CHAPTER 38. FOOD AND BEVERAGE TAXES IN WAYNE COUNTY
IC 6-9-38
Chapter 38. Food and Beverage Taxes in Wayne County
IC 6-9-38-1
Application of chapter
Sec. 1. This chapter applies to a county having a population ofmore than seventy-one thousand (71,000) but less than seventy-onethousand four hundred (71,400).
As added by P.L.214-2005, SEC.47.
IC 6-9-38-2
Application of definitions
Sec. 2. Except as otherwise provided in this chapter, thedefinitions in IC 36-1-2 apply throughout this chapter.
As added by P.L.214-2005, SEC.47.
IC 6-9-38-3
"Beverage"
Sec. 3. As used in this chapter, "beverage" includes an alcoholicbeverage.
As added by P.L.214-2005, SEC.47.
IC 6-9-38-4
"Bonds"
Sec. 4. As used in this chapter, "bonds" has the meaning set forthin IC 5-1-11-1.
As added by P.L.214-2005, SEC.47.
IC 6-9-38-5
"Department"
Sec. 5. As used in this chapter, "department" means thedepartment of state revenue.
As added by P.L.214-2005, SEC.47.
IC 6-9-38-6
"Economic development project"
Sec. 6. As used in this chapter, "economic development project"has the meaning set forth in IC 6-3.5-7-13.1.
As added by P.L.214-2005, SEC.47.
IC 6-9-38-7
"Food"
Sec. 7. As used in this chapter, "food" includes any food product.
As added by P.L.214-2005, SEC.47.
IC 6-9-38-8
"Gross retail income"
Sec. 8. As used in this chapter, "gross retail income" has themeaning set forth in IC 6-2.5-1-5.
As added by P.L.214-2005, SEC.47.
IC 6-9-38-9
"Obligations"
Sec. 9. As used in this chapter, "obligations" has the meaning setforth in IC 5-1-3-1(b).
As added by P.L.214-2005, SEC.47.
IC 6-9-38-10
"Person"
Sec. 10. As used in this chapter, "person" has the meaning setforth in IC 6-2.5-1-3.
As added by P.L.214-2005, SEC.47.
IC 6-9-38-11
"Retail merchant"
Sec. 11. As used in this chapter, "retail merchant" has the meaningset forth in IC 6-2.5-1-8.
As added by P.L.214-2005, SEC.47.
IC 6-9-38-12
"Unit"
Sec. 12. As used in this chapter, "unit" means:
(1) a county described in section 1 of this chapter; or
(2) a city or town located in the county described in section 1 ofthis chapter.
As added by P.L.214-2005, SEC.47.
IC 6-9-38-13
Imposition of tax; ordinances; transmission of ordinance to state
Sec. 13. (a) After January 1 but before August 1, the fiscal bodyof a unit may adopt an ordinance to impose an excise tax known asthe unit's food and beverage tax on transactions described in section14 of this chapter. The fiscal body of a unit other than a county maynot adopt an ordinance under this chapter until after July 31, 2006,unless the fiscal body of the county adopts a resolution to relinquishits exclusive authority to adopt an ordinance under this chapterbefore August 1, 2006. If a county fiscal body adopts a resolutionunder this subsection, the county fiscal body shall send a certifiedcopy of the resolution to the executive of each city and town locatedin the county.
(b) Before a fiscal body may adopt an ordinance imposing a foodand beverage tax, the fiscal body must hold a public hearing on theproposed ordinance, with notice of the time, date, and place of thepublic hearing given in accordance with IC 5-3-1.
(c) If the fiscal body of a county adopts an ordinance to impose afood and beverage tax under this chapter, the county executive mustalso adopt a substantially similar ordinance to impose the tax.
(d) If an ordinance is adopted under subsection (c), the countyexecutive shall immediately send a certified copy of the ordinance tothe department.
(e) If a unit other than a county adopts an ordinance under this
section, the unit's executive shall immediately send a certified copyof the ordinance to the department.
As added by P.L.214-2005, SEC.47.
IC 6-9-38-14
Transactions taxed
Sec. 14. (a) Except as provided in subsection (c), a food andbeverage tax imposed under section 13 of this chapter applies to anytransaction in which food or a beverage is furnished, prepared, orserved:
(1) for consumption at a location, or on equipment, provided bya retail merchant;
(2) in the unit in which the tax is imposed; and
(3) by the retail merchant for consideration.
If both a county and another unit located in the county impose a taxunder this chapter, the tax imposed by the county does not applywithin the territory of the other unit imposing the tax.
(b) Transactions described in subsection (a)(1) includetransactions in which food or a beverage is:
(1) served by a retail merchant off the merchant's premises;
(2) sold by a retail merchant who ordinarily bags, wraps, orpackages the food or beverage for immediate consumption onor near the retail merchant's premises, including food orbeverages sold on a "take out" or "to go" basis; or
(3) sold by a street vendor.
(c) A food and beverage tax imposed under this chapter does notapply to the furnishing, preparing, or serving of any food or beveragein a transaction that is exempt, or to the extent the transaction isexempt, from the state gross retail tax imposed under IC 6-2.5.
As added by P.L.214-2005, SEC.47.
IC 6-9-38-15
Rate
Sec. 15. The food and beverage tax imposed on a food orbeverage transaction described in section 14 of this chapter is equalto one percent (1%) of the gross retail income received by the retailmerchant from the transaction. For 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.214-2005, SEC.47.
