
	6	+	Citations Affected: IC 6-9-41.
	7	+	Synopsis: Monroe County food and beverage tax. Provides that the
	8	+	parts of the Monroe County food and beverage tax collected in the
	9	+	town of Ellettsville must be distributed to the town of Ellettsville.
	10	+	Effective: July 1, 2025.
27	11		Mayfield, Heaton
28	12		January 8, 2025, read first time and referred to Committee on Ways and Means.
29		-	January 30, 2025, amended, reported — Do Pass.
30		-	HB 1080—LS 6407/DI 125 January 30, 2025
	13	+	2025 IN 1080—LS 6407/DI 125 Introduced
31	14		First Regular Session of the 124th General Assembly (2025)
32	15		PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
33	16		Constitution) is being amended, the text of the existing provision will appear in this style type,
34	17		additions will appear in this style type, and deletions will appear in this style type.
35	18		Additions: Whenever a new statutory provision is being enacted (or a new constitutional
36	19		provision adopted), the text of the new provision will appear in this style type. Also, the
37	20		word NEW will appear in that style type in the introductory clause of each SECTION that adds
38	21		a new provision to the Indiana Code or the Indiana Constitution.
39	22		Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
40	23		between statutes enacted by the 2024 Regular Session of the General Assembly.
41	24		HOUSE BILL No. 1080
42	25		A BILL FOR AN ACT to amend the Indiana Code concerning
43	26		taxation.
44	27		Be it enacted by the General Assembly of the State of Indiana:
45		-	1 SECTION 1. IC 6-9-2.5-7, AS AMENDED BY P.L.168-2005,
46		-	2 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
47		-	3 JULY 1, 2025]: Sec. 7. (a) The county treasurer shall establish a
48		-	4 convention and visitor promotion fund.
49		-	5 (b) The county treasurer shall deposit in the convention and visitor
50		-	6 promotion fund the amount of money received under section 6 of this
51		-	7 chapter as follows:
52		-	8 (1) Before January 1, 2026, the county treasurer shall deposit
53		-	9 in the convention and visitor promotion fund the amount of
54		-	10 money received under section 6 of this chapter that is
55		-	11 generated by a two and one-half percent (2.5%) rate.
56		-	12 (2) After December 31, 2025, the county treasurer shall
57		-	13 deposit in the convention and visitor promotion fund the
58		-	14 amount of money received under section 6 of this chapter that
59		-	15 is generated by a three percent (3%) rate.
60		-	16 (c) Money in this fund shall be expended only as provided in this
61		-	17 chapter.
62		-	HB 1080—LS 6407/DI 125 2
63		-	1 (d) The commission may transfer money in the convention and
64		-	2 visitor promotion fund to any Indiana nonprofit corporation for the
65		-	3 purpose of promotion and encouragement in the county of conventions,
66		-	4 trade shows, visitors, or special events. The commission may transfer
67		-	5 money under this section only after approving the transfer. Transfers
68		-	6 shall be made quarterly or less frequently under this section.
69		-	7 SECTION 2. IC 6-9-2.5-7.5, AS AMENDED BY P.L.290-2019,
70		-	8 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
71		-	9 JULY 1, 2025]: Sec. 7.5. (a) The county treasurer shall establish a
72		-	10 tourism capital improvement fund.
73		-	11 (b) The county treasurer shall deposit money in the tourism capital
74		-	12 improvement fund as follows:
75		-	13 (1) Before January 1, 2026, the county treasurer shall deposit in
76		-	14 the tourism capital improvement fund the amount of money
77		-	15 received under section 6 of this chapter that is generated by a
78		-	16 three and one-half percent (3.5%) rate.
79		-	17 (2) After December 31, 2025, and before January 1, 2029, the
80		-	18 county treasurer shall deposit in the tourism capital improvement
81		-	19 fund the amount of money received under section 6 of this chapter
82		-	20 that is generated by a four and one-half percent (4.5%) three
83		-	21 percent (3%) rate.
84		-	22 (3) After December 31, 2028, the county treasurer shall
85		-	23 deposit in the tourism capital improvement fund the amount
86		-	24 of money received under section 6 of this chapter that is
87		-	25 generated by a four percent (4%) rate.
88		-	26 (c) The commission may transfer money in the tourism capital
89		-	27 improvement fund to:
90		-	28 (1) the county government, a city government, or a separate body
91		-	29 corporate and politic in a county described in section 1 of this
92		-	30 chapter; or
93		-	31 (2) any Indiana nonprofit corporation;
94		-	32 for the purpose of making capital improvements in the county that
95		-	33 promote conventions, tourism, or recreation. The commission may
96		-	34 transfer money under this section only after approving the transfer.
97		-	35 Transfers shall be made quarterly or less frequently under this section.
98		-	36 SECTION 3. IC 6-9-2.5-7.7, AS AMENDED BY P.L.290-2019,
99		-	37 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
100		-	38 JULY 1, 2025]: Sec. 7.7. (a) As used in this section, "fund" refers to the
101		-	39 convention center operating, capital improvement, and financial
102		-	40 incentive fund established under subsection (b).
103		-	41 (b) The county treasurer shall establish a convention center
104		-	42 operating, capital improvement, and financial incentive fund.
105		-	HB 1080—LS 6407/DI 125 3
106		-	1 (c) Before January 1, 2026, 2029, the county treasurer shall deposit
107		-	2 in the fund the amount of money received under section 6 of this
108		-	3 chapter that is generated by a two percent (2%) rate.
109		-	4 (d) After December 31, 2025, 2028, the county treasurer shall
110		-	5 deposit in the fund the amount of money received under section 6 of
111		-	6 this chapter that is generated by a one percent (1%) rate.
112		-	7 (e) Money in the fund may be expended only for the following:
113		-	8 (1) Operating expenses of a convention center located in the
114		-	9 county.
115		-	10 (2) Capital improvements to a convention center located in the
116		-	11 county.
117		-	12 (3) Financial incentives to attract, promote, or encourage new
118		-	13 business conventions, trade shows, or special events held at a
119		-	14 convention center located in the county.
120		-	15 (f) A financial incentive described in subsection (e)(3) may not be
121		-	16 distributed to a new business for at least thirty (30) days after the
122		-	17 conclusion of a convention, trade show, or special event that is held by
123		-	18 the new business at a convention center located in the county.
124		-	19 SECTION 4. IC 6-9-14-6, AS AMENDED BY P.L.9-2024,
125		-	20 SECTION 232, IS AMENDED TO READ AS FOLLOWS
126		-	21 [EFFECTIVE JULY 1, 2025]: Sec. 6. (a) The county council may levy
127		-	22 a tax on every person engaged in the business of renting or furnishing,
128		-	23 for periods of less than thirty (30) days, any room or rooms, lodgings
129		-	24 or accommodations in any hotel, motel, inn, conference center, retreat
130		-	25 center, or tourist cabin located in the county. However, the county
131		-	26 council may not levy the tax on a person for engaging in the business
132		-	27 of providing campsites within a state or federal park or forest. The tax
133		-	28 may be imposed at any rate up to and including five that does not
134		-	29 exceed eight percent (5%). (8%). The tax shall be imposed on the
135		-	30 gross retail income derived from lodging income only and shall be in
136		-	31 addition to the state gross retail tax imposed on those persons by
137		-	32 IC 6-2.5.
138		-	33 (b) The county fiscal body may adopt an ordinance to require that
139		-	34 the tax shall be paid monthly to the county treasurer. If such an
140		-	35 ordinance is adopted, the tax shall be paid to the county treasurer not
141		-	36 more than twenty (20) days after the end of the month the tax is
142		-	37 collected. If such an ordinance is not adopted, the tax shall be imposed,
143		-	38 paid and collected in exactly the same manner as the state gross retail
144		-	39 tax is imposed, paid, and collected pursuant to IC 6-2.5.
145		-	40 (c) All of the provisions of IC 6-2.5 relating to rights, duties,
146		-	41 liabilities, procedures, penalties, definitions, exemptions, and
147		-	42 administration apply to the imposition and administration of the tax
148		-	HB 1080—LS 6407/DI 125 4
149		-	1 imposed under this section, except to the extent those provisions are in
150		-	2 conflict or inconsistent with the specific provisions of this chapter or
151		-	3 the requirements of the county treasurer. Specifically and not in
152		-	4 limitation of the foregoing sentence, the terms "person" and "gross
153		-	5 retail income" shall have the same meaning in this section as they have
154		-	6 in IC 6-2.5. If the tax is paid to the department of state revenue, the
155		-	7 returns to be filed for the payment of the tax under this section may be
156		-	8 either a separate return or may be combined with the return filed for the
157		-	9 payment of the state gross retail tax as the department of state revenue
158		-	10 may, by rule or regulation, determine.
159		-	11 (d) If the tax is paid to the department of state revenue, the amounts
160		-	12 received from the tax shall be paid quarterly by the treasurer of state to
161		-	13 the county treasurer upon warrants issued by the state comptroller.
162		-	14 (e) The tax imposed under subsection (a) does not apply to the
163		-	15 renting or furnishing of rooms, lodgings, or accommodations to a
164		-	16 person for a period of thirty (30) days or more.
165		-	17 SECTION 5. IC 6-9-18-3, AS AMENDED BY P.L.136-2024,
166		-	18 SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
167		-	19 UPON PASSAGE]: Sec. 3. (a) The fiscal body of a county may levy a
168		-	20 tax on every person engaged in the business of renting or furnishing,
169		-	21 for periods of less than thirty (30) days, any room or rooms, lodgings,
170		-	22 or accommodations in any:
171		-	23 (1) hotel;
172		-	24 (2) motel;
173		-	25 (3) boat motel;
174		-	26 (4) inn;
175		-	27 (5) college or university memorial union;
176		-	28 (6) college or university residence hall or dormitory; or
177		-	29 (7) tourist cabin;
178		-	30 located in the county.
179		-	31 (b) The tax does not apply to gross income received in a transaction
180		-	32 in which:
181		-	33 (1) a student rents lodgings in a college or university residence
182		-	34 hall while that student participates in a course of study for which
183		-	35 the student receives college credit from a college or university
184		-	36 located in the county; or
185		-	37 (2) a person rents a room, lodging, or accommodations for a
186		-	38 period of thirty (30) days or more.
187		-	39 (c) The tax may not exceed:
188		-	40 (1) the rate of five percent (5%) in a county other than a county
189		-	41 subject to subdivision (2), (3), or (4), or (5);
190		-	42 (2) after June 30, 2019, and except as provided in section 6.7 of
191		-	HB 1080—LS 6407/DI 125 5
192		-	1 this chapter, the rate of eight percent (8%) in Howard County;
193		-	2 (3) after June 30, 2021, the rate of nine percent (9%) in Daviess
194		-	3 County; or
195		-	4 (4) after June 30, 2023, the rate of eight percent (8%) in Parke
196		-	5 County; or
197		-	6 (5) after June 30, 2025, the rate of eight percent (8%) in
198		-	7 Delaware County.
