Ind. Code ch. 6-9-41

in effect

Ind. Code § 6-9-41-0.3 Finding of conditions unique to City of Bloomington and Monroe County

Sec. 0.3. A large percentage of the land in the city of Bloomington and in Monroe County is not taxable because the land is owned by the state or the federal government, which puts the city and the county at a disadvantage in their ability to fund projects. These special circumstances require the legislation of P.L.176-2009 particular to the city and county. As added by P.L.220-2011, SEC.168.

Ind. Code § 6-9-41-1 Application of chapter

Sec. 1. This chapter applies to Monroe County. As added by P.L.176-2009, SEC.21.

Ind. Code § 6-9-41-2 Definitions

Sec. 2. Except as provided in sections 3, 4, and 9(b) of this chapter, the definitions in IC 6-9-12-1 and IC 36-1-2 apply throughout this chapter. As added by P.L.176-2009, SEC.21.

Ind. Code § 6-9-41-3 "City"

Sec. 3. As used in this chapter, "city" means the city of Bloomington. As added by P.L.176-2009, SEC.21.

Ind. Code § 6-9-41-4 "County"

Sec. 4. As used in this chapter, "county" means Monroe County. As added by P.L.176-2009, SEC.21.

Ind. Code § 6-9-41-5 Ordinance imposing tax

Sec. 5. (a) Subject to section 15.5 of this chapter, 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 6 of this chapter. The effective date of an ordinance adopted under this subsection must be after December 31, 2009. (b) If the fiscal body adopts an ordinance under subsection (a), the fiscal body shall immediately send a certified copy of the ordinance to the commissioner of the department of state revenue. (c) If the 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 is adopted. However, if an ordinance is adopted before December 1, 2009, and the ordinance takes effect January 1, 2010, the tax applies to transactions after December 31, 2009. As added by P.L.176-2009, SEC.21. Amended by P.L.236-2023, SEC.104.

Ind. Code § 6-9-41-6 Taxable transactions; exemption

Sec. 6. (a) Except as provided in subsection (c), a tax imposed under section 5 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.176-2009, SEC.21.

Ind. Code § 6-9-41-7 Rate of tax

Sec. 7. The county food and beverage tax imposed on a food or beverage transaction described in section 6 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 the transaction does not include the amount of tax imposed on the transaction under IC 6-2.5. As added by P.L.176-2009, SEC.21.

Ind. Code § 6-9-41-8 Collection of tax; returns

Sec. 8. If an ordinance is not adopted under section 9 of this chapter, the tax that may be imposed under section 5 of 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 under this chapter may be made separately 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.176-2009, SEC.21.

Ind. Code § 6-9-41-9 Payment of tax to county treasurer

Sec. 9. (a) The county fiscal body may adopt an ordinance to require that the tax imposed under section 5 of this chapter be reported on forms approved by the county treasurer and that the tax be paid monthly to the county treasurer. If an ordinance is adopted under this subsection, the tax shall be paid to the county treasurer not more than twenty (20) days after the end of the month in which the tax is collected. If an ordinance is not adopted under this subsection, the tax shall be imposed, paid, and collected in exactly the same manner as the state gross retail tax is imposed, paid, and collected under IC 6-2.5. (b) If an ordinance is adopted under this section, all of the provisions of IC 6-2.5 relating to rights, duties, liabilities, procedures, penalties, definitions, exemptions, and administration apply to the imposition and administration of the tax imposed under section 5 of this chapter, except to the extent those provisions are in conflict or inconsistent with the specific provisions of this chapter or the requirements of the county treasurer. (c) For purposes of this chapter, the terms "person" and "gross retail income" have the same meaning in this section as set forth in IC 6-2.5, except that "person" does not include state supported educational institutions. If the tax is paid to the department of state revenue, the returns to be filed for the payment of the tax under this section may be either a separate return or may be combined with the return filed for the payment of the state gross retail tax as the department of state revenue may by rule determine. As added by P.L.176-2009, SEC.21.

Ind. Code § 6-9-41-10 State distribution to county treasurer

Sec. 10. If an ordinance is not adopted under section 9 of this chapter, the amounts received from the county food and beverage tax imposed under section 5 of this chapter shall be paid monthly by the treasurer of state to the county treasurer upon warrants issued by the state comptroller. As added by P.L.176-2009, SEC.21. Amended by P.L.9-2024, SEC.252.

Ind. Code § 6-9-41-11 County food and beverage tax receipts fund

Sec. 11. (a) If an ordinance is adopted under section 5 of this chapter, the county treasurer shall establish a food and beverage tax receipts fund. (b) The county treasurer shall deposit in the fund county food and beverage tax revenue that the county treasurer receives. (c) Any money earned from the investment of money in the fund becomes part of the fund. (d) Money in the fund at the end of the county fiscal year does not revert to the county general fund. As added by P.L.176-2009, SEC.21.

Ind. Code § 6-9-41-12 Bloomington food and beverage tax receipts fund

Sec. 12. (a) If an ordinance is adopted under section 5 of this chapter, the fiscal officer of the city shall establish a food and beverage tax receipts fund. (b) The fiscal officer shall deposit in the fund county food and beverage tax revenue that the fiscal officer receives. (c) Any money earned from the investment of money in the fund becomes part of the fund. (d) Money in the fund at the end of the city fiscal year does not revert to the city general fund. As added by P.L.176-2009, SEC.21.