IC 6-9-38-16
Repeal; conditions
Sec. 16. (a) If no bonds, leases, obligations, or other evidences ofindebtedness of a unit that are payable from a food and beverage taximposed under this chapter are outstanding, the unit's fiscal bodymay adopt an ordinance to repeal the unit's food and beverage tax.
(b) An ordinance described in subsection (a) must be adoptedafter January 1 but before September 1 of a year. The fiscal body
shall send a certified copy of the ordinance adopted under thissection to the department.
As added by P.L.214-2005, SEC.47.
IC 6-9-38-17
Effective date of ordinance
Sec. 17. If a fiscal body adopts an ordinance under this chapter,the ordinance takes effect January 1 of the year following the year inwhich the ordinance is adopted.
As added by P.L.214-2005, SEC.47.
IC 6-9-38-18
Collection and payment; returns
Sec. 18. A food and beverage tax imposed under this chapter shallbe imposed, paid, and collected in the same manner that the stategross retail tax is imposed, paid, and collected under IC 6-2.5.However, the return that is filed for the payment of the tax may bemade on a separate return or may be combined with the return filedfor the payment of the state gross retail tax as prescribed by thedepartment.
As added by P.L.214-2005, SEC.47.
IC 6-9-38-19
Revenue distribution; notices
Sec. 19. (a) The department shall notify the county auditor of acounty containing a unit that imposes a food and beverage tax underthis chapter of the amount of tax paid in the unit.
(b) The amounts received from a food and beverage tax imposedunder this chapter shall be paid monthly by the treasurer of state onwarrants issued by the auditor of state to the county auditor of thecounty in which the unit that imposed the tax is located.
As added by P.L.214-2005, SEC.47.
IC 6-9-38-20
Food and beverage tax revenue fund
Sec. 20. A county auditor shall establish for each unit in thecounty that imposes a tax under this chapter a local food andbeverage tax revenue fund into which all amounts received monthlyfrom the treasurer of state under this chapter shall be deposited.
As added by P.L.214-2005, SEC.47.
IC 6-9-38-21
Additional revenue
Sec. 21. Revenue derived from a tax imposed under this chaptermay be treated by a unit as additional revenue for the purpose offixing its budget for the budget year during which the revenues areto be distributed to the unit.
As added by P.L.214-2005, SEC.47.
IC 6-9-38-22 Use of revenue
Sec. 22. A unit may use revenues from a tax imposed under thischapter for one (1) or more of the following purposes:
(1) To promote and encourage conventions, visitors, andtourism within the unit.
(2) To promote and encourage economic development withinthe unit.
(3) Paying debt service or lease rentals on:
(A) bonds;
(B) leases;
(C) obligations; or
(D) any other evidence of indebtedness of the unit;
for a project described in subdivisions (1) and (2).
As added by P.L.214-2005, SEC.47.
IC 6-9-38-23
Property tax levy reduction prohibited
Sec. 23. The department of local government finance may notreduce a unit's property tax levy by the amount of revenue receivedfrom a tax imposed under this chapter.
As added by P.L.214-2005, SEC.47.
IC 6-9-38-24
Tax revenue committee established; members; terms; abolishment
Sec. 24. (a) The food and beverage tax revenue committee isestablished to make recommendations concerning the use of moneyin the funds established under section 20 of this chapter. Thecommittee 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.
(3) Two (2) residents of the largest city in the county, appointedby the city 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 city fiscal body. The two (2) appointees under thissubdivision may not be from the same political party. One (1)appointee must be interested in tourism.
(b) Except as provided in subsection (c), the term of a memberappointed to the food and beverage tax revenue committee under thissection is four (4) years.
(c) The initial terms of office for the members appointed to thefood and beverage tax revenue committee under subsection (a) are asfollows:
(1) Of the members appointed under subsection (a)(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 (a)(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 (a)(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 (a)(4), one (1)member shall be appointed for three (3) years and one (1)member shall be appointed for four (4) years.
(d) At the expiration of a term under subsection (c), the memberwhose term expired shall be reappointed to the food and beverage taxrevenue committee to fill the vacancy caused by the expiration.
(e) The food and beverage tax revenue committee is abolished onthe date that the county fiscal body adopts a resolution abolishing thefood and beverage tax revenue committee. A county fiscal body mayadopt a resolution under this subsection if the county fiscal bodydetermines that each unit in the county that had imposed a tax underthis chapter has adopted an ordinance to rescind the tax.
As added by P.L.214-2005, SEC.47.
IC 6-9-38-25
Covenant with bond holders
Sec. 25. The general assembly covenants with each unit subjectto this chapter and the purchasers and owners of bonds, leases,obligations, or any other evidences of indebtedness of the countypayable from a tax imposed under this chapter that this chapter willnot be repealed or amended in any manner that will adversely affectthe imposition or collection of a tax imposed under this chapter solong as the principal, interest, or lease rentals due under those bonds,leases, obligations, or other evidences of indebtedness of a unit thatare payable from a tax imposed under this chapter remain unpaid.
As added by P.L.214-2005, SEC.47.
IC 6-9-38-26
Expiration
Sec. 26. If a unit incurs indebtedness payable from a tax imposedby the unit under this chapter, the unit's food and beverage taxterminates two (2) years after the retirement of the debt financed bythe food and beverage tax.
As added by P.L.214-2005, SEC.47.