199		-	8 The tax is imposed on the gross retail income derived from lodging
200		-	9 income only and is in addition to the state gross retail tax imposed
201		-	10 under IC 6-2.5.
202		-	11 (d) The county fiscal body may adopt an ordinance to require that
203		-	12 the tax shall be paid monthly to the county treasurer. If such an
204		-	13 ordinance is adopted, the tax shall be paid to the county treasurer not
205		-	14 more than twenty (20) days after the end of the month the tax is
206		-	15 collected. If such an ordinance is not adopted, the tax shall be imposed,
207		-	16 paid, and collected in exactly the same manner as the state gross retail
208		-	17 tax is imposed, paid, and collected under IC 6-2.5.
209		-	18 (e) All of the provisions of IC 6-2.5 relating to rights, duties,
210		-	19 liabilities, procedures, penalties, definitions, exemptions, and
211		-	20 administration are applicable to the imposition and administration of
212		-	21 the tax imposed under this section except to the extent those provisions
213		-	22 are in conflict or inconsistent with the specific provisions of this
214		-	23 chapter or the requirements of the county treasurer. If the tax is paid to
215		-	24 the department of state revenue, the return to be filed for the payment
216		-	25 of the tax under this section may be either a separate return or may be
217		-	26 combined with the return filed for the payment of the state gross retail
218		-	27 tax as the department of state revenue may, by rule, determine.
219		-	28 (f) If the tax is paid to the department of state revenue, the amounts
220		-	29 received from the tax imposed under this section shall be paid monthly
221		-	30 by the treasurer of state to the county treasurer upon warrants issued by
222		-	31 the state comptroller.
223		-	32 SECTION 6. IC 6-9-41-4.5 IS ADDED TO THE INDIANA CODE
224		-	33 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
225		-	34 UPON PASSAGE]: Sec. 4.5. As used in this chapter, "town" means
226		-	35 the town of Ellettsville.
227		-	36 SECTION 7. IC 6-9-41-5, AS AMENDED BY P.L.236-2023,
228		-	37 SECTION 104, IS AMENDED TO READ AS FOLLOWS
229		-	38 [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) Subject to section 15.5 of
230		-	39 this chapter, The fiscal body of the county may adopt an ordinance to
231		-	40 impose an excise tax, known as the county food and beverage tax, on
232		-	41 those transactions described in section 6 of this chapter. The effective
233		-	42 date of an ordinance adopted under this subsection must be after
234		-	HB 1080—LS 6407/DI 125 6
235		-	1 December 31, 2009.
236		-	2 (b) If the fiscal body adopts an ordinance under subsection (a), the
237		-	3 fiscal body shall immediately send a certified copy of the ordinance to
238		-	4 the commissioner of the department of state revenue.
239		-	5 (c) If the fiscal body adopts an ordinance under subsection (a), the
240		-	6 county food and beverage tax applies to transactions that occur after the
241		-	7 last day of the month that succeeds the month in which the ordinance
242		-	8 is adopted. However, if an ordinance is adopted before December 1,
243		-	9 2009, and the ordinance takes effect January 1, 2010, the tax applies to
244		-	10 transactions after December 31, 2009.
245		-	11 SECTION 8. IC 6-9-41-12.5 IS ADDED TO THE INDIANA CODE
246		-	12 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
247		-	13 UPON PASSAGE]: Sec. 12.5. (a) If an ordinance is adopted under
248		-	14 section 5 of this chapter, the fiscal body of the town may, not later
249		-	15 than December 31, 2025, adopt an ordinance to receive revenue
250		-	16 collected from the tax imposed in the county. An ordinance
251		-	17 adopted under this subsection must specify that the collection of
252		-	18 revenue by the town from the tax imposed under this chapter
253		-	19 terminates not later than July 1, 2027.
254		-	20 (b) If an ordinance is adopted under section 5 of this chapter
255		-	21 and subsection (a), the fiscal officer of the town shall establish a
256		-	22 food and beverage tax receipts fund.
257		-	23 (c) The fiscal officer shall deposit in the fund county food and
258		-	24 beverage tax revenue that the fiscal officer receives.
259		-	25 (d) Any money earned from the investment of money in the fund
260		-	26 becomes part of the fund.
261		-	27 (e) Money in the fund at the end of the town fiscal year does not
262		-	28 revert to the town general fund.
263		-	29 (f) If the fiscal body of the town adopts an ordinance under
264		-	30 subsection (a), the fiscal body of the town shall immediately send
265		-	31 a certified copy of the ordinance to the department of state
266		-	32 revenue, the county fiscal body, and the city fiscal body.
267		-	33 SECTION 9. IC 6-9-41-13, AS ADDED BY P.L.176-2009,
268		-	34 SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
269		-	35 UPON PASSAGE]: Sec. 13. (a) Each month, the county auditor shall
270		-	36 distribute the county food and beverage tax revenue received by the
271		-	37 county treasurer between the city and the county according to the
272		-	38 location where the county food and beverage tax was collected. If the
273		-	39 county food and beverage tax was collected in the city, the city must
274		-	40 receive the revenue. If the county food and beverage tax was collected
275		-	41 in the part of the county that is outside the city, the county must receive
276		-	42 the revenue. revenue must be distributed according to the
277		-	HB 1080—LS 6407/DI 125 7
278		-	1 following:
279		-	2 (1) If the town adopts an ordinance under section 12.5 of this
280		-	3 chapter, of the revenue collected in the part of the county that
281		-	4 is outside the city before July 1, 2027, the county auditor shall
282		-	5 distribute:
283		-	6 (A) fifty percent (50%) of the revenue to the county; and
284		-	7 (B) fifty percent (50%) of the revenue to the town.
285		-	8 (2) After June 30, 2027, or, if the town has not adopted an
286		-	9 ordinance under section 12.5 of this chapter, the county
287		-	10 auditor shall distribute to the county all of the revenue
288		-	11 collected in the part of the county that is outside the city.
289		-	12 (b) Distribution of county food and beverage tax revenue to the city
290		-	13 and the town must be on warrants issued by the county auditor.
291		-	14 SECTION 10. IC 6-9-41-14, AS AMENDED BY P.L.236-2023,
292		-	15 SECTION 105, IS AMENDED TO READ AS FOLLOWS
293		-	16 [EFFECTIVE UPON PASSAGE]: Sec. 14. (a) The county's share of
294		-	17 county food and beverage tax revenue deposited in the county food and
295		-	18 beverage tax receipts fund may be used only to finance, refinance,
296		-	19 construct, operate, or maintain a convention center, a conference
297		-	20 center, or related tourism or economic development projects. However,
298		-	21 before July 1, 2027, money deposited in the county food and
299		-	22 beverage tax receipts fund may not be pledged as money under
300		-	23 IC 5-1-14-4 or any other law for bonds, leases, or other obligations
301		-	24 incurred for any purpose.
302		-	25 (b) The county must develop a written plan before December 1 of
303		-	26 each year that includes the:
304		-	27 (1) proposed use of funds under subsection (a) for the upcoming
305		-	28 calendar year;
306		-	29 (2) detailed use of funds under subsection (a) in the current and
307		-	30 prior calendar years; and
308		-	31 (3) fund balance as of January 1 of the current calendar year.
309		-	32 The written plan described in this subsection must be submitted to the
310		-	33 state board of accounts and be made available on the department's
311		-	34 computer gateway within thirty (30) days of submission.
312		-	35 (c) The county may not spend money in the county food and
313		-	36 beverage tax receipts fund unless a written plan has been
314		-	37 developed in the manner required under subsection (b). If a written
315		-	38 plan has been developed in the manner required under subsection
316		-	39 (b), the county must spend the money in the county food and beverage
317		-	40 tax receipts fund in accordance with the written plan. required by
318		-	41 subsection (b). If no funds have been expended from the county food
319		-	42 and beverage tax receipts fund in accordance with the written plan
320		-	HB 1080—LS 6407/DI 125 8
321		-	1 required by subsection (b) before July 1, 2025, then section 15.5 of this
322		-	2 chapter applies.
323		-	3 SECTION 11. IC 6-9-41-15, AS AMENDED BY P.L.236-2023,
324		-	4 SECTION 106, IS AMENDED TO READ AS FOLLOWS
325		-	5 [EFFECTIVE UPON PASSAGE]: Sec. 15. (a) Money deposited in the
326		-	6 city food and beverage tax receipts fund may be used only to finance,
327		-	7 refinance, construct, operate, or maintain a convention center, a
328		-	8 conference center, or related tourism or economic development
329		-	9 projects.
330		-	10 (b) The city must develop a written plan before December 1 of each
331		-	11 year that includes the:
332		-	12 (1) proposed use of funds under subsection (a) for the upcoming
333		-	13 calendar year;
334		-	14 (2) detailed use of funds under subsection (a) in the current and
335		-	15 prior calendar years; and
336		-	16 (3) fund balance as of January 1 of the current calendar year.
337		-	17 The written plan described in this subsection must be submitted to the
338		-	18 state board of accounts and be made available on the department's
339		-	19 computer gateway within thirty (30) days of submission.
340		-	20 (c) The city may not spend money in the city food and beverage
341		-	21 tax receipts fund unless a written plan has been developed in the
342		-	22 manner required under subsection (b). If a written plan has been
343		-	23 developed in the manner required under subsection (b), the city
344		-	24 must spend the money in the city food and beverage tax receipts fund
345		-	25 in accordance with the written plan required by subsection (b). If no
346		-	26 funds have been expended from the city food and beverage tax receipts
347		-	27 fund in accordance with the written plan required by subsection (b)
348		-	28 before July 1, 2025, then section 15.5 of this chapter applies.
349		-	29 SECTION 12. IC 6-9-41-15.3 IS ADDED TO THE INDIANA
350		-	30 CODE AS A NEW SECTION TO READ AS FOLLOWS
351		-	31 [EFFECTIVE UPON PASSAGE]: Sec. 15.3. (a) Money deposited in
352		-	32 the town food and beverage tax receipts fund may be used only for
353		-	33 transit related purposes. However, before July 1, 2027, money
354		-	34 deposited in the town food and beverage tax receipts fund may not
355		-	35 be pledged as money under IC 5-1-14-4 or any other law for bonds,
356		-	36 leases, or other obligations incurred for any purpose.
357		-	37 (b) Revenue derived from the imposition of a tax under this
358		-	38 chapter may be treated by the town as additional revenue for the
359		-	39 purpose of fixing its budget for the budget year during which the
360		-	40 revenues are to be distributed to the town.
361		-	41 SECTION 13. IC 6-9-41-15.5 IS REPEALED [EFFECTIVE UPON
362		-	42 PASSAGE]. Sec. 15.5. (a) This section applies only if the county and
363		-	HB 1080—LS 6407/DI 125 9
364		-	1 city do not spend money from the county or city food and beverage tax
365		-	2 receipts fund as required by sections 14(c) and 15(c) of this chapter.
