CHAPTER 20. VANDERBURGH COUNTY FOOD AND BEVERAGE TAX

IC 6-9-20
    Chapter 20. Vanderburgh County Food and Beverage Tax

IC 6-9-20-1
Application of chapter
    Sec. 1. This chapter applies to a county having a population ofmore than one hundred seventy thousand (170,000) but less than onehundred eighty thousand (180,000).
As added by P.L.83-1985, SEC.1. Amended by P.L.12-1992, SEC.48;P.L.170-2002, SEC.45.

IC 6-9-20-2
Definitions
    Sec. 2. The definitions in IC 6-9-12-1 apply throughout thischapter.
As added by P.L.83-1985, SEC.1.

IC 6-9-20-3
Imposition of tax by ordinance
    Sec. 3. (a) The fiscal body of the county may adopt an ordinanceto impose an excise tax, known as the county food and beverage tax,on those transactions described in section 4 of this chapter.
    (b) If a fiscal body adopts an ordinance under subsection (a), itshall immediately send a certified copy of the ordinance to thecommissioner of the department of state revenue.
    (c) If a fiscal body adopts an ordinance under subsection (a), thecounty food and beverage tax applies to transactions that occur afterthe last day of the month that succeeds the month in which theordinance was adopted.
    (d) Except as provided in subsection (e), if the county fiscal bodydetermines that the tax under this chapter should be continued inorder to finance improvements to a county auditorium or auditoriumrenovation resulting in a new convention center and related parkingfacilities, the tax continues until January 1 of the year following theyear in which the last of the bonds issued to finance improvementsto a county auditorium or auditorium renovation resulting in a newconvention center and related parking facilities, and the last of anybonds issued to refund those bonds, have been completely paid ordefeased as to both principal and interest. An action to contest thevalidity of the determination under this subsection must be institutednot more than thirty (30) days after the determination.
    (e) Notwithstanding subsection (d), if the county fiscal bodydetermines that the tax under this chapter should be continued tofinance the acquisition, construction, and equipping of an arena andother facilities that serve or support the arena activities, the tax doesnot terminate as specified in subsection (d) but continues untilJanuary 1 of the year following the year in which the last of thebonds issued to finance the acquisition, construction, and equippingof the arena and other facilities that serve or support the arenaactivities, and the last of any bonds issued to refund those bonds,

have been completely paid or defeased as to both principal andinterest. An action to contest the validity of the determination underthis subsection must be instituted not more than thirty (30) days afterthe determination.
As added by P.L.83-1985, SEC.1. Amended by P.L.28-1993, SEC.11;P.L.99-1995, SEC.6; P.L.69-1996, SEC.1; P.L.176-2009, SEC.8.

IC 6-9-20-4
Taxable transactions; exemptions
    Sec. 4. (a) Except as provided in subsection (c), a tax imposedunder section 3 of this chapter applies to any transaction in whichfood or beverage is furnished, prepared, or served:
        (1) for consumption at a location, or on equipment, provided bya retail merchant;
        (2) in the county in which the tax is imposed; and
        (3) by a retail merchant for consideration.
    (b) Transactions described in subsection (a)(1) include, but arenot limited to, transactions in which food or beverage is:
        (1) served by a retail merchant off the merchant's premises;
        (2) food sold in a heated state or heated by a retail merchant;
        (3) two (2) or more food ingredients mixed or combined by aretail merchant for sale as a single item (other than food that isonly cut, repackaged, or pasteurized by the seller, and eggs,fish, meat, poultry, and foods containing these raw animal foodsrequiring cooking by the consumer as recommended by thefederal Food and Drug Administration in chapter 3, subpart3-401.11 of its Food Code so as to prevent food borneillnesses); or
        (4) food 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 notinclude a container or packaging used to transport the food).
    (c) The county food and beverage tax does not apply to thefurnishing, preparing, or serving of any food or beverage in atransaction that is exempt, or to the extent exempt, from the stategross retail tax imposed by IC 6-2.5.
As added by P.L.83-1985, SEC.1. Amended by P.L.257-2003,SEC.34.

