Introduced Version






HOUSE BILL No. 1760

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 6-9-34.

Synopsis: White County food and beverage tax. Establishes a 1% food and beverage tax for White County. Creates a convention and visitor's bureau authority to use the tax revenue to promote tourism.

Effective: July 1, 2003.





Klinker, McClain, Herrell




    January 21, 2003, read first time and referred to Committee on Ways and Means.







Introduced

First Regular Session 113th General Assembly (2003)


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HOUSE BILL No. 1760



    A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 6-9-34; (03)IN1760.1.1. -->     SECTION 1. IC 6-9-34 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]:
     Chapter 34. White County Food and Beverage Tax
    Sec. 1. This chapter applies to a county having a population of more than twenty-five thousand (25,000) but less than twenty-five thousand five hundred (25,500).
    Sec. 2. The definitions in IC 6-9-12-1 apply throughout this chapter.
    Sec. 3. (a) The fiscal body of the county may adopt an ordinance to impose an excise tax, known as the county food and beverage tax, on a transaction described in section 4 of this chapter.
    (b) If the fiscal body adopts an ordinance under subsection (a), it shall immediately send a certified copy of the ordinance to the commissioner of the department of state revenue.
    (c) If the fiscal body adopts an ordinance under subsection (a), the county 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 any 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 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 convention and visitor's bureau authority, composed of five (5) members appointed as follows:
        (1) Two (2) members, one (1) of whom must be a member of the White County Convention and Visitor's Bureau appointed by the executive of the largest municipality in the county.
        (2) Two (2) members, one (1) of whom must be a designated

agent of Indiana Beach, Inc., appointed by the county executive body.
        (3) One (1) member appointed by the county fiscal body.
    (b) Not more than three (3) members of the convention and visitor's bureau authority may be affiliated with the same political party. All members must reside in the county.
    (c) The term of appointment to the authority is two (2) years. However, when the initial appointments are made, each appointing authority shall appoint one (1) member for a one (1) year term and the remaining members for two (2) year terms. Subsequent appointments are for two (2) years. A vacancy on the authority shall be filled for the unexpired term by the authority that made the prior appointment.
    (d) The affirmative vote of at least three (3) members of the authority is required for the authority to take an action.
    Sec. 8. The amounts received from the county food and beverage tax imposed under this chapter shall be paid monthly by the treasurer of state to the convention and visitor's bureau authority upon warrants issued by the auditor of state.
    Sec. 9. (a) If a tax is imposed under section 3 of this chapter, the convention and visitor's bureau authority shall establish a food and beverage tax receipts fund.
    (b) The county treasurer 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) Money in this fund shall be used by the authority solely to promote tourism in the county. The convention and visitor's bureau authority may enter into lease or contractual arrangements, or both, with governmental, nonprofit, or other private entities for the purpose of promoting tourism.
    Sec. 10. (a) In order to compensate retail merchants for collecting and timely remitting the food and beverage tax under this chapter, every retail merchant that collects and timely remits the food and beverage tax is entitled to deduct and retain from the amount of those taxes required to be remitted under section 6 of this chapter a retail merchant's food and beverage collection allowance.
    (b) The retail merchant's food and beverage collection allowance under this section equals five percent (5%) of the retail merchant's food and beverage tax liability accrued under this chapter during a reporting period.