HOUSE BILL No. 1170
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-8-12; IC 6-8.1-1-1; IC 20-34-5.
Synopsis: Minimally nutritious food and beverage tax. Imposes an
11.5% tax, in addition to other applicable taxes, on the retail sale of
minimally nutritious foods or beverages. Establishes the physical
fitness grant account (account), and deposits revenues from the tax in
the account. Establishes the physical fitness grant program. Provides
that the department of education shall award grants to public high
schools, including charter high schools, for salaries and other costs
related to physical activity and fitness education from money
appropriated from the account. Provides that the surplus of the account
reverts to the state general fund to be used for Medicaid expenditures.
Effective: January 1, 2007.
January 9, 2006, read first time and referred to Committee on Public Health.
Second Regular Session 114th General Assembly (2006)
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between statutes enacted by the 2005 Regular Session of the General Assembly.
HOUSE BILL No. 1170
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation and to make an appropriation.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-8-12; (06)IN1170.1.1. -->
SECTION 1. IC 6-8-12 IS ADDED TO THE INDIANA CODE AS
CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2007]:
Chapter 12. Minimally Nutritious Food and Beverage Tax
Sec. 1. As used in this chapter, "department" refers to the
department of state revenue.
Sec. 2. As used in this chapter, "gross retail income" has the
meaning set forth in IC 6-2.5-1-5.
Sec. 3. (a) As used in this chapter, "minimally nutritious food or
beverage" means the following:
(1) A food that lists sugar, in any form, as the first ingredient.
(2) A beverage that lists sugar, in any form, as the second
ingredient, including beverages commonly referred to as soft
drinks, soda, soda pop, cola, lemon, lime, or lemon-lime,
whether sold in a bottle or a can or from a fountain.
(3) A food that derives more than thirty-five percent (35%) of
the food's total weight from sugar, other than sugar in the
form of fresh or dried fruits, berries, or vegetables.
(b) The term does not include:
(1) milk; or
(2) fruit drinks composed of at least fifty percent (50%) fruit
Sec. 4. "Retail merchant" has the meaning set forth in
Sec. 5. (a) An excise tax known as the minimally nutritious food
and beverage excise tax is imposed on each sale of a minimally
nutritious food or beverage by a retail merchant in Indiana.
(b) The tax is imposed on a retail merchant at the time of each
transaction described in subsection (a) and is payable according to
the procedures set forth in section 7 of this chapter.
(c) The tax imposed under this section 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. 6. The tax imposed on a transaction described in section 5
of this chapter is eleven and five-tenths percent (11.5%) of the
gross retail income received by the retail 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
Sec. 7. The 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 that is filed for the payment of the tax may be made on a
separate return or may be combined with the return filed for the
payment of the state gross retail tax as prescribed by the
Sec. 8. The tax imposed under this chapter is a listed tax for the
purposes of IC 6-8.1.
Sec. 9. Revenue from the tax shall be deposited in the physical
fitness grant account established by IC 20-34-5-4.