IC 6-9-20-5
Rate of tax
    Sec. 5. The county food and beverage tax imposed on a food orbeverage transaction described in section 4 of this chapter equals onepercent (1%) of the gross retail income received by the merchantfrom the transaction. For purposes of this chapter, the gross retailincome received by the retail merchant from such a transaction doesnot include the amount of tax imposed on the transaction underIC 6-2.5.
As added by P.L.83-1985, SEC.1.
IC 6-9-20-6
Procedures for imposition, payment, and collection; returns
    Sec. 6. The tax that may be imposed under this chapter shall beimposed, paid, and collected in the same manner that the state grossretail tax is imposed, paid, and collected under IC 6-2.5. However,the return to be filed for the payment of the taxes may be made onseparate returns or may be combined with the return filed for thepayment of the state gross retail tax, as prescribed by the departmentof state revenue.
As added by P.L.83-1985, SEC.1.

IC 6-9-20-7
Repealed
    (Repealed by P.L.176-2009, SEC.31.)

IC 6-9-20-7.5
Payment to county treasurer and Evansville controller
    Sec. 7.5. If the county fiscal body has determined to continue thetax to finance improvements to a county auditorium or auditoriumrenovation resulting in a new convention center and related parkingfacilities or to finance the acquisition, construction, and equipping ofan arena and other facilities that serve or support the arena activities,the amounts received from the taxes imposed under this chapter shallbe paid monthly by the treasurer of state to the county treasurerunder section 8.5 of this chapter or the fiscal officer of the largestmunicipality in the county under section 9.5 of this chapter uponwarrants issued by the auditor of state.
As added by P.L.99-1995, SEC.8. Amended by P.L.69-1996, SEC.2;P.L.176-2009, SEC.9.

IC 6-9-20-8
Repealed
    (Repealed by P.L.176-2009, SEC.31.)

IC 6-9-20-8.5
Auditorium fund; deposits; use of fund
    Sec. 8.5. (a) If the tax imposed under section 3 of this chapter iscontinued to finance improvements to the county auditorium orauditorium renovation resulting in a new convention center andrelated parking facilities, the county treasurer shall establish anauditorium fund.
    (b) Except as provided in sections 8.8 and 9.5 of this chapter, thecounty treasurer shall deposit in this fund all amounts received underthis chapter.
    (c) Any money earned from the investment of money in the fundbecomes a part of the fund.
    (d) Money in the fund shall be used by the county for thefinancing, construction, renovation, improvement, and equipping ofa county auditorium or auditorium renovation resulting in a newconvention center and related parking facilities.As added by P.L.99-1995, SEC.10. Amended by P.L.69-1996, SEC.3;P.L.176-2009, SEC.10.

IC 6-9-20-8.7
Bonds, leases, or other obligations; validity
    Sec. 8.7. (a) The county may issue bonds, enter into leases, orincur other obligations to:
        (1) pay any costs associated with the financing, construction,renovation, improvement, and equipping of a county auditoriumor auditorium renovation resulting in a new convention centerand related parking facilities; or
        (2) refund bonds issued or other obligations incurred under thischapter so long as any bonds issued or other obligationsincurred to refund bonds or retire other obligations do notextend the date that the previous bonds or other obligations willbe completely paid as to principal and interest.
    (b) Bonds issued or other obligations incurred under this section:
        (1) are payable solely from money provided in this chapter;
        (2) must be issued in the manner prescribed by IC 36-2-6-18through IC 36-2-6-20 before January 1, 2002;
        (3) may not have a term that is longer than twenty-five (25)years after the date construction, renovation, or improvementson the county auditorium or auditorium renovation resulting ina new convention center and related parking facilities arecompleted; and
        (4) may, in the discretion of the county, be sold at a negotiatedsale at a price to be determined by the county or in accordancewith IC 5-1-11 and IC 5-3-1.
    (c) Leases entered into under this section:
        (1) may be for a term not to exceed twenty-five (25) years;
        (2) may provide for payments from revenues under this chapter,any other revenues available to the county, or any combinationof these sources;
        (3) may provide that payments by the county to the lessor arerequired only to the extent and only for the time that the lessoris able to provide the leased facilities in accordance with thelease;
        (4) must be based upon the value of the facilities leased; and
        (5) may not create a debt of the county for purposes of theConstitution of the State of Indiana.
    (d) A lease may be entered into by the county executive only aftera public hearing at which all interested parties are provided theopportunity to be heard. After the public hearing, the executive mayapprove the execution of the lease on behalf of the county only if theexecutive finds that the service to be provided throughout the life ofthe lease will serve the public purpose of the county and is in the bestinterests of its residents. A lease approved by the executive must alsobe approved by an ordinance of the county fiscal body.
    (e) An action to contest the validity of bonds issued or leasesentered into under this section must be brought not later than thirty

(30) days after the adoption of a bond ordinance or commissioners'action approving the execution of the lease.
As added by P.L.99-1995, SEC.11. Amended by P.L.85-1995,SEC.37; P.L.69-1996, SEC.4.