366		-	3 (b) The ordinance adopted under section 5 of this chapter to impose
367		-	4 the food and beverage tax is void and food and beverage tax revenue
368		-	5 may not be collected after June 30, 2025. The county may not adopt a
369		-	6 new ordinance under section 5 of this chapter after June 30, 2025.
370		-	7 (c) The following apply to the distribution of the unexpended money
371		-	8 in the county food and beverage tax receipts fund and city food and
372		-	9 beverage tax receipts fund:
373		-	10 (1) The:
374		-	11 (A) county treasurer shall certify to the county auditor the
375		-	12 balance in the county food and beverage tax receipts fund; and
376		-	13 (B) city fiscal officer shall certify to the county auditor the
377		-	14 balance in the city food and beverage tax receipts fund.
378		-	15 (2) After the county auditor receives the certified fund balances
379		-	16 under subdivision (1), the county auditor shall distribute, before
380		-	17 October 1, 2025, the money in each fund according to the ratio
381		-	18 that the maximum permissible ad valorem property tax levy under
382		-	19 IC 6-1.1-18.5 for property taxes first due and payable in 2025 for
383		-	20 each taxing unit in the county bears to the sum of all maximum
384		-	21 permissible ad valorem property tax levies under IC 6-1.1-18.5 for
385		-	22 property tax first due and payable in 2025 in the county.
386		-	23 SECTION 14. IC 6-9-41-17, AS ADDED BY P.L.236-2023,
387		-	24 SECTION 109, IS AMENDED TO READ AS FOLLOWS
388		-	25 [EFFECTIVE UPON PASSAGE]: Sec. 17. (a) Except as otherwise
389		-	26 provided in sections 14, 15, and 15.5 of this chapter, The tax authorized
390		-	27 under this chapter expires on the later of:
391		-	28 (1) January 1, 2045; or
392		-	29 (2) the date on which all bonds or lease agreements outstanding
393		-	30 on May 7, 2023, for which a pledge of tax revenue is made under
394		-	31 this chapter are completely paid.
395		-	32 (b) Not later than December 31, 2023, the fiscal officer of the
396		-	33 county and the fiscal officer of the city shall provide to the state board
397		-	34 of accounts:
398		-	35 (1) a list of each bond or lease agreement outstanding on May 7,
399		-	36 2023, for which a pledge of tax revenue is made under this
400		-	37 chapter; and
401		-	38 (2) the date on which each bond or lease agreement identified in
402		-	39 subdivision (1) will be completely paid.
403		-	40 The information received under this subsection shall be published on
404		-	41 the department of local government finance's interactive and searchable
405		-	42 website containing local government information (the Indiana gateway
406		-	HB 1080—LS 6407/DI 125 10
407		-	1 for governmental units).
408		-	2 SECTION 15. IC 6-9-60 IS ADDED TO THE INDIANA CODE AS
409		-	3 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
410		-	4 1, 2025]:
411		-	5 Chapter 60. LaGrange County Innkeeper's Tax
412		-	6 Sec. 1. (a) This chapter applies to LaGrange County, if the
413		-	7 county had adopted an innkeeper's tax under IC 6-9-18 before July
414		-	8 1, 2025.
415		-	9 (b) The:
416		-	10 (1) convention, visitor, and tourism promotion fund;
417		-	11 (2) convention and visitor commission;
418		-	12 (3) innkeeper's tax rate; and
419		-	13 (4) tax collection procedures;
420		-	14 established under IC 6-9-18 before July 1, 2025, remain in effect
421		-	15 and govern the county's innkeeper's tax until amended under this
422		-	16 chapter.
423		-	17 (c) A member of the convention and visitor commission
424		-	18 established under IC 6-9-18 before July 1, 2025, shall serve a full
425		-	19 term of office. If a vacancy occurs, the appointing authority shall
426		-	20 appoint a qualified replacement as provided under this chapter.
427		-	21 The appointing authority shall make other subsequent
428		-	22 appointments to the commission as provided under this chapter.
429		-	23 Sec. 2. As used in this chapter:
430		-	24 (1) "executive" and "fiscal body" have the meanings set forth
431		-	25 in IC 36-1-2; and
432		-	26 (2) "gross retail income" and "person" have the meanings set
433		-	27 forth in IC 6-2.5-1.
434		-	28 Sec. 3. (a) The fiscal body of the county may levy a tax on every
435		-	29 person engaged in the business of renting or furnishing, for periods
436		-	30 of less than thirty (30) days, any room or rooms, lodgings, or
437		-	31 accommodations in any:
438		-	32 (1) hotel;
439		-	33 (2) motel;
440		-	34 (3) boat motel;
441		-	35 (4) inn;
442		-	36 (5) college or university memorial union;
443		-	37 (6) college or university residence hall or dormitory; or
444		-	38 (7) tourist cabin;
445		-	39 located in the county.
446		-	40 (b) The tax does not apply to gross income received in a
447		-	41 transaction in which:
448		-	42 (1) a student rents lodgings in a college or university residence
449		-	HB 1080—LS 6407/DI 125 11
450		-	1 hall while that student participates in a course of study for
451		-	2 which the student receives college credit from a college or
452		-	3 university located in the county; or
453		-	4 (2) a person rents a room, lodging, or accommodations for a
454		-	5 period of thirty (30) days or more.
455		-	6 (c) Subject to section 4 of this chapter, the tax may not exceed
456		-	7 the rate of eight percent (8%) on the gross retail income derived
457		-	8 from lodging income only and is in addition to the state gross retail
458		-	9 tax imposed under IC 6-2.5.
459		-	10 (d) The county fiscal body may adopt an ordinance to require
460		-	11 that the tax shall be paid monthly to the county treasurer. If such
461		-	12 an ordinance is adopted, the tax shall be paid to the county
462		-	13 treasurer not more than twenty (20) days after the end of the
463		-	14 month the tax is collected. If such an ordinance is not adopted, the
464		-	15 tax shall be imposed, paid, and collected in exactly the same
465		-	16 manner as the state gross retail tax is imposed, paid, and collected
466		-	17 under IC 6-2.5.
467		-	18 (e) All of the provisions of IC 6-2.5 relating to rights, duties,
468		-	19 liabilities, procedures, penalties, definitions, exemptions, and
469		-	20 administration are applicable to the imposition and administration
470		-	21 of the tax imposed under this section except to the extent those
471		-	22 provisions are in conflict or inconsistent with the specific
472		-	23 provisions of this chapter or the requirements of the county
473		-	24 treasurer. If the tax is paid to the department of state revenue, the
474		-	25 return to be filed for the payment of the tax under this section may
475		-	26 be either a separate return or may be combined with the return
476		-	27 filed for the payment of the state gross retail tax as the department
477		-	28 of state revenue may, by rule, determine.
478		-	29 (f) If the tax is paid to the department of state revenue, the
479		-	30 amounts received from the tax imposed under this section shall be
480		-	31 paid monthly by the treasurer of state to the county treasurer upon
481		-	32 warrants issued by the state comptroller.
482		-	33 Sec. 4. (a) After June 30, 2025, the county fiscal body may adopt
483		-	34 an ordinance to increase the tax rate imposed under section 3 of
484		-	35 this chapter to a tax rate that exceeds five percent (5%) but does
485		-	36 not exceed eight percent (8%). If the county imposes a tax rate that
486		-	37 exceeds five percent (5%), the portion that exceeds five percent
487		-	38 (5%) terminates December 31, 2045.
488		-	39 (b) If the county fiscal body adopts an ordinance for an increase
489		-	40 under this section:
490		-	41 (1) it shall immediately send a certified copy of the ordinance
491		-	42 to the department of state revenue; and
492		-	HB 1080—LS 6407/DI 125 12
493		-	1 (2) the increase applies to transactions after the last day of the
494		-	2 month in which the ordinance is adopted, if the county fiscal
495		-	3 body adopts the ordinance on or before the fifteenth day of a
496		-	4 month. If the county fiscal body adopts the ordinance after
497		-	5 the fifteenth day of a month, the tax applies to transactions
498		-	6 after the last day of the month following the month in which
499		-	7 the ordinance is adopted.
500		-	8 Sec. 5. (a) The county treasurer shall establish a convention,
501		-	9 visitor, and tourism promotion fund. The county treasurer shall
502		-	10 deposit in this fund all amounts the county treasurer receives
503		-	11 under this chapter.
504		-	12 (b) The county auditor shall issue a warrant directing the
505		-	13 county treasurer to transfer money from the convention, visitor,
506		-	14 and tourism promotion fund to the treasurer of the commission
507		-	15 established under section 6 of this chapter if the commission
508		-	16 submits a written request for the transfer.
509		-	17 (c) Money in a convention, visitor, and tourism promotion fund,
510		-	18 or money transferred from such a fund under subsection (b), may
511		-	19 be expended to promote and encourage conventions, visitors, and
512		-	20 tourism within the county. Expenditures may include, but are not
513		-	21 limited to, expenditures for advertising, promotional activities,
514		-	22 trade shows, special events, and recreation.
515		-	23 Sec. 6. (a) The county executive shall create a commission to
516		-	24 promote the development and growth of the convention, visitor,
517		-	25 and tourism industry in the county. If two (2) or more adjoining
518		-	26 counties desire to establish a joint commission, the counties shall
519		-	27 enter into an agreement under IC 36-1-7.
520		-	28 (b) The county executive shall determine the number of
521		-	29 members, which must be an odd number, to be appointed to the
522		-	30 commission. Each of the members must be:
523		-	31 (1) engaged in a convention, visitor, or tourism business; or
524		-	32 (2) involved in or promoting conventions, visitors, or tourism.
525		-	33 A member who is an owner or an executive level employee of a
526		-	34 convention, visitor, or tourism related business located in the
527		-	35 county is not required to reside in the county but must reside in
528		-	36 Indiana. A member who is not an owner or an executive level
529		-	37 employee of a convention, visitor, or tourism related business
530		-	38 located in the county must reside in the county. If available and
531		-	39 willing to serve, at least two (2) of the members must be engaged
532		-	40 in the business of renting or furnishing rooms, lodging, or
533		-	41 accommodations (as described in section 3 of this chapter). The
534		-	42 county executive shall also determine who will make the
535		-	HB 1080—LS 6407/DI 125 13
536		-	1 appointments to the commission.
537		-	2 (c) All terms of office of commission members begin on January
538		-	3 1. Initial appointments must be for staggered terms, with
539		-	4 subsequent appointments for three (3) year terms. A member
540		-	5 whose term expires may be reappointed to serve another term. If
541		-	6 a vacancy occurs, the appointing authority shall appoint a qualified
542		-	7 person to serve for the remainder of the term. If an initial
543		-	8 appointment is not made by February 1 or a vacancy is not filled
544		-	9 within thirty (30) days, the commission shall appoint a member by
545		-	10 majority vote.
