Citations Affected: IC 6-9.
Synopsis: RTA food and beverage tax. Authorizes a county that has
established a regional transportation authority (RTA) to impose a 1%
food and beverage tax to fund the authority. Restricts the use of the
revenue to providing new and improved public surface and rail
transportation services. Requires a unit in a county imposing the tax to
continue its current level of financial support of public surface and rail
transportation services after the tax is imposed.
Effective: July 1, 2004.
January 15, 2004, read first time and referred to Committee on Ways and Means.
January 29, 2004, reported _ Do Pass.
February 2, 2004, committee report of January 29, 2004, withdrawn; amended, reported _ Do Pass.
February 4, 2004, read second time, amended, ordered engrossed.
A BILL FOR AN ACT to amend the Indiana Code concerning
beverage tax receipts fund established under section 17 of this
Sec. 7. As used in this chapter, "gross retail income" has the meaning set forth in IC 6-2.5-1-5.
Sec. 8. As used in this chapter, "person" has the meaning set forth in IC 6-2.5-1-3.
Sec. 9. As used in this chapter, "public transportation service" refers only to public surface and rail transportation service.
Sec. 10. As used in this chapter, "retail merchant" has the same meaning set forth in IC 6-2.5-1-8.
Sec. 11. As used in this chapter, "unit" refers to a city, town, or county.
Sec. 12. (a) The fiscal body of a county may adopt an ordinance to impose an excise tax, known as the regional transportation authority food and beverage tax, on a transaction described in section 13 of this chapter.
(b) If a 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 a fiscal body adopts an ordinance under subsection (a), the regional transportation authority 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. 13. (a) Except as provided in subsection (c), a tax imposed under section 12 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 transactions 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 a retail merchant for sale as a single item (other than food that is only cut, repackaged, or pasteurized by the seller, and eggs, fish, meat, poultry, and foods containing these raw animal foods requiring cooking by the consumer as recommended by the federal Food and Drug Administration in chapter 3, subpart 3-401.11 of its Food Code so as to prevent food borne illnesses); or
new or improved public transportation service.
(2) The costs of preparing plans, specifications, studies, surveys, and estimates of cost and of revenue for public transportation services.
(3) Any expense necessary or incident to planning, providing, or determining the need for or the feasibility and practicability of providing public transportation services.
(4) The cost of purchasing, leasing, subleasing, or otherwise acquiring, erecting, constructing, remodeling, renovating, completing, equipping, and furnishing any property.
(5) The cost of engaging architectural services, engineering services, legal services, incidental expenses, financing costs, underwriter's discounts, funded or capitalized interest, municipal bond insurance premiums, or debt service reserve funds related to the issuance of debt obligations.
(6) The payment of debt service.
(7) Operation and management of property.
(8) Other administration expenses of the authority.
(c) Money in the fund may not be used to provide tax relief to any person or to reduce the ad valorem property levies imposed by any governmental entity. For purposes of computing the ad valorem property tax levy limit imposed on a unit under IC 6-1.1-18.5-3, the unit's ad valorem property tax levy for a particular calendar year does not include any part of a grant provided to the unit under this chapter.
Sec. 19. (a) The authority shall establish a reserve account in the fund.
(b) The authority shall deposit in the reserve account:
(1) two million dollars ($2,000,000) in each of the first two (2) twelve (12) month periods in which the authority receives tax revenue under this chapter; and
(2) one million dollars ($1,000,000) in each year thereafter.
(c) Subject to subsection (e), in each of the first two (2) twelve (12) month periods in which the authority receives tax revenue under this chapter, the authority shall transfer one million dollars ($1,000,000) from the reserve account in the fund to a commuter transportation district to match federal funds for a feasibility study to develop a new rail corridor designated in the feasibility study. The money may be used to pay the costs of:
(1) the preparation of plans, specifications, studies, surveys, and estimates of cost and of revenue for; and
(2) all other expenses necessary or incident to planning,
providing, or determining the need for or the feasibility and
the new rail corridor.
(d) Subject to subsection (e), money in the reserve account of the fund not needed to comply with subsection (c) may be used only to make distributions to a commuter transportation district under this subsection. In:
(1) the first twenty-four (24) months in which the authority receives tax revenue under this chapter, money may be transferred to a commuter transportation district for the commuter transportation district to make capital expenditures for new or improved public transportation service that primarily benefits the county imposing the tax; and
(2) a period after the time described in subdivision (1), money may be transferred to a commuter transportation district for the commuter transportation district to develop in the county imposing the tax under this chapter the new rail corridor designated in the feasibility study funded under subsection (c).
Money transferred under this subsection may not be used to reduce or replace expenditures made in the county by the commuter transportation district from other sources. Money transferred under subdivision (2) may not be used for operating expenditures.
(e) The authority may transfer money during a year in the amounts and at the times determined by the authority. Before the authority transfers money under subsection (c) or (d), the commuter transportation district must submit a written plan or amended plan to the authority for its review. The authority shall prescribe the format for plans and amended plans. The plan or amended plan must specify the nature and the amount of proposed expenditures from the money transferred under this section. Money transferred under this section may not be used for any purpose other than the purposes specified in the plan or amended plan.
(f) A commuter transportation district may submit a plan or amended plan to the authority not more than once each month. The authority must review a submitted plan or amended plan as soon as practicable after its submission.
(g) If insufficient money is deposited in the fund to comply with subsection (b), the authority shall make the deposits as soon as practicable after sufficient money becomes available to make the required deposits.
budgets, tax rates, and tax levies under IC 6-1.1-17-16, as
necessary, to implement this subsection.