Bill > HB1596

This bill authorizes the city of Richmond to impose a local food and beverage tax with several key provisions. The tax can be up to 1% and must be levied in 0.25% increments, applying to prepared food and beverages served within the city, such as restaurant meals, heated food, mixed food items, and meals served with utensils. Before imposing the tax, the city's fiscal body must hold at least one public hearing specifically discussing the proposed tax. The tax will be collected and administered in the same manner as the state's gross retail tax, with revenues remitted monthly to the city. The collected funds must be used exclusively for specific purposes including promoting conventions and tourism, economic development, parks and recreation, activating the Whitewater Gorge, and potentially pledging money for related bonds or obligations. The tax has a defined sunset provision, terminating on July 1, 2047, with the entire chapter expiring on July 1, 2050. Importantly, the tax does not apply to transactions that would be exempt from the state's gross retail tax, providing some consumer protections.

Budget and Finance

https://iga.in.gov/legislative/2025/bills/house/1596/details