546		-	11 (d) A member of the commission may be removed for cause by
547		-	12 the member's appointing authority.
548		-	13 (e) Members of the commission may not receive a salary.
549		-	14 However, commission members are entitled to reimbursement for
550		-	15 necessary expenses incurred in the performance of their respective
551		-	16 duties.
552		-	17 (f) Each commission member, before entering the member's
553		-	18 duties, shall take an oath of office in the usual form, to be endorsed
554		-	19 upon the member's certificate of appointment and promptly filed
555		-	20 with the clerk of the circuit court of the county.
556		-	21 (g) The commission shall meet after January 1 each year for the
557		-	22 purpose of organization. It shall elect one (1) of its members
558		-	23 president, another vice president, another secretary, and another
559		-	24 treasurer. The members elected to those offices shall perform the
560		-	25 duties pertaining to the offices. The first officers chosen shall serve
561		-	26 from the date of their election until their successors are elected and
562		-	27 qualified. A majority of the commission constitutes a quorum, and
563		-	28 the concurrence of a majority of the commission is necessary to
564		-	29 authorize any action.
565		-	30 Sec. 7. (a) The commission may:
566		-	31 (1) accept and use gifts, grants, and contributions from any
567		-	32 public or private source, under terms and conditions that the
568		-	33 commission considers necessary and desirable;
569		-	34 (2) sue and be sued;
570		-	35 (3) enter into contracts and agreements;
571		-	36 (4) make rules necessary for the conduct of its business and
572		-	37 the accomplishment of its purposes;
573		-	38 (5) receive and approve, alter, or reject requests and
574		-	39 proposals for funding by corporations qualified under
575		-	40 subdivision (6);
576		-	41 (6) after approval of a proposal, transfer money, quarterly or
577		-	42 less frequently, from the fund established under section 5(a)
578		-	HB 1080—LS 6407/DI 125 14
579		-	1 of this chapter, or from money transferred from that fund to
580		-	2 the commission's treasurer under section 5(b) of this chapter,
581		-	3 to the LaGrange County convention and visitors bureau or to
582		-	4 an entity that contracts with the commission to promote and
583		-	5 encourage conventions, visitors, and tourism in the county;
584		-	6 and
585		-	7 (7) require financial or other reports from any corporation
586		-	8 that receives funds under this chapter.
587		-	9 (b) All expenses of the commission shall be paid from the fund
588		-	10 established under section 5(a) of this chapter or from money
589		-	11 transferred from that fund to the commission's treasurer under
590		-	12 section 5(b) of this chapter. The commission shall annually prepare
591		-	13 a budget, taking into consideration the recommendations made by
592		-	14 an entity qualified under subsection (a)(6), and submit it to the
593		-	15 county fiscal body for its review and approval. An expenditure may
594		-	16 not be made under this chapter unless it is in accordance with an
595		-	17 appropriation made by the county fiscal body in the manner
596		-	18 provided by law.
597		-	19 (c) The county fiscal body and an entity that contracts with the
598		-	20 commission to promote and encourage conventions, visitors, and
599		-	21 tourism in the county may enter into a confidential agreement to
600		-	22 share revenue and verify compliance if the state board of accounts
601		-	23 first approves the confidential agreement.
602		-	24 Sec. 8. All money coming into possession of the commission shall
603		-	25 be deposited, held, secured, invested, and paid in accordance with
604		-	26 statutes relating to the handling of public funds. The handling and
605		-	27 expenditure of money coming into possession of the commission is
606		-	28 subject to audit and supervision by the state board of accounts.
607		-	29 Sec. 9. (a) A member of the commission who knowingly:
608		-	30 (1) approves the transfer of money to any person or
609		-	31 corporation not qualified under law for that transfer; or
610		-	32 (2) approves a transfer for a purpose not permitted under
611		-	33 law;
612		-	34 commits a Level 6 felony.
613		-	35 (b) A person who receives a transfer of money under this
614		-	36 chapter and knowingly uses that money for any purpose not
615		-	37 permitted under this chapter commits a Level 6 felony.
616		-	38 SECTION 16. IC 6-9-62 IS ADDED TO THE INDIANA CODE AS
617		-	39 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
618		-	40 1, 2025]:
619		-	41 Chapter 62. Shelbyville Food and Beverage Tax
620		-	42 Sec. 1. This chapter applies to the city of Shelbyville.
621		-	HB 1080—LS 6407/DI 125 15
622		-	1 Sec. 2. The definitions in IC 6-9-12-1 apply throughout this
623		-	2 chapter.
624		-	3 Sec. 3. (a) The fiscal body of the city may adopt an ordinance to
625		-	4 impose an excise tax, known as the city food and beverage tax, on
626		-	5 transactions described in section 4 of this chapter. The fiscal body
627		-	6 of the city may adopt an ordinance under this subsection only after
628		-	7 the fiscal body has previously held at least one (1) separate public
629		-	8 hearing in which a discussion of the proposed ordinance to impose
630		-	9 the city food and beverage tax is the only substantive issue on the
631		-	10 agenda for the public hearing.
632		-	11 (b) If the city fiscal body adopts an ordinance under subsection
633		-	12 (a), the city fiscal body shall immediately send a certified copy of
634		-	13 the ordinance to the department of state revenue.
635		-	14 (c) If the city fiscal body adopts an ordinance under subsection
636		-	15 (a), the city food and beverage tax applies to transactions that
637		-	16 occur after the later of the following:
638		-	17 (1) The day specified in the ordinance.
639		-	18 (2) The last day of the month that succeeds the month in
640		-	19 which the ordinance is adopted.
641		-	20 Sec. 4. (a) Except as provided in subsection (c), a tax imposed
642		-	21 under section 3 of this chapter applies to a transaction in which
643		-	22 food or beverage is furnished, prepared, or served:
644		-	23 (1) for consumption at a location or on equipment provided by
645		-	24 a retail merchant;
646		-	25 (2) in the city; and
647		-	26 (3) by a retail merchant for consideration.
648		-	27 (b) Transactions described in subsection (a)(1) include
649		-	28 transactions in which food or beverage is:
650		-	29 (1) served by a retail merchant off the merchant's premises;
651		-	30 (2) sold in a heated state or heated by a retail merchant;
652		-	31 (3) made of two (2) or more food ingredients, mixed or
653		-	32 combined by a retail merchant for sale as a single item (other
654		-	33 than food that is only cut, repackaged, or pasteurized by the
655		-	34 seller, and eggs, fish, meat, poultry, and foods containing these
656		-	35 raw animal foods requiring cooking by the consumer as
657		-	36 recommended by the federal Food and Drug Administration
658		-	37 in chapter 3, subpart 3-401.11 of its Food Code so as to
659		-	38 prevent food borne illnesses); or
660		-	39 (4) sold with eating utensils provided by a retail merchant,
661		-	40 including plates, knives, forks, spoons, glasses, cups, napkins,
662		-	41 or straws (for purposes of this subdivision, a plate does not
663		-	42 include a container or package used to transport food).
664		-	HB 1080—LS 6407/DI 125 16
665		-	1 (c) The city food and beverage tax does not apply to the
666		-	2 furnishing, preparing, or serving of a food or beverage in a
667		-	3 transaction that is exempt, or to the extent the transaction is
668		-	4 exempt, from the state gross retail tax imposed by IC 6-2.5.
669		-	5 Sec. 5. The city food and beverage tax rate:
670		-	6 (1) must be imposed in an increment of twenty-five
671		-	7 hundredths percent (0.25%); and
672		-	8 (2) may not exceed one percent (1%);
673		-	9 of the gross retail income received by the merchant from the food
674		-	10 or beverage transaction described in section 4 of this chapter. For
675		-	11 purposes of this chapter, the gross retail income received by the
676		-	12 retail merchant from a transaction does not include the amount of
677		-	13 tax imposed on the transaction under IC 6-2.5.
678		-	14 Sec. 6. A tax imposed under this chapter is imposed, paid, and
679		-	15 collected in the same manner that the state gross retail tax is
680		-	16 imposed, paid, and collected under IC 6-2.5. However, the return
681		-	17 to be filed with the payment of the tax imposed under this chapter
682		-	18 may be made on a separate return or may be combined with the
683		-	19 return filed for the payment of the state gross retail tax, as
684		-	20 prescribed by the department of state revenue.
685		-	21 Sec. 7. The amounts received from the tax imposed under this
686		-	22 chapter shall be paid monthly by the treasurer of state to the city
687		-	23 fiscal officer upon warrants issued by the state comptroller.
688		-	24 Sec. 8. (a) If a tax is imposed under section 3 of this chapter by
689		-	25 the city, the city fiscal officer shall establish a food and beverage
690		-	26 tax receipts fund.
691		-	27 (b) The city fiscal officer shall deposit in the fund all amounts
692		-	28 received under this chapter.
693		-	29 (c) Money earned from the investment of money in the fund
694		-	30 becomes a part of the fund.
695		-	31 Sec. 9. Money in the food and beverage tax receipts fund must
696		-	32 be used by the city only for the following purposes:
697		-	33 (1) Rehabilitation, renovation, repurposing, improvement, or
698		-	34 maintenance of historic property.
699		-	35 (2) Park and recreation purposes, including the purchase of
700		-	36 land for park and recreation purposes.
701		-	37 (3) Economic development purposes.
702		-	38 (4) The pledge of money under IC 5-1-14-4 for bonds, leases,
703		-	39 or other obligations incurred for a purpose described in
704		-	40 subdivisions (1) through (3).
705		-	41 Revenue derived from the imposition of a tax under this chapter
706		-	42 may be treated by the city as additional revenue for the purpose of
707		-	HB 1080—LS 6407/DI 125 17
708		-	1 fixing its budget for the budget year during which the revenues are
709		-	2 to be distributed to the city.
710		-	3 Sec. 10. With respect to obligations for which a pledge has been
711		-	4 made under section 9 of this chapter, the general assembly
712		-	5 covenants with the holders of the obligations that this chapter will
713		-	6 not be repealed or amended in a manner that will adversely affect
714		-	7 the imposition or collection of the tax imposed under this chapter
715		-	8 if the payment of any of the obligations is outstanding.
716		-	9 Sec. 11. (a) If the city imposes the tax authorized by this chapter,
717		-	10 the tax terminates on July 1, 2047.
718		-	11 (b) This chapter expires July 1, 2047.
719		-	12 SECTION 17. IC 35-52-6-85 IS ADDED TO THE INDIANA
720		-	13 CODE AS A NEW SECTION TO READ AS FOLLOWS
721		-	14 [EFFECTIVE JULY 1, 2025]: Sec. 85. IC 6-9-60-9 defines a crime
722		-	15 concerning innkeeper's taxes.
