CHAPTER 25. HENRY COUNTY FOOD AND BEVERAGE TAX
IC 6-9-25
Chapter 25. Henry County Food and Beverage Tax
IC 6-9-25-1
Application of chapter
Sec. 1. (a) This chapter applies to a county having a population of
more than forty-seven thousand (47,000) but less than fifty thousand
(50,000).
(b) The county described in subsection (a) is unique because:
(1) governmental entities and nonprofit organizations in the
county have successfully undertaken cooperative efforts to
promote tourism and economic development; and
(2) several unique tourist attractions are located in the county,
including:
(A) the Indiana basketball hall of fame;
(B) the Wilbur Wright birthplace memorial; and
(C) a historic gymnasium.
(c) The presence of these unique attractions in the county has:
(1) increased the number of visitors to the county;
(2) generated increased sales at restaurants and other retail
establishments selling food in the county; and
(3) placed increased demands on all local governments for
services needed to support tourism and economic development
in the county.
(d) The use of food and beverage tax revenues arising in part from
the presence of the attractions identified in subsection (b)(2) to
support tourism and economic development in the county permits
governmental units in the county to diversify the revenue sources for
which local government improvements and services are funded.
As added by P.L.380-1987(ss), SEC.7. Amended by P.L.12-1992,
SEC.52; P.L.158-2005, SEC.1.
IC 6-9-25-2
Definitions
Sec. 2. The definitions in IC 6-9-12-1 apply throughout this
chapter.
As added by P.L.380-1987(ss), SEC.7.
IC 6-9-25-3
Ordinance imposing food and beverage tax; adoption; certified
copy to commissioner of department of state revenue; effective
date; prohibited imposition of tax
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.
(d) Notwithstanding any other law, the imposition of the tax under
this chapter is prohibited upon the satisfaction by the county of all of
its obligations authorized under section 11.5 of this chapter.
As added by P.L.380-1987(ss), SEC.7. Amended by P.L.50-1994,
SEC.1.
IC 6-9-25-4
Taxable transactions
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) 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.
As added by P.L.380-1987(ss), SEC.7. Amended by P.L.257-2003,
SEC.38.
IC 6-9-25-5
Tax rate
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.
As added by P.L.380-1987(ss), SEC.7.
IC 6-9-25-6
Imposition, payment, and collection of tax; return
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 taxes 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.
As added by P.L.380-1987(ss), SEC.7.
IC 6-9-25-7
Monthly payment of tax receipts to county treasurer
Sec. 7. The amounts received from the taxes imposed under this
chapter shall be paid monthly by the treasurer of state to the county
treasurer upon warrants issued by the auditor of state.
As added by P.L.380-1987(ss), SEC.7.
IC 6-9-25-8
Food and beverage tax receipts fund; establishment; depository;
investment income
Sec. 8. (a) If a tax is imposed under section 3 of this chapter, the
county treasurer shall establish a food and beverage tax receipts
fund.
(b) The county treasurer 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.
As added by P.L.380-1987(ss), SEC.7.
IC 6-9-25-9
Use of food and beverage tax money received before July 1, 1994
Sec. 9. (a) This section applies to revenues from the county food
and beverage tax received by the county before July 1, 1994.
(b) Money in the fund established under section 8 of this chapter
shall be used by the county in the following order:
(1) To pay debt service on bonds issued under IC 36-2-6-18
through IC 36-2-6-20, including up to two (2) years interest, to
finance:
(A) the acquisition, construction, or equipping of a
basketball hall of fame;
(B) all reasonable and necessary architectural, engineering,
legal, financing, accounting, advertising, bond discount, and
supervisory expenses related to the acquisition, construction,
or equipping of a basketball hall of fame or the issuance of
bonds; and
(C) the establishment or maintenance of a debt service
reserve fund for the bonds or any other reasonable or
necessary reserve funds to operate, repair, maintain, or
improve a basketball hall of fame.
(2) To redeem or prepay bonds after meeting all requirements
of any bond ordinance.
(3) To reimburse the county or any nonprofit corporation for
any money advanced for purposes of this chapter.
(c) Money held in the fund established under section 8 of this
chapter shall be held until distribution under subsection (b).
(d) The county auditor shall make a semiannual distribution, at the
time property tax revenue is distributed, to the paying agent for any
bonds described in subsection (b)(1). Each semiannual distribution
must be equal to principal and interest obligations on the bonds on
the next interest payment date. Money received by a paying agent
under this subsection shall be deposited in a special fund to be used
to service the bonds.
