Introduced Version
HOUSE BILL No. 1596
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-9.
Synopsis: Richmond food and beverage tax. Authorizes the city of
Richmond to impose a food and beverage tax.
Effective: July 1, 2025.
Barrett
January 21, 2025, read first time and referred to Committee on Ways and Means.
2025 IN 1596—LS 7153/DI 134 Introduced
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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HOUSE BILL No. 1596
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 6-9-38-1, AS AMENDED BY P.L.104-2022,
2 SECTION 55, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]: Sec. 1. This chapter applies to a county having a
4 population of more than sixty-five thousand (65,000) and less than
5 sixty-six thousand six hundred (66,600). This chapter does not apply
6 to the city of Richmond, which is exclusively governed by
7 IC 6-9-62.5.
8 SECTION 2. IC 6-9-62.5 IS ADDED TO THE INDIANA CODE
9 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
10 JULY 1, 2025]:
11 Chapter 62.5. City of Richmond Food and Beverage Tax
12 Sec. 1. This chapter applies to the city of Richmond.
13 Sec. 2. The definitions in IC 6-9-12-1 apply throughout this
14 chapter.
15 Sec. 3. (a) The fiscal body of the city may adopt an ordinance to
16 impose an excise tax, known as the city food and beverage tax, on
17 transactions described in section 4 of this chapter. The fiscal body
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1 of the city may adopt an ordinance under this subsection only after
2 the fiscal body has previously held at least one (1) separate public
3 hearing in which a discussion of the proposed ordinance to impose
4 the city food and beverage tax is the only substantive issue on the
5 agenda for the public hearing.
6 (b) If the city fiscal body adopts an ordinance under subsection
7 (a), the city fiscal body shall immediately send a certified copy of
8 the ordinance to the department of state revenue.
9 (c) If the city fiscal body adopts an ordinance under subsection
10 (a), the city food and beverage tax applies to transactions that
11 occur after the later of the following:
12 (1) The day specified in the ordinance.
13 (2) The last day of the month that succeeds the month in
14 which the ordinance is adopted.
15 Sec. 4. (a) Except as provided in subsection (c), a tax imposed
16 under section 3 of this chapter applies to a transaction in which
17 food or beverage is furnished, prepared, or served:
18 (1) for consumption at a location or on equipment provided by
19 a retail merchant;
20 (2) in the city; and
21 (3) by a retail merchant for consideration.
22 (b) Transactions described in subsection (a)(1) include
23 transactions in which food or beverage is:
24 (1) served by a retail merchant off the merchant's premises;
25 (2) sold in a heated state or heated by a retail merchant;
26 (3) made of two (2) or more food ingredients, mixed or
27 combined by a retail merchant for sale as a single item (other
28 than food that is only cut, repackaged, or pasteurized by the
29 seller, and eggs, fish, meat, poultry, and foods containing these
30 raw animal foods requiring cooking by the consumer as
31 recommended by the federal Food and Drug Administration
32 in chapter 3, subpart 3-401.11 of its Food Code so as to
33 prevent food borne illnesses); or
34 (4) sold with eating utensils provided by a retail merchant,
35 including plates, knives, forks, spoons, glasses, cups, napkins,
36 or straws (for purposes of this subdivision, a plate does not
37 include a container or package used to transport food).
38 (c) The city food and beverage tax does not apply to the
39 furnishing, preparing, or serving of a food or beverage in a
40 transaction that is exempt, or to the extent the transaction is
41 exempt, from the state gross retail tax imposed by IC 6-2.5.
42 Sec. 5. The city food and beverage tax rate:
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1 (1) must be imposed in an increment of twenty-five
2 hundredths percent (0.25%); and
3 (2) may not exceed one percent (1%);
4 of the gross retail income received by the merchant from the food
5 or beverage transaction described in section 4 of this chapter. For
6 purposes of this chapter, the gross retail income received by the
7 retail merchant from a transaction does not include the amount of
8 tax imposed on the transaction under IC 6-2.5.
9 Sec. 6. A tax imposed under this chapter shall be imposed, paid,
10 and collected in the same manner that the state gross retail tax is
11 imposed, paid, and collected under IC 6-2.5. However, the return
12 to be filed with the payment of the tax imposed under this chapter
13 may be made on a separate return or may be combined with the
14 return filed for the payment of the state gross retail tax, as
15 prescribed by the department of state revenue.
16 Sec. 7. The amounts received from the tax imposed under this
17 chapter shall be paid monthly by the treasurer of state to the city
18 fiscal officer upon warrants issued by the state comptroller.
19 Sec. 8. (a) If a tax is imposed under section 3 of this chapter by
20 the city, the city fiscal officer shall establish a food and beverage
21 tax receipts fund.
22 (b) The city fiscal officer shall deposit in the fund all amounts
23 received under this chapter.
24 (c) Money earned from the investment of money in the fund
25 becomes a part of the fund.
26 Sec. 9. Money in the food and beverage tax receipts fund must
27 be used by the city only for the following purposes:
28 (1) To promote and encourage conventions, visitors, and
29 tourism within the city.
30 (2) To promote and encourage economic development within
31 the city.
32 (3) Parks and recreation including trails.
33 (4) Activation of the Whitewater Gorge.
34 (5) The pledge of money under IC 5-1-14-4 for bonds, leases,
35 or other obligations incurred for a purpose described in
36 subdivisions (1) through (4).
37 Revenue derived from the imposition of a tax under this chapter
38 may be treated by the city as additional revenue for the purpose of
39 fixing its budget for the budget year during which the revenues are
40 to be distributed to the city.
41 Sec. 10. With respect to obligations for which a pledge has been
42 made under section 9 of this chapter, the general assembly
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1 covenants with the holders of the obligations that this chapter will
2 not be repealed or amended in a manner that will adversely affect
3 the imposition or collection of the tax imposed under this chapter
4 if the payment of any of the obligations is outstanding.
5 Sec. 11. (a) If the city imposes the tax authorized by this chapter,
6 the tax terminates on July 1, 2047.
7 (b) This chapter expires July 1, 2050.
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