IC 6-9-20-8.8
Arena fund; deposits; use of excess revenue for arena fund
    Sec. 8.8. (a) If the tax imposed under section 3 of this chapter iscontinued to finance the acquisition, construction, and equipping ofan arena and other facilities that serve or support the arena activities,the county treasurer shall determine whether there is any food andbeverage tax revenue under this chapter that is not required to bedeposited and held to:
        (1) pay any debt service on bonds issued or rentals on leasesentered into by January 1, 2009, for which a pledge of revenuesof the food and beverage tax has been made by the county as setforth in section 8.7 of this chapter; or
        (2) provide for a debt service reserve related to the bonds orleases described in subdivision (1).
    (b) Before the twentieth day of each month, the county treasurershall determine whether there is excess food and beverage taxrevenue under subsection (a) and by the last day of that monthtransfer the excess food and beverage tax revenue to the fiscal officerof the most populated municipality in the county. The municipalfiscal officer shall deposit the excess food and beverage tax revenuein a municipal arena fund. Any money earned from the investment ofmoney in the municipal arena fund becomes a part of the municipalarena fund. Money in the municipal arena fund shall be used by themost populated municipality in the county for financing theacquisition, construction, and equipping of an arena and otherfacilities that serve or support the arena activities. This money shallbe retained in the municipal arena fund until applied or transferredto another fund pledged to the payment of debt service on bonds, renton leases, or other obligations incurred to finance the facilities.
As added by P.L.176-2009, SEC.11.

IC 6-9-20-8.9
Arena fund; deposits; use of fund for arena financing
    Sec. 8.9. (a) If the tax imposed under section 3 of this chapter iscontinued to finance the acquisition, construction, and equipping ofan arena and other facilities that serve or support the arena activities,the most populated municipality in the county may issue bonds, enterinto leases, or incur other obligations to:
        (1) pay any costs associated with the financing, acquisition,construction, and equipping of the arena and other facilities thatserve or support the arena activities; or
        (2) refund bonds issued or other obligations incurred under thischapter so long as any bonds issued or other obligationsincurred to refund bonds or retire other obligations do notextend the date when the previous bonds or other obligations

will be completely paid as to principal and interest.
    (b) Bonds issued or other obligations incurred under this section:
        (1) are payable from money provided in this chapter, any otherrevenues available to the municipality, or any combination ofthese sources;
        (2) must be issued in the manner prescribed by IC 36-4-6-19through IC 36-4-6-20;
        (3) may not have a term ending more than thirty (30) years afterthe first February 1 following the date on which construction ofthe arena and other facilities that serve or support the arenaactivities is estimated to be completed;
        (4) may be payable at any regular designated intervals and maybe paid in unequal amounts if the municipality reasonablyexpects to pay the debt service from funds other than propertytaxes that are exempt from the levy limitations of IC 6-1.1-18.5(even if the municipality has pledged to levy property taxes topay the debt service if those other funds are insufficient); and
        (5) may, in the discretion of the municipality, be sold at anegotiated sale at a price to be determined by the municipalityor in accordance with IC 5-1-11 and IC 5-3-1.
    (c) Leases entered into under this section:
        (1) may be for a term ending not later than thirty (30) yearsafter the first February 1 following the date on whichconstruction of the arena and other facilities that serve orsupport the arena activities is estimated to be completed;
        (2) may be payable at any regular designated intervals and maybe paid in unequal amounts if the municipality reasonablyexpects to pay the lease rentals from funds other than propertytaxes that are exempt from the levy limitations of IC 6-1.1-18.5(even if the municipality has pledged to levy property taxes topay the lease rentals if those other funds are insufficient);
        (3) may provide for payments from revenues under this chapter,any other revenues available to the municipality, or anycombination of these sources;
        (4) may provide that payments by the municipality to the lessorare required only to the extent and only for the time that thelessor is able to provide the leased facilities in accordance withthe lease;
        (5) must be based upon the value of the facilities leased; and
        (6) may not create a debt of the municipality for purposes of theConstitution of the State of Indiana.
    (d) A lease may be entered into by the municipal executive aftera public hearing of the municipal fiscal body at which all interestedparties are provided the opportunity to be heard. After the publichearing, the municipal executive may approve the execution of thelease on behalf of the municipality only if:
        (1) the municipal executive finds that the service to be providedthroughout the life of the lease will serve the public purpose ofthe municipality and is in the best interests of its residents; and
        (2) the lease is approved by an ordinance of the municipal fiscal

