CHAPTER 26. MADISON COUNTY FOOD AND BEVERAGE TAX
IC 6-9-26
Chapter 26. Madison County Food and Beverage Tax
IC 6-9-26-1
Application of chapter
Sec. 1. This chapter applies to a county having a population of
more than one hundred thirty thousand (130,000) but less than one
hundred forty-five thousand (145,000).
As added by P.L.74-1988, SEC.2. Amended by P.L.12-1992, SEC.53;
P.L.170-2002, SEC.49.
IC 6-9-26-2
Definitions
Sec. 2. The definitions in IC 6-9-12-1 and IC 36-1-2 apply
throughout this chapter.
As added by P.L.74-1988, SEC.2.
IC 6-9-26-3
Rate of tax; ordinance
Sec. 3. (a) The fiscal body of the county may adopt an ordinance
no later than December 31, 1988, to impose an excise tax, known as
the county food and beverage tax, on those transactions described in
sections 6 and 7 of this chapter.
(b) The rate of the tax equals one percent (1%) of the gross retail
income on the transaction. For the 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.74-1988, SEC.2.
IC 6-9-26-4
Copy of ordinance
Sec. 4. If a fiscal body adopts an ordinance under section 3 of this
chapter, the clerk shall immediately send a certified copy of the
ordinance to the commissioner of the department of state revenue.
As added by P.L.74-1988, SEC.2.
IC 6-9-26-5
Effective date and application of ordinance
Sec. 5. If a fiscal body adopts an ordinance under section 3 of this
chapter, 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.
As added by P.L.74-1988, SEC.2.
IC 6-9-26-6
Application of tax
Sec. 6. Except as provided in section 8 of this chapter, 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.
As added by P.L.74-1988, SEC.2.
IC 6-9-26-7
Food served off-premises, in heated state, or with eating utensils
Sec. 7. Transactions described in section 6(1) of this chapter
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).
As added by P.L.74-1988, SEC.2. Amended by P.L.257-2003,
SEC.39.
IC 6-9-26-8
Exemptions
Sec. 8. 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.74-1988, SEC.2.
IC 6-9-26-9
Collection; returns
Sec. 9. 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.74-1988, SEC.2.
IC 6-9-26-10
Receipt of taxes
Sec. 10. The amounts received from the taxes 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.
As added by P.L.74-1988, SEC.2.
IC 6-9-26-11
Economic development project fund; establishment; deposits
Sec. 11. (a) If a tax is imposed under section 3 of this chapter, the
county fiscal officer shall establish an economic development project
fund.
(b) The county fiscal officer shall deposit in the 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.74-1988, SEC.2.
IC 6-9-26-12
Use of funds
Sec. 12. (a) Except as provided in section 12.5 of this chapter,
money in the county economic development project fund shall be
used by the county solely to:
(1) finance, construct, improve, equip, operate, maintain, and
promote first, a civic center, and then an economic development
project, if there is money not needed for a civic center,
approved under section 13 of this chapter; and
(2) retire bonds issued, loans obtained, or lease payments
incurred under IC 36-1-10 (referred to in this chapter as
"obligations") to finance, construct, improve, equip, operate,
maintain, or promote first, a civic center, and then an economic
development project approved under section 13 of this chapter.
(b) Obligations entered into for the purposes described in
subsection (a) shall be retired by using money collected from a tax
imposed under this chapter.
As added by P.L.74-1988, SEC.2. Amended by P.L.51-1992, SEC.1.
IC 6-9-26-12.5
Transfer of funds; use
Sec. 12.5. (a) This section applies if there are no outstanding
obligations for which a pledge has been made under section 15(a) of
this chapter concerning uses authorized under section 12 of this
chapter.
(b) Money deposited in the county economic development project
fund before March 1, 1992, shall be transferred to the following:
(1) Fifty percent (50%) of the money deposited shall be
transferred to the fiscal officer of a city having a population of
more than fifty-nine thousand seven hundred (59,700) but less
than sixty-five thousand (65,000).
(2) Fifty percent (50%) of the money deposited shall be
transferred to the county general fund. Money transferred under
this subdivision shall be used for:
(A) economic development projects in locations other than
a city described in subdivision (1); or
(B) the following purposes:
(i) The financing, construction, or equipping of a secure
detention facility under IC 31-31-8 or IC 31-6-9-5
(repealed).
(ii) All reasonable and necessary architectural,
engineering, legal, financing, accounting, advertising, and
supervisory expenses related to the financing,
construction, or equipping of a facility described in item
(i).
(iii) The retiring of any bonds issued, loans obtained, or
lease payments incurred under IC 36-1-10 to finance,
construct, or equip a facility described in item (i).
