*SB0304.1*
February 12, 2025
SENATE BILL No. 304
_____
DIGEST OF SB 304 (Updated February 11, 2025 9:52 am - DI 129)
Citations Affected: IC 6-9.
Synopsis: Food and beverage taxes. Authorizes the city of Marion and
the city of Richmond respectively to impose a food and beverage tax
of not more than 1% of the gross retail income received from a taxable
transaction. Allows the fiscal body of the town of Shipshewana to
increase its food and beverage tax. Specifies that the provisions
authorizing the imposition of a food and beverage tax and the increase
to a food and beverage tax expire January 1, 2047. Repeals the Indiana
Code chapter authorizing the imposition of food and beverage taxes in
Wayne County.
Effective: July 1, 2025.
Zay, Buchanan, Randolph Lonnie M
January 13, 2025, read first time and referred to Committee on Tax and Fiscal Policy.
February 11, 2025, amended, reported favorably — Do Pass.
SB 304—LS 7007/DI 92 February 12, 2025
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
SENATE BILL No. 304
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 6-9-27-3, AS AMENDED BY P.L.214-2005,
2 SECTION 35, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]: Sec. 3. (a) The fiscal body of the municipality may
4 adopt an ordinance to impose an excise tax, known as the municipal
5 food and beverage tax, on transactions described in section 4 of this
6 chapter. The fiscal body of a municipality described in section 1(2)
7 of this chapter may adopt an ordinance under section 5(b) of this
8 chapter to increase the tax rate of the municipality's food and
9 beverage tax.
10 (b) If a fiscal body adopts an ordinance under subsection (a), the
11 fiscal body shall immediately send a certified copy of the ordinance to
12 the department of state revenue.
13 (c) If a fiscal body adopts an ordinance under subsection (a), the
14 municipal food and beverage tax applies to transactions that occur after
15 the last day of the month that succeeds the month in which the
16 ordinance was adopted.
17 SECTION 2. IC 6-9-27-5, AS AMENDED BY P.L.214-2005,
SB 304—LS 7007/DI 92 2
1 SECTION 37, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2 JULY 1, 2025]: Sec. 5. (a) Except as provided in subsection (b), the
3 municipal food and beverage tax imposed on a food or beverage
4 transaction described in section 4 of this chapter equals one percent
5 (1%) of the gross retail income received by the merchant from the
6 transaction.
7 (b) This subsection applies to a municipality described in section
8 1(2) of this chapter. The fiscal body of the municipality may adopt
9 an ordinance to increase the rate of the municipality's food and
10 beverage tax to a rate that may not exceed two percent (2%) of the
11 gross retail income received by a retail merchant from a taxable
12 transaction. An ordinance adopted under this subsection to
13 increase the rate of the municipality's food and beverage tax rate
14 expires January 1, 2047.
15 (c) For purposes of this chapter, the gross retail income received by
16 the a retail merchant from a transaction does not include the amount of
17 tax imposed on the transaction under IC 6-2.5.
18 SECTION 3. IC 6-9-27-5.5 IS ADDED TO THE INDIANA CODE
19 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
20 1, 2025]: Sec. 5.5. (a) This section applies to a municipality
21 described in section 1(2) of this chapter.
22 (b) If a fiscal body adopts an ordinance under section 5(b) of
23 this chapter, the fiscal body shall immediately send a certified copy
24 of the ordinance to the department of state revenue.
25 (c) A municipal food and beverage tax rate increase imposed by
26 an ordinance adopted under section 5(b) of this chapter applies to
27 transactions that occur after the last day of the month that
28 succeeds the month in which the ordinance was adopted.
29 SECTION 4. IC 6-9-38 IS REPEALED [EFFECTIVE JULY 1,
30 2025]. (Food and Beverage Taxes in Wayne County).
31 SECTION 5. IC 6-9-61 IS ADDED TO THE INDIANA CODE AS
32 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
33 1, 2025]:
34 Chapter 61. City of Marion Food and Beverage Tax
35 Sec. 1. This chapter applies to the city of Marion.
36 Sec. 2. The definitions in IC 6-9-12-1 apply throughout this
37 chapter.