723		-	16 SECTION 18. An emergency is declared for this act.
724		-	HB 1080—LS 6407/DI 125 18
725		-	COMMITTEE REPORT
726		-	Mr. Speaker: Your Committee on Ways and Means, to which was
727		-	referred House Bill 1080, has had the same under consideration and
728		-	begs leave to report the same back to the House with the
729		-	recommendation that said bill be amended as follows:
730		-	Replace the effective dates in SECTIONS 1 through 4 with
731		-	"[EFFECTIVE UPON PASSAGE]".
732		-	Page 1, between the enacting clause and line 1, begin a new
733		-	paragraph and insert:
734		-	"SECTION 1. IC 6-9-2.5-7, AS AMENDED BY P.L.168-2005,
735		-	SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
736		-	JULY 1, 2025]: Sec. 7. (a) The county treasurer shall establish a
737		-	convention and visitor promotion fund.
738		-	(b) The county treasurer shall deposit in the convention and visitor
739		-	promotion fund the amount of money received under section 6 of this
740		-	chapter as follows:
741		-	(1) Before January 1, 2026, the county treasurer shall deposit
742		-	in the convention and visitor promotion fund the amount of
743		-	money received under section 6 of this chapter that is
744		-	generated by a two and one-half percent (2.5%) rate.
745		-	(2) After December 31, 2025, the county treasurer shall
746		-	deposit in the convention and visitor promotion fund the
747		-	amount of money received under section 6 of this chapter that
748		-	is generated by a three percent (3%) rate.
749		-	(c) Money in this fund shall be expended only as provided in this
750		-	chapter.
751		-	(d) The commission may transfer money in the convention and
752		-	visitor promotion fund to any Indiana nonprofit corporation for the
753		-	purpose of promotion and encouragement in the county of conventions,
754		-	trade shows, visitors, or special events. The commission may transfer
755		-	money under this section only after approving the transfer. Transfers
756		-	shall be made quarterly or less frequently under this section.
757		-	SECTION 2. IC 6-9-2.5-7.5, AS AMENDED BY P.L.290-2019,
758		-	SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
759		-	JULY 1, 2025]: Sec. 7.5. (a) The county treasurer shall establish a
760		-	tourism capital improvement fund.
761		-	(b) The county treasurer shall deposit money in the tourism capital
762		-	improvement fund as follows:
763		-	(1) Before January 1, 2026, the county treasurer shall deposit in
764		-	the tourism capital improvement fund the amount of money
765		-	received under section 6 of this chapter that is generated by a
766		-	HB 1080—LS 6407/DI 125 19
767		-	three and one-half percent (3.5%) rate.
768		-	(2) After December 31, 2025, and before January 1, 2029, the
769		-	county treasurer shall deposit in the tourism capital improvement
770		-	fund the amount of money received under section 6 of this chapter
771		-	that is generated by a four and one-half percent (4.5%) three
772		-	percent (3%) rate.
773		-	(3) After December 31, 2028, the county treasurer shall
774		-	deposit in the tourism capital improvement fund the amount
775		-	of money received under section 6 of this chapter that is
776		-	generated by a four percent (4%) rate.
777		-	(c) The commission may transfer money in the tourism capital
778		-	improvement fund to:
779		-	(1) the county government, a city government, or a separate body
780		-	corporate and politic in a county described in section 1 of this
781		-	chapter; or
782		-	(2) any Indiana nonprofit corporation;
783		-	for the purpose of making capital improvements in the county that
784		-	promote conventions, tourism, or recreation. The commission may
785		-	transfer money under this section only after approving the transfer.
786		-	Transfers shall be made quarterly or less frequently under this section.
787		-	SECTION 3. IC 6-9-2.5-7.7, AS AMENDED BY P.L.290-2019,
788		-	SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
789		-	JULY 1, 2025]: Sec. 7.7. (a) As used in this section, "fund" refers to the
790		-	convention center operating, capital improvement, and financial
791		-	incentive fund established under subsection (b).
792		-	(b) The county treasurer shall establish a convention center
793		-	operating, capital improvement, and financial incentive fund.
794		-	(c) Before January 1, 2026, 2029, the county treasurer shall deposit
795		-	in the fund the amount of money received under section 6 of this
796		-	chapter that is generated by a two percent (2%) rate.
797		-	(d) After December 31, 2025, 2028, the county treasurer shall
798		-	deposit in the fund the amount of money received under section 6 of
799		-	this chapter that is generated by a one percent (1%) rate.
800		-	(e) Money in the fund may be expended only for the following:
801		-	(1) Operating expenses of a convention center located in the
802		-	county.
803		-	(2) Capital improvements to a convention center located in the
804		-	county.
805		-	(3) Financial incentives to attract, promote, or encourage new
806		-	business conventions, trade shows, or special events held at a
807		-	convention center located in the county.
808		-	(f) A financial incentive described in subsection (e)(3) may not be
809		-	HB 1080—LS 6407/DI 125 20
810		-	distributed to a new business for at least thirty (30) days after the
811		-	conclusion of a convention, trade show, or special event that is held by
812		-	the new business at a convention center located in the county.
813		-	SECTION 4. IC 6-9-14-6, AS AMENDED BY P.L.9-2024,
814		-	SECTION 232, IS AMENDED TO READ AS FOLLOWS
815		-	[EFFECTIVE JULY 1, 2025]: Sec. 6. (a) The county council may levy
816		-	a tax on every person engaged in the business of renting or furnishing,
817		-	for periods of less than thirty (30) days, any room or rooms, lodgings
818		-	or accommodations in any hotel, motel, inn, conference center, retreat
819		-	center, or tourist cabin located in the county. However, the county
820		-	council may not levy the tax on a person for engaging in the business
821		-	of providing campsites within a state or federal park or forest. The tax
822		-	may be imposed at any rate up to and including five that does not
823		-	exceed eight percent (5%). (8%). The tax shall be imposed on the
824		-	gross retail income derived from lodging income only and shall be in
825		-	addition to the state gross retail tax imposed on those persons by
826		-	IC 6-2.5.
827		-	(b) The county fiscal body may adopt an ordinance to require that
828		-	the tax shall be paid monthly to the county treasurer. If such an
829		-	ordinance is adopted, the tax shall be paid to the county treasurer not
830		-	more than twenty (20) days after the end of the month the tax is
831		-	collected. If such an ordinance is not adopted, the tax shall be imposed,
832		-	paid and collected in exactly the same manner as the state gross retail
833		-	tax is imposed, paid, and collected pursuant to IC 6-2.5.
834		-	(c) All of the provisions of IC 6-2.5 relating to rights, duties,
835		-	liabilities, procedures, penalties, definitions, exemptions, and
836		-	administration apply to the imposition and administration of the tax
837		-	imposed under this section, except to the extent those provisions are in
838		-	conflict or inconsistent with the specific provisions of this chapter or
839		-	the requirements of the county treasurer. Specifically and not in
840		-	limitation of the foregoing sentence, the terms "person" and "gross
841		-	retail income" shall have the same meaning in this section as they have
842		-	in IC 6-2.5. If the tax is paid to the department of state revenue, the
843		-	returns to be filed for the payment of the tax under this section may be
844		-	either a separate return or may be combined with the return filed for the
845		-	payment of the state gross retail tax as the department of state revenue
846		-	may, by rule or regulation, determine.
847		-	(d) If the tax is paid to the department of state revenue, the amounts
848		-	received from the tax shall be paid quarterly by the treasurer of state to
849		-	the county treasurer upon warrants issued by the state comptroller.
850		-	(e) The tax imposed under subsection (a) does not apply to the
851		-	renting or furnishing of rooms, lodgings, or accommodations to a
852		-	HB 1080—LS 6407/DI 125 21
853		-	person for a period of thirty (30) days or more.
854		-	SECTION 5. IC 6-9-18-3, AS AMENDED BY P.L.136-2024,
855		-	SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
856		-	UPON PASSAGE]: Sec. 3. (a) The fiscal body of a county may levy a
857		-	tax on every person engaged in the business of renting or furnishing,
858		-	for periods of less than thirty (30) days, any room or rooms, lodgings,
859		-	or accommodations in any:
860		-	(1) hotel;
861		-	(2) motel;
862		-	(3) boat motel;
863		-	(4) inn;
864		-	(5) college or university memorial union;
865		-	(6) college or university residence hall or dormitory; or
866		-	(7) tourist cabin;
867		-	located in the county.
868		-	(b) The tax does not apply to gross income received in a transaction
869		-	in which:
870		-	(1) a student rents lodgings in a college or university residence
871		-	hall while that student participates in a course of study for which
872		-	the student receives college credit from a college or university
873		-	located in the county; or
874		-	(2) a person rents a room, lodging, or accommodations for a
875		-	period of thirty (30) days or more.
876		-	(c) The tax may not exceed:
877		-	(1) the rate of five percent (5%) in a county other than a county
878		-	subject to subdivision (2), (3), or (4), or (5);
879		-	(2) after June 30, 2019, and except as provided in section 6.7 of
880		-	this chapter, the rate of eight percent (8%) in Howard County;
881		-	(3) after June 30, 2021, the rate of nine percent (9%) in Daviess
882		-	County; or
883		-	(4) after June 30, 2023, the rate of eight percent (8%) in Parke
884		-	County; or
885		-	(5) after June 30, 2025, the rate of eight percent (8%) in
886		-	Delaware County.
887		-	The tax is imposed on the gross retail income derived from lodging
888		-	income only and is in addition to the state gross retail tax imposed
889		-	under IC 6-2.5.
890		-	(d) The county fiscal body may adopt an ordinance to require that
891		-	the tax shall be paid monthly to the county treasurer. If such an
892		-	ordinance is adopted, the tax shall be paid to the county treasurer not
893		-	more than twenty (20) days after the end of the month the tax is
894		-	collected. If such an ordinance is not adopted, the tax shall be imposed,
895		-	HB 1080—LS 6407/DI 125 22
896		-	paid, and collected in exactly the same manner as the state gross retail
897		-	tax is imposed, paid, and collected under IC 6-2.5.
898		-	(e) All of the provisions of IC 6-2.5 relating to rights, duties,
899		-	liabilities, procedures, penalties, definitions, exemptions, and
900		-	administration are applicable to the imposition and administration of
901		-	the tax imposed under this section except to the extent those provisions
902		-	are in conflict or inconsistent with the specific provisions of this
903		-	chapter or the requirements of the county treasurer. If the tax is paid to
904		-	the department of state revenue, the return to be filed for the payment
905		-	of the tax under this section may be either a separate return or may be
906		-	combined with the return filed for the payment of the state gross retail
907		-	tax as the department of state revenue may, by rule, determine.
908		-	(f) If the tax is paid to the department of state revenue, the amounts
909		-	received from the tax imposed under this section shall be paid monthly
910		-	by the treasurer of state to the county treasurer upon warrants issued by
911		-	the state comptroller.".
