CHAPTER 25. HENRY COUNTY FOOD AND BEVERAGE TAX
IC 6-9-25
Chapter 25. Henry County Food and Beverage Tax
IC 6-9-25-1
Application of chapter
Sec. 1. (a) This chapter applies to a county having a population ofmore than forty-seven thousand (47,000) but less than fifty thousand(50,000).
(b) The county described in subsection (a) is unique because:
(1) governmental entities and nonprofit organizations in thecounty have successfully undertaken cooperative efforts topromote tourism and economic development; and
(2) several unique tourist attractions are located in the county,including:
(A) the Indiana basketball hall of fame;
(B) the Wilbur Wright birthplace memorial; and
(C) a historic gymnasium.
(c) The presence of these unique attractions in the county has:
(1) increased the number of visitors to the county;
(2) generated increased sales at restaurants and other retailestablishments selling food in the county; and
(3) placed increased demands on all local governments forservices needed to support tourism and economic developmentin the county.
(d) The use of food and beverage tax revenues arising in part fromthe presence of the attractions identified in subsection (b)(2) tosupport tourism and economic development in the county permitsgovernmental units in the county to diversify the revenue sources forwhich local government improvements and services are funded.
As added by P.L.380-1987(ss), SEC.7. Amended by P.L.12-1992,SEC.52; P.L.158-2005, SEC.1.
IC 6-9-25-2
Definitions
Sec. 2. The definitions in IC 6-9-12-1 apply throughout thischapter.
As added by P.L.380-1987(ss), SEC.7.
IC 6-9-25-3
Ordinance imposing food and beverage tax; adoption; certifiedcopy to commissioner of department of state revenue; effectivedate; prohibited imposition of tax
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 after
the last day of the month that succeeds the month in which theordinance was adopted.
(d) Notwithstanding any other law, the imposition of the tax underthis chapter is prohibited upon the satisfaction by the county of all ofits obligations authorized under section 11.5 of this chapter.
As added by P.L.380-1987(ss), SEC.7. Amended by P.L.50-1994,SEC.1.
IC 6-9-25-4
Taxable transactions
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) includetransactions 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.380-1987(ss), SEC.7. Amended by P.L.257-2003,SEC.38.
IC 6-9-25-5
Tax rate
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.380-1987(ss), SEC.7.
IC 6-9-25-6
Imposition, payment, and collection of tax; return
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.380-1987(ss), SEC.7.
IC 6-9-25-7
Monthly payment of tax receipts to county treasurer
Sec. 7. The amounts received from the taxes imposed under thischapter shall be paid monthly by the treasurer of state to the countytreasurer upon warrants issued by the auditor of state.
As added by P.L.380-1987(ss), SEC.7.
IC 6-9-25-8
Food and beverage tax receipts fund; establishment; depository;investment income
Sec. 8. (a) If a tax is imposed under section 3 of this chapter, thecounty treasurer shall establish a food and beverage tax receiptsfund.
(b) The county treasurer shall deposit in this fund all amountsreceived under this chapter.
(c) Any money earned from the investment of money in the fundbecomes a part of the fund.
As added by P.L.380-1987(ss), SEC.7.
IC 6-9-25-9
Use of food and beverage tax money received before July 1, 1994
Sec. 9. (a) This section applies to revenues from the county foodand beverage tax received by the county before July 1, 1994.
(b) Money in the fund established under section 8 of this chaptershall be used by the county in the following order:
(1) To pay debt service on bonds issued under IC 36-2-6-18through IC 36-2-6-20, including up to two (2) years interest, tofinance:
(A) the acquisition, construction, or equipping of abasketball hall of fame;
(B) all reasonable and necessary architectural, engineering,legal, financing, accounting, advertising, bond discount, andsupervisory expenses related to the acquisition, construction,or equipping of a basketball hall of fame or the issuance ofbonds; and
(C) the establishment or maintenance of a debt servicereserve fund for the bonds or any other reasonable ornecessary reserve funds to operate, repair, maintain, orimprove a basketball hall of fame. (2) To redeem or prepay bonds after meeting all requirementsof any bond ordinance.
(3) To reimburse the county or any nonprofit corporation forany money advanced for purposes of this chapter.