38 Sec. 3. (a) The fiscal body of the city may adopt an ordinance
39 before December 31, 2025, to impose an excise tax, known as the
40 city food and beverage tax, on transactions described in section 4
41 of this chapter. The fiscal body of the city may adopt an ordinance
42 under this subsection only after the city fiscal body has previously:
SB 304—LS 7007/DI 92 3
1 (1) adopted a resolution in support of the proposed city food
2 and beverage tax; and
3 (2) held at least one (1) separate public hearing in which a
4 discussion of the proposed ordinance to impose the city food
5 and beverage tax is the only substantive issue on the agenda
6 for the public hearing.
7 (b) If the city fiscal body adopts an ordinance under subsection
8 (a), the city fiscal body shall immediately send a certified copy of
9 the ordinance to the department of state revenue.
10 (c) If the city fiscal body adopts an ordinance under subsection
11 (a), the city food and beverage tax applies to transactions that
12 occur after the last day of the month following the month in which
13 the ordinance is adopted.
14 Sec. 4. (a) Except as provided in subsection (c), a tax imposed
15 under section 3 of this chapter applies to a transaction in which
16 food or beverage is furnished, prepared, or served:
17 (1) for consumption at a location or on equipment provided by
18 a retail merchant;
19 (2) in the city; and
20 (3) by a retail merchant for consideration.
21 (b) Transactions described in subsection (a)(1) include
22 transactions in which food or beverage is:
23 (1) served by a retail merchant off the merchant's premises;
24 (2) food sold in a heated state or heated by a retail merchant;
25 (3) made of two (2) or more food ingredients, mixed or
26 combined by a retail merchant for sale as a single item (other
27 than food that is only cut, repackaged, or pasteurized by the
28 seller, and eggs, fish, meat, poultry, and foods containing these
29 raw animal foods requiring cooking by the consumer as
30 recommended by the federal Food and Drug Administration
31 in chapter 3, subpart 3-401.11 of its Food Code so as to
32 prevent food borne illnesses); or
33 (4) food sold with eating utensils provided by a retail
34 merchant, including plates, knives, forks, spoons, glasses,
35 cups, napkins, or straws (for purposes of this subdivision, a
36 plate does not include a container or package used to
37 transport the 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:
SB 304—LS 7007/DI 92 4
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 a city, the city fiscal officer shall establish a food and beverage tax
21 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) For economic development purposes, including the pledge
29 of money under IC 5-1-14-4 for bonds, leases, or other
30 obligations for economic development purposes.
31 (2) For park and recreation purposes, including the purchase
32 of land for park and recreation purposes.
33 (3) The pledge of money under IC 5-1-14-4 for bonds, leases,
34 or other obligations incurred for a purpose described in
35 subdivision (2).
36 Sec. 10. With respect to obligations for which a pledge has been
37 made under section 9 of this chapter, the general assembly
38 covenants with the holders of the obligations that this chapter will
39 not be repealed or amended in a manner that will adversely affect
40 the imposition or collection of the tax imposed under this chapter
41 if the payment of any of the obligations is outstanding.
42 Sec. 11. (a) If the city imposes the tax authorized by this chapter,
SB 304—LS 7007/DI 92 5
1 the tax terminates on January 1, 2047.
2 (b) This chapter expires January 1, 2047.
3 SECTION 6. IC 6-9-62.5 IS ADDED TO THE INDIANA CODE
4 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
5 JULY 1, 2025]:
6 Chapter 62.5. City of Richmond Food and Beverage Tax
7 Sec. 1. This chapter applies to the city of Richmond.
8 Sec. 2. The definitions in IC 6-9-12-1 apply throughout this
9 chapter.
10 Sec. 3. (a) The fiscal body of the city may adopt an ordinance
11 before January 1, 2027, to impose an excise tax, known as the city
12 food and beverage tax, on transactions described in section 4 of this
13 chapter. The fiscal body of the city may adopt an ordinance under
14 this subsection only after the city fiscal body has previously:
15 (1) adopted a resolution in support of the proposed city food
16 and beverage tax; and
17 (2) held at least one (1) separate public hearing in which a
18 discussion of the proposed ordinance to impose the city food
19 and beverage tax is the only substantive issue on the agenda
20 for the public hearing.
21 If the city does not adopt an ordinance to impose the tax under this
22 subsection before January 1, 2027, this chapter expires January 1,
23 2027.
24 (b) If the city fiscal body adopts an ordinance under subsection
25 (a), the city fiscal body shall immediately send a certified copy of
26 the ordinance to the department of state revenue.
