(A) Food and beverage tax adopted.
(1) Pursuant to the authority granted to the Town Council by the General Assembly of the state, under I.C. 6-9-27-1 through 6-9-27-10, there is hereby adopted a food and beverage tax to be imposed upon any transaction in which food or beverage is furnished, prepared or served:
(a) For consumption at a location or on equipment provided by a retail merchant;
(b) In the town in which the tax is imposed; and
(c) By retail merchant for consideration.
(2) (a) The transactions described in division (A)(1) above include, but are not limited to, transactions in which food and beverage is:
1. Served by retail merchant off the merchant’s premises;
2. Sold by a retail merchant who ordinarily bags, wraps or packages the food or beverage for immediate consumption on or near the retail merchant’s premises, including food or beverage on a “take out” or “to go” basis; or
3. Sold by a street vendor.
(b) The town food and beverage tax does 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 et seq.
(B) Percent of gross retail income. The food and beverage tax imposed on a food or beverage transaction described in division (A) above equals 1% of the gross retail income received by the merchant from the transaction. For purposes of this section, the gross retail income received by the retail merchant from a transaction does not include the amount of tax imposed on the transaction under I.C. 6-2.5 et seq.
(C) Payment of tax.
(1) The tax imposed under this section shall be imposed, paid and collected in the same manner that the state gross retail tax is imposed, paid and collected under I.C. 6-2.5 et seq. However, the return to be filed with the payment of the tax imposed under this section may be made on a separate return 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.
(2) The amounts received from the tax imposed under this section shall be paid monthly by the State Treasurer to the Clerk-Treasurer upon warrants issued by the State Auditor.
(D) Food and Beverage Receipts Fund.
(1) The Town Clerk-Treasurer shall establish a Food and Beverage Receipts Fund (the “Fund”).
(2) The Town Clerk-Treasurer shall deposit in this Fund all amounts received under this section.
(3) Any money earned from investment of money in the Fund becomes a part of the Fund.
(4) The Clerk-Treasurer for the town shall apply the monies held in the Fund as directed by the Town Council for the financing, construction, operation or maintenance of the following:
(a) Sanitary sewers or wastewater treatment facilities;
(b) Park or recreational facilities;
(c) Drainage or flood control facilities; and
(d) Water treatment, storage or distribution facilities.
(5) The Town Council may pledge money in the Fund to pay bonds issued, loans obtained and lease payments or other obligations incurred by or on behalf of the town or a special taxing district in the town to provide the facilities described in division (D)(4) above. This division (D)(5) applies only to bonds, loans, lease payments or obligations that are issued, obtained or incurred after the date on which the tax is imposed under division (B) above. A pledge of the money in the Fund for the financing, construction, operation or maintenance of any of the possible itemized improvements is an enforceable pledge under I.C. 5-1-14-4.
(E) Application. The tax imposed by this section applies to transactions that occur after the last day of the month that succeeds the month in which this section is adopted.
(Ord. 8-1990, passed 6-27-1990)