Introduced Version






HOUSE BILL No. 1255

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 6-9-34 .

Synopsis: Lake County food and beverage tax. Authorizes Lake County to impose a food and beverage tax to fund a regional transportation authority.

Effective: July 1, 2002.





Aguilera




    January 14, 2002, read first time and referred to Committee on Rules and Legislative Procedures.







Introduced

Second Regular Session 112th General Assembly (2002)


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 this style type.
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HOUSE BILL No. 1255



    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 6-9-34; (02)IN1255.1.1. -->     SECTION 1. IC 6-9-34 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]:
     Chapter 34. Lake County Food and Beverage Tax
    Sec. 1. This chapter applies to a county having a population of more than four hundred thousand (400,000) but less than seven hundred thousand (700,000).
    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 those transactions described in section 4 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 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 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) sold by a retail merchant who ordinarily bags, wraps, or packages the food or beverage for immediate consumption on or near the retail merchant's premises, including food or beverage sold on a "take out" or "to go" basis; or
        (3) sold by a street vendor.
    (c) The county food and beverage tax 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. 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 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 amounts received from the tax imposed under this chapter shall be paid monthly by the treasurer of state to the regional transportation authority established in the county under IC 36-9-3 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 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.
    (d) Money in this 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.