As added by P.L.380-1987(ss), SEC.7. Amended by P.L.75-1988,
SEC.4; P.L.50-1994, SEC.2.
IC 6-9-25-9.5
Use of food and beverage tax money; capital expenditures; county
capital improvements committee
Sec. 9.5. (a) This section applies to revenues from the county food
and beverage tax received by the county after June 30, 1994.
(b) Money in the fund established under section 8 of this chapter
shall be used by the county for the financing, construction,
renovation, improvement, equipping, or maintenance of the
following capital improvements:
(1) Sanitary sewers or wastewater treatment facilities that serve
economic development purposes.
(2) Drainage or flood control facilities that serve economic
development purposes.
(3) Road improvements used on an access road for an industrial
park that serve economic development purposes.
(4) A covered horse show arena.
(5) A historic birthplace memorial.
(6) A historic gymnasium and community center in a town in
the county with a population greater than two thousand (2,000)
but less than two thousand four hundred (2,400).
(7) Main street renovation and picnic and park areas in a town
in the county with a population greater than two thousand
(2,000) but less than two thousand four hundred (2,400).
(8) A community park and cultural center.
(9) Projects for which the county decides after July 1, 1994, to:
(A) expend money in the fund established under section 8 of
this chapter; or
(B) issue bonds or other obligations or enter into leases
under section 11.5 of this chapter;
after the projects described in subdivisions (1) through (8) have
been funded.
(10) An ambulance.
Money in the fund may not be used for the operating costs of any of
the permissible projects listed in this section. In addition, the county
may not issue bonds or enter into leases or other obligations under
this chapter after December 31, 2015.
(c) The county capital improvements committee is established to
make recommendations to the county fiscal body concerning the use
of money in the fund established under section 8 of this chapter. The
capital improvements committee consists of the following members:
(1) One (1) resident of the county representing each of the three
(3) commissioner districts, appointed by the county executive.
Not more than two (2) of the members appointed under this
subdivision may be from the same political party.
(2) Two (2) residents of the county, appointed by the county
fiscal body. The two (2) appointees may not be from the same
political party. One (1) appointee under this subdivision must
be a resident of a town in the county with a population greater
than two thousand (2,000) but less than two thousand four
hundred (2,400). One (1) appointee under this subdivision must
be a resident of a town in the county with a population greater
than two thousand four hundred (2,400).
(3) Two (2) residents of the largest city in the county, appointed
by the municipal executive. The two (2) appointees under this
subdivision may not be from the same political party. One (1)
appointee must be interested in economic development.
(4) Two (2) residents of the largest city in the county, appointed
by the municipal fiscal body. The two (2) appointees under this
subdivision may not be from the same political party. One (1)
appointee must be interested in tourism.
(d) Except as provided in subsection (e), the term of a member
appointed to the capital improvements committee under subsection
(c) is four (4) years.
(e) The initial terms of office for the members appointed to the
county capital improvements committee under subsection (c) are as
follows:
(1) Of the members appointed under subsection (c)(1), one (1)
member shall be appointed for a term of two (2) years, one (1)
member shall be appointed for three (3) years, and one (1)
member shall be appointed for four (4) years.
(2) Of the members appointed under subsection (c)(2), one (1)
member shall be appointed for two (2) years and one (1)
member shall be appointed for three (3) years.
(3) Of the members appointed under subsection (c)(3), one (1)
member shall be appointed for two (2) years and one (1)
member shall be appointed for three (3) years.
(4) Of the members appointed under subsection (c)(4), one (1)
member shall be appointed for three (3) years and one (1)
member shall be appointed for four (4) years.
(f) At the expiration of a term under subsection (e), the member
whose term expired may be reappointed to the county capital
improvements committee to fill the vacancy caused by the expiration.
(g) The capital improvements committee is abolished on January
1, 2016.
As added by P.L.50-1994, SEC.3. Amended by P.L.170-2002,
SEC.48; P.L.158-2005, SEC.2.
IC 6-9-25-10
Repealed
(Repealed by P.L.50-1994, SEC.11.)