912		-	Page 1, between lines 4 and 5, begin a new paragraph and insert:
913		-	"SECTION 7. IC 6-9-41-5, AS AMENDED BY P.L.236-2023,
914		-	SECTION 104, IS AMENDED TO READ AS FOLLOWS
915		-	[EFFECTIVE UPON PASSAGE]: Sec. 5. (a) Subject to section 15.5 of
916		-	this chapter, The fiscal body of the county may adopt an ordinance to
917		-	impose an excise tax, known as the county food and beverage tax, on
918		-	those transactions described in section 6 of this chapter. The effective
919		-	date of an ordinance adopted under this subsection must be after
920		-	December 31, 2009.
921		-	(b) If the fiscal body adopts an ordinance under subsection (a), the
922		-	fiscal body shall immediately send a certified copy of the ordinance to
923		-	the commissioner of the department of state revenue.
924		-	(c) If the fiscal body adopts an ordinance under subsection (a), the
925		-	county food and beverage tax applies to transactions that occur after the
926		-	last day of the month that succeeds the month in which the ordinance
927		-	is adopted. However, if an ordinance is adopted before December 1,
928		-	2009, and the ordinance takes effect January 1, 2010, the tax applies to
929		-	transactions after December 31, 2009.".
930		-	Page 1, line 8, after "chapter," insert "the fiscal body of the town
931		-	may, not later than December 31, 2025, adopt an ordinance to
932		-	receive revenue collected from the tax imposed in the county. An
933		-	ordinance adopted under this subsection must specify that the
934		-	collection of revenue by the town from the tax imposed under this
935		-	chapter terminates not later than July 1, 2027.
936		-	(b) If an ordinance is adopted under section 5 of this chapter
937		-	and subsection (a),".
938		-	HB 1080—LS 6407/DI 125 23
939		-	Page 1, line 10, delete "(b)" and insert "(c)".
940		-	Page 1, line 12, delete "(c)" and insert "(d)".
941		-	Page 1, line 14, delete "(d)" and insert "(e)".
942		-	Page 1, delete lines 16 through 17, begin a new paragraph and
943		-	insert:
944		-	"(f) If the fiscal body of the town adopts an ordinance under
945		-	subsection (a), the fiscal body of the town shall immediately send
946		-	a certified copy of the ordinance to the department of state
947		-	revenue, the county fiscal body, and the city fiscal body.
948		-	SECTION 9. IC 6-9-41-13, AS ADDED BY P.L.176-2009,
949		-	SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
950		-	UPON PASSAGE]: Sec. 13. (a) Each month, the county auditor shall
951		-	distribute the county food and beverage tax revenue received by the
952		-	county treasurer between the city and the county according to the
953		-	location where the county food and beverage tax was collected. If the
954		-	county food and beverage tax was collected in the city, the city must
955		-	receive the revenue. If the county food and beverage tax was collected
956		-	in the part of the county that is outside the city, the county must receive
957		-	the revenue. revenue must be distributed according to the
958		-	following:
959		-	(1) If the town adopts an ordinance under section 12.5 of this
960		-	chapter, of the revenue collected in the part of the county that
961		-	is outside the city before July 1, 2027, the county auditor shall
962		-	distribute:
963		-	(A) fifty percent (50%) of the revenue to the county; and
964		-	(B) fifty percent (50%) of the revenue to the town.
965		-	(2) After June 30, 2027, or, if the town has not adopted an
966		-	ordinance under section 12.5 of this chapter, the county
967		-	auditor shall distribute to the county all of the revenue
968		-	collected in the part of the county that is outside the city.
969		-	(b) Distribution of county food and beverage tax revenue to the city
970		-	and the town must be on warrants issued by the county auditor.
971		-	SECTION 10. IC 6-9-41-14, AS AMENDED BY P.L.236-2023,
972		-	SECTION 105, IS AMENDED TO READ AS FOLLOWS
973		-	[EFFECTIVE UPON PASSAGE]: Sec. 14. (a) The county's share of
974		-	county food and beverage tax revenue deposited in the county food and
975		-	beverage tax receipts fund may be used only to finance, refinance,
976		-	construct, operate, or maintain a convention center, a conference
977		-	center, or related tourism or economic development projects. However,
978		-	before July 1, 2027, money deposited in the county food and
979		-	beverage tax receipts fund may not be pledged as money under
980		-	IC 5-1-14-4 or any other law for bonds, leases, or other obligations
981		-	HB 1080—LS 6407/DI 125 24
982		-	incurred for any purpose.
983		-	(b) The county must develop a written plan before December 1 of
984		-	each year that includes the:
985		-	(1) proposed use of funds under subsection (a) for the upcoming
986		-	calendar year;
987		-	(2) detailed use of funds under subsection (a) in the current and
988		-	prior calendar years; and
989		-	(3) fund balance as of January 1 of the current calendar year.
990		-	The written plan described in this subsection must be submitted to the
991		-	state board of accounts and be made available on the department's
992		-	computer gateway within thirty (30) days of submission.
993		-	(c) The county may not spend money in the county food and
994		-	beverage tax receipts fund unless a written plan has been
995		-	developed in the manner required under subsection (b). If a written
996		-	plan has been developed in the manner required under subsection
997		-	(b), the county must spend the money in the county food and beverage
998		-	tax receipts fund in accordance with the written plan. required by
999		-	subsection (b). If no funds have been expended from the county food
1000		-	and beverage tax receipts fund in accordance with the written plan
1001		-	required by subsection (b) before July 1, 2025, then section 15.5 of this
1002		-	chapter applies.
1003		-	SECTION 11. IC 6-9-41-15, AS AMENDED BY P.L.236-2023,
1004		-	SECTION 106, IS AMENDED TO READ AS FOLLOWS
1005		-	[EFFECTIVE UPON PASSAGE]: Sec. 15. (a) Money deposited in the
1006		-	city food and beverage tax receipts fund may be used only to finance,
1007		-	refinance, construct, operate, or maintain a convention center, a
1008		-	conference center, or related tourism or economic development
1009		-	projects.
1010		-	(b) The city must develop a written plan before December 1 of each
1011		-	year that includes the:
1012		-	(1) proposed use of funds under subsection (a) for the upcoming
1013		-	calendar year;
1014		-	(2) detailed use of funds under subsection (a) in the current and
1015		-	prior calendar years; and
1016		-	(3) fund balance as of January 1 of the current calendar year.
1017		-	The written plan described in this subsection must be submitted to the
1018		-	state board of accounts and be made available on the department's
1019		-	computer gateway within thirty (30) days of submission.
1020		-	(c) The city may not spend money in the city food and beverage
1021		-	tax receipts fund unless a written plan has been developed in the
1022		-	manner required under subsection (b). If a written plan has been
1023		-	developed in the manner required under subsection (b), the city
1024		-	HB 1080—LS 6407/DI 125 25
1025		-	must spend the money in the city food and beverage tax receipts fund
1026		-	in accordance with the written plan required by subsection (b). If no
1027		-	funds have been expended from the city food and beverage tax receipts
1028		-	fund in accordance with the written plan required by subsection (b)
1029		-	before July 1, 2025, then section 15.5 of this chapter applies.".
1030		-	Page 2, delete lines 1 through 12.
1031		-	Page 2, line 15, after "15.3." insert "(a)".
1032		-	Page 2, line 16, delete "for:" and insert "only for transit related
1033		-	purposes.".
1034		-	Page 2, delete lines 17 through 21.
1035		-	Page 2, line 22, delete "including the pledge of money under
1036		-	IC 5-1-14-4" and insert "However, before July 1, 2027, money
1037		-	deposited in the town food and beverage tax receipts fund may not
1038		-	be pledged as money under IC 5-1-14-4 or any other law".
1039		-	Page 2, run in lines 16 through 22.
1040		-	Page 2, line 23, delete "for a purpose described in" and insert "for
1041		-	any purpose.".
1042		-	Page 2, line 24, delete "subdivisions (1) through (4).", begin a new
1043		-	paragraph and insert:
1044		-	"(b)".
1045		-	Page 2, after line 28, begin a new paragraph and insert:
1046		-	"SECTION 13. IC 6-9-41-15.5 IS REPEALED [EFFECTIVE UPON
1047		-	PASSAGE]. Sec. 15.5. (a) This section applies only if the county and
1048		-	city do not spend money from the county or city food and beverage tax
1049		-	receipts fund as required by sections 14(c) and 15(c) of this chapter.
1050		-	(b) The ordinance adopted under section 5 of this chapter to impose
1051		-	the food and beverage tax is void and food and beverage tax revenue
1052		-	may not be collected after June 30, 2025. The county may not adopt a
1053		-	new ordinance under section 5 of this chapter after June 30, 2025.
1054		-	(c) The following apply to the distribution of the unexpended money
1055		-	in the county food and beverage tax receipts fund and city food and
1056		-	beverage tax receipts fund:
1057		-	(1) The:
1058		-	(A) county treasurer shall certify to the county auditor the
1059		-	balance in the county food and beverage tax receipts fund; and
1060		-	(B) city fiscal officer shall certify to the county auditor the
1061		-	balance in the city food and beverage tax receipts fund.
1062		-	(2) After the county auditor receives the certified fund balances
1063		-	under subdivision (1), the county auditor shall distribute, before
1064		-	October 1, 2025, the money in each fund according to the ratio
1065		-	that the maximum permissible ad valorem property tax levy under
1066		-	IC 6-1.1-18.5 for property taxes first due and payable in 2025 for
1067		-	HB 1080—LS 6407/DI 125 26
1068		-	each taxing unit in the county bears to the sum of all maximum
1069		-	permissible ad valorem property tax levies under IC 6-1.1-18.5 for
1070		-	property tax first due and payable in 2025 in the county.
1071		-	SECTION 14. IC 6-9-41-17, AS ADDED BY P.L.236-2023,
1072		-	SECTION 109, IS AMENDED TO READ AS FOLLOWS
1073		-	[EFFECTIVE UPON PASSAGE]: Sec. 17. (a) Except as otherwise
1074		-	provided in sections 14, 15, and 15.5 of this chapter, The tax authorized
1075		-	under this chapter expires on the later of:
1076		-	(1) January 1, 2045; or
1077		-	(2) the date on which all bonds or lease agreements outstanding
1078		-	on May 7, 2023, for which a pledge of tax revenue is made under
1079		-	this chapter are completely paid.
1080		-	(b) Not later than December 31, 2023, the fiscal officer of the
1081		-	county and the fiscal officer of the city shall provide to the state board
1082		-	of accounts:
1083		-	(1) a list of each bond or lease agreement outstanding on May 7,
1084		-	2023, for which a pledge of tax revenue is made under this
1085		-	chapter; and
1086		-	(2) the date on which each bond or lease agreement identified in
1087		-	subdivision (1) will be completely paid.
