CHAPTER 27. MISCELLANEOUS LOCAL FOOD AND BEVERAGE TAXES
IC 6-9-27
Chapter 27. Miscellaneous Local Food and Beverage Taxes
IC 6-9-27-1
Application
Sec. 1. This chapter applies to the following:
(1) A town:
(A) located in a county having a population of more thansixty-five thousand (65,000) but less than seventy thousand(70,000); and
(B) having a population of more than nine thousand (9,000).
(2) A town:
(A) located in a county having a population of more thanthirty-four thousand nine hundred (34,900) but less thanthirty-four thousand nine hundred fifty (34,950); and
(B) having a population of less than one thousand (1,000).
(3) A town:
(A) located in a county having a population of more than onehundred thousand (100,000) but less than one hundred fivethousand (105,000); and
(B) having a population of more than fifteen thousand(15,000).
(4) A town:
(A) located in a county having a population of more than onehundred thousand (100,000) but less than one hundred fivethousand (105,000); and
(B) having a population of more than ten thousand (10,000)but less than fifteen thousand (15,000).
(5) A town:
(A) located in a county having a population of more than onehundred thousand (100,000) but less than one hundred fivethousand (105,000); and
(B) having a population of more than five thousand (5,000)but less than six thousand three hundred (6,300).
(6) A city having a population of more than eleven thousandfive hundred (11,500) but less than eleven thousand sevenhundred forty (11,740).
As added by P.L.35-1990, SEC.24. Amended by P.L.12-1992,SEC.54; P.L.103-1995, SEC.1; P.L.170-2002, SEC.51;P.L.214-2005, SEC.34.
IC 6-9-27-2
Definitions
Sec. 2. The definitions in IC 6-9-12-1 apply throughout thischapter.
As added by P.L.35-1990, SEC.24.
IC 6-9-27-3
Adoption of ordinance
Sec. 3. (a) The fiscal body of the municipality may adopt an
ordinance to impose an excise tax, known as the municipal food andbeverage tax, on transactions described in section 4 of this chapter.
(b) If a fiscal body adopts an ordinance under subsection (a), thefiscal body shall immediately send a certified copy of the ordinanceto the department of state revenue.
(c) If a fiscal body adopts an ordinance under subsection (a), themunicipal food and beverage tax applies to transactions that occurafter the last day of the month that succeeds the month in which theordinance was adopted.
As added by P.L.35-1990, SEC.24. Amended by P.L.214-2005,SEC.35.
IC 6-9-27-4
Transactions; application of tax
Sec. 4. (a) Except as provided in subsection (c), a tax imposedunder section 3 of this chapter applies to a transaction in which foodor beverage is furnished, prepared, or served:
(1) for consumption at a location or on equipment provided bya retail merchant;
(2) in the city or town 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 municipal food and beverage tax does not apply to thefurnishing, preparing, or serving of a food or beverage in atransaction that is exempt, or to the extent the transaction is exempt,from the state gross retail tax imposed by IC 6-2.5.
As added by P.L.35-1990, SEC.24. Amended by P.L.257-2003,SEC.40; P.L.214-2005, SEC.36.
IC 6-9-27-5
Amount
Sec. 5. The municipal food and beverage tax imposed on a foodor beverage transaction described in section 4 of this chapter equalsone percent (1%) of the gross retail income received by the merchantfrom the transaction. For purposes of this chapter, the gross retail
income received by the retail merchant from a transaction does notinclude the amount of tax imposed on the transaction under IC 6-2.5.
As added by P.L.35-1990, SEC.24. Amended by P.L.214-2005,SEC.37.
IC 6-9-27-6
Imposition, payment, and collection; returns
Sec. 6. A tax imposed under this chapter shall be imposed, paid,and collected in the same manner that the state gross retail tax isimposed, paid, and collected under IC 6-2.5. However, the return tobe filed with the payment of the tax imposed under this chapter maybe made on a separate return or may be combined with the returnfiled for the payment of the state gross retail tax, as prescribed by thedepartment of state revenue.
