Citations Affected: IC 6-9-35.
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.
Effective: July 1, 2004.
January 15, 2004, read first time and referred to Committee on Ways and Means.
A BILL FOR AN ACT to amend the Indiana Code concerning
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. 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 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
(4) food sold with eating utensils provided by a retail merchant, including plates, knives, forks, spoons, glasses, cups, napkins, or straws (for purposes of this subdivision, a plate does not include a container or packaging used to transport the food).
(c) A food and beverage tax imposed under this chapter does not apply to furnishing, preparing, or serving any food or beverage in a transaction that is exempt or to the extent the transaction is exempt from the state gross retail tax imposed under IC 6-2.5.
Sec. 5. The tax imposed on a 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 tax 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. The treasurer of state shall pay monthly the amounts received from the tax imposed under this chapter to the regional transportation authority established in the county upon warrants issued by the auditor of state.
Sec. 8. (a) If a tax is imposed under section 3 of this chapter, the regional transportation authority shall establish a food and beverage tax receipts fund.
(b) The authority shall deposit in the food and beverage tax receipts fund all amounts received under this chapter.
(c) Any money earned from the investment of money in the food and beverage tax receipts fund becomes a part of the fund.
(d) Money in the food and beverage tax receipts fund shall be used by the authority solely to finance, construct, improve, equip, operate, maintain, and promote public transportation within the jurisdiction of the authority.