(c) Money held in the fund established under section 8 of thischapter shall be held until distribution under subsection (b).
(d) The county auditor shall make a semiannual distribution, at thetime property tax revenue is distributed, to the paying agent for anybonds described in subsection (b)(1). Each semiannual distributionmust be equal to principal and interest obligations on the bonds onthe next interest payment date. Money received by a paying agentunder this subsection shall be deposited in a special fund to be usedto service the bonds.
As added by P.L.380-1987(ss), SEC.7. Amended by P.L.75-1988,SEC.4; P.L.50-1994, SEC.2.
IC 6-9-25-9.5
Use of food and beverage tax money; capital expenditures; countycapital improvements committee
Sec. 9.5. (a) This section applies to revenues from the county foodand beverage tax received by the county after June 30, 1994.
(b) Money in the fund established under section 8 of this chaptershall be used by the county for the financing, construction,renovation, improvement, equipping, or maintenance of thefollowing capital improvements:
(1) Sanitary sewers or wastewater treatment facilities that serveeconomic development purposes.
(2) Drainage or flood control facilities that serve economicdevelopment purposes.
(3) Road improvements used on an access road for an industrialpark that serve economic development purposes.
(4) A covered horse show arena.
(5) A historic birthplace memorial.
(6) A historic gymnasium and community center in a town inthe county with a population greater than two thousand (2,000)but less than two thousand four hundred (2,400).
(7) Main street renovation and picnic and park areas in a townin the county with a population greater than two thousand(2,000) but less than two thousand four hundred (2,400).
(8) A community park and cultural center.
(9) Projects for which the county decides after July 1, 1994, to:
(A) expend money in the fund established under section 8 ofthis chapter; or
(B) issue bonds or other obligations or enter into leasesunder section 11.5 of this chapter;
after the projects described in subdivisions (1) through (8) havebeen funded.
(10) An ambulance.
Money in the fund may not be used for the operating costs of any ofthe permissible projects listed in this section. In addition, the county
may not issue bonds or enter into leases or other obligations underthis chapter after December 31, 2015.
(c) The county capital improvements committee is established tomake recommendations to the county fiscal body concerning the useof money in the fund established under section 8 of this chapter. Thecapital improvements committee consists of the following members:
(1) One (1) resident of the county representing each of the three(3) commissioner districts, appointed by the county executive.Not more than two (2) of the members appointed under thissubdivision may be from the same political party.
(2) Two (2) residents of the county, appointed by the countyfiscal body. The two (2) appointees may not be from the samepolitical party. One (1) appointee under this subdivision mustbe a resident of a town in the county with a population greaterthan two thousand (2,000) but less than two thousand fourhundred (2,400). One (1) appointee under this subdivision mustbe a resident of a town in the county with a population greaterthan two thousand four hundred (2,400).
(3) Two (2) residents of the largest city in the county, appointedby the municipal executive. The two (2) appointees under thissubdivision may not be from the same political party. One (1)appointee must be interested in economic development.
(4) Two (2) residents of the largest city in the county, appointedby the municipal fiscal body. The two (2) appointees under thissubdivision may not be from the same political party. One (1)appointee must be interested in tourism.
(d) Except as provided in subsection (e), the term of a memberappointed to the capital improvements committee under subsection(c) is four (4) years.
(e) The initial terms of office for the members appointed to thecounty capital improvements committee under subsection (c) are asfollows:
(1) Of the members appointed under subsection (c)(1), one (1)member shall be appointed for a term of two (2) years, one (1)member shall be appointed for three (3) years, and one (1)member shall be appointed for four (4) years.
(2) Of the members appointed under subsection (c)(2), one (1)member shall be appointed for two (2) years and one (1)member shall be appointed for three (3) years.
(3) Of the members appointed under subsection (c)(3), one (1)member shall be appointed for two (2) years and one (1)member shall be appointed for three (3) years.
(4) Of the members appointed under subsection (c)(4), one (1)member shall be appointed for three (3) years and one (1)member shall be appointed for four (4) years.
(f) At the expiration of a term under subsection (e), the memberwhose term expired may be reappointed to the county capitalimprovements committee to fill the vacancy caused by the expiration.
