CHAPTER 26. MADISON COUNTY FOOD AND BEVERAGE TAX
IC 6-9-26
Chapter 26. Madison County Food and Beverage Tax
IC 6-9-26-1
Application of chapter
Sec. 1. This chapter applies to a county having a population ofmore than one hundred thirty thousand (130,000) but less than onehundred forty-five thousand (145,000).
As added by P.L.74-1988, SEC.2. Amended by P.L.12-1992, SEC.53;P.L.170-2002, SEC.49.
IC 6-9-26-2
Definitions
Sec. 2. The definitions in IC 6-9-12-1 and IC 36-1-2 applythroughout this chapter.
As added by P.L.74-1988, SEC.2.
IC 6-9-26-3
Rate of tax; ordinance
Sec. 3. (a) The fiscal body of the county may adopt an ordinanceno later than December 31, 1988, to impose an excise tax, known asthe county food and beverage tax, on those transactions described insections 6 and 7 of this chapter.
(b) The rate of the tax equals one percent (1%) of the gross retailincome on the transaction. For the purposes of this chapter, the grossretail income received by the retail merchant from such a transactiondoes not include the amount of tax imposed on the transaction underIC 6-2.5.
As added by P.L.74-1988, SEC.2.
IC 6-9-26-4
Copy of ordinance
Sec. 4. If a fiscal body adopts an ordinance under section 3 of thischapter, the clerk shall immediately send a certified copy of theordinance to the commissioner of the department of state revenue.
As added by P.L.74-1988, SEC.2.
IC 6-9-26-5
Effective date and application of ordinance
Sec. 5. If a fiscal body adopts an ordinance under section 3 of thischapter, the county food and beverage tax applies to transactions thatoccur after the last day of the month that succeeds the month inwhich the ordinance was adopted.
As added by P.L.74-1988, SEC.2.
IC 6-9-26-6
Application of tax
Sec. 6. Except as provided in section 8 of this chapter, a taximposed under section 3 of this chapter applies to any transaction inwhich food 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.
As added by P.L.74-1988, SEC.2.
IC 6-9-26-7
Food served off-premises, in heated state, or with eating utensils
Sec. 7. Transactions described in section 6(1) of this chapterinclude 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).
As added by P.L.74-1988, SEC.2. Amended by P.L.257-2003,SEC.39.
IC 6-9-26-8
Exemptions
Sec. 8. 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.74-1988, SEC.2.
IC 6-9-26-9
Collection; returns
Sec. 9. 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.74-1988, SEC.2.
IC 6-9-26-10
Receipt of taxes
Sec. 10. The amounts received from the taxes imposed under thischapter shall be paid monthly by the treasurer of state to the county
fiscal officer upon warrants issued by the auditor of state.
As added by P.L.74-1988, SEC.2.
IC 6-9-26-11
Economic development project fund; establishment; deposits
Sec. 11. (a) If a tax is imposed under section 3 of this chapter, thecounty fiscal officer shall establish an economic development projectfund.
(b) The county fiscal officer shall deposit in the 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.74-1988, SEC.2.
IC 6-9-26-12
Use of funds
Sec. 12. (a) Except as provided in section 12.5 of this chapter,money in the county economic development project fund shall beused by the county solely to:
(1) finance, construct, improve, equip, operate, maintain, andpromote first, a civic center, and then an economic developmentproject, if there is money not needed for a civic center,approved under section 13 of this chapter; and
(2) retire bonds issued, loans obtained, or lease paymentsincurred under IC 36-1-10 (referred to in this chapter as"obligations") to finance, construct, improve, equip, operate,maintain, or promote first, a civic center, and then an economicdevelopment project approved under section 13 of this chapter.
(b) Obligations entered into for the purposes described insubsection (a) shall be retired by using money collected from a taximposed under this chapter.
As added by P.L.74-1988, SEC.2. Amended by P.L.51-1992, SEC.1.
IC 6-9-26-12.5
Transfer of funds; use
Sec. 12.5. (a) This section applies if there are no outstandingobligations for which a pledge has been made under section 15(a) ofthis chapter concerning uses authorized under section 12 of thischapter.
(b) Money deposited in the county economic development projectfund before March 1, 1992, shall be transferred to the following:
(1) Fifty percent (50%) of the money deposited shall betransferred to the fiscal officer of a city having a population ofmore than fifty-nine thousand seven hundred (59,700) but lessthan sixty-five thousand (65,000).
(2) Fifty percent (50%) of the money deposited shall betransferred to the county general fund. Money transferred underthis subdivision shall be used for:
(A) economic development projects in locations other thana city described in subdivision (1); or (B) the following purposes:
(i) The financing, construction, or equipping of a securedetention facility under IC 31-31-8 or IC 31-6-9-5(repealed).
