Reprinted
February 22, 2008
ENGROSSED
HOUSE BILL No. 1250
_____
DIGEST OF HB 1250
(Updated February 21, 2008 3:11 pm - DI 73)
Citations Affected: IC 6-9; IC 9-18; IC 14-14.
Synopsis: Local government finance. Changes the distribution of the
Tippecanoe County innkeeper's tax. Establishes an advisory
commission to make recommendations concerning the use of any
proceeds of bonds issued to finance the development of Prophetstown
State Park. Specifies that the Indiana finance authority, in its capacity
as the recreational development commission, may issue bonds for the
development of Prophetstown State Park. Requires the bureau of motor
vehicles to design the Indiana Native American trust license plate with
the advice of the Native American Indian affairs commission (NAIAC).
Provides that money in the Indiana Native American trust fund must be
paid to Historic Prophetstown through 2008 and to the NAIAC
beginning in 2009. Authorizes Steuben County to impose a 1% food
and beverage tax. Provides that: (1) half of the tax revenue is retained
by the county; and (2) the other half of the revenue is distributed to the
city of Angola.
Effective: Upon passage; July 1, 2008.
Klinker, Micon
, Buell
, Pond
(SENATE SPONSORS _ HERSHMAN, ALTING, ROGERS, SIPES)
January 14, 2008, read first time and referred to Committee on Ways and Means.
January 22, 2008, amended, reported _ Do Pass.
January 24, 2008, read second time, ordered engrossed.
January 25, 2008, engrossed.
January 30, 2008, read third time, passed. Yeas 75, nays 21.
SENATE ACTION
February 5, 2008, read first time and referred to Committee on Appropriations.
February 14, 2008, amended, reported favorably _ Do Pass.
February 21, 2008, read second time, amended, ordered engrossed.
Reprinted
February 22, 2008
Second Regular Session 115th General Assembly (2008)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in
this style type, and deletions will appear in
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Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in
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NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in
this style type or
this style type reconciles conflicts
between statutes enacted by the 2007 Regular Session of the General Assembly.
ENGROSSED
HOUSE BILL No. 1250
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 6-9-7-3; (08)EH1250.2.1. -->
SECTION 1. IC 6-9-7-3 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2008]: Sec. 3. (a) The commission may:
(1) accept and use gifts, grants, and contributions from any public
or private source, under terms and conditions which the
commission deems necessary and desirable;
(2) sue and be sued;
(3) enter into contracts and agreements, including contracts and
agreements not to exceed ten (10) years;
(4) make rules and regulations necessary for the conduct of its
business and the accomplishment of its purposes;
(5) receive and approve, alter, or reject requests and proposals for
funding by any nonprofit corporations or political subdivisions;
(6) after its approval of a proposal, transfer money, quarterly or
less frequently, from any available funds
pursuant to section
7(b)(2) or 7(c)(1) of the commission under section 7 of this
chapter for the purpose of promotion and encouragement in the
county of conventions, trade shows, visitors, or special events;
and
(7) require financial or other reports from any entity that receives
funds under this chapter.
(b) A majority of the commission constitutes a quorum for the
transaction of business, and the concurrence of a majority of those
present is necessary to authorize any action. However, the commission
shall not transact any business without first giving written notice to the
director of the county parks and recreation board at least forty-eight
(48) hours in advance of the convening of a meeting at which business
is to be transacted.
SOURCE: IC 6-9-7-7; (08)EH1250.2.2. -->
SECTION 2. IC 6-9-7-7, AS AMENDED BY P.L.167-2006,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 7. (a) The county treasurer shall establish an
innkeeper's tax fund. The treasurer shall deposit in that fund all money
received under section 6 of this chapter that is attributable to an
innkeeper's tax rate that is not more than five percent (5%).
