LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7041 NOTE PREPARED: Jan 1, 2025
BILL NUMBER: HB 1236 BILL AMENDED:
SUBJECT: Crown Point Food and Beverage Tax.
FIRST AUTHOR: Rep. Olthoff BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: This bill authorizes the city of Crown Point to impose a food and beverage tax.
Effective Date: July 1, 2025.
Explanation of State Expenditures: The Crown Point food and beverage tax would be collected and
remitted to the Department of State Revenue (DOR) in the same manner as the state Sales Tax. The DOR
should be able to implement the bill’s requirements within existing levels of staff and resources.
Explanation of State Revenues:
Explanation of Local Expenditures: The city of Crown Point could potentially incur a one-time increase
in costs if it holds an additional public hearing to discuss a proposed ordinance to impose a food and
beverage tax.
If the city imposes a food and beverage tax, the city fiscal officer would establish a food and beverage tax
receipts fund, in which all revenue from the tax would be deposited. Money in this fund may only be used
for the following purposes:
• Expansion and improvement of the Crown Point Sportsplex.
• Expansion and improvement of the Crown Point Bulldog Park.
• Expansion and improvement of the Crown Point Sauerman Woods Park.
• Repairs and future development projects of the historic Lake County Courthouse.
• Repairs and future development projects of the former Lake County jail.
• Development and expansion of downtown parking capacity and amenities near the downtown square
and historic Lake County Courthouse.
• Development and expansion of multi-use trails.
Explanation of Local Revenues: The bill authorizes the city of Crown Point to impose a food and beverage
tax at a rate not to exceed 1% of gross retail income from food and beverage transactions in the city. If the
HB 1236 1 city adopts an ordinance to impose the tax in July 2025, the tax could go into effect as early as September
1, 2025. The following table shows the estimated potential revenue for CY 2025 through CY 2027.
Estimated Potential Crown Point Food and Beverage Tax Revenue, 1%
CY 2025 CY 2025 CY 2027
$294,000 $1,182,000 $1,193,000
These estimates are based on sales data for the food services industry in Lake County, as published in the
2017 Economic Census, and actual revenue of counties that currently collect food and beverage taxes. A
portion of the county total was allocated to Crown Point based on the city’s estimated share of the food and
beverage industry in the county. The Crown Point food and beverage tax expires on July 1, 2048.
State Agencies Affected: Department of State Revenue.
Local Agencies Affected: City of Crown Point.
Information Sources: U.S. Census Bureau; 2017 Economic Census. Legislative Services Agency, Indiana
Handbook of Taxes, Revenues, and Appropriations, FY 2023. OFMA Quarterly Census of Employment and
Wages Data.
Fiscal Analyst: Abdulrahman Abdulkadri, 317-232-9852.
HB 1236 2