(c) Except as provided in subsection (d), money deposited in the
county economic development project fund after February 29, 1992,
shall be transferred to the following:
(1) Forty percent (40%) of the money deposited shall be
transferred to the fiscal officer of a city described in subsection
(b)(1).
(2) Forty percent (40%) of the money deposited shall be
transferred to the county general fund. Money transferred under
this subdivision shall be used for the following purposes:
(A) The financing, construction, or equipping of a secure
detention facility under IC 31-31-8 or IC 31-6-9-5
(repealed).
(B) All reasonable and necessary architectural, engineering,
legal, financing, accounting, advertising, and supervisory
expenses related to the financing, construction, or equipping
of a facility described in clause (A).
(C) The retiring of any bonds issued, loans obtained, or lease
payments incurred under IC 36-1-10 to finance, construct, or
equip a facility described in clause (A).
(3) Twenty percent (20%) of the money deposited shall be
transferred to the county general fund. Money transferred under
this subdivision shall be used for economic development
projects in locations other than a city described in subsection
(b)(1).
(d) After the retiring of any bonds issued, loans obtained, or lease
payments incurred under IC 36-1-10 to finance, construct, or equip
a secure detention facility under subsection (c)(2), money deposited
in the county economic development project fund after February 29,
1992, shall be transferred to the following:
(1) Seventy percent (70%) of the money deposited shall be
transferred to the fiscal officer of a city described in subsection
(b)(1).
(2) Thirty percent (30%) of the money deposited shall be
transferred to the county general fund. Money transferred under
this subdivision shall be used for economic development
projects in locations other than a city described in subsection
(b)(1).
(e) Money transferred to a city fiscal officer under subsection
(b)(1), (c)(1), or (d)(1) shall be credited to a special account to be
known as the city economic development account. Money credited
to the account shall be used only for those purposes described in
IC 6-3.5-7 (the county economic development income tax).
As added by P.L.51-1992, SEC.2. Amended by P.L.1-1997, SEC.38;
P.L.170-2002, SEC.50.
IC 6-9-26-13
Disbursements; resolution and findings; restrictions on use
Sec. 13. (a) Before disbursing money from the fund established
under section 11 of this chapter for an economic development project
under section 12.5(b)(2)(A), 12.5(c)(3), or 12.5(d)(2) of this chapter,
the county fiscal body must adopt a resolution that contains the
following:
(1) A written finding that the project will do all of the
following:
(A) Attract new business enterprises to the county or retain
or expand existing business enterprises in the county.
(B) Benefit the public health and welfare and be of public
utility and benefit.
(C) Protect and increase state and local tax bases or
revenues.
(D) Result in a substantial increase in temporary and
permanent employment opportunities and private sector
investment within the county.
(2) The amounts to be disbursed from the fund for each
economic development project.
(3) The date of the disbursement.
(b) The county fiscal body may impose restrictions on the use of
the funds as a condition of the disbursement by including the
restrictions in the resolution adopted under subsection (a).
As added by P.L.74-1988, SEC.2. Amended by P.L.51-1992, SEC.3.
IC 6-9-26-14
Repeal of ordinance
Sec. 14. If no obligations are outstanding, the county fiscal body
may repeal the ordinance adopted under section 3 of this chapter
imposing the tax before December 1 in any year.
As added by P.L.74-1988, SEC.2.
IC 6-9-26-15
Pledge of funds to finance obligations
Sec. 15. (a) The county may enter into an agreement under which
amounts deposited in, or to be deposited in, the fund are pledged to
payment of obligations issued to finance the uses for the money
authorized under section 12 or 12.5 of this chapter.
(b) With respect to obligations for which a pledge has been made
under subsection (a), the general assembly covenants with the
holders of these obligations that:
(1) this chapter will not be repealed or amended in any manner
that will adversely affect the imposition or collection of the tax
imposed under this chapter; and
(2) this chapter will not be amended in any manner that will
change the purpose for which revenues from the tax imposed
under this chapter may be used;
as long as the payment of any of those obligations is outstanding.
As added by P.L.74-1988, SEC.2. Amended by P.L.51-1992, SEC.4.
IC 6-9-26-16
Repeal of ordinance; effective date; copy
Sec. 16. The repeal of an ordinance under section 14 of this
chapter takes effect January 1 immediately following the date the
repeal was adopted. If the fiscal body repeals the ordinance, the clerk
shall immediately send a certified copy of the ordinance repealing
the ordinance imposing the tax to the commissioner of the
department of state revenue.
As added by P.L.74-1988, SEC.2.