Indiana 2025 Regular Session

Indiana House Bill HB1236 Compare Versions

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

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1236
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-9-60.5.
7	7	Synopsis: Crown Point food and beverage tax. Authorizes the city of
8	8	Crown Point to impose a food and beverage tax.
9	9	Effective: July 1, 2025.
10	10	Olthoff
11	11	January 9, 2025, read first time and referred to Committee on Ways and Means.
12	12	2025 IN 1236—LS 7041/DI 125 Introduced
13	13	First Regular Session of the 124th General Assembly (2025)
14	14	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
15	15	Constitution) is being amended, the text of the existing provision will appear in this style type,
16	16	additions will appear in this style type, and deletions will appear in this style type.
17	17	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
18	18	provision adopted), the text of the new provision will appear in this style type. Also, the
19	19	word NEW will appear in that style type in the introductory clause of each SECTION that adds
20	20	a new provision to the Indiana Code or the Indiana Constitution.
21	21	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
22	22	between statutes enacted by the 2024 Regular Session of the General Assembly.
23	23	HOUSE BILL No. 1236
24	24	A BILL FOR AN ACT to amend the Indiana Code concerning
25	25	taxation.
26	26	Be it enacted by the General Assembly of the State of Indiana:
27	27	1 SECTION 1. IC 6-9-60.5 IS ADDED TO THE INDIANA CODE
28	28	2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
29	29	3 JULY 1, 2025]:
30	30	4 Chapter 60.5. Crown Point Food and Beverage Tax
31	31	5 Sec. 1. This chapter applies to the city of Crown Point.
32	32	6 Sec. 2. The definitions in IC 6-9-12-1 apply throughout this
33	33	7 chapter.
34	34	8 Sec. 3. (a) The fiscal body of the city may adopt an ordinance to
35	35	9 impose an excise tax, known as the city food and beverage tax, on
36	36	10 transactions described in section 4 of this chapter. The fiscal body
37	37	11 of the city may adopt an ordinance under this subsection only after
38	38	12 the fiscal body has previously held at least one (1) separate public
39	39	13 hearing in which a discussion of the proposed ordinance to impose
40	40	14 the city food and beverage tax is the only substantive issue on the
41	41	15 agenda for the public hearing.
42	42	16 (b) If the city fiscal body adopts an ordinance under subsection
43	43	17 (a), the city fiscal body shall immediately send a certified copy of
44	44	2025 IN 1236—LS 7041/DI 125 2
45	45	1 the ordinance to the department of state revenue.
46	46	2 (c) If the city fiscal body adopts an ordinance under subsection
47	47	3 (a), the city food and beverage tax applies to transactions that
48	48	4 occur after the later of the following:
49	49	5 (1) The day specified in the ordinance.
50	50	6 (2) The last day of the month that succeeds the month in
51	51	7 which the ordinance is adopted.
52	52	8 Sec. 4. (a) Except as provided in subsection (c), a tax imposed
53	53	9 under section 3 of this chapter applies to a transaction in which
54	54	10 food or beverage is furnished, prepared, or served:
55	55	11 (1) for consumption at a location or on equipment provided by
56	56	12 a retail merchant;
57	57	13 (2) in the city; and
58	58	14 (3) by a retail merchant for consideration.
59	59	15 (b) Transactions described in subsection (a)(1) include
60	60	16 transactions in which food or beverage is:
61	61	17 (1) served by a retail merchant off the merchant's premises;
62	62	18 (2) sold in a heated state or heated by a retail merchant;
63	63	19 (3) made of two (2) or more food ingredients, mixed or
64	64	20 combined by a retail merchant for sale as a single item (other
65	65	21 than food that is only cut, repackaged, or pasteurized by the
66	66	22 seller, and eggs, fish, meat, poultry, and foods containing these
67	67	23 raw animal foods requiring cooking by the consumer as
68	68	24 recommended by the federal Food and Drug Administration
69	69	25 in chapter 3, subpart 3-401.11 of its Food Code so as to