(g) The capital improvements committee is abolished on January1, 2016.As added by P.L.50-1994, SEC.3. Amended by P.L.170-2002,SEC.48; P.L.158-2005, SEC.2.
IC 6-9-25-10
Repealed
(Repealed by P.L.50-1994, SEC.11.)
IC 6-9-25-10.5
County food and beverage tax council; establishment; voting;abolition
Sec. 10.5. (a) The county food and beverage tax council isestablished in the county. The membership of the county food andbeverage tax council consists of the fiscal body of the county and thefiscal body of each municipality that lies either partly or entirelywithin the county.
(b) The county food and beverage tax council has a total of onehundred (100) votes. Every member of the county food and beveragetax council is allocated a percentage of the total one hundred (100)votes that may be cast. The percentage that a municipality in thecounty is allocated for a year equals the same percentage that thepopulation of the municipality bears to the population of the county.The percentage that the county is allocated for a year equals the samepercentage that the population of all areas of the county not locatedin a municipality bears to the population of the county. In the case ofa municipality that lies partly within the county, the allocation shallbe based on the population of that portion of the municipality thatlies within the county.
(c) Before January 2 of each year, the county auditor shall certifyto each member of the food and beverage tax council the number ofvotes, rounded to the nearest one-hundredth (0.01), the member hasfor that year.
(d) The food and beverage tax imposed under this chapter remainsin effect until the county food and beverage tax council adopts anordinance to rescind the tax.
(e) An ordinance to rescind the food and beverage tax takes effectDecember 31 of the year in which the ordinance is adopted.
(f) The county food and beverage tax council may not rescind thefood and beverage tax if there are bonds outstanding or leases orother obligations payable under this chapter.
(g) The county food and beverage tax council is abolished onJanuary 1, 2016.
As added by P.L.50-1994, SEC.4. Amended by P.L.158-2005, SEC.3.
IC 6-9-25-10.7
Ordinance to rescind food and beverage tax; procedures; voting
Sec. 10.7. (a) Any member of the county food and beverage taxcouncil may present an ordinance to rescind the food and beveragetax. To do so, the member must adopt a resolution to propose theordinance to the county food and beverage tax council and distributea copy of the proposed ordinance to the auditor of the county. The
county auditor shall treat an ordinance presented to the countyauditor as a casting of all that member's votes in favor of theproposed ordinance. The county auditor shall deliver copies of aproposed ordinance to all other members of the county food andbeverage tax council within ten (10) days after receipt by the countyauditor. A member shall vote on the proposed ordinance within thirty(30) days after receiving the proposed ordinance from the countyauditor. If a member does not vote within thirty (30) days, the countyauditor shall treat the member as having voted no on the proposedordinance.
(b) A member of the county food and beverage tax council mayexercise the member's votes by passing a resolution and transmittingthe resolution to the county auditor. A resolution passed by amember of the county food and beverage tax council exercises allvotes of the member on the proposed ordinance. Those votes may notbe changed during the year.
(c) Before a member of the county food and beverage tax councilmay propose an ordinance or vote on a proposed ordinance to rescindthe food and beverage tax, the member must hold a public hearing onthe proposed ordinance and provide the public with notice of thetime and place where the hearing will be held in accordance withIC 5-3-1.
(d) The county auditor shall record all votes taken on a proposedordinance presented for a vote under this section and immediatelysend a certified copy of the results to the department of state revenueby certified mail.
As added by P.L.50-1994, SEC.5.
IC 6-9-25-11
Bonds; issuance; payment; lease of facilities
Sec. 11. (a) The county may issue its bonds to:
(1) pay any costs associated with a basketball hall of fame, asset forth in section 9(b)(1) of this chapter;
(2) reimburse the county or any nonprofit corporation for anymoney advanced to pay those costs; or
(3) refund bonds issued under this section.
(b) Bonds issued under this section:
(1) are payable solely from money provided under this chapter;
(2) must be issued in the manner prescribed by IC 36-2-6-18through IC 36-2-6-20; and
(3) may, in the discretion of the county, be sold at negotiatedsale at a price to be determined by the county or in accordancewith IC 5-1-11 and IC 5-3-1.