27 (c) If the city fiscal body adopts an ordinance under subsection
28 (a), the city food and beverage tax applies to transactions that
29 occur after the last day of the month following the month in which
30 the ordinance is adopted.
31 Sec. 4. (a) Except as provided in subsection (c), a tax imposed
32 under section 3 of this chapter applies to a transaction in which
33 food or beverage is furnished, prepared, or served:
34 (1) for consumption at a location or on equipment provided by
35 a retail merchant;
36 (2) in the city; and
37 (3) by a retail merchant for consideration.
38 (b) Transactions described in subsection (a)(1) include
39 transactions in which food or beverage is:
40 (1) served by a retail merchant off the merchant's premises;
41 (2) sold in a heated state or heated by a retail merchant;
42 (3) made of two (2) or more food ingredients, mixed or
SB 304—LS 7007/DI 92 6
1 combined by a retail merchant for sale as a single item (other
2 than food that is only cut, repackaged, or pasteurized by the
3 seller, and eggs, fish, meat, poultry, and foods containing these
4 raw animal foods requiring cooking by the consumer as
5 recommended by the federal Food and Drug Administration
6 in chapter 3, subpart 3-401.11 of its Food Code so as to
7 prevent food borne illnesses); or
8 (4) sold with eating utensils provided by a retail merchant,
9 including plates, knives, forks, spoons, glasses, cups, napkins,
10 or straws (for purposes of this subdivision, a plate does not
11 include a container or package used to transport food).
12 (c) The city food and beverage tax does not apply to the
13 furnishing, preparing, or serving of a food or beverage in a
14 transaction that is exempt, or to the extent the transaction is
15 exempt, from the state gross retail tax imposed by IC 6-2.5.
16 Sec. 5. The city food and beverage tax rate:
17 (1) must be imposed in an increment of twenty-five
18 hundredths percent (0.25%); and
19 (2) may not exceed one percent (1%);
20 of the gross retail income received by the merchant from the food
21 or beverage transaction described in section 4 of this chapter. For
22 purposes of this chapter, the gross retail income received by the
23 retail merchant from a transaction does not include the amount of
24 tax imposed on the transaction under IC 6-2.5.
25 Sec. 6. A tax imposed under this chapter shall be imposed, paid,
26 and collected in the same manner that the state gross retail tax is
27 imposed, paid, and collected under IC 6-2.5. However, the return
28 to be filed with the payment of the tax imposed under this chapter
29 may be made on a separate return or may be combined with the
30 return filed for the payment of the state gross retail tax, as
31 prescribed by the department of state revenue.
32 Sec. 7. The amounts received from the tax imposed under this
33 chapter shall be paid monthly by the treasurer of state to the city
34 fiscal officer upon warrants issued by the state comptroller.
35 Sec. 8. (a) If a tax is imposed under section 3 of this chapter by
36 the city, the city fiscal officer shall establish a food and beverage
37 tax receipts fund.
38 (b) The city fiscal officer shall deposit in the fund all amounts
39 received under this chapter.
40 (c) Money earned from the investment of money in the fund
41 becomes a part of the fund.
42 Sec. 9. Money in the food and beverage tax receipts fund must
SB 304—LS 7007/DI 92 7
1 be used by the city only for the following purposes:
2 (1) Parks and recreation, including trails.
3 (2) Activation of the Whitewater Gorge.
4 (3) The pledge of money under IC 5-1-14-4 for bonds, leases,
5 or other obligations incurred for a purpose described in
6 subdivision (1) or (2).
7 Sec. 10. With respect to obligations for which a pledge has been
8 made under section 9 of this chapter, the general assembly
9 covenants with the holders of the obligations that this chapter will
10 not be repealed or amended in a manner that will adversely affect
11 the imposition or collection of the tax imposed under this chapter
12 if the payment of any of the obligations is outstanding.
13 Sec. 11. (a) If the city imposes the tax authorized by this chapter,
14 the tax terminates on January 1, 2047.
15 (b) Unless section 3(a) of this chapter applies, this chapter
16 expires January 1, 2047.
