HOUSE BILL No. 1071
DIGEST OF INTRODUCED BILL
Synopsis: Martinsville food and beverage tax. Permits Martinsville
to impose a 1% food and beverage tax for city hall improvements,
police and fire station construction, sanitary sewer and wastewater
facility improvements, and storm sewer drainage improvements.
Effective: July 1, 2000.
January 10, 2000, read first time and referred to Committee on Ways and Means.
Second Regular Session 111th General Assembly (2000)
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HOUSE BILL No. 1071
A BILL FOR AN ACT to amend the Indiana Code concerning
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-9-33; (00)IN1071.1.1. -->
IS ADDED TO THE INDIANA CODE AS
CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
Chapter 33. Martinsville Food and Beverage Tax
Sec. 1. This chapter applies to a city having a population of
more than eleven thousand six hundred seventy (11,670) but less
than twelve thousand (12,000).
Sec. 2. The definitions in
apply throughout this
Sec. 3. (a) The fiscal body of a city may adopt an ordinance to
impose an excise tax, known as the city food and beverage tax, on
transactions described in section 4 of this chapter.
(b) If the fiscal body adopts an ordinance under subsection (a),
the fiscal body shall immediately send a certified copy of the
ordinance to the department of state revenue.
(c) If the fiscal body adopts an ordinance under subsection (a),
the city food and beverage tax applies to transactions that occur
after the last day of the month that succeeds the month in which
the ordinance was adopted.
Sec. 4. (a) Except as provided in subsection (c), a tax imposed
under section 3 of this chapter applies to a transaction in which
food or beverage is furnished, prepared, or served:
(1) for consumption at a location or on equipment provided by
a retail merchant;
(2) in the city in which the tax is imposed; and
(3) by a retail merchant for consideration.
(b) Transactions described in subsection (a)(1) include
transactions in which food or beverage is:
(1) served by a retail merchant off the merchant's premises;
(2) sold by a retail merchant that ordinarily bags, wraps, or
packages the food or beverage for immediate consumption on
or near the retail merchant's premises, including food or
beverage sold on a "take out" or "to go" basis; or
(3) sold by a street vendor.
(c) The city food and beverage tax does not apply to the
furnishing, preparing, or serving of a food or beverage in a
transaction that is exempt, or to the extent the transaction is
exempt, from the state gross retail tax imposed by IC 6-2.5.
Sec. 5. A city food and beverage tax imposed on a food or
beverage transaction described in section 4 of this chapter equals
one percent (1%) of the gross retail income received by the
merchant from the transaction. For purposes of this chapter, the
gross retail income received by the retail merchant from a
transaction does not include the amount of tax imposed on the
transaction under IC 6-2.5.
Sec. 6. A tax imposed under this chapter shall be imposed, paid,
and collected in the same manner that the state gross retail tax is
imposed, paid, and collected under IC 6-2.5. However, the return
to be filed with the payment of the tax imposed under this chapter
may be made on a separate return or may be combined with the
return filed for payment of the state gross retail tax, as prescribed
by the department of state revenue.
Sec. 7. The treasurer of state shall pay monthly the amounts
received from the tax imposed under this chapter to the city fiscal
officer upon warrants issued by the auditor of state.
Sec. 8. (a) If a tax is imposed under section 3 of this chapter, the
city fiscal officer shall establish a food and beverage tax receipts
(b) The city fiscal officer shall deposit in this fund all amounts
received under this chapter.
(c) Money earned from the investment of money in the fund
becomes a part of the fund.
Sec. 9. (a) A city shall use money in the fund established under
section 8 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
treatment facilities, or both.
(4) Improving the city's storm water drainage systems.
Money in the fund may not be used for the operating costs of a
project. In addition, the city may not initiate a project under this
chapter after December 31, 2005.
(b) The fiscal body of the city may pledge money in the fund to
pay bonds issued, loans obtained, and lease payments or other
obligations incurred by or on behalf of the city or a special taxing
district in the city to provide the projects described in subsection
(c) Subsection (b) applies only to bonds, loans, lease payments,
or obligations that are issued, obtained, or incurred after the date
on which the tax is imposed under section 3 of this chapter.
(d) A pledge under subsection (b) is enforceable under
Sec. 10. With respect to obligations for which a pledge has been
made under section 9(b) of this chapter, the general assembly
covenants with the holders of the obligations that this chapter will
not be repealed or amended in a manner that will adversely affect
the imposition or collection of the tax imposed under this chapter
if the payment of any of the obligations is outstanding.