body.
    (e) An action to contest the validity of bonds issued or leasesentered into under this section must be brought not later than thirty(30) days after the adoption of a bond ordinance or the municipalexecutive's action approving the execution of the lease.
    (f) Notwithstanding the provisions of this chapter or any otherlaw, instead of issuing bonds, entering into leases, or incurringobligations in whole or in part under this chapter, the most populatedmunicipality in the county may cause bonds to be issued, leases to beentered into, or obligations to be incurred under this subsection tofinance the acquisition, construction, and equipping of an arena andother facilities that serve or support the arena. The bonds, leases, orobligations:
        (1) must be issued, entered into, or incurred by any specialtaxing district, agency, department, or instrumentality of or inthe municipality, under any other law by which bonds may beissued, leases may be entered into, or obligations incurred;
        (2) must be payable from money provided under this chapter,from any other revenues available to the municipality or anyspecial taxing district, agency, department, or instrumentality ofor in the municipality, or any combination of these sources;
        (3) must have a term ending not later than thirty (30) years afterthe first February 1 following the date on which construction ofthe arena and other facilities that serve or support the arenaactivities is estimated to be completed; and
        (4) may be payable at any regular designated intervals and maybe paid in unequal amounts if the municipality, special taxingdistrict, agency, department, or instrumentality of or in themunicipality reasonably expects to pay the debt service or leaserentals from funds other than property taxes that are exemptfrom the levy limitations of IC 6-1.1-18.5 (even if themunicipality or any special taxing district, agency, department,or instrumentality of or in the municipality has pledged to levyproperty taxes to pay the debt service or lease rentals if thoseother funds are insufficient).
As added by P.L.176-2009, SEC.12.

IC 6-9-20-9
Bonds, leases, or other obligations; covenants of general assembly
    Sec. 9. With respect to bonds, leases, or other obligations forwhich a pledge of revenues of the food and beverage tax imposedunder this chapter has been made by the county as set forth in section8.7 or 8.9 of this chapter, and bonds issued by a lessor that arepayable from lease rentals, the general assembly covenants with thecounty, the most populated municipality in the county, and thepurchasers or owners of the bonds or other obligations described inthis subdivision that this chapter will not be repealed or amended inany manner that will adversely affect the imposition or collection ofthe food and beverage tax imposed by this chapter as long as theprincipal of any bonds, the interest on any bonds, or the lease rentals

due under any lease are unpaid.
As added by P.L.83-1985, SEC.1. Amended by P.L.99-1995, SEC.12;P.L.176-2009, SEC.13.

IC 6-9-20-9.5
Arena fund; deposits; use of fund for arena financing
    Sec. 9.5. If:
        (1) the county treasurer has certified to the treasurer of statethat:
            (A) the last of the bonds issued to finance the improvementsto a county auditorium or auditorium renovation resulting ina new convention center and related parking facilities; and
            (B) the last of any bonds issued to refund the bonds referredto in clause (A);
        have been completely paid or defeased as to both principal andinterest; and
        (2) the county fiscal body has made a determination to continuethe tax to finance the acquisition, construction, and equippingof an arena and other facilities that serve or support the arenaactivities;
the amounts received from the taxes imposed under this chapter shallbe paid monthly by the treasurer of state to the fiscal officer of themost populated municipality in the county upon warrants issued bythe auditor of state. The fiscal officer shall deposit any amountsreceived under this section in the municipal arena fund.
As added by P.L.176-2009, SEC.14.

IC 6-9-20-10
Repealed
    (Repealed by P.L.99-1995, SEC.14.)

IC 6-9-20-11
County auditorium or auditorium renovation; financing andpurpose
    Sec. 11. The financing of:
        (1) improvements to a county auditorium or auditoriumrenovation resulting in a new convention center and relatedparking facilities; and
        (2) the acquisition, construction, and equipping of an arena andother facilities that serve or support the arena activities;
serves a public purpose and is of benefit to the general welfare of thecounty by enhancing cultural activities and improving the quality oflife in the county and encouraging investment, economic growth, anddiversity.
As added by P.L.99-1995, SEC.13. Amended by P.L.69-1996, SEC.5;P.L.176-2009, SEC.15.