a 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) include, but are not limited to, transactions in which food or beverage is:
(1) served by a retail merchant off the merchant's premises;
(2) sold by a retail merchant who 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 county food and beverage tax does not apply to the furnishing, preparing, or serving of any food or beverage in a transaction that is exempt, or to the extent exempt, from the state gross retail tax imposed by IC 6-2.5.
Sec. 5. The county 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 such a transaction does not include the amount of tax imposed on the transaction under IC 6-2.5.
Sec. 6. The tax that may be 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 for the payment of the taxes may be made on separate returns or may be combined with the return filed for the payment of the state gross retail tax, as prescribed by the department of state revenue.
Sec. 7. (a) If a tax is levied under section 3 of this chapter, the county fiscal body shall establish a food and beverage tax receipts fund.
(b) The fiscal officer of the county shall deposit in this fund all amounts received under this chapter.
(c) Any money earned from the investment of money in the fund becomes a part of the fund.
(d) The county shall use money in this fund as follows:
(1) Fifty percent (50%) shall be used to finance rail transportation and rail services provided by a regional transportation authority in the county.
(2) Fifty percent (50%) shall be used to finance bus transportation and bus services provided by a regional transportation authority in the county.
(e) The county is authorized to enter into lease or contractual arrangements, or both, with governmental, nonprofit, or other private entities for a purpose described in subsection (d).".