(b) Money in the innkeeper's tax fund shall be
expended in the
following order: distributed as follows:
(1) Through July 1999, not more than the revenue needed to
service bonds issued under IC 36-10-3-40 through IC 36-10-3-45
and outstanding on January 1, 1993, may be used to service
bonds. The county auditor shall make a semiannual distribution,
at the same time property tax revenue is distributed, to a park and
recreation district that has issued bonds payable from a county
innkeeper's tax. Each semiannual distribution must be equal to
one-half (1/2) of the annual principal and interest obligations on
the bonds. Money received by a park and recreation district under
this subdivision shall be deposited in a special fund to be used to
service the bonds. During August 1999 the money that had been
set aside to cover bond payments that remains after the bonds
have been retired plus sixty percent (60%) of the tax revenue
during August 1999 through December 1999 shall be distributed
to the county treasurer to be used by the county park board,
subject to appropriation by the county fiscal body.
(2) To the commission for its general use in paying operating
expenses and to carry out the purposes set forth in section 3(a)(6)
of this chapter. However, the amount that may be distributed
under this subdivision during any particular year may not exceed
the proceeds derived from an innkeeper's tax of two percent (2%)
through December 1999 and fifty percent (50%) of the tax
revenue beginning January 2000 and continuing through
December 2014.
(3) For the period beginning July 1, 2002, through December
2014, fifty percent (50%) of the revenue to the county treasurer to
be credited by the treasurer to a special account. The county
treasurer shall distribute money in the special account as follows:
(A) Seventy-five percent (75%) of the money in the special
account
(1) Thirty percent (30%) shall be distributed to the department
of natural resources for the development of projects in the state
park on the county's largest river, including its tributaries.
(B) Twenty-five percent (25%) of the money in the special
account shall be distributed to a community development
corporation that serves a metropolitan area in the county that
includes:
(i) a city having a population of more than fifty-five
thousand (55,000) but less than fifty-nine thousand (59,000);
and
(ii) a city having a population of more than twenty-eight
thousand seven hundred (28,700) but less than twenty-nine
thousand (29,000);
for the community development corporation's use in tourism,
recreation, and economic development activities. For the
period beginning July 1, 2002, and continuing through
December 2012, the community development corporation
shall provide not less than forty percent (40%) of the money
received from the special account under this clause as a grant
to a nonprofit corporation that leases land in the state park
described in this subdivision for the nonprofit corporation's
use in noncapital projects in the state park.
Money in the special account may not be used for any other purpose.
The money credited to the account that has not been used as specified
in this subdivision by January 1, 2015, shall be transferred to the
commission to be used to make grants as provided in subsection (c)(2).
(c) Money in the innkeeper's tax fund subject to appropriation by the
county council shall be allocated and distributed after December 2014
as follows:
(1) Fifty percent (50%) of the revenue to the commission for the
commission's general use in paying operating expenses and to
carry out the purposes set forth in section 3(a)(6) of this chapter.
(2) The remainder to the commission to be used solely to make
grants for the development of recreation and tourism projects. The
commission shall establish and make public the criteria that will
be used in analyzing and awarding grants. At least ten percent
(10%) but not more than fifteen percent (15%) of the grants may
be awarded for noncapital projects. Grants may be made only to
the following entities upon application by the executive of the
entity:
(A) The county for deposit in a special account.
(B) The most populated city in the county for deposit in a
special account.
(C) The second most populated city in the county for deposit
in a special account.
(D) The Tippecanoe County Wabash River parkway
commission, but only so long as the interlocal agreement
among the political subdivisions listed in clauses (A) through
(C) is in effect. Money received by the parkway commission
shall be segregated in a special account.
(d) Money credited to special accounts under subsection (c)(2) shall
be used only for recreation or tourism projects, or both.
(2) Forty percent (40%) shall be distributed to the
commission to carry out its purposes, including making any
distributions or payments to the Lafayette - West Lafayette
Convention and Visitors Bureau, Inc.