1088		-	The information received under this subsection shall be published on
1089		-	the department of local government finance's interactive and searchable
1090		-	website containing local government information (the Indiana gateway
1091		-	for governmental units).
1092		-	SECTION 15. IC 6-9-60 IS ADDED TO THE INDIANA CODE AS
1093		-	A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
1094		-	1, 2025]:
1095		-	Chapter 60. LaGrange County Innkeeper's Tax
1096		-	Sec. 1. (a) This chapter applies to LaGrange County, if the
1097		-	county had adopted an innkeeper's tax under IC 6-9-18 before July
1098		-	1, 2025.
1099		-	(b) The:
1100		-	(1) convention, visitor, and tourism promotion fund;
1101		-	(2) convention and visitor commission;
1102		-	(3) innkeeper's tax rate; and
1103		-	(4) tax collection procedures;
1104		-	established under IC 6-9-18 before July 1, 2025, remain in effect
1105		-	and govern the county's innkeeper's tax until amended under this
1106		-	chapter.
1107		-	(c) A member of the convention and visitor commission
1108		-	established under IC 6-9-18 before July 1, 2025, shall serve a full
1109		-	term of office. If a vacancy occurs, the appointing authority shall
1110		-	HB 1080—LS 6407/DI 125 27
1111		-	appoint a qualified replacement as provided under this chapter.
1112		-	The appointing authority shall make other subsequent
1113		-	appointments to the commission as provided under this chapter.
1114		-	Sec. 2. As used in this chapter:
1115		-	(1) "executive" and "fiscal body" have the meanings set forth
1116		-	in IC 36-1-2; and
1117		-	(2) "gross retail income" and "person" have the meanings set
1118		-	forth in IC 6-2.5-1.
1119		-	Sec. 3. (a) The fiscal body of the county may levy a tax on every
1120		-	person engaged in the business of renting or furnishing, for periods
1121		-	of less than thirty (30) days, any room or rooms, lodgings, or
1122		-	accommodations in any:
1123		-	(1) hotel;
1124		-	(2) motel;
1125		-	(3) boat motel;
1126		-	(4) inn;
1127		-	(5) college or university memorial union;
1128		-	(6) college or university residence hall or dormitory; or
1129		-	(7) tourist cabin;
1130		-	located in the county.
1131		-	(b) The tax does not apply to gross income received in a
1132		-	transaction in which:
1133		-	(1) a student rents lodgings in a college or university residence
1134		-	hall while that student participates in a course of study for
1135		-	which the student receives college credit from a college or
1136		-	university located in the county; or
1137		-	(2) a person rents a room, lodging, or accommodations for a
1138		-	period of thirty (30) days or more.
1139		-	(c) Subject to section 4 of this chapter, the tax may not exceed
1140		-	the rate of eight percent (8%) on the gross retail income derived
1141		-	from lodging income only and is in addition to the state gross retail
1142		-	tax imposed under IC 6-2.5.
1143		-	(d) The county fiscal body may adopt an ordinance to require
1144		-	that the tax shall be paid monthly to the county treasurer. If such
1145		-	an ordinance is adopted, the tax shall be paid to the county
1146		-	treasurer not more than twenty (20) days after the end of the
1147		-	month the tax is collected. If such an ordinance is not adopted, the
1148		-	tax shall be imposed, paid, and collected in exactly the same
1149		-	manner as the state gross retail tax is imposed, paid, and collected
1150		-	under IC 6-2.5.
1151		-	(e) All of the provisions of IC 6-2.5 relating to rights, duties,
1152		-	liabilities, procedures, penalties, definitions, exemptions, and
1153		-	HB 1080—LS 6407/DI 125 28
1154		-	administration are applicable to the imposition and administration
1155		-	of the tax imposed under this section except to the extent those
1156		-	provisions are in conflict or inconsistent with the specific
1157		-	provisions of this chapter or the requirements of the county
1158		-	treasurer. If the tax is paid to the department of state revenue, the
1159		-	return to be filed for the payment of the tax under this section may
1160		-	be either a separate return or may be combined with the return
1161		-	filed for the payment of the state gross retail tax as the department
1162		-	of state revenue may, by rule, determine.
1163		-	(f) If the tax is paid to the department of state revenue, the
1164		-	amounts received from the tax imposed under this section shall be
1165		-	paid monthly by the treasurer of state to the county treasurer upon
1166		-	warrants issued by the state comptroller.
1167		-	Sec. 4. (a) After June 30, 2025, the county fiscal body may adopt
1168		-	an ordinance to increase the tax rate imposed under section 3 of
1169		-	this chapter to a tax rate that exceeds five percent (5%) but does
1170		-	not exceed eight percent (8%). If the county imposes a tax rate that
1171		-	exceeds five percent (5%), the portion that exceeds five percent
1172		-	(5%) terminates December 31, 2045.
1173		-	(b) If the county fiscal body adopts an ordinance for an increase
1174		-	under this section:
1175		-	(1) it shall immediately send a certified copy of the ordinance
1176		-	to the department of state revenue; and
1177		-	(2) the increase applies to transactions after the last day of the
1178		-	month in which the ordinance is adopted, if the county fiscal
1179		-	body adopts the ordinance on or before the fifteenth day of a
1180		-	month. If the county fiscal body adopts the ordinance after
1181		-	the fifteenth day of a month, the tax applies to transactions
1182		-	after the last day of the month following the month in which
1183		-	the ordinance is adopted.
1184		-	Sec. 5. (a) The county treasurer shall establish a convention,
1185		-	visitor, and tourism promotion fund. The county treasurer shall
1186		-	deposit in this fund all amounts the county treasurer receives
1187		-	under this chapter.
1188		-	(b) The county auditor shall issue a warrant directing the
1189		-	county treasurer to transfer money from the convention, visitor,
1190		-	and tourism promotion fund to the treasurer of the commission
1191		-	established under section 6 of this chapter if the commission
1192		-	submits a written request for the transfer.
1193		-	(c) Money in a convention, visitor, and tourism promotion fund,
1194		-	or money transferred from such a fund under subsection (b), may
1195		-	be expended to promote and encourage conventions, visitors, and
1196		-	HB 1080—LS 6407/DI 125 29
1197		-	tourism within the county. Expenditures may include, but are not
1198		-	limited to, expenditures for advertising, promotional activities,
1199		-	trade shows, special events, and recreation.
1200		-	Sec. 6. (a) The county executive shall create a commission to
1201		-	promote the development and growth of the convention, visitor,
1202		-	and tourism industry in the county. If two (2) or more adjoining
1203		-	counties desire to establish a joint commission, the counties shall
1204		-	enter into an agreement under IC 36-1-7.
1205		-	(b) The county executive shall determine the number of
1206		-	members, which must be an odd number, to be appointed to the
1207		-	commission. Each of the members must be:
1208		-	(1) engaged in a convention, visitor, or tourism business; or
1209		-	(2) involved in or promoting conventions, visitors, or tourism.
1210		-	A member who is an owner or an executive level employee of a
1211		-	convention, visitor, or tourism related business located in the
1212		-	county is not required to reside in the county but must reside in
1213		-	Indiana. A member who is not an owner or an executive level
1214		-	employee of a convention, visitor, or tourism related business
1215		-	located in the county must reside in the county. If available and
1216		-	willing to serve, at least two (2) of the members must be engaged
1217		-	in the business of renting or furnishing rooms, lodging, or
1218		-	accommodations (as described in section 3 of this chapter). The
1219		-	county executive shall also determine who will make the
1220		-	appointments to the commission.
1221		-	(c) All terms of office of commission members begin on January
1222		-	1. Initial appointments must be for staggered terms, with
1223		-	subsequent appointments for three (3) year terms. A member
1224		-	whose term expires may be reappointed to serve another term. If
1225		-	a vacancy occurs, the appointing authority shall appoint a qualified
1226		-	person to serve for the remainder of the term. If an initial
1227		-	appointment is not made by February 1 or a vacancy is not filled
1228		-	within thirty (30) days, the commission shall appoint a member by
1229		-	majority vote.
1230		-	(d) A member of the commission may be removed for cause by
1231		-	the member's appointing authority.
1232		-	(e) Members of the commission may not receive a salary.
1233		-	However, commission members are entitled to reimbursement for
1234		-	necessary expenses incurred in the performance of their respective
1235		-	duties.
1236		-	(f) Each commission member, before entering the member's
1237		-	duties, shall take an oath of office in the usual form, to be endorsed
1238		-	upon the member's certificate of appointment and promptly filed
1239		-	HB 1080—LS 6407/DI 125 30
1240		-	with the clerk of the circuit court of the county.
1241		-	(g) The commission shall meet after January 1 each year for the
1242		-	purpose of organization. It shall elect one (1) of its members
1243		-	president, another vice president, another secretary, and another
1244		-	treasurer. The members elected to those offices shall perform the
1245		-	duties pertaining to the offices. The first officers chosen shall serve
1246		-	from the date of their election until their successors are elected and
1247		-	qualified. A majority of the commission constitutes a quorum, and
1248		-	the concurrence of a majority of the commission is necessary to
1249		-	authorize any action.
1250		-	Sec. 7. (a) The commission may:
1251		-	(1) accept and use gifts, grants, and contributions from any
1252		-	public or private source, under terms and conditions that the
1253		-	commission considers necessary and desirable;
1254		-	(2) sue and be sued;
1255		-	(3) enter into contracts and agreements;
1256		-	(4) make rules necessary for the conduct of its business and
1257		-	the accomplishment of its purposes;
1258		-	(5) receive and approve, alter, or reject requests and
1259		-	proposals for funding by corporations qualified under
1260		-	subdivision (6);
1261		-	(6) after approval of a proposal, transfer money, quarterly or
1262		-	less frequently, from the fund established under section 5(a)
1263		-	of this chapter, or from money transferred from that fund to
1264		-	the commission's treasurer under section 5(b) of this chapter,
1265		-	to the LaGrange County convention and visitors bureau or to
1266		-	an entity that contracts with the commission to promote and
1267		-	encourage conventions, visitors, and tourism in the county;
1268		-	and
1269		-	(7) require financial or other reports from any corporation
1270		-	that receives funds under this chapter.
1271		-	(b) All expenses of the commission shall be paid from the fund
1272		-	established under section 5(a) of this chapter or from money
1273		-	transferred from that fund to the commission's treasurer under
1274		-	section 5(b) of this chapter. The commission shall annually prepare
1275		-	a budget, taking into consideration the recommendations made by
1276		-	an entity qualified under subsection (a)(6), and submit it to the
1277		-	county fiscal body for its review and approval. An expenditure may
1278		-	not be made under this chapter unless it is in accordance with an
1279		-	appropriation made by the county fiscal body in the manner
1280		-	provided by law.