As added by P.L.35-1990, SEC.24.
IC 6-9-27-7
Payments to municipal fiscal officer
Sec. 7. The amounts received from the tax imposed under thischapter shall be paid monthly by the treasurer of state to the city ortown fiscal officer upon warrants issued by the auditor of state.
As added by P.L.35-1990, SEC.24. Amended by P.L.214-2005,SEC.38.
IC 6-9-27-8
Town food and beverage tax receipts fund
Sec. 8. (a) If a tax is imposed under section 3 of this chapter by atown described in section 1 of this chapter, the town fiscal officershall establish a food and beverage tax receipts fund.
(b) The town fiscal officer shall deposit in this fund all amountsreceived under this chapter.
(c) Money earned from the investment of money in the fundbecomes a part of the fund.
As added by P.L.35-1990, SEC.24. Amended by P.L.214-2005,SEC.39.
IC 6-9-27-8.5
City food and beverage tax receipts fund
Sec. 8.5. (a) If a tax is imposed under section 3 of this chapter bya city described in section 1(6) of this chapter, the city fiscal officershall establish a food and beverage tax receipts fund.
(b) The city fiscal officer shall deposit in this fund all amountsreceived under this chapter.
(c) Money earned from the investment of money in the fundbecomes a part of the fund.
As added by P.L.214-2005, SEC.40.
IC 6-9-27-9
Town use of revenue; pledges to pay obligations
Sec. 9. (a) Except as provided in subsection (b), money in the
fund established under section 8 of this chapter shall be used by thetown for the financing, construction, operation, or maintenance of thefollowing:
(1) Sanitary sewers or wastewater treatment facilities.
(2) Park or recreational facilities.
(3) Drainage or flood control facilities.
(4) Water treatment, storage, or distribution facilities.
(b) The fiscal body of the town may pledge money in the fund topay bonds issued, loans obtained, and lease payments or otherobligations incurred by or on behalf of the town or a special taxingdistrict in the town to provide the facilities described in subsection(a).
(c) Subsection (b) applies only to bonds, loans, lease payments,or obligations that are issued, obtained, or incurred after the date onwhich the tax is imposed under section 3 of this chapter.
(d) A pledge under subsection (a) is enforceable underIC 5-1-14-4.
As added by P.L.35-1990, SEC.24. Amended by P.L.214-2005,SEC.41.
IC 6-9-27-9.5
City use of revenue; pledges to pay obligations
Sec. 9.5. (a) A city shall use money in the fund established undersection 8.5 of this chapter for only the following:
(1) Renovating the city hall.
(2) Constructing new police or fire stations, or both.
(3) Improving the city's sanitary sewers or wastewater treatmentfacilities, or both.
(4) Improving the city's storm water drainage systems.
(5) Other projects involving the city's water system or sanitarysewer system or protecting the city's well fields, as determinedby the city fiscal body.
(b) The fiscal body of the city may pledge money in the fund topay bonds issued, loans obtained, and lease payments or otherobligations incurred by or on behalf of the city or a special taxingdistrict in the city to provide the projects described in subsection (a).
(c) Subsection (b) applies only to bonds, loans, lease payments,or obligations that are issued, obtained, or incurred after the date onwhich the tax is imposed under section 3 of this chapter.
(d) A pledge under subsection (b) is enforceable underIC 5-1-14-4.
As added by P.L.214-2005, SEC.42. Amended by P.L.184-2006,SEC.10; P.L.176-2009, SEC.16.
IC 6-9-27-10
Payment of outstanding obligations; covenant with holders
Sec. 10. With respect to obligations for which a pledge has beenmade under section 9(b) or 9.5(b) of this chapter, the generalassembly covenants with the holders of the obligations that thischapter will not be repealed or amended in a manner that will
adversely affect the imposition or collection of the tax imposed underthis chapter if the payment of any of the obligations is outstanding.
As added by P.L.35-1990, SEC.24. Amended by P.L.214-2005,SEC.43.