SB 304—LS 7007/DI 92 8
COMMITTEE REPORT
Mr. President: The Senate Committee on Tax and Fiscal Policy, to
which was referred Senate Bill No. 304, has had the same under
consideration and begs leave to report the same back to the Senate with
the recommendation that said bill be AMENDED as follows:
Page 1, between the enacting clause and line 1, begin a new
paragraph and insert:
"SECTION 1. IC 6-9-27-3, AS AMENDED BY P.L.214-2005,
SECTION 35, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 3. (a) The fiscal body of the municipality may
adopt an ordinance to impose an excise tax, known as the municipal
food and beverage tax, on transactions described in section 4 of this
chapter. The fiscal body of a municipality described in section 1(2)
of this chapter may adopt an ordinance under section 5(b) of this
chapter to increase the tax rate of the municipality's food and
beverage tax.
(b) If a fiscal body adopts an ordinance under subsection (a), the
fiscal body shall immediately send a certified copy of the ordinance to
the department of state revenue.
(c) If a fiscal body adopts an ordinance under subsection (a), the
municipal food and beverage tax applies to transactions that occur after
the last day of the month that succeeds the month in which the
ordinance was adopted.
SECTION 2. IC 6-9-27-5, AS AMENDED BY P.L.214-2005,
SECTION 37, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 5. (a) Except as provided in subsection (b), the
municipal food and beverage tax imposed on a food or beverage
transaction described in section 4 of this chapter equals one percent
(1%) of the gross retail income received by the merchant from the
transaction.
(b) This subsection applies to a municipality described in section
1(2) of this chapter. The fiscal body of the municipality may adopt
an ordinance to increase the rate of the municipality's food and
beverage tax to a rate that may not exceed two percent (2%) of the
gross retail income received by a retail merchant from a taxable
transaction. An ordinance adopted under this subsection to
increase the rate of the municipality's food and beverage tax rate
expires January 1, 2047.
(c) For purposes of this chapter, the gross retail income received by
the a retail merchant from a transaction does not include the amount of
tax imposed on the transaction under IC 6-2.5.
SECTION 3. IC 6-9-27-5.5 IS ADDED TO THE INDIANA CODE
SB 304—LS 7007/DI 92 9
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]: Sec. 5.5. (a) This section applies to a municipality
described in section 1(2) of this chapter.
(b) If a fiscal body adopts an ordinance under section 5(b) of
this chapter, the fiscal body shall immediately send a certified copy
of the ordinance to the department of state revenue.
(c) A municipal food and beverage tax rate increase imposed by
an ordinance adopted under section 5(b) of this chapter applies to
transactions that occur after the last day of the month that
succeeds the month in which the ordinance was adopted.
SECTION 4. IC 6-9-38 IS REPEALED [EFFECTIVE JULY 1,
2025]. (Food and Beverage Taxes in Wayne County).".
Page 2, delete lines 37 through 42, begin a new paragraph and
insert:
"Sec. 5. The city food and beverage tax rate:
(1) must be imposed in an increment of twenty-five
hundredths percent (0.25%); and
(2) may not exceed one percent (1%);
of the gross retail income received by the merchant from the food
or beverage transaction described in section 4 of this chapter. For
purposes of this chapter, the gross retail income received by the
retail merchant from a transaction does not include the amount of
tax imposed on the transaction under IC 6-2.5.".
Page 3, delete lines 18 through 36, begin a new paragraph and
insert:
"Sec. 9. Money in the food and beverage tax receipts fund must
be used by the city only for the following purposes:
(1) For economic development purposes, including the pledge
of money under IC 5-1-14-4 for bonds, leases, or other
obligations for economic development purposes.
(2) For park and recreation purposes, including the purchase
of land for park and recreation purposes.
(3) The pledge of money under IC 5-1-14-4 for bonds, leases,
or other obligations incurred for a purpose described in
subdivision (2).".
Page 4, line 2, delete "July 1, 2048." and insert "January 1, 2047.".
Page 4, line 3, delete "July 1, 2048." and insert "January 1, 2047.".
Page 4, after line 3, begin a new paragraph and insert:
"SECTION 6. IC 6-9-62.5 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]:
Chapter 62.5. City of Richmond Food and Beverage Tax
SB 304—LS 7007/DI 92 10
Sec. 1. This chapter applies to the city of Richmond.
Sec. 2. The definitions in IC 6-9-12-1 apply throughout this
chapter.
Sec. 3. (a) The fiscal body of the city may adopt an ordinance
before January 1, 2027, to impose an excise tax, known as the city
food and beverage tax, on transactions described in section 4 of this
chapter. The fiscal body of the city may adopt an ordinance under
this subsection only after the city fiscal body has previously:
(1) adopted a resolution in support of the proposed city food
and beverage tax; and
(2) held at least one (1) separate public hearing in which a
discussion of the proposed ordinance to impose the city food
and beverage tax is the only substantive issue on the agenda
for the public hearing.