1281		-	(c) The county fiscal body and an entity that contracts with the
1282		-	HB 1080—LS 6407/DI 125 31
1283		-	commission to promote and encourage conventions, visitors, and
1284		-	tourism in the county may enter into a confidential agreement to
1285		-	share revenue and verify compliance if the state board of accounts
1286		-	first approves the confidential agreement.
1287		-	Sec. 8. All money coming into possession of the commission shall
1288		-	be deposited, held, secured, invested, and paid in accordance with
1289		-	statutes relating to the handling of public funds. The handling and
1290		-	expenditure of money coming into possession of the commission is
1291		-	subject to audit and supervision by the state board of accounts.
1292		-	Sec. 9. (a) A member of the commission who knowingly:
1293		-	(1) approves the transfer of money to any person or
1294		-	corporation not qualified under law for that transfer; or
1295		-	(2) approves a transfer for a purpose not permitted under
1296		-	law;
1297		-	commits a Level 6 felony.
1298		-	(b) A person who receives a transfer of money under this
1299		-	chapter and knowingly uses that money for any purpose not
1300		-	permitted under this chapter commits a Level 6 felony.
1301		-	SECTION 16. IC 6-9-62 IS ADDED TO THE INDIANA CODE AS
1302		-	A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
1303		-	1, 2025]:
1304		-	Chapter 62. Shelbyville Food and Beverage Tax
1305		-	Sec. 1. This chapter applies to the city of Shelbyville.
1306		-	Sec. 2. The definitions in IC 6-9-12-1 apply throughout this
1307		-	chapter.
1308		-	Sec. 3. (a) The fiscal body of the city may adopt an ordinance to
1309		-	impose an excise tax, known as the city food and beverage tax, on
1310		-	transactions described in section 4 of this chapter. The fiscal body
1311		-	of the city may adopt an ordinance under this subsection only after
1312		-	the fiscal body has previously held at least one (1) separate public
1313		-	hearing in which a discussion of the proposed ordinance to impose
1314		-	the city food and beverage tax is the only substantive issue on the
1315		-	agenda for the public hearing.
1316		-	(b) If the city fiscal body adopts an ordinance under subsection
1317		-	(a), the city fiscal body shall immediately send a certified copy of
1318		-	the ordinance to the department of state revenue.
1319		-	(c) If the city fiscal body adopts an ordinance under subsection
1320		-	(a), the city food and beverage tax applies to transactions that
1321		-	occur after the later of the following:
1322		-	(1) The day specified in the ordinance.
1323		-	(2) The last day of the month that succeeds the month in
1324		-	which the ordinance is adopted.
1325		-	HB 1080—LS 6407/DI 125 32
1326		-	Sec. 4. (a) Except as provided in subsection (c), a tax imposed
1327		-	under section 3 of this chapter applies to a transaction in which
1328		-	food or beverage is furnished, prepared, or served:
1329		-	(1) for consumption at a location or on equipment provided by
1330		-	a retail merchant;
1331		-	(2) in the city; and
1332		-	(3) by a retail merchant for consideration.
1333		-	(b) Transactions described in subsection (a)(1) include
1334		-	transactions in which food or beverage is:
1335		-	(1) served by a retail merchant off the merchant's premises;
1336		-	(2) sold in a heated state or heated by a retail merchant;
1337		-	(3) made of two (2) or more food ingredients, mixed or
1338		-	combined by a retail merchant for sale as a single item (other
1339		-	than food that is only cut, repackaged, or pasteurized by the
1340		-	seller, and eggs, fish, meat, poultry, and foods containing these
1341		-	raw animal foods requiring cooking by the consumer as
1342		-	recommended by the federal Food and Drug Administration
1343		-	in chapter 3, subpart 3-401.11 of its Food Code so as to
1344		-	prevent food borne illnesses); or
1345		-	(4) sold with eating utensils provided by a retail merchant,
1346		-	including plates, knives, forks, spoons, glasses, cups, napkins,
1347		-	or straws (for purposes of this subdivision, a plate does not
1348		-	include a container or package used to transport food).
1349		-	(c) The city food and beverage tax does not apply to the
1350		-	furnishing, preparing, or serving of a food or beverage in a
1351		-	transaction that is exempt, or to the extent the transaction is
1352		-	exempt, from the state gross retail tax imposed by IC 6-2.5.
1353		-	Sec. 5. The city food and beverage tax rate:
1354		-	(1) must be imposed in an increment of twenty-five
1355		-	hundredths percent (0.25%); and
1356		-	(2) may not exceed one percent (1%);
1357		-	of the gross retail income received by the merchant from the food
1358		-	or beverage transaction described in section 4 of this chapter. For
1359		-	purposes of this chapter, the gross retail income received by the
1360		-	retail merchant from a transaction does not include the amount of
1361		-	tax imposed on the transaction under IC 6-2.5.
1362		-	Sec. 6. A tax imposed under this chapter is imposed, paid, and
1363		-	collected in the same manner that the state gross retail tax is
1364		-	imposed, paid, and collected under IC 6-2.5. However, the return
1365		-	to be filed with the payment of the tax imposed under this chapter
1366		-	may be made on a separate return or may be combined with the
1367		-	return filed for the payment of the state gross retail tax, as
1368		-	HB 1080—LS 6407/DI 125 33
1369		-	prescribed by the department of state revenue.
1370		-	Sec. 7. The amounts received from the tax imposed under this
1371		-	chapter shall be paid monthly by the treasurer of state to the city
1372		-	fiscal officer upon warrants issued by the state comptroller.
1373		-	Sec. 8. (a) If a tax is imposed under section 3 of this chapter by
1374		-	the city, the city fiscal officer shall establish a food and beverage
1375		-	tax receipts fund.
1376		-	(b) The city fiscal officer shall deposit in the fund all amounts
1377		-	received under this chapter.
1378		-	(c) Money earned from the investment of money in the fund
1379		-	becomes a part of the fund.
1380		-	Sec. 9. Money in the food and beverage tax receipts fund must
1381		-	be used by the city only for the following purposes:
1382		-	(1) Rehabilitation, renovation, repurposing, improvement, or
1383		-	maintenance of historic property.
1384		-	(2) Park and recreation purposes, including the purchase of
1385		-	land for park and recreation purposes.
1386		-	(3) Economic development purposes.
1387		-	(4) The pledge of money under IC 5-1-14-4 for bonds, leases,
1388		-	or other obligations incurred for a purpose described in
1389		-	subdivisions (1) through (3).
1390		-	Revenue derived from the imposition of a tax under this chapter
1391		-	may be treated by the city as additional revenue for the purpose of
1392		-	fixing its budget for the budget year during which the revenues are
1393		-	to be distributed to the city.
1394		-	Sec. 10. With respect to obligations for which a pledge has been
1395		-	made under section 9 of this chapter, the general assembly
1396		-	covenants with the holders of the obligations that this chapter will
1397		-	not be repealed or amended in a manner that will adversely affect
1398		-	the imposition or collection of the tax imposed under this chapter
1399		-	if the payment of any of the obligations is outstanding.
1400		-	Sec. 11. (a) If the city imposes the tax authorized by this chapter,
1401		-	the tax terminates on July 1, 2047.
1402		-	(b) This chapter expires July 1, 2047.
1403		-	SECTION 17. IC 35-52-6-85 IS ADDED TO THE INDIANA
1404		-	CODE AS A NEW SECTION TO READ AS FOLLOWS
1405		-	[EFFECTIVE JULY 1, 2025]: Sec. 85. IC 6-9-60-9 defines a crime
1406		-	concerning innkeeper's taxes.
1407		-	SECTION 18. An emergency is declared for this act.".
1408		-	Renumber all SECTIONS consecutively.
1409		-	and when so amended that said bill do pass.
1410		-	HB 1080—LS 6407/DI 125 34
1411		-	(Reference is to HB 1080 as introduced.)
1412		-	THOMPSON
1413		-	Committee Vote: yeas 23, nays 1.
1414		-	HB 1080—LS 6407/DI 125
	28	+	1 SECTION 1. IC 6-9-41-4.5 IS ADDED TO THE INDIANA CODE
	29	+	2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
	30	+	3 1, 2025]: Sec. 4.5. As used in this chapter, "town" means the town
	31	+	4 of Ellettsville.
	32	+	5 SECTION 2. IC 6-9-41-12.5 IS ADDED TO THE INDIANA CODE
	33	+	6 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
	34	+	7 1, 2025]: Sec. 12.5. (a) If an ordinance is adopted under section 5 of
	35	+	8 this chapter, the fiscal officer of the town shall establish a food and
	36	+	9 beverage tax receipts fund.
	37	+	10 (b) The fiscal officer shall deposit in the fund county food and
	38	+	11 beverage tax revenue that the fiscal officer receives.
	39	+	12 (c) Any money earned from the investment of money in the fund
	40	+	13 becomes part of the fund.
	41	+	14 (d) Money in the fund at the end of the town fiscal year does not
	42	+	15 revert to the town general fund.
	43	+	16 SECTION 3. IC 6-9-41-13, AS ADDED BY P.L.176-2009,
	44	+	17 SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	45	+	2025 IN 1080—LS 6407/DI 125 2
	46	+	1 JULY 1, 2025]: Sec. 13. (a) Each month, the county auditor shall
	47	+	2 distribute the county food and beverage tax revenue received by the
	48	+	3 county treasurer between the town, the city, and the county according
	49	+	4 to the location where the county food and beverage tax was collected.
	50	+	5 If the county food and beverage tax was collected in the town, the
	51	+	6 town must receive the revenue. If the county food and beverage tax
	52	+	7 was collected in the city, the city must receive the revenue. If the
	53	+	8 county food and beverage tax was collected in the part of the county
	54	+	9 that is outside the town or the city, the county must receive the
	55	+	10 revenue.
	56	+	11 (b) Distribution of county food and beverage tax revenue to the city
	57	+	12 and the town must be on warrants issued by the county auditor.
	58	+	13 SECTION 4. IC 6-9-41-15.3 IS ADDED TO THE INDIANA CODE
	59	+	14 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
	60	+	15 1, 2025]: Sec. 15.3. Money deposited in the town food and beverage
	61	+	16 tax receipts fund may be used for:
	62	+	17 (1) economic development purposes;
	63	+	18 (2) public safety;
	64	+	19 (3) creating or improving parks, trails, and recreation
	65	+	20 amenities; and
	66	+	21 (4) storm water, sidewalk, street, and parking improvements;
	67	+	22 including the pledge of money under IC 5-1-14-4 for bonds, leases,
	68	+	23 or other obligations incurred for a purpose described in
	69	+	24 subdivisions (1) through (4). Revenue derived from the imposition
	70	+	25 of a tax under this chapter may be treated by the town as
	71	+	26 additional revenue for the purpose of fixing its budget for the
	72	+	27 budget year during which the revenues are to be distributed to the
	73	+	28 town.
	74	+	2025 IN 1080—LS 6407/DI 125