IC 6-9-25-10.5
County food and beverage tax council; establishment; voting;
abolition
Sec. 10.5. (a) The county food and beverage tax council is
established in the county. The membership of the county food and
beverage tax council consists of the fiscal body of the county and the
fiscal body of each municipality that lies either partly or entirely
within the county.
(b) The county food and beverage tax council has a total of one
hundred (100) votes. Every member of the county food and beverage
tax council is allocated a percentage of the total one hundred (100)
votes that may be cast. The percentage that a municipality in the
county is allocated for a year equals the same percentage that the
population of the municipality bears to the population of the county.
The percentage that the county is allocated for a year equals the same
percentage that the population of all areas of the county not located
in a municipality bears to the population of the county. In the case of
a municipality that lies partly within the county, the allocation shall
be based on the population of that portion of the municipality that
lies within the county.
(c) Before January 2 of each year, the county auditor shall certify
to each member of the food and beverage tax council the number of
votes, rounded to the nearest one-hundredth (0.01), the member has
for that year.
(d) The food and beverage tax imposed under this chapter remains
in effect until the county food and beverage tax council adopts an
ordinance to rescind the tax.
(e) An ordinance to rescind the food and beverage tax takes effect
December 31 of the year in which the ordinance is adopted.
(f) The county food and beverage tax council may not rescind the
food and beverage tax if there are bonds outstanding or leases or
other obligations payable under this chapter.
(g) The county food and beverage tax council is abolished on
January 1, 2016.
As added by P.L.50-1994, SEC.4. Amended by P.L.158-2005, SEC.3.
IC 6-9-25-10.7
Ordinance to rescind food and beverage tax; procedures; voting
Sec. 10.7. (a) Any member of the county food and beverage tax
council may present an ordinance to rescind the food and beverage
tax. To do so, the member must adopt a resolution to propose the
ordinance to the county food and beverage tax council and distribute
a copy of the proposed ordinance to the auditor of the county. The
county auditor shall treat an ordinance presented to the county
auditor as a casting of all that member's votes in favor of the
proposed ordinance. The county auditor shall deliver copies of a
proposed ordinance to all other members of the county food and
beverage tax council within ten (10) days after receipt by the county
auditor. A member shall vote on the proposed ordinance within thirty
(30) days after receiving the proposed ordinance from the county
auditor. If a member does not vote within thirty (30) days, the county
auditor shall treat the member as having voted no on the proposed
ordinance.
(b) A member of the county food and beverage tax council may
exercise the member's votes by passing a resolution and transmitting
the resolution to the county auditor. A resolution passed by a
member of the county food and beverage tax council exercises all
votes of the member on the proposed ordinance. Those votes may not
be changed during the year.
(c) Before a member of the county food and beverage tax council
may propose an ordinance or vote on a proposed ordinance to rescind
the food and beverage tax, the member must hold a public hearing on
the proposed ordinance and provide the public with notice of the
time and place where the hearing will be held in accordance with
IC 5-3-1.
(d) The county auditor shall record all votes taken on a proposed
ordinance presented for a vote under this section and immediately
send a certified copy of the results to the department of state revenue
by certified mail.
As added by P.L.50-1994, SEC.5.
IC 6-9-25-11
Bonds; issuance; payment; lease of facilities
Sec. 11. (a) The county may issue its bonds to:
(1) pay any costs associated with a basketball hall of fame, as
set forth in section 9(b)(1) of this chapter;
(2) reimburse the county or any nonprofit corporation for any
money advanced to pay those costs; or
(3) refund bonds issued under this section.
(b) Bonds issued under this section:
(1) are payable solely from money provided under this chapter;
(2) must be issued in the manner prescribed by IC 36-2-6-18
through IC 36-2-6-20; and
(3) may, in the discretion of the county, be sold at negotiated
sale at a price to be determined by the county or in accordance
with IC 5-1-11 and IC 5-3-1.
(c) Proceeds of the tax established under this chapter may be
pledged:
(1) to pay debt service on bonds issued under this chapter;
(2) for the payment of lease rentals or other obligations entered
into under this chapter; or
(3) for any purposes set forth in section 9(b)(1) or 9.5 of this
chapter.
A pledge is enforceable as set forth in IC 5-1-14-4.
(d) The county may lease the basketball hall of fame facility to a
nonprofit corporation for a term not to exceed twenty-five (25) years.
The lease may contain any terms acceptable to the county council
and must be approved by ordinance of the county council.