SOURCE: IC 6-8.1-1-1; (06)IN1170.1.2. -->
SECTION 2. IC 6-8.1-1-1, AS AMENDED BY P.L.214-2005,
SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2007]: Sec. 1. "Listed taxes" or "taxes" includes only the
pari-mutuel taxes (IC 4-31-9-3 through IC 4-31-9-5); the river boat
admissions tax (IC 4-33-12); the river boat wagering tax (IC 4-33-13);
the gross income tax (IC 6-2.1) (repealed); the utility receipts tax
(IC 6-2.3); the state gross retail and use taxes (IC 6-2.5); the adjusted
gross income tax (IC 6-3); the supplemental net income tax (IC 6-3-8)
(repealed); the county adjusted gross income tax (IC 6-3.5-1.1); the
county option income tax (IC 6-3.5-6); the county economic
development income tax (IC 6-3.5-7); the municipal option income tax
(IC 6-3.5-8); the auto rental excise tax (IC 6-6-9); the financial
institutions tax (IC 6-5.5); the gasoline tax (IC 6-6-1.1); the alternative
fuel permit fee (IC 6-6-2.1); the special fuel tax (IC 6-6-2.5); the motor
carrier fuel tax (IC 6-6-4.1); a motor fuel tax collected under a
reciprocal agreement under IC 6-8.1-3; the motor vehicle excise tax
(IC 6-6-5); the commercial vehicle excise tax (IC 6-6-5.5); the
hazardous waste disposal tax (IC 6-6-6.6); the cigarette tax (IC 6-7-1);
the beer excise tax (IC 7.1-4-2); the liquor excise tax (IC 7.1-4-3); the
wine excise tax (IC 7.1-4-4); the hard cider excise tax (IC 7.1-4-4.5);
the malt excise tax (IC 7.1-4-5); the petroleum severance tax
(IC 6-8-1); the minimally nutritious food and beverage excise tax
(IC 6-8-12); the various innkeeper's taxes (IC 6-9); the various food
and beverage taxes (IC 6-9); the county admissions tax (IC 6-9-13 and
IC 6-9-28); the oil inspection fee (IC 16-44-2); the emergency and
hazardous chemical inventory form fee (IC 6-6-10); the penalties
assessed for oversize vehicles (IC 9-20-3 and IC 9-30); the fees and
penalties assessed for overweight vehicles (IC 9-20-4 and IC 9-30); the
underground storage tank fee (IC 13-23); the solid waste management
fee (IC 13-20-22); and any other tax or fee that the department is
required to collect or administer.
SOURCE: IC 20-34-5; (06)IN1170.1.3. -->
SECTION 3. IC 20-34-5 IS ADDED TO THE INDIANA CODE AS
A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2007]:
Chapter 5. Physical Fitness Grant Program and Account
Sec. 1. As used in this chapter, "account" refers to the physical
fitness grant account established by section 4 of this chapter.
Sec. 2. As used in this chapter, "program" refers to the physical
fitness grant program established by section 5 of this chapter.
Sec. 3. For purposes of this chapter, the term "public high
school" includes a charter high school established under
Sec. 4. (a) The physical fitness grant account is established
within the state general fund to fund physical fitness grants from
the department to public high schools.
(b) The department shall administer the account.
(c) The account consists of the following:
(1) Minimally nutritious food and beverage tax revenue
deposited under IC 6-8-12-9.
(2) Any other money deposited in the account.
(d) The expenses of administering the account shall be paid from
money in the account.
(e) The treasurer of state shall invest the money in the account
not currently needed to meet the obligations of the account in the
same manner as other public money may be invested. Interest that
accrues from these investments shall be deposited in the account.
(f) There is annually appropriated from the account to the
department an amount sufficient to carry out the purposes of this
(g) Money in the account at the end of a state fiscal year reverts
to the state general fund to be used for Medicaid expenditures.
Sec. 5. The physical fitness grant program is established to
provide grants to public high schools to provide physical activity
and physical fitness education for students during the school day
at least five (5) days a week.
Sec. 6. (a) The department shall administer the program under
(b) The department shall award a grant to each public high
school. The department shall determine the amount of each grant.
(c) The department shall consider the following when awarding
grants under this chapter:
(1) The public high school's ADM.
(2) Physical fitness programs and physical education classes
currently offered by the public high school.
(d) A public high school that receives a grant under this section
must use the grant for one (1) or more of the following:
(1) Salaries of and other costs related to physical education
(2) Classes and extracurricular activities related to physical
education and fitness, other than interscholastic athletics.
(3) Other expenses related to physical education and fitness
that are approved by the department.
SOURCE: ; (06)IN1170.1.4. -->
SECTION 4. [EFFECTIVE JANUARY 1, 2007] (a) For purposes
of this SECTION, "minimally nutritious food or beverage" has the
meaning set forth in IC 6-8-12-3, as added by this act.
(b) IC 6-8-12, as added by this act, applies to a sale of a
minimally nutritious food or beverage occurring after December