Rate of tax
Sec. 5. (a) Subject to subsection (b), the county food and beverage
tax imposed on a food or beverage transaction described in section
3 of this chapter equals one percent (1%) of the gross retail income
received by the retail merchant from the transaction. The tax
authorized under this subsection expires January 1, 2041.
(b) On or before June 30, 2005, the city-county council of a
county may, by a majority vote of the members elected to the
city-county council, adopt an ordinance that increases the tax
imposed under this chapter by an additional rate of one percent (1%)
to a total rate of two percent (2%). The ordinance must specify that
the increase in the tax authorized under this subsection expires on:
(1) January 1, 2041;
(2) January 1, 2010, if on that date there are no obligations
owed by the capital improvement board of managers to the
authority created by IC 5-1-17 or to any state agency under
IC 5-1-17-26; or
(3) October 1, 2005, if on that date there are no obligations
owed by the capital improvement board of managers to the
Indiana stadium and convention building authority or to any
state agency under a lease or a sublease of an existing capital
improvement entered into under IC 5-1-17, unless waived by
the budget director.
If a city-county council adopts an ordinance under this subsection, it
shall immediately send a certified copy of the ordinance to the
commissioner of the department of state revenue, and the increase in
the tax imposed under this chapter applies to transactions that occur
after June 30, 2005.
(c) For purposes of this chapter, the gross retail income received
by the retail merchant from a transaction that is subject to the tax
imposed by this chapter does not include the amount of tax imposed
on the transaction under IC 6-2.5.
As added by Acts 1981, P.L.99, SEC.1. Amended by P.L.214-2005,
SEC.30.
Last modified: May 28, 2006