As added by P.L.75-1988, SEC.5. Amended by P.L.50-1994, SEC.6.
IC 6-9-25-11.5
Bonds, leases, or other obligations; validity
Sec. 11.5. (a) Until January 1, 2016, the county may:
(1) use money in the fund established under section 8 of this
chapter to pay all or part of the costs associated with the
facilities described in section 9.5 of this chapter;
(2) issue bonds, enter into leases, or incur other obligations to
pay any costs associated with the facilities described in section
9.5 of this chapter;
(3) reimburse the county or any nonprofit corporation for any
money advanced to pay those costs; or
(4) refund bonds issued or other obligations incurred under this
chapter.
(b) Bonds or other obligations issued under this section:
(1) are payable from money provided in this chapter, any other
revenues available to the county, or any combination of these
sources, in accordance with a pledge made under IC 5-1-14-4;
(2) must be issued in the manner prescribed by IC 36-2-6-18
through IC 36-2-6-20;
(3) may, in the discretion of the county, be sold at a negotiated
sale at a price to be determined by the county or in accordance
with IC 5-1-11 and IC 5-3-1; and
(4) may be issued for a term not to exceed twenty (20) years,
such term to include any refunding bonds issued to refund
bonds originally issued under this section.
(c) Leases entered into under this section:
(1) may be for a term not to exceed fifty (50) years;
(2) may provide for payments from revenues under this chapter,
any other revenues available to the county, or any combination
of these sources;
(3) may provide that payments by the county to the lessor are
required only to the extent and only for the time that the lessor
is able to provide the leased facilities in accordance with the
lease;
(4) must be based upon the value of the facilities leased; and
(5) may not create a debt of the county for purposes of the
Constitution of the State of Indiana.
(d) A lease may be entered into by the county executive only after
a public hearing at which all interested parties are provided the
opportunity to be heard. After the public hearing, the executive may
approve the execution of the lease on behalf of the county only if the
executive finds that the service to be provided throughout the life of
the lease will serve the public purpose of the county and is in the best
interests of its residents. A lease approved by the executive must also
be approved by an ordinance of the county fiscal body.
(e) Upon execution of a lease under this section, and after
approval of the lease by the county fiscal body, the county executive
shall publish notice of the execution of the lease and the approval of
the lease in accordance with IC 5-3-1.
(f) An action to contest the validity of bonds issued or leases
entered into under this section must be brought within thirty (30)
days after the adoption of a bond ordinance or notice of the execution
and approval of the lease, as the case may be.
As added by P.L.50-1994, SEC.7. Amended by P.L.158-2005, SEC.4.
IC 6-9-25-12
Bonds, leases, or other obligations; adverse legislation covenant
Sec. 12. With respect to:
(1) bonds, leases, or other obligations for which a pledge of
revenues of the food and beverage tax imposed under this
chapter has been made by the county as set forth in section 11
or 11.5 of this chapter; and
(2) bonds issued by a lessor that are payable from lease rentals;
the general assembly covenants with the county, the purchasers or
owners of the bonds or other obligations described in subdivision (1),
and the owners of bonds described in subdivision (2) that this chapter
will not be repealed or amended in any manner that will adversely
affect the imposition or collection of the food and beverage tax
imposed by this chapter as long as the principal of any bonds, the
interest on any bonds, or the lease rentals due under any lease are
unpaid.
As added by P.L.75-1988, SEC.6. Amended by P.L.50-1994, SEC.8.
IC 6-9-25-13
Tourism and economic development projects; financing; purpose
Sec. 13. The financing of tourism and economic development
projects in the county serves a public purpose and is of benefit to the
general welfare of the county by encouraging investment, job
creation and retention, and economic growth and diversity.
As added by P.L.50-1994, SEC.9.
IC 6-9-25-14
Basketball hall of fame; operation and maintenance fund; use of
food and beverage tax to finance
Sec. 14. Notwithstanding any other law, funds accumulated from
the collection of the food and beverage tax imposed under section 3
of this chapter after redemption of the bonds issued under this
chapter and accrued before July 1, 1994, may be set aside in an
operation and maintenance fund for a basketball hall of fame
financed under section 9 of this chapter. Money in the fund may be
used by a nonprofit corporation that has leased the basketball hall of
fame facility for the operation, repair, maintenance, or improvement
of the basketball hall of fame.
As added by P.L.50-1994, SEC.10.