(3) Ten percent (10%) shall be distributed to a community
development corporation that serves a metropolitan area in
the county that includes:
(A) a city having a population of more than fifty-five
thousand (55,000) but less than fifty-nine thousand
(59,000); and
(B) a city having a population of more than twenty-eight
thousand seven hundred (28,700) but less than twenty-nine
thousand (29,000);
for the community development corporation's use in tourism,
recreation, and economic development activities.
(4) Ten percent (10%) shall be distributed to Historic
Prophetstown to be used by Historic Prophetstown for
carrying out its purposes.
(5) Ten percent (10%) shall be distributed to the Wabash
River Enhancement Corporation to assist the Wabash River
Enhancement Corporation in carrying out its purposes.
Money distributed under this subdivision may not be used to
pay any:
(A) employee salaries; or
(B) other ongoing administrative or operating costs;
of the Wabash River Enhancement Corporation.
(c) An advisory commission consisting of the following members
is established:
(1) The director of the department of natural resources or the
director's designee.
(2) The public finance director or the public finance director's
designee.
(3) A member appointed by the Native American Indian
affairs commission.
(4) A member appointed by Historic Prophetstown.
(5) A member appointed by the community development
corporation described in subsection (b)(2)(B).
(6) A member appointed by the Wabash River Enhancement
Corporation.
(7) A member appointed by the commission.
(8) A member appointed by the county fiscal body.
(9) A member appointed by the town board of the town of
Battleground.
(10) A member appointed by the mayor of the city of
Lafayette.
(11) A member appointed by the mayor of the city of West
Lafayette.
(d) The following apply to the advisory commission:
(1) The governor shall appoint a member of the advisory
commission as chairman of the advisory commission.
(2) Six (6) members of the advisory commission constitute a
quorum. The affirmative votes of at least six (6) advisory
commission members are necessary for the advisory
commission to take official action other than to adjourn or to
meet to hear reports or testimony.
(3) The advisory commission shall make recommendations
concerning the use of any proceeds of bonds issued to finance
the development of Prophetstown State Park.
(4) Members of the advisory commission who are state
employees:
(A) are not entitled to any salary per diem; and
(B) are entitled to reimbursement for traveling expenses as
provided under IC 4-13-1-4 and to reimbursement for
other expenses actually incurred in connection with the
member's duties as provided in the state policies and
procedures established by the Indiana department of
administration and approved by the budget agency.
(e) The Indiana finance authority, in its capacity as the
recreational development commission, may issue bonds for the
development of Prophetstown State Park under IC 14-14-1.
SOURCE: IC 6-9-40; (08)EH1250.2.3. -->
SECTION 3. IC 6-9-40 IS ADDED TO THE INDIANA CODE AS
A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE UPON
PASSAGE]:
Chapter 40. Steuben County Food and Beverage Tax
Sec. 1. This chapter applies to Steuben County.
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 transactions described in section 4 of this chapter.
(b) If the fiscal body adopts an ordinance under subsection (a),
the fiscal body shall immediately send a certified copy of the
ordinance to 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 a 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) made of 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 package used to
transport the food).
(c) The county food and beverage tax does not apply to the
furnishing, preparing, or serving of a food or beverage in a
transaction that is exempt, or to the extent the transaction is
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 a
transaction does not include the amount of tax imposed on the
transaction under IC 6-2.5.
Sec. 6. A 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
to be filed with the payment of the tax imposed under this chapter
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 department of state revenue.
Sec. 7. The amounts received from the tax imposed under this
chapter shall be paid monthly by the treasurer of state to the
county fiscal officer upon warrants issued by the auditor of state.
The county auditor shall, at least monthly, make a distribution of
fifty percent (50%) of the amount received from the treasurer of
state in the immediately preceding thirty (30) days to the city of
Angola. The remainder of the distribution shall be retained for use
by the county.
Sec. 8. (a) If a tax is imposed under section 3 of this chapter by
a county described in section 1 of this chapter, the fiscal officer of
a political subdivision receiving a distribution under this chapter
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) Money earned from the investment of money in the fund
becomes a part of the fund.
