(A) Pursuant to I.C. 6-9-50 et seq., the Town Council hereby adopts a Food and Beverage Tax that shall be 1% of the gross retail income received by the merchant from the food or beverage transactions described in divisions (C) and (D) below of this section.
(B) The Food and Beverage Tax is hereby adopted after the Council held a duly noticed public hearing where the Food and Beverage Tax was the only substantive agenda item.
(C) Pursuant to I.C. 6-9-50-4, the Food and Beverage Tax shall apply to a 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 Town of Danville; and
(3) By a retail merchant for consideration ("Transactions").
(D) For purposes of this section and consistent with I.C. 6-9-50-4(b), TRANSACTIONS shall include those where 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) Made of two 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 section, a plate does not include a container or package used to transport the food).
(E) The Food and Beverage Tax shall not apply to the furnishing, preparing, or serving of a food or beverage in a transaction that is exempt, or to the extent the transaction is exempt, from the state gross retail tax imposed by I.C. 6-2.5.
(F) The Food and Beverage Tax shall be applicable to the transactions effective September 1, 2019.
(G) Pursuant to I.C. 6-9-50-6, the Food and Beverage Tax shall be imposed, paid, and collected in the same manner that the state gross retail tax is imposed, paid, and collected pursuant to I.C. 6-2.5.
(H) Pursuant to I.C. 6-9-50-8, the Clerk-Treasurer shall establish a fund known as the “Food and Beverage Tax Receipts Fund” and deposit all Food and Beverage Tax revenue received from the Indiana State Treasurer into the Food and Beverage Tax Receipts Fund.
(I) Money earned from the investment of money in the Food and Beverage Tax Receipts Fund shall become a part of the Fund.
(J) Food and Beverage Tax revenue shall only be used for the following purposes:
(1) Parks, trails, and sidewalk, street, and parking improvements to support tourism in the town; and
(2) For economic development purposes, including the pledge of money under I.C. 5-1-14-4 for bonds, leases, or other obligations for economic development purposes.
(Ord. 12-2019, passed 7-1-19)
Cross-reference:
Food and Beverage Tax Receipts Fund, see § 34.09