February 18, 2013
HOUSE BILL No. 1070
DIGEST OF HB 1070
(Updated February 13, 2013 9:18 pm - DI 92)
Citations Affected: IC 6-9.
Synopsis: Cloverdale food and beverage tax. Authorizes the
Cloverdale town council to impose a 1% food and beverage tax on
taxable food and beverage transactions in the town. Specifies the uses
to which receipts from the food and beverage tax may be applied.
Effective: July 1, 2013.
January 7, 2013, read first time and referred to Committee on Ways and Means.
February 18, 2013, reported _ Do Pass.
February 18, 2013
First Regular Session 118th General Assembly (2013)
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HOUSE BILL No. 1070
A BILL FOR AN ACT to amend the Indiana Code concerning
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-9-43; (13)HB1070.1.1. -->
SECTION 1. IC 6-9-43 IS ADDED TO THE INDIANA CODE AS
CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
Chapter 43. Cloverdale Food and Beverage Tax
Sec. 1. This chapter applies to the town of Cloverdale.
Sec. 2. The definitions in IC 6-9-12-1 apply throughout this
Sec. 3. (a) The fiscal body of the town may adopt an ordinance
to impose an excise tax, known as the town food and beverage tax,
on transactions described in section 4 of this chapter.
(b) If the fiscal body of the town 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 of the town adopts an ordinance under
subsection (a), the town food and beverage tax applies to
transactions that occur after the last day of the month that
succeeds the month in which the ordinance is 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 town 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 that require cooking by the consumer (as recommended
by the federal Food and Drug Administration in chapter 3,
subpart 3-401.11 of its Food Code to prevent food borne
(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 town food and beverage tax imposed under section 3 of
this chapter 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. A town food and beverage tax imposed under section 3
of this chapter equals one percent (1%) 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 IC 6-2.5.
Sec. 6. The town food and beverage 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. If a tax is imposed under section 3 of this chapter, the
amounts received from the tax shall be paid monthly by the
treasurer of state to the town fiscal officer upon warrants issued by
the auditor of state.
Sec. 8. (a) If a tax is imposed under section 3 of this chapter, the
town fiscal officer shall establish a food and beverage tax receipts
(b) The town fiscal officer 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.
Sec. 9. (a) Except as provided in subsection (b), money in the
food and beverage tax receipts fund established under section 8 of
this chapter shall be used by the town for the financing,
construction, operation, or maintenance of the following:
(1) Sanitary sewers or wastewater treatment facilities.
(2) Drainage or flood control facilities.
(3) Water treatment, storage, or distribution facilities.
(b) The fiscal body of the town may pledge money in the food
and beverage tax receipts fund to pay bonds issued, loans obtained,
and lease payments or other obligations incurred by or on behalf
of the town or a special taxing district in the town to provide the
facilities described in subsection (a).
(c) Subsection (b) applies only to bonds, loans, lease payments,
or other obligations that are issued, obtained, or incurred after the
date on which the town food and beverage tax is imposed under
section 3 of this chapter.
(d) A pledge under subsection (b) is enforceable under