Sec. 9. (a) Except as provided in subsection (b), money in the
fund established under section 8 of this chapter shall be used by a
political subdivision receiving a distribution under this chapter
only for the following purposes:
(1) Construction, extension, or completion of sewerlines,
waterlines, streets, curbs, sidewalks, bridges, roads, highways,
alleys, public ways, parking facilities, lighting, electric signals,
information and high technology infrastructure (as defined
IC 5-28-9-4), and any other infrastructure improvements.
(2) Engineering, legal, and other consulting or advisory
services, plans, specifications, surveys, cost estimates, and
other costs or expenses necessary or incident to activities
described in subdivision (1).
(3) Park and recreation purposes, including the purchase of
land for park and recreation purposes.
(4) Police and law enforcement purposes, firefighting and fire
prevention purposes, emergency medical services and
ambulance services, and other public safety purposes.
(b) The fiscal body of a political subdivision receiving a
distribution under this chapter may pledge money in the political
subdivision's fund to pay bonds issued, loans obtained, and lease
payments or other obligations incurred by or on behalf of the
political subdivision to provide the infrastructure improvements
described in subsection (a).
(c) A pledge under subsection (b) is enforceable under
IC 5-1-14-4.
Sec. 10. With respect to obligations for which a pledge has been
made under section 9(b) of this chapter, the general assembly
covenants with the holders of the obligations that this chapter will
not be repealed or amended in a manner that will adversely affect
the imposition or collection of the tax imposed under this chapter
if the payment of any of the obligations is outstanding.
Sec. 11. The general assembly finds that Steuben County and the
city of Angola face unique challenges because of their fluctuating
population and that the challenges may be addressed through the
provisions of this chapter.
SOURCE: IC 9-18-44-1; (08)EH1250.2.5. -->
SECTION 5. IC 9-18-44-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 1. The bureau of motor
vehicles shall, with the advice of the Native American Indian affairs
commission established under IC 4-4-31.4, design and issue an
Indiana Native American trust license plate. The Indiana Native
American trust license plate shall be designed and issued as a special
group recognition license plate under IC 9-18-25.
SOURCE: IC 9-18-44-4; (08)EH1250.2.6. -->
SECTION 6. IC 9-18-44-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 4. (a) The Indiana
Native American trust fund is established.
(b) The treasurer of state shall invest the money in the Indiana
Native American trust fund not currently needed to meet the
obligations of the Indiana Native American trust fund in the same
manner as other public trust funds are invested. Interest that accrues
from these investments shall be deposited in the Indiana Native
American trust fund.
(c) The commissioner shall administer the Indiana Native American
trust fund. Expenses of administering the Indiana Native American
trust fund shall be paid from money in the Indiana Native American
trust fund.
(d) On June 30 of each year, the commissioner shall distribute the
money from the fund as follows:
(1) To The Museums At Prophetstown, Inc. Historic
Prophetstown for a calendar year ending before January 1,
2009.
(2) To the Native American Indian affairs commission
established under IC 4-4-31.4 for a calendar year beginning
after December 31, 2008.
(e) Money in the fund at the end of a state fiscal year does not revert
to the state general fund.
(f) The Native American Indian affairs commission may use
money received under this section for any lawful purpose of the
Native American Indian affairs commission.
SOURCE: IC 14-14-1-22; (08)EH1250.2.7. -->
SECTION 7. IC 14-14-1-22 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 22. The commission
may periodically provide by resolution for the issuance of park revenue
bonds of the commission for the purpose of paying all or any part of the
cost of at least one (1) park project. The principal of and the interest on
the bonds is payable solely from:
(1) the park revenues; or
(2) any other revenues;
specifically pledged or committed by statute to the payment of the
principal and interest.
SOURCE: ; (08)EH1250.2.8. -->
SECTION 8.
An emergency is declared for this act.