70	70	26 prevent food borne illnesses); or
71	71	27 (4) sold with eating utensils provided by a retail merchant,
72	72	28 including plates, knives, forks, spoons, glasses, cups, napkins,
73	73	29 or straws (for purposes of this subdivision, a plate does not
74	74	30 include a container or package used to transport food).
75	75	31 (c) The city food and beverage tax does not apply to the
76	76	32 furnishing, preparing, or serving of a food or beverage in a
77	77	33 transaction that is exempt, or to the extent the transaction is
78	78	34 exempt, from the state gross retail tax imposed by IC 6-2.5.
79	79	35 Sec. 5. The city food and beverage tax rate:
80	80	36 (1) must be imposed in an increment of twenty-five
81	81	37 hundredths percent (0.25%); and
82	82	38 (2) may not exceed one percent (1%);
83	83	39 of the gross retail income received by the merchant from the food
84	84	40 or beverage transaction described in section 4 of this chapter. For
85	85	41 purposes of this chapter, the gross retail income received by the
86	86	42 retail merchant from a transaction does not include the amount of
87	87	2025 IN 1236—LS 7041/DI 125 3
88	88	1 tax imposed on the transaction under IC 6-2.5.
89	89	2 Sec. 6. A tax imposed under this chapter is imposed, paid, and
90	90	3 collected in the same manner that the state gross retail tax is
91	91	4 imposed, paid, and collected under IC 6-2.5. However, the return
92	92	5 to be filed with the payment of the tax imposed under this chapter
93	93	6 may be made on a separate return or may be combined with the
94	94	7 return filed for the payment of the state gross retail tax, as
95	95	8 prescribed by the department of state revenue.
96	96	9 Sec. 7. The amounts received from the tax imposed under this
97	97	10 chapter shall be paid monthly by the treasurer of state to the city
98	98	11 fiscal officer upon warrants issued by the state comptroller.
99	99	12 Sec. 8. (a) If a tax is imposed under section 3 of this chapter by
100	100	13 the city, the city fiscal officer shall establish a food and beverage
101	101	14 tax receipts fund.
102	102	15 (b) The city fiscal officer shall deposit in the fund all amounts
103	103	16 received under this chapter.
104	104	17 (c) Money earned from the investment of money in the fund
105	105	18 becomes a part of the fund.
106	106	19 Sec. 9. Money in the food and beverage tax receipts fund must
107	107	20 be used by the city for the following purposes:
108	108	21 (1) The expansion and improvement of the Crown Point
109	109	22 Sportsplex.
110	110	23 (2) The expansion and improvement of the Crown Point
111	111	24 Bulldog Park.
112	112	25 (3) The expansion and improvement of the Crown Point
113	113	26 Sauerman Woods Park.
114	114	27 (4) Repairs and future development projects of the historic
115	115	28 Lake County Courthouse.
116	116	29 (5) Repairs and future development projects of the former
117	117	30 Lake County jail.
118	118	31 (6) Development and expansion of downtown parking
119	119	32 capacity and amenities near the downtown square and the
120	120	33 historic Lake County Courthouse.
121	121	34 (7) Development and expansion of multi-use trails.
122	122	35 Revenue derived from the imposition of a tax under this chapter
123	123	36 may be treated by the city as additional revenue for the purpose of
124	124	37 fixing its budget for the budget year during which the revenues are
125	125	38 to be distributed to the city.
126	126	39 Sec. 10. With respect to obligations for which a pledge has been
127	127	40 made under section 9 of this chapter, the general assembly
128	128	41 covenants with the holders of the obligations that this chapter will
129	129	42 not be repealed or amended in a manner that will adversely affect
130	130	2025 IN 1236—LS 7041/DI 125 4
131	131	1 the imposition or collection of the tax imposed under this chapter
132	132	2 if the payment of any of the obligations is outstanding.
133	133	3 Sec. 11. (a) If the city imposes the tax authorized by this chapter,
134	134	4 the tax terminates on July 1, 2048.
135	135	5 (b) This chapter expires July 1, 2048.
136	136	2025 IN 1236—LS 7041/DI 125