Ind. Code § 6-9-41-13 Allocation of food and beverage taxes between county and city

Sec. 13. (a) Each month, the county auditor shall distribute the county food and beverage tax revenue received by the county treasurer between the city and the county according to the location where the county food and beverage tax was collected. If the county food and beverage tax was collected in the city, the city must receive the revenue. If the county food and beverage tax was collected in the part of the county that is outside the city, the county must receive the revenue. (b) Distribution of county food and beverage tax revenue to the city must be on warrants issued by the county auditor. As added by P.L.176-2009, SEC.21.

Ind. Code § 6-9-41-14 County food and beverage tax receipts fund; requirement to develop a written plan for use of funds; requirement to spend money in the fund in accordance with written plan

Sec. 14. (a) The county's share of county food and beverage tax revenue deposited in the county food and beverage tax receipts fund may be used only to finance, refinance, construct, operate, or maintain a convention center, a conference center, or related tourism or economic development projects. (b) The county must develop a written plan before December 1 of each year that includes the: (1) proposed use of funds under subsection (a) for the upcoming calendar year; (2) detailed use of funds under subsection (a) in the current and prior calendar years; and (3) fund balance as of January 1 of the current calendar year. The written plan described in this subsection must be submitted to the state board of accounts and be made available on the department's computer gateway within thirty (30) days of submission. (c) The county must spend the money in the county food and beverage tax receipts fund in accordance with the written plan required by subsection (b). If no funds have been expended from the county food and beverage tax receipts fund in accordance with the written plan required by subsection (b) before July 1, 2025, then section 15.5 of this chapter applies. As added by P.L.176-2009, SEC.21. Amended by P.L.236-2023, SEC.105.

Ind. Code § 6-9-41-15 City food and beverage tax receipts fund; requirement to develop a written plan for use of funds; requirement to spend money in the fund in accordance with written plan

Sec. 15. (a) Money deposited in the city food and beverage tax receipts fund may be used only to finance, refinance, construct, operate, or maintain a convention center, a conference center, or related tourism or economic development projects. (b) The city must develop a written plan before December 1 of each year that includes the: (1) proposed use of funds under subsection (a) for the upcoming calendar year; (2) detailed use of funds under subsection (a) in the current and prior calendar years; and (3) fund balance as of January 1 of the current calendar year. The written plan described in this subsection must be submitted to the state board of accounts and be made available on the department's computer gateway within thirty (30) days of submission. (c) The city must spend the money in the city food and beverage tax receipts fund in accordance with the written plan required by subsection (b). If no funds have been expended from the city food and beverage tax receipts fund in accordance with the written plan required by subsection (b) before July 1, 2025, then section 15.5 of this chapter applies. As added by P.L.176-2009, SEC.21. Amended by P.L.236-2023, SEC.106.

Ind. Code § 6-9-41-15.5 Failure to spend money from the fund as required; ordinance voided; prohibited from adopting a new ordinance; distribution of unexpended money

Sec. 15.5. (a) This section applies only if the county and city do not spend money from the county or city food and beverage tax receipts fund as required by sections 14(c) and 15(c) of this chapter. (b) The ordinance adopted under section 5 of this chapter to impose the food and beverage tax is void and food and beverage tax revenue may not be collected after June 30, 2025. The county may not adopt a new ordinance under section 5 of this chapter after June 30, 2025. (c) The following apply to the distribution of the unexpended money in the county food and beverage tax receipts fund and city food and beverage tax receipts fund: (1) The: (A) county treasurer shall certify to the county auditor the balance in the county food and beverage tax receipts fund; and (B) city fiscal officer shall certify to the county auditor the balance in the city food and beverage tax receipts fund. (2) After the county auditor receives the certified fund balances under subdivision (1), the county auditor shall distribute, before October 1, 2025, the money in each fund according to the ratio that the maximum permissible ad valorem property tax levy under IC 6-1.1-18.5 for property taxes first due and payable in 2025 for each taxing unit in the county bears to the sum of all maximum permissible ad valorem property tax levies under IC 6-1.1-18.5 for property tax first due and payable in 2025 in the county. As added by P.L.236-2023, SEC.107.

Ind. Code § 6-9-41-16 Advisory commission

Sec. 16. (a) In order to coordinate and assist efforts of the county and city fiscal bodies regarding the utilization of food and beverage tax receipts, an advisory commission shall be established and composed of the following individuals: (1) Three (3) members who are owners of retail facilities that sell food or beverages subject to the county food and beverage tax imposed under this chapter appointed by the city and county executive. (2) The president of the county executive. (3) A member of the county fiscal body appointed by the members of the county fiscal body. (4) The city executive. (5) A member of the city legislative body appointed by the members of the city legislative body. (b) The county and city legislative bodies must request the advisory commission's recommendations concerning the expenditure of any food and beverage tax funds collected under this chapter. As added by P.L.176-2009, SEC.21. Amended by P.L.236-2023, SEC.108.

Ind. Code § 6-9-41-17 Expiration of tax

Sec. 17. (a) Except as otherwise provided in sections 14, 15, and 15.5 of this chapter, the tax authorized under this chapter expires on the later of: (1) January 1, 2045; or (2) the date on which all bonds or lease agreements outstanding on May 7, 2023, for which a pledge of tax revenue is made under this chapter are completely paid. (b) Not later than December 31, 2023, the fiscal officer of the county and the fiscal officer of the city shall provide to the state board of accounts: (1) a list of each bond or lease agreement outstanding on May 7, 2023, for which a pledge of tax revenue is made under this chapter; and (2) the date on which each bond or lease agreement identified in subdivision (1) will be completely paid. The information received under this subsection shall be published on the department of local government finance's interactive and searchable website containing local government information (the Indiana gateway for governmental units). As added by P.L.236-2023, SEC.109.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/6Fetched: 10/17/2026