HB 1099 Uniform Food & Beverage Tax

Rep. Bob Cherry has introduced HB 1099 concerning a uniform food and beverage tax. Food and beverage taxes are, basically, taxes imposed on food and drinks served at restaurants. They are imposed locally, usually at the County level, but sometimes by cities and towns. However, current state law does not let every county or locality impose the tax. Rather, it’s an uneven patchwork where each locality that imposes such a tax has received special dispensation from the State.

You can see the patchwork if you go to IC 6-9 which contains the various food and beverage chapters of the Indiana Code:

24 – Nashville Food and Beverage Tax

25 – Henry County Food and Beverage Tax

26 – Madison County Food and Beverage Tax

27 – Miscellaneous Local Food and Beverage Taxes

33 – Allen County Supplemental Food and Beverage Tax

36 – Lake County and Porter County Food and Beverage Tax

38 – Food and Beverage Taxes in Wayne County

40 – Steuben County Food and Beverage Tax

41 – Monroe County Food and Beverage Tax

43 – Cloverdale Food and Beverage Tax

44 – Town of Fishers Food and Beverage Tax

45 – Rockville Food and Beverage Tax

47.5 – Orange County Food and Beverage Tax

HB 1099 would expand the food and beverage taxing authority to the counties more uniformly across the state. If the county does not already have special authority to impose a food and beverage tax under one of these existing laws, the County Council would have the authority to impose a food and beverage tax of up to 1% (or less, provided that the lesser amount was in .25% increments). Revenues from the tax could be used on “capital improvements that promote economic development in the county, including fairgrounds, convention centers, or conference centers,” and on expenses related to those capital improvements. This is fairly consistent with limitations imposed on use of such tax revenue in the chapters specific to the favored counties listed above.

I understand that people object to taxes generally and imposition of a food and beverage tax will be unwelcome regardless. But this new legislation would turn that decision-making authority over to the counties which seems reasonable given the number and variety of special exceptions already in the Indiana Code. The current system gives the authority to those localities who have legislators with the inclination, the juice, and timing to get legislation through the General Assembly.

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