(c) Proceeds of the tax established under this chapter may bepledged:
(1) to pay debt service on bonds issued under this chapter;
(2) for the payment of lease rentals or other obligations enteredinto under this chapter; or
(3) for any purposes set forth in section 9(b)(1) or 9.5 of thischapter.A pledge is enforceable as set forth in IC 5-1-14-4.
(d) The county may lease the basketball hall of fame facility to anonprofit corporation for a term not to exceed twenty-five (25) years.The lease may contain any terms acceptable to the county counciland must be approved by ordinance of the county council.
As added by P.L.75-1988, SEC.5. Amended by P.L.50-1994, SEC.6.
IC 6-9-25-11.5
Bonds, leases, or other obligations; validity
Sec. 11.5. (a) Until January 1, 2016, the county may:
(1) use money in the fund established under section 8 of thischapter to pay all or part of the costs associated with thefacilities described in section 9.5 of this chapter;
(2) issue bonds, enter into leases, or incur other obligations topay any costs associated with the facilities described in section9.5 of this chapter;
(3) reimburse the county or any nonprofit corporation for anymoney advanced to pay those costs; or
(4) refund bonds issued or other obligations incurred under thischapter.
(b) Bonds or other obligations issued under this section:
(1) are payable from money provided in this chapter, any otherrevenues available to the county, or any combination of thesesources, in accordance with a pledge made under IC 5-1-14-4;
(2) must be issued in the manner prescribed by IC 36-2-6-18through IC 36-2-6-20;
(3) 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; and
(4) may be issued for a term not to exceed twenty (20) years,such term to include any refunding bonds issued to refundbonds originally issued under this section.
(c) Leases entered into under this section:
(1) may be for a term not to exceed fifty (50) 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 best
interests of its residents. A lease approved by the executive must alsobe approved by an ordinance of the county fiscal body.
(e) Upon execution of a lease under this section, and afterapproval of the lease by the county fiscal body, the county executiveshall publish notice of the execution of the lease and the approval ofthe lease in accordance with IC 5-3-1.
(f) An action to contest the validity of bonds issued or leasesentered into under this section must be brought within thirty (30)days after the adoption of a bond ordinance or notice of the executionand approval of the lease, as the case may be.
As added by P.L.50-1994, SEC.7. Amended by P.L.158-2005, SEC.4.
IC 6-9-25-12
Bonds, leases, or other obligations; adverse legislation covenant
Sec. 12. With respect to:
(1) bonds, leases, or other obligations for which a pledge ofrevenues of the food and beverage tax imposed under thischapter has been made by the county as set forth in section 11or 11.5 of this chapter; and
(2) bonds issued by a lessor that are payable from lease rentals;
the general assembly covenants with the county, the purchasers orowners of the bonds or other obligations described in subdivision (1),and the owners of bonds described in subdivision (2) that this chapterwill not be repealed or amended in any manner that will adverselyaffect the imposition or collection of the food and beverage taximposed by this chapter as long as the principal of any bonds, theinterest on any bonds, or the lease rentals due under any lease areunpaid.
As added by P.L.75-1988, SEC.6. Amended by P.L.50-1994, SEC.8.
IC 6-9-25-13
Tourism and economic development projects; financing; purpose
Sec. 13. The financing of tourism and economic developmentprojects in the county serves a public purpose and is of benefit to thegeneral welfare of the county by encouraging investment, jobcreation and retention, and economic growth and diversity.
As added by P.L.50-1994, SEC.9.
IC 6-9-25-14
Basketball hall of fame; operation and maintenance fund; use offood and beverage tax to finance
Sec. 14. Notwithstanding any other law, funds accumulated fromthe collection of the food and beverage tax imposed under section 3of this chapter after redemption of the bonds issued under thischapter and accrued before July 1, 1994, may be set aside in anoperation and maintenance fund for a basketball hall of famefinanced under section 9 of this chapter. Money in the fund may beused by a nonprofit corporation that has leased the basketball hall offame facility for the operation, repair, maintenance, or improvementof the basketball hall of fame.As added by P.L.50-1994, SEC.10.