Indiana 2025 Regular Session

Indiana House Bill HB1596 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. 1596
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-9.
7	7	Synopsis: Richmond food and beverage tax. Authorizes the city of
8	8	Richmond to impose a food and beverage tax.
9	9	Effective: July 1, 2025.
10	10	Barrett
11	11	January 21, 2025, read first time and referred to Committee on Ways and Means.
12	12	2025 IN 1596—LS 7153/DI 134 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. 1596
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 6-9-38-1, AS AMENDED BY P.L.104-2022,
28	28	2 SECTION 55, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
29	29	3 JULY 1, 2025]: Sec. 1. This chapter applies to a county having a
30	30	4 population of more than sixty-five thousand (65,000) and less than
31	31	5 sixty-six thousand six hundred (66,600). This chapter does not apply
32	32	6 to the city of Richmond, which is exclusively governed by
33	33	7 IC 6-9-62.5.
34	34	8 SECTION 2. IC 6-9-62.5 IS ADDED TO THE INDIANA CODE
35	35	9 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
36	36	10 JULY 1, 2025]:
37	37	11 Chapter 62.5. City of Richmond Food and Beverage Tax
38	38	12 Sec. 1. This chapter applies to the city of Richmond.
39	39	13 Sec. 2. The definitions in IC 6-9-12-1 apply throughout this
40	40	14 chapter.
41	41	15 Sec. 3. (a) The fiscal body of the city may adopt an ordinance to
42	42	16 impose an excise tax, known as the city food and beverage tax, on
43	43	17 transactions described in section 4 of this chapter. The fiscal body
44	44	2025 IN 1596—LS 7153/DI 134 2
45	45	1 of the city may adopt an ordinance under this subsection only after
46	46	2 the fiscal body has previously held at least one (1) separate public
47	47	3 hearing in which a discussion of the proposed ordinance to impose
48	48	4 the city food and beverage tax is the only substantive issue on the
49	49	5 agenda for the public hearing.
50	50	6 (b) If the city fiscal body adopts an ordinance under subsection
51	51	7 (a), the city fiscal body shall immediately send a certified copy of
52	52	8 the ordinance to the department of state revenue.
53	53	9 (c) If the city fiscal body adopts an ordinance under subsection
54	54	10 (a), the city food and beverage tax applies to transactions that
55	55	11 occur after the later of the following:
56	56	12 (1) The day specified in the ordinance.
57	57	13 (2) The last day of the month that succeeds the month in
58	58	14 which the ordinance is adopted.
59	59	15 Sec. 4. (a) Except as provided in subsection (c), a tax imposed
60	60	16 under section 3 of this chapter applies to a transaction in which
61	61	17 food or beverage is furnished, prepared, or served:
62	62	18 (1) for consumption at a location or on equipment provided by
63	63	19 a retail merchant;
64	64	20 (2) in the city; and
65	65	21 (3) by a retail merchant for consideration.
66	66	22 (b) Transactions described in subsection (a)(1) include
67	67	23 transactions in which food or beverage is:
68	68	24 (1) served by a retail merchant off the merchant's premises;
69	69	25 (2) sold in a heated state or heated by a retail merchant;
70	70	26 (3) made of two (2) or more food ingredients, mixed or
71	71	27 combined by a retail merchant for sale as a single item (other
72	72	28 than food that is only cut, repackaged, or pasteurized by the
73	73	29 seller, and eggs, fish, meat, poultry, and foods containing these
74	74	30 raw animal foods requiring cooking by the consumer as
75	75	31 recommended by the federal Food and Drug Administration
76	76	32 in chapter 3, subpart 3-401.11 of its Food Code so as to
77	77	33 prevent food borne illnesses); or
78	78	34 (4) sold with eating utensils provided by a retail merchant,
79	79	35 including plates, knives, forks, spoons, glasses, cups, napkins,
80	80	36 or straws (for purposes of this subdivision, a plate does not
81	81	37 include a container or package used to transport food).
82	82	38 (c) The city food and beverage tax does not apply to the
83	83	39 furnishing, preparing, or serving of a food or beverage in a
84	84	40 transaction that is exempt, or to the extent the transaction is
85	85	41 exempt, from the state gross retail tax imposed by IC 6-2.5.
86	86	42 Sec. 5. The city food and beverage tax rate:
87	87	2025 IN 1596—LS 7153/DI 134 3
88	88	1 (1) must be imposed in an increment of twenty-five
89	89	2 hundredths percent (0.25%); and
90	90	3 (2) may not exceed one percent (1%);
91	91	4 of the gross retail income received by the merchant from the food
92	92	5 or beverage transaction described in section 4 of this chapter. For
93	93	6 purposes of this chapter, the gross retail income received by the
94	94	7 retail merchant from a transaction does not include the amount of
95	95	8 tax imposed on the transaction under IC 6-2.5.
96	96	9 Sec. 6. A tax imposed under this chapter shall be imposed, paid,
97	97	10 and collected in the same manner that the state gross retail tax is
98	98	11 imposed, paid, and collected under IC 6-2.5. However, the return
99	99	12 to be filed with the payment of the tax imposed under this chapter
100	100	13 may be made on a separate return or may be combined with the
101	101	14 return filed for the payment of the state gross retail tax, as
102	102	15 prescribed by the department of state revenue.
103	103	16 Sec. 7. The amounts received from the tax imposed under this
104	104	17 chapter shall be paid monthly by the treasurer of state to the city
105	105	18 fiscal officer upon warrants issued by the state comptroller.
106	106	19 Sec. 8. (a) If a tax is imposed under section 3 of this chapter by
107	107	20 the city, the city fiscal officer shall establish a food and beverage
108	108	21 tax receipts fund.
109	109	22 (b) The city fiscal officer shall deposit in the fund all amounts
110	110	23 received under this chapter.
111	111	24 (c) Money earned from the investment of money in the fund
112	112	25 becomes a part of the fund.
113	113	26 Sec. 9. Money in the food and beverage tax receipts fund must
114	114	27 be used by the city only for the following purposes:
115	115	28 (1) To promote and encourage conventions, visitors, and
116	116	29 tourism within the city.
117	117	30 (2) To promote and encourage economic development within
118	118	31 the city.
119	119	32 (3) Parks and recreation including trails.
120	120	33 (4) Activation of the Whitewater Gorge.
121	121	34 (5) The pledge of money under IC 5-1-14-4 for bonds, leases,
122	122	35 or other obligations incurred for a purpose described in
123	123	36 subdivisions (1) through (4).
124	124	37 Revenue derived from the imposition of a tax under this chapter
125	125	38 may be treated by the city as additional revenue for the purpose of
126	126	39 fixing its budget for the budget year during which the revenues are
127	127	40 to be distributed to the city.
128	128	41 Sec. 10. With respect to obligations for which a pledge has been
129	129	42 made under section 9 of this chapter, the general assembly
130	130	2025 IN 1596—LS 7153/DI 134 4
131	131	1 covenants with the holders of the obligations that this chapter will
132	132	2 not be repealed or amended in a manner that will adversely affect
133	133	3 the imposition or collection of the tax imposed under this chapter
134	134	4 if the payment of any of the obligations is outstanding.
135	135	5 Sec. 11. (a) If the city imposes the tax authorized by this chapter,
136	136	6 the tax terminates on July 1, 2047.
137	137	7 (b) This chapter expires July 1, 2050.
138	138	2025 IN 1596—LS 7153/DI 134