(ii) All reasonable and necessary architectural,engineering, legal, financing, accounting, advertising, andsupervisory expenses related to the financing,construction, or equipping of a facility described in item(i).
(iii) The retiring of any bonds issued, loans obtained, orlease payments incurred under IC 36-1-10 to finance,construct, or equip a facility described in item (i).
(c) Except as provided in subsection (d), money deposited in thecounty economic development project fund after February 29, 1992,shall be transferred to the following:
(1) Forty percent (40%) of the money deposited shall betransferred to the fiscal officer of a city described in subsection(b)(1).
(2) Forty percent (40%) of the money deposited shall betransferred to the county general fund. Money transferred underthis subdivision shall be used for the following purposes:
(A) The financing, construction, or equipping of a securedetention facility under IC 31-31-8 or IC 31-6-9-5(repealed).
(B) All reasonable and necessary architectural, engineering,legal, financing, accounting, advertising, and supervisoryexpenses related to the financing, construction, or equippingof a facility described in clause (A).
(C) The retiring of any bonds issued, loans obtained, or leasepayments incurred under IC 36-1-10 to finance, construct, orequip a facility described in clause (A).
(3) Twenty percent (20%) of the money deposited shall betransferred to the county general fund. Money transferred underthis subdivision shall be used for economic developmentprojects in locations other than a city described in subsection(b)(1).
(d) After the retiring of any bonds issued, loans obtained, or leasepayments incurred under IC 36-1-10 to finance, construct, or equipa secure detention facility under subsection (c)(2), money depositedin the county economic development project fund after February 29,1992, shall be transferred to the following:
(1) Seventy percent (70%) of the money deposited shall betransferred to the fiscal officer of a city described in subsection(b)(1).
(2) Thirty percent (30%) of the money deposited shall betransferred to the county general fund. Money transferred underthis subdivision shall be used for economic developmentprojects in locations other than a city described in subsection(b)(1).
(e) Money transferred to a city fiscal officer under subsection
(b)(1), (c)(1), or (d)(1) shall be credited to a special account to beknown as the city economic development account. Money creditedto the account shall be used only for those purposes described inIC 6-3.5-7 (the county economic development income tax).
As added by P.L.51-1992, SEC.2. Amended by P.L.1-1997, SEC.38;P.L.170-2002, SEC.50.
IC 6-9-26-13
Disbursements; resolution and findings; restrictions on use
Sec. 13. (a) Before disbursing money from the fund establishedunder section 11 of this chapter for an economic development projectunder section 12.5(b)(2)(A), 12.5(c)(3), or 12.5(d)(2) of this chapter,the county fiscal body must adopt a resolution that contains thefollowing:
(1) A written finding that the project will do all of thefollowing:
(A) Attract new business enterprises to the county or retainor expand existing business enterprises in the county.
(B) Benefit the public health and welfare and be of publicutility and benefit.
(C) Protect and increase state and local tax bases orrevenues.
(D) Result in a substantial increase in temporary andpermanent employment opportunities and private sectorinvestment within the county.
(2) The amounts to be disbursed from the fund for eacheconomic development project.
(3) The date of the disbursement.
(b) The county fiscal body may impose restrictions on the use ofthe funds as a condition of the disbursement by including therestrictions in the resolution adopted under subsection (a).
As added by P.L.74-1988, SEC.2. Amended by P.L.51-1992, SEC.3.
IC 6-9-26-14
Repeal of ordinance
Sec. 14. If no obligations are outstanding, the county fiscal bodymay repeal the ordinance adopted under section 3 of this chapterimposing the tax before December 1 in any year.
As added by P.L.74-1988, SEC.2.
IC 6-9-26-15
Pledge of funds to finance obligations
Sec. 15. (a) The county may enter into an agreement under whichamounts deposited in, or to be deposited in, the fund are pledged topayment of obligations issued to finance the uses for the moneyauthorized under section 12 or 12.5 of this chapter.
(b) With respect to obligations for which a pledge has been madeunder subsection (a), the general assembly covenants with theholders of these obligations that:
(1) this chapter will not be repealed or amended in any manner
that will adversely affect the imposition or collection of the taximposed under this chapter; and
(2) this chapter will not be amended in any manner that willchange the purpose for which revenues from the tax imposedunder this chapter may be used;
as long as the payment of any of those obligations is outstanding.
As added by P.L.74-1988, SEC.2. Amended by P.L.51-1992, SEC.4.
IC 6-9-26-16
Repeal of ordinance; effective date; copy
Sec. 16. The repeal of an ordinance under section 14 of thischapter takes effect January 1 immediately following the date therepeal was adopted. If the fiscal body repeals the ordinance, the clerkshall immediately send a certified copy of the ordinance repealingthe ordinance imposing the tax to the commissioner of thedepartment of state revenue.
As added by P.L.74-1988, SEC.2.