If the city does not adopt an ordinance to impose the tax under this
subsection before January 1, 2027, this chapter expires January 1,
2027.
(b) If the city fiscal body adopts an ordinance under subsection
(a), the city fiscal body shall immediately send a certified copy of
the ordinance to the department of state revenue.
(c) If the city fiscal body adopts an ordinance under subsection
(a), the city food and beverage tax applies to transactions that
occur after the last day of the month following the month in which
the ordinance is adopted.
Sec. 4. (a) Except as provided in subsection (c), a tax imposed
under section 3 of this chapter applies to a transaction in which
food or beverage is furnished, prepared, or served:
(1) for consumption at a location or on equipment provided by
a retail merchant;
(2) in the city; and
(3) by a retail merchant for consideration.
(b) Transactions described in subsection (a)(1) include
transactions in which food or beverage is:
(1) served by a retail merchant off the merchant's premises;
(2) sold in a heated state or heated by a retail merchant;
(3) made of two (2) or more food ingredients, mixed or
combined by a retail merchant for sale as a single item (other
than food that is only cut, repackaged, or pasteurized by the
seller, and eggs, fish, meat, poultry, and foods containing these
raw animal foods requiring cooking by the consumer as
recommended by the federal Food and Drug Administration
in chapter 3, subpart 3-401.11 of its Food Code so as to
SB 304—LS 7007/DI 92 11
prevent food borne illnesses); or
(4) sold with eating utensils provided by a retail merchant,
including plates, knives, forks, spoons, glasses, cups, napkins,
or straws (for purposes of this subdivision, a plate does not
include a container or package used to transport food).
(c) The city food and beverage tax does not apply to the
furnishing, preparing, or serving of a food or beverage in a
transaction that is exempt, or to the extent the transaction is
exempt, from the state gross retail tax imposed by IC 6-2.5.
Sec. 5. The city food and beverage tax rate:
(1) must be imposed in an increment of twenty-five
hundredths percent (0.25%); and
(2) may not exceed one percent (1%);
of the gross retail income received by the merchant from the food
or beverage transaction described in section 4 of this chapter. For
purposes of this chapter, the gross retail income received by the
retail merchant from a transaction does not include the amount of
tax imposed on the transaction under IC 6-2.5.
Sec. 6. A tax imposed under this chapter shall be imposed, paid,
and collected in the same manner that the state gross retail tax is
imposed, paid, and collected under IC 6-2.5. However, the return
to be filed with the payment of the tax imposed under this chapter
may be made on a separate return or may be combined with the
return filed for the payment of the state gross retail tax, as
prescribed by the department of state revenue.
Sec. 7. The amounts received from the tax imposed under this
chapter shall be paid monthly by the treasurer of state to the city
fiscal officer upon warrants issued by the state comptroller.
Sec. 8. (a) If a tax is imposed under section 3 of this chapter by
the city, the city fiscal officer shall establish a food and beverage
tax receipts fund.
(b) The city fiscal officer shall deposit in the fund all amounts
received under this chapter.
(c) Money earned from the investment of money in the fund
becomes a part of the fund.
Sec. 9. Money in the food and beverage tax receipts fund must
be used by the city only for the following purposes:
(1) Parks and recreation, including trails.
(2) Activation of the Whitewater Gorge.
(3) The pledge of money under IC 5-1-14-4 for bonds, leases,
or other obligations incurred for a purpose described in
subdivision (1) or (2).
SB 304—LS 7007/DI 92 12
Sec. 10. With respect to obligations for which a pledge has been
made under section 9 of this chapter, the general assembly
covenants with the holders of the obligations that this chapter will
not be repealed or amended in a manner that will adversely affect
the imposition or collection of the tax imposed under this chapter
if the payment of any of the obligations is outstanding.
Sec. 11. (a) If the city imposes the tax authorized by this chapter,
the tax terminates on January 1, 2047.
(b) Unless section 3(a) of this chapter applies, this chapter
expires January 1, 2047.".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to SB 304 as introduced.)
HOLDMAN, Chairperson
Committee Vote: Yeas 13, Nays 